Q3 2023 NeuroPace Inc Earnings Call
Speaker 1: Ladies and Chairman, greetings and welcome to the Narrow Pace Inc. 3rd Quarter 2023 Earnings Conference Call. At this time all participants are...
Ladies and gentlemen, greetings and welcome to the natural pace, Inc. Third quarter 2023 earnings Conference call.
At this time all participants are in a listen only mode.
Speaker 1: A brief question and answer session will follow the formal presentation.
A brief question and answer session will follow the formal presentation.
Speaker 1: If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.
If anyone should require operator assistance during the conference. Please that's stock and see though on your telephone keypad.
As a reminder, this conference is being recorded.
Speaker 1: It is now my pleasure to introduce your host, Irena Ridley, Chief Legal Officer. Please go ahead.
It is now my pleasure to introduce your host Irene already Chief legal officer.
Please go ahead.
Speaker 2: Good afternoon. Thank you for joining us for Neuropace's third quarter 2023 financial and operating results conference call. On today's call, we will hear from Joel Becker, Chief Executive Officer, and Rebecca Kuhn, Chief Financial Officer. Earlier today, Neuropace released financial results for the third quarter and is September 30th, 2023. A copy of the press release is available on the company's website at neuropace.com.
Good afternoon. Thank you for joining us for neuro cases third quarter 2023 financial and operating results conference call on today's call, you'll hear from Joel Becker, Chief Executive Officer, and Rebecca Good Chief Financial Officer.
Earlier today <unk> released financial results for the third quarter ended September 30th 2023, a copy of the press release is available on the company's website at neuro paid dotcom.
Before we begin I would like to remind you that throughout this call. We will make statements that include forward looking statements within the meaning of federal Securities laws, which are made pursuant to the safe Harbor provision of the private Securities Litigation Reform Act of 1995.
Speaker 2: Before we begin, I would like to remind you that throughout this call, we will make statements that include forward-looking statements within the meaning of federal security laws, which are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.
Speaker 2: Any statements made during this call that relate to expectations or predictions of future events, results, or performance are forward-looking statements.
Any statements made during this call that relate to expectations or predictions of future events.
All our performance are forward looking statements.
Speaker 2: All forward-looking statements, including those around neuro cases projections, business opportunities, commercial expansion, market conditions, clinical trials, and those relating to our operating trends and future financial performance, the impact of COVID-19 on our business and prospects for recovery, expense management, estimates of market opportunity, and forecasts of market and revenue growth are based on current estimates and various assumptions.
All forward looking statements, including those around neuro cases projection business opportunities commercial expansion market condition clinical trials and those relating to our operating trends and future financial performance the impact of COVID-19 on our business prospects for recovery expense man.
Men.
Estimates of market opportunity and forecast of market and revenue growth are based on current estimates and various assumptions.
Speaker 2: These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those implied by these forward-looking statements.
These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those implied by these forward looking statements.
Speaker 2: Accordingly, we should not place undue reliance on these statements.
Accordingly, you should not place undue reliance on these statements.
Speaker 2: From our detailed descriptions of the risks and uncertainties associated with our business, please refer to the risk factor section of our public fileings of the SEC, including our annual report on from 10K for the year ended December 31, 2022, filed with the SEC on March 2, 2023, and our quarterly report on from 10Q for the quarter ended September 30, 2023, to be filed with the SEC, as well as any reports that we may file with the SEC in the future.
For more detailed descriptions of the risks and uncertainties associated with our business. Please refer to the risk factors section of our public filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2022 filed with the SEC. He had March 2nd 2023, and our quarterly report on form.
10-Q for the quarter ended September 30th 2023 to be filed with the SEC as long as any reports that we may file with the as you see it in the future.
Speaker 2: This conference call contains time-sensitive information, which we believe is accurate only as of this live broadcast on November 6, 2023.
This conference call contains time sensitive information, which we believe is accurate only as of this live broadcast November six 2023.
Speaker 2: narrowcase disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.
Narrow case disclaims any intention or obligation except as required by law to update.
Or revise any financial projections or forward looking statements.
Whether because of new information future events or otherwise.
Speaker 2: And with that, I will now turn the call over to Neurocase's Chief Executive Officer, Joel Becker.
And with that I will now turn the call over to narrow cases, Chief Executive Officer Joel Becker.
No.
Thank you Irina and good afternoon, everyone.
Speaker 3: As you saw in the press release we issued earlier today, we had a strong third quarter marked by strong year over year revenue growth and operating execution. The fundamentals of our...
As you saw on the press release, we issued earlier today, we had a strong third quarter marked by strong year over year revenue growth and operating execution.
Fundamentals of our business are well established and I look forward to updating you on several meaningful milestones, which we believe will drive future growth.
Speaker 3: and I look forward to updating you on several meaningful milestones which we believe will drive.
Speaker 3: On today's call, I will provide highlights from the third quarter of 2020.
On today's call I will provide highlights from the third quarter of 2023 and review our key business priorities for the remainder of 2023 and into 2024 I will then turn the call over to our CFO Rebecca Kuhn.
Speaker 3: and review our key business priorities for the remainder of 2023 and into 2023.
Speaker 3: I will then turn the call over to our CFO , Rebecca Kuhn.
To present, the details of financial performance for the quarter before opening the call up to Q&A.
Speaker 3: present the details of financial performance for the quarter before opening the call to Q&A.
Total revenue for the third quarter was $16 4 million.
Speaker 3: Total revenue for the third quarter was $16.4 million.
Speaker 3: representing growth of 47% compared to the prior year and, as anticipated, down 1% compared to the second quarter of 2023 as we experienced slate seasonality and a reduction in the number of replacements.
Presenting a growth of 47% compared to the prior year.
And as anticipated.
One 1% compared to the second quarter of 2023, as we experienced slight seasonality and a reduction in the number of replacement procedures as we complete transition to the newer longer lasting battery device.
Speaker 3: as we complete transition to the newer, longer lasting battery device.
Speaker 3: Strong year-over-year performance was again primarily driven by initial implant growth within comprehensive epilepsy centers or
Strong year over year performance was again, primarily driven by initial implant growth within comprehensive epilepsy centers or C. D. CS.
Speaker 3: both through increased utilization and adoption by prescribers, and by implants of our RNS system and our nodules.
Both through increased utilization and adoption by prescribers and by implants of our rns system and our novel study.
Speaker 3: We also continue to see increasingly higher contribution from our partnership with Dixie Med.
We also continued to see increasingly higher contribution from our partnership with Dixie Medical.
Speaker 3: As expected, replacement RNS implant revenue continues to decline, now at approximately 3% of total revenue.
As expected replacement Rns implant revenue continues to decline now at approximately 3% of total revenue.
We believe that replacement revenue will become a tailwind once more of the newer devices with the longer lasting battery life begin to reach end of service.
Speaker 3: We believe that replacement revenue will become a tailwind once more of the newer devices with the longer lasting battery life begin to reach.
Speaker 3: Light of our Q3 results, we are raising full year 2023 revenue guidance to a range of 62.5 million to 63.
In light of our Q3 results, we are raising full year 2023 revenue guidance to a range of $62 5 million to $63 5 million.
Speaker 3: up from 59 million to 61 million set last quarter and up from the 50 million to 52 million range. We communicated…
Up from 59 million to 61 million set last quarter.
And up from the 50 million to $52 million range, we communicated at the start of the year.
We were also pleased with our gross margin performance improvement to 74, 5% in Q3 up from 71, 4% in the prior year period, and 72, 5% in Q2 2023.
Speaker 3: We were also pleased with our gross margin performance improvement to 74.5% in Q3, up from 71.4% in the prior year period, and 72.5% in Q3.
Speaker 3: As volumes increase and the costs are allocated across more units, we expect gross margin for 2023 to be between 71.
As volumes increase and the costs are allocated across more units.
We expect gross margin for 2023 to be between 71% and 73%.
Speaker 3: up from 70% to 72% as previously communicated. donate.
Up from 70% to 72% as previously communicated.
We remain committed to disciplined expense management and this in combination with revenue growth and gross margin performance.
Speaker 3: And this in combination with revenue growth and gross margin performance, along with the impact of timing of collections from our customers.
Along with the impact of timing of collections from our customers has resulted in cash burn of $2.2 million in the third quarter of 2023 compared to $4 million in the second quarter of 2023.
Speaker 3: has resulted in cash burn of $2.2 million in the third quarter of 2020.
Speaker 3: compared to $4 million in the second quarter of 2020.
Speaker 3: again without compromising revenue growth and with a continued focus on our key priorities.
Ken without compromising revenue growth and with a continued focus on our key priorities.
Speaker 3: Well, we believe Q3 cash burn was the result of several factors, we're pleased with the result, and we'll continue our efforts to manage expenses as we focus on profitability.
Well, we believe Q3 cash burn was the result of several factors. We're pleased with the result, and we will continue our efforts to manage expenses as we focus on profitability.
Speaker 3: Based on our current cash burn rate, we now believe that we have sufficient capital to fund our planned operations into 2026.
Based on our current cash burn rate, we now believe that we have sufficient capital to fund our planned operations and.
For 2026.
I would now like to turn your attention to our operating achievements, which we expect will have a meaningful impact on our near and longer term growth prospects.
Speaker 3: which we expect will have a meaningful impact on our near and longer term growth process.
Speaker 3: There were a number of significant operating achievements in the quarter, which reinforce our continued focus on demonstrating strong execution in the
There were a number of significant operating achievements in the quarter, which reinforce our continued focus on demonstrating strong execution in the business.
We saw our first implants of the rns system in the community setting that's part of the initiation of our pilot activities for our project care program.
Speaker 3: We saw our first implants of the RNS system in the community setting as part of the initiation of our pilot activities for our Project CARE program.
Speaker 3: We also took significant steps in streamlining patient care, particularly important as we expand into the community.
We also took significant steps in streamlining patient care, particularly important as we expand into the community through FDA approval of our tablet remote monitor and the launch of the updated insight platform and.
Speaker 3: through FDA approval of our tablet remote monitor and the launch of the updated end-site plan.
Speaker 3: and we remain on track to complete enrollment in our NAWDLIS trial in Q1 2024 to expand our indication into generalized epilepsy.
And we remain on track to complete enrollment in our Nautilus trial in Q1 2024 to expand our indication into generalized epilepsy.
We'd like to start with our project care expansion.
Speaker 3: We have been focused on refining our strategy for launching our commercial efforts into the community and are expecting full launch of our pilot program with a group of community customers in the first.
We have been focused on refining our strategy for launching our commercial efforts into the community and are expecting full launch of our pilot program with a group of community customers in the first half of 'twenty 'twenty four.
Speaker 3: We have seen significant interest in these efforts and some of these pilot customers have been eager to advance quicker through the process. As a result, we're happy to announce our first implants with the RNF system in the community setting with this initial group of pilot customers.
We have seen significant interest in these efforts and some of these pilot customers have been eager to advance quicker through the process. As a result, we're happy to announce our first implants with the iron if system in the community setting with this initial group of pilot customers.
Speaker 3: The patients in the planet are doing well, and we're pleased that we're now able to bring R&S therapy. Not only to the additional 1800 epilepsy just in an expanded group of functional neurosurps.
Patients implanted are doing well and we're pleased that we're now able to bring artists therapy not only to the additional 1800 epileptic logistics and an expanded group of functional neurosurgeons, but most importantly to the indicated patients who would or could not have been referred to a level four center for treatment we will.
Speaker 3: But most importantly, to the indicated patients who would or could not have been referred to a Level 4 Center for the
Speaker 3: We will continue to be thoughtful and targeted in these expansion up.
Continue to be thoughtful and targeted in these expansion efforts.
Speaker 3: It is also important to note, alongside our initial work with these community centers,
It is also important to note alongside our initial work with these community centers.
Speaker 3: We have remained focused on ensuring appropriate patients are referred to level 4 CECs for further
We have remained focused on ensuring appropriate patients are referred for level four C. He sees for further diagnosis and treatment.
Speaker 3: We believe that as a result of the work we've started to do in the community, additional patients have already been identified for referral into Level 4 Center.
We believe that as a result of the work we've started to do in the community additional patients have already been identified for referral into level four centers our expansion into the community demonstrates the benefits both locally and more broadly with expanding access to rns therapy. We're excited by the opportunity to close the treatment gap.
Speaker 3: Our expansion into the community demonstrates the benefits both locally and more broadly of expanding access to R&S therapy. We're excited by the opportunity to close the treatment gap and plan to provide additional updates as our efforts.
<unk> planned to provide additional updates as.
Our efforts continue.
Speaker 3: Next, we are pleased with our continued progress and enrolling patients into our Nautilus trial, and we remain on track to complete enrollment in Q1-20.
Next we are pleased with our continued progress in enrolling patients into our novel as trial and we remain on track to complete enrollment in Q1 2024.
As we look to grow and scale our business. We are focused on delivering a product that is not only clinically superior, but also user friendly both as it relates to our patient and clinician user groups.
Speaker 3: As we look to grow and scale our business, we are focused on delivering a product that is not only clinically superior, but also user friendly, both as it relates to our patient and clinician user groups. With that,
That in mind as you may have seen we've recently introduced two new product enhancements designed to streamline the rns experience.
Speaker 3: We've recently introduced two new product enhancements designed to streamline the RNS experience.
Speaker 3: We launched our enhanced NCI data management system in Q3 with overwhelmingly positive
We launched our enhanced insight data management system in Q3 with overwhelmingly positive clinician feedback.
We also recently launched our new tablet remote monitor or T. R. M ahead of schedule.
Speaker 3: We also recently launched our new Cablet Remote Monitor, or TRM, a head of schedule.
Speaker 3: The TRM and InSight launches enable important advancements in the efficiency and ease of use.
The tier M and insight lunches enable important advancements in the efficiency and ease of use of the rns system.
Speaker 3: We believe that delivering a quality product that is easy to use across a variety of stakeholders and is supported by world-class data will enable us to further grow and scale.
We believe that delivering a quality product that is easy to use across a variety of stakeholders and is supported by world class data will enable us to further grow and scale.
Speaker 3: We are committed to continuing to deliver product improvements that streamline care, making it easier for physicians to deliver optimal care to their patients.
We are committed to continuing to deliver product improvements that streamline care.
It's easier for physicians to deliver optimal care to their patients.
Speaker 3: As our financial results for the quarter suggest, we saw continued momentum around our efforts to make our RNF system available to more patients living with drug-resistant F.
As our financial results for the quarter suggest we saw continued momentum around our efforts to make our rns system available to more patients living with drug resistant epilepsy.
Speaker 3: We believe this is a critical time to focus on transforming the ways in which epilepsy care is delivered to patients.
We believe this is a critical time to focus on transforming the ways in which epilepsy care is delivered to patients.
Speaker 3: We are focused on the International League Against Epilepsy or ILAE Guidelines, which state that once a patient has tried and failed two medications, they should be referred for additional treatment, even if...
We are focused on the international league against epilepsy, or I L E guidelines, which state that once a patient has tried and failed to medications.
They shouldn't be referred for additional treatment.
Even if surgical intervention is not appropriate.
Speaker 3: We believe R&F fits exactly in that category.
We believe rns fits exactly in that category.
Speaker 3: This has and will continue to help drive our strategy, which involves expanding utilization of our R&S system among existing clinicians and...
This has and will continue to help drive our strategy, which involves expanding utilization of our rns system among existing clinician N C. He sees increasing adoption of our rns system by additional clinicians at C six and in the community and expanding patient indications for our rns system.
Speaker 3: increasing adoption of our RNS system by additional clinicians at CECs and in the community and expanding patient indications.
With that I will now turn the call over to Rebecca to review, our strong third quarter financial results Rebecca.
Speaker 3: With that, I will now turn the call over to Rebecca to review our strong third quarter financial results. Rebecca? Rebecca?
Thank you Jill no cases revenue for the third quarter up 2023 was $16 $4 million representing growth of 47% compared to $11 $2 million for the third quarter 2022.
Speaker 4: Neuropacers revenue for the third quarter of 2023 was $16.4 million, representing growth of 47% compared to $11.2 million for the third quarter of 2022.
Speaker 4: and down 1% compared to $16.5 million in the second quarter of 2023, as seasonality and a decline in replacement revenue played a role in our sequential performance.
And down 1% compared to $16 $5 million in the second quarter of 2023.
Seasonality and a decline in replacement revenue played a role in our sequential performance.
Speaker 4: Our strong Q3 results were primarily driven by increased adoption and utilization of our R&F system by physicians in treating new patients.
Our strong Q3 results were primarily driven by increased adoption and utilization of our rns system by physicians in treating new patients.
Speaker 4: We also continue to generate meaningful revenue from Dixie Medical products.
We also continue to generate meaningful revenue from Dixie medical products.
The placement in Quant Robin who continued to decline again this quarter as anticipated and represented approximately 3%.
Speaker 4: The placement in plant revenue continued to decline again this quarter as anticipated and represented approximately 3% of total revenue.
Total revenue.
Gross margin for the third quarter of 2023 by 74, 5% compared to 71, 5% in the third quarter of 2022 and 72, 5% in the second quarter of 2023.
Speaker 4: First margin for the third quarter of 2023 was 74.5% compared to 71.4% in the third quarter of 2022 and 72.5% in the second quarter of 2023.
Speaker 4: Our gross margin increased primarily due to the increase in R&S products produced and sold, as our fixed manufacturing overhead costs were spread over more units.
Our gross margin increased primarily due to the increase in our net products produced and sold.
Fixed manufacturing overhead costs were spread over more units.
Speaker 4: The increase in RNS gross margin was partially offset by the lower gross margin for distribution of Dixie Medical products.
The increase in our gross margin was partially offset by the lower gross margin for distribution of Dixie medical products.
Total operating expenses in the third quarter of 2023 or $18 $2 million compared with $18 $2 million in the same period of the prior year.
Speaker 4: Her locked rating expenses in the third quarter of 2023 were $18.2 million compared with $18.2 million in the same period of the prior year.
Speaker 4: Consistent with prior quarters this year, operating expenses as a percentage of revenue were lower for both R&D and SG&A.
Consistent with prior quarters. This year operating expenses as a percentage of revenue was lower for both R&D and SG&A.
Speaker 4: We maintained our focus on appropriate resource allocation and cash management and remain committed to effectively managing our operating expenses without compromising revenue growth.
We maintained our focus on appropriate resource allocation and cash management and remain committed to effectively managing our operating expenses without compromising revenue growth.
Speaker 4: R&D Extant in the third quarter of 2023 was $4.8 million compared with $5.6 million in the same period of 2022.
R&D expense in the third quarter of 2023 was $428 million compared with $5 $6 million in the same period of 2022.
Speaker 4: This decrease was primarily due to a decrease in expenses for clinical studies and an increase in grant funding, which reduces our research and development expense.
This decrease was primarily due to a decrease in expenses for clinical studies and an increase in grant funding, which reduces our research and development expenses.
Speaker 4: SGMA extends from the third quarter of 2023 with $13.4 million compared with $12.6 million in the prior year period.
SG&A expense in the third quarter of 'twenty 'twenty right.
Keane point $4 million compared with $12 $6 million in the prior year period.
Speaker 4: This increase was primarily due to an increase in personnel related extent.
This increase was primarily due to an increase in personnel related expenses.
Speaker 4: driven by an increase in sales-based variable compensation as a result of the increase in revenue compared to the prior year period.
Driven by an increase in sales based variable compensation as a result of the increase in revenue compared to the prior year period.
Speaker 4: We also had an increase in sales, sales support, and marketing expenses, including expenses, associated with distributing Dixie medical products.
We also had an increase in sales sales support and marketing expenses, including expenses associated with distributing Dixie medical products.
These increases were partially offset by reduced general and administrative expenses, primarily outside services and insurance.
Speaker 4: These increases were partially offset by reduced general and administrative expenses, primarily outside services and insurance.
Speaker 4: Lost from operations was $6 million in the third quarter of 2023, compared with $10.2 million in the prior year period.
Loss from operation was $6 million in the third quarter of 2023.
Paired with $10.2 million in the prior year period.
Speaker 4: We recorded $2.2 million in interest expense in the third quarter compared to $1.9 million in the prior year period.
We recorded $2.2 million in interest expense in the third quarter compared to $1 $9 million in the prior year period.
Net loss was $7 $3 million.
Speaker 4: Net loss was $7.3 million with third quarter of 2023, compared with $11.8 million in the third quarter of 2022.
Of 2023, compared with $11.8 million in the third quarter of 2022.
Our cash and short term investments balance as of September 30th 2023 was $61.3 million.
Speaker 4: Our cash and short-term indecent balance as of September 30th, 2023, was $61.3 million.
Speaker 4: Our long-term borrowing totaled $55.9 million as of September 30, 2023, with the full principal view on September 30, 2025.
Our long term borrowings totaled $55 $9 million as of September 30th 2023 with the full principal due on September 30th 2025.
Speaker 4: As Joe mentioned, we are raising full year 2023 revenue guidance to a range of $62.5 million to $63.5 million, up from a range of $59 million to $61 million that we set on our Q2 earnings call. We expect that revenue growth will be supported mainly by increases in initial implants and revenue from the sale of Dixie Medical products.
As Joe mentioned, we are raising full year 2023 revenue guidance to a range of $62 $5 million to $63.5 million up from a range of 59 million to $61 million that we set.
Our Q2 earnings call.
We expect that revenue growth will be supported mainly by increases in initial implants and revenue from the sale of Dixie medical products.
Speaker 4: Placement of substantially all of the prior generation INF devices is still anticipated to be completed by the end of 2023. As pre-
The placement of substantially all of the prior generation of wireless devices, you're anticipated to be completed by the end of 2023.
As previously indicated.
Speaker 4: The decline we have experienced in replacement revenue is anticipated to reverse once the newer longer lasting devices introduced in 2018 begin to reach the end of their battery life.
Decline, we have experienced in replacement revenue is anticipated to or is that.
Once the newer longer lasting devices introduced in 2018.
Once you reach the end of their battery life.
Speaker 4: We are increasing our gross margin guidance to 71 to 73%, up from 70 to 72%.
We are increasing our gross margin guidance.
<unk>, 71% to 73%.
From 70% to 72%.
We may see variability in our gross margin due to fluctuations in the proportion of Vixen medical revenue overall revenue and other factors.
Speaker 4: We may see variability in our growth margin due to fluctuation in the proportion of diximedical revenue to overall revenue and other facts.
Speaker 4: We are updating our guidance for operating expenses to $75 million to $76 million, reducing the upper end of the ring.
We are updating our guidance for operating expenses to $75 million to $76 million would.
Reducing the upper end of the range.
Speaker 4: Operating expenses are expected to include $9 to $10 million in non-cash expenses.
Operating expenses.
This will include $9 million to $10 million and noncash expenses.
Speaker 4: Our cash burn in the third quarter of 2023 was $2.2 million.
Our cash burn in the third quarter of 2023 was $2.2 million at continued improvement over $4 million in the second quarter of 'twenty to 'twenty three.
Speaker 4: continued improvement over $4 million in the second quarter of 2023.
Speaker 4: Based on our current cash burn rate, we now believe that we have sufficient capital to fund our planned operations into 2026.
Based on our current cash burn rate, we now believe that we have sufficient capital.
Fund our planned operations into 2026.
I would now like to turn the call back over to Joe for closing remarks.
Speaker 4: I would now like to turn the call back over to Joel for closing remarks.
Speaker 3: Thank you, Rebecca. Overall, we enter the final quarter of 2023 well positioned to build on this positive momentum.
Thank you Rebecca overall.
Overall, we enter the final quarter of 2023, well positioned to build on this positive momentum.
We're encouraged by the higher utilization, we've seen among our C. D C customers.
Speaker 3: We are encouraged by the higher utilization we've seen among our CDC cuts.
Speaker 3: excited about the initial implants in and our focus on beginning to drive adoption among community centers.
Excited about the initial implants in and our focus on beginning to drive adoption among community centers.
Speaker 3: Please do with our progress and enrolling patients into our Nautilus trial, and are happy with the important product development advancements we have brought to the market to streamline patient care. In short, by continuing to extend our reach to an expanding number of CECs, Epilephaline...
Pleased with our progress in enrolling patients into our Nautilus trial and are happy with the important product development advancements we have brought to the market to streamline patient care insurer.
In short by continuing to extend our reach to an expanding number of C. He sees apple lift hologic and neurosurgeon.
Speaker 3: streamlining utility and enriching data value, we continue to establish an ever stronger foothold at the forefront of drug resistant epilepsy.
Green lighting utility and enriching data value, we continued to establish an ever stronger foothold at the forefront.
Drug resistant epilepsy treatment.
Speaker 3: Additionally and importantly, we remain focused on and are executing with operating.
Additionally, and importantly, we remain focused on and are executing with operating discipline as demonstrated by ongoing strong cash management through revenue growth.
Speaker 3: as demonstrated by ongoing strong cash management through revenue growth, gross margin performance, and operating expense execution.
Gross margin performance and operating expense execution.
Speaker 3: Our balance sheet remains strong, providing us ample runway to execute on our commercial, clinical and operating strategy.
Our balance sheet remains strong providing us ample runway to execute on our commercial clinical and operating strategy.
Speaker 3: to reiterate, based on our current cash burn rate, we are comfortable extending our cash guidance to fund our planned operations into...
To reiterate.
Our current cash burn rate, we're comfortable extending our cash guidance to fund our planned operations into 2026.
Speaker 3: positioning us for continued strong momentum for the rest of the year 2024
<unk> us for continued strong momentum for the rest of the year.
'twenty 'twenty four and beyond.
Speaker 3: Lastly, I would like to address the questions we and other members of the MedTech community have fielded relative to GLP1.
Lastly, I would like to address the questions, we and other members of the Med Tech community have fielded relative to G. L. P. One exposure.
Speaker 3: Let me be clear that epilepsy does not have any correlation to obesity or body mass index.
Let me be clear that epilepsy does not have any correlation to obesity ore body mass index.
Speaker 3: And we do not believe that either our target patient populations or our RNF system as a technology platform are impacted in any way as a result of the GLP1 class.
And we do not believe that either our target patient populations or our rns system as a technology platform are impacted in any way as a result of the G. L. P. One.
As of drugs.
Speaker 3: This concludes our prepared remarks. I would now like to turn the call over to the operator who will open the call for questions. Operator.
This concludes our prepared remarks, I would now like to turn the call over to the operator.
We will open the call for questions operator.
Speaker 1: Thank you. Ladies and gentlemen, we will now be conducting a question and answer session.
Thank you.
Ladies and gentlemen, we will now be conducting a question and answer session.
Speaker 1: If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate...
If you would like to ask a question. Please press star and one on your telephone keypad.
A confirmation tone will indicate your line isn't the question queue.
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You May press Star and two if you would like to remove your question from the queue.
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For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Ladies and gentlemen, we will wait for a moment, while we poll for questions.
Speaker 1: Ladies and gentlemen, we will wait for a moment while we poll for questions.
Our first question is from Vik Chopra with Wells Fargo. Please go ahead.
Speaker 1: Our first question is from Vik Chopra with Wells Fargo. Please go ahead.
Hey, good afternoon, and thanks for taking the question congrats on a great quarter, maybe just two for me here. So just underperforming you know I think you talked about initial implants in the quarter, maybe just some additional color on what drove growth in initial implants with it primarily driven by utilization at existing centers or there's something else.
Speaker 5: Hey, good afternoon and thanks for taking the questions. Congrats on a great quarter. Maybe just two for me here. So just from the performance, you know, I think you talked about initial implant in the quarter, maybe just some additional color on what growth growth in initial implant with the primarily driven model utilization with the existing centers or the something else you'd call out and then I had a follow up please.
You'd called out and then I had a follow up right.
Yeah.
Hi, Thank you for the question and I appreciate I appreciate you being on with US today Yeah.
Speaker 3: Hi, Vic. Thank you for the question and appreciate you being on with us today. Yes, the short answer is sorry there. I started in a little bit early. It really is an initial implant utilization. And that's where the preponderance of the growth has been for RNS in the in the quarter.
The short answer sorry, there I kind of started in a little bit early it really is an initial implant utilization.
And that's where the preponderance of the growth has been.
For for Rns, and the end of the quarter.
Great and then maybe one for Rebecca.
Speaker 5: Great, and then maybe one for Rebecca, you know, given where we are in the year, just maybe highlight some potential headwinds and tailwinds to keep an eye out for 2024 as a potential top line. And to take my questions.
Given where we are in the year.
Just maybe highlight some potential headwind the tailwind to keep an eye out for 2024.
The top line.
My question.
[laughter].
This we're not guiding to 'twenty 'twenty, four and really can't comment on what to expect in 'twenty 'twenty four just yet.
Speaker 6: So Vic, we're not guiding in 2024 and really can't comment on what to expect in 2024 just yet. So I think we'll just have...
I think we'll just have to.
Speaker 7: ask you to hold that question until we get a little further down the road.
Ask you to hold that question.
We get a little further down the road.
Yeah.
Hi, Rick this is the operator.
Do you have any more questions.
Not that I'm, okay. Thank you.
Thank you.
Our next question is from the line of Michael Pollock, But Wolfe Research. Please go ahead.
Speaker 1: Our next question is from the line of Michael Polak with Wolf Research. Please go ahead.
Good afternoon, and thank you for taking the question for.
Speaker 8: First one on the push into the community. Joel, I heard your comment about look appropriate.
First one on the push into the community drill I heard your comment about you know look appropriate.
Speaker 8: patient selection is important. Appropreation will be referred to level.
Patient selection is important and appropriate patients will be referred to level.
Speaker 8: or centers. I'm just curious kind of what would drive that decision at the patient level, what patients are appropriate to treat in the community versus move to the higher level centers. So that's part one of this question. And then part two is your care program. I guess I'm just curious what's different about this in terms of the level of support you're providing to the community practitioners versus you know what you're already doing at the level for CE.
Or centers I'm, just curious kind of what.
What would drive that decision at the patient level, what what patients are.
Appropriate to treat in the community versus.
<unk> moved to the higher level centers. So that's part one of this question and then.
Part two is your your care program I guess I'm just curious what what's what's different about this in terms of the level of support you're providing to the community practitioners versus.
You know what you're already doing at the level four C. He sees.
Speaker 3: Thanks for the question, Mike. Both the questions. With regard to patient populations as we push into the community, you know, there are a number of patients who...
Thanks for the question, Mike or both of the questions with regard to patient populations as we push into the community.
There are a number of patients who are <unk>.
Speaker 3: types of patients, rather, who can be treated well in the community and really those that just need the phase one monitoring and don't need to be referred back for phase two monitoring. So focal patients who are drug resistant who only need to go through phase one monitoring are good candidates for being treated in the community.
So patients rather who can be treated well in the community and really those that.
Just need to phase, one monitoring and don't need to be referred back for phase two monitoring so vocal patients who are drug resistant to who only need to go through phase one monitoring are good candidates for being treated in the community.
Speaker 3: And then, yes, as I mentioned, we have seen even already, even with the early work that we've done, patients being identified.
And then yes as I mentioned, we have seen even already even with the early work that we've done patient.
Patients being identified.
Speaker 3: As folks go through and look at the populations that they're managing in the community for patients, they do think are good phase one candidates.
As folks go through and look at the populations that they are managing in the community for patients. They do think are good phase one candidates than other more complex patients that they feel like we'll need additional monitoring and additional types of therapy support that then can be referred back to a level four center.
Speaker 3: than other more complex patients that they feel like will need additional monitoring and additional types of therapy support that then can be referred back to a level four center. In the past, those patients may not have been then identified as candidates for RNS therapy.
In the past those patients may not have been then identified as candidates for rns therapy, because they didn't have the local center really didn't have a relationship with or an ability to refer back into a level four there both in terms of making the connection for where people should be sent to get there.
Speaker 3: because they didn't have the local center really didn't have a relationship with or an ability to refer back into a level four there, both in terms of making the connection for where people should be sent to get that kind of therapy and then ensuring that they'd have a good path back for managing that patient as well. So both with regard to, you know, the type of patient and the type of underlying disease and whether they can be.
That kind of therapy, and then ensuring that they'd have a good path back for managing that patient as well so both with regard to the type of patient and the type of underlying disease and whether they can be.
Speaker 3: structured well in the community through a phase one monitoring as well as in the identification of more complex patients and the establishment relationships back for referrals. Those are things that we're doing in the community. Admittedly, we're just getting started here, so I'm not going to say
Well in the communities through our phase one monitoring as well as in the identification of more complex patients in the establishment of relationships back for referrals. Those are things that we're doing in the community admittedly. We're just getting started here so I'm not going to say too much about the.
Speaker 3: too much about the full efforts here just yet Mike because it really is. We're getting started with the program and there are some centers who've moved a little bit faster than others and we'll have more to say about the care program as we look to.
All efforts here, just yet Mike because it really is where we're getting started with the program and there are some centers who've moved a little bit faster than others and we'll we'll have more to say about the care program as we look to.
Speaker 3: launched the full pilot over here in the first half of 24, but those are some of the early returns that we're seeing.
Once the full pilot over here in the first half of 'twenty four but those are some of the early returns that we're seeing.
Speaker 8: for the follow up I'm curious. I mean, I appreciate the comments and discipline around operating, spending. I imagine you still have to invest to drive growth here and penetration within your centers. So as you look out into 24 and 25, I'm not asking for guidance per se, but.
For the follow up I'm curious I mean, I appreciate the comments and discipline around our operating.
Operating spending I imagine you still have to invest to drive growth year in and penetration within your centers. So as you look out into 24 and 25 of them not.
Asking for guidance per se, but.
Speaker 8: the envision still creating more sales territories to kind of grow the business or...
Do you envision still creating more.
Sales territories to kind of.
Grow.
The business or.
Speaker 8: you know, maintaining the number of territories you have and.
You know maintaining the number of territories you have an end.
Speaker 8: putting more field support within those territories to promote the depths. I'm just curious how you're thinking about the field organization over the next couple of years in balancing the breadth versus depth dynamics. Thank you so much.
Putting more field support within those territories to promote.
The the depths and I'm just curious how you're thinking about the field organization over the next couple of years and balancing the breadth versus depth dynamics. Thank you so much.
Speaker 3: Thank you Mike, another great question and and
Thank you Mike another another great question and.
We will say more about it here as we as we get further into the into the care program, but a couple of a couple of things I can give you. One we had as you may recall, we have previously commented that we have invested in some of the breadth of our organization here previously and so we had we had.
Speaker 3: We will say more about it here as we get further into the care program, but a couple of things I can give you. One, we had, as you may recall, we have previously commented that we have invested in some of the breadth of our organization here previously. And so we had expanded the sales force.
<unk> the sales force the sales force from a territorial perspective, and an added some of those resources.
Speaker 3: the Salesforce from a territorial perspective and added some of those resources.
Speaker 3: earlier last year and those folks have been coming through the training pipeline and are now
Earlier last year, and those folks who've been coming through the training pipeline and are now.
Speaker 3: beginning to be able to contribute out into the field more fully. And so, as a starting point, we're going to be looking to use a lot of that capacity. We are, as I mentioned previously, we are going to be very focused and targeted in these initial efforts as well. And that's part of what we're going to be learning in the pilot program is...
Beginning to be able to contribute out into the field more fully and so as a starting point, we're going to be looking to use a lot of that capacity. We are we are as I mentioned previously we are going to be very focused and targeted in these initial efforts as well and that's part of what we're gonna be learning.
In the in the pilot program is.
Speaker 3: What type of support is required? Is it more of the prospecting and identifying the right target centers and the patient populations or is it more on the clinical support side? So that'll read then on your question of, do we need more breadth or do we need more depth?
What types of support is required is it more of the of the prospecting and identifying the right target centers in the in the patient populations or is it more on the clinical support side.
That'll that'll read then on your question of do we need more breadth there do we need more depth or is it an optimized combination of both with the organization that we have today and so that that's a lot of that's a lot of the exercise that's going on now and will be going on in the pilot, but we're looking at both of those things both how can we appropriately.
Speaker 3: or is it an optimized combination of both with the organization that we have today? And so that's a lot of the exercise that's going on now and we'll be going on in the pilot, but we're looking at both of those things, both how can we appropriately expand or extend our reach so that we can get to those targeted centers and both utilize in the resources we've got today, and then thinking about what the resource thing model needs to look like, as well as then,
Expand or extend our reach so that we can we can get to those targeted centers in both utilizing the resources. We've got today and then thinking about what the Resourcing model needs to look like as well as then.
What level of clinical support do centers need in the community.
Speaker 3: But we're particularly excited about the program and really looking forward to getting going with the pilot here in the first half of 24. Again, we've gotten really...
But where we're particularly excited about about the program and really looking forward to getting going with the pilot here in the in the first half of 'twenty four.
Again, we've got really great feedback from a lot of these early centers a lot of enthusiasm for our mist therapy and being able to access those patients.
Speaker 3: great feedback from a lot of these early centers and a lot of enthusiasm for our therapy and being able to access those patients. And so more to come on it, but that's where we're at currently.
And so more to come on it but that's where we're at currently.
Thank you.
Thank you.
Speaker 1: Our next question is from the line of Frank Takian with Lake Street Capital Market. Please go ahead.
Our next question is from the line of Frank take in with Lake Street Capital market. Please go ahead.
Hi, Thanks, taking the question Haynesville, Hey, thanks for taking the questions and congrats on the corner I was hoping you could go a little bit deeper into our initial implants I heard your comments that was a driver of growth, but maybe if you could speak about the market or are you gaining market share as the market returning to growth.
Speaker 9: Hi, Frank. Thanks for taking the question. Hey, Joel. Hey, thanks for taking the question. Congrats on the quarter. I was hoping we could go a little bit deeper into initial implants. I heard your comments that that was a driver of growth, but maybe if you could speak about the market. Are you gaining market share? Is the market returning to grow?
Speaker 9: There may be some dixie informing the funnel that's driving better initial implants, pockets of power users, emerging or just anything you can really share with us to get a little better feel for what is the underlying growth driver of initial implants.
There may be some dixie informing the funnel, that's driving better initial implants pockets of power users.
Emerging or just anything you can really share with us to get a little better feel for what is the underlying growth driver of initial implants.
You bet. Thanks, Thanks, Frank so.
Speaker 3: You bet. Thanks. Thanks Frank. So as I mentioned, we really did see good strength within the initial implant patients or a product segment and a lot of it coming from increased utilization within core centers. And so we're seeing...
As I mentioned it.
We really did see good strength within the initial implant patients or a product segment.
And a lot of it coming from increased utilization within core centers and so we're seeing.
We're seeing a lot of you know a lot of good utilization.
Speaker 3: We're seeing a lot of good utilization within those core centers and seeing expanded adoption as well within those centers. So both usage rates as well as adoption rates inside of that core group of centers is what really has been one of the primary drivers. And I think it really gets to
Within those core centers and in seeing expanded.
Adoption as well within those centers. So both both usage rates as well as adoption rates inside of that of that core group of centers is what really has been.
One of the primary drivers in it I think it really gets too.
One of our key areas of focus, which which is how do we take and expand the way people are thinking about utilizing the rns system inside of their patient populations. So getting people to think about rns more broadly from where they perhaps had originally been thinking about it.
Speaker 3: One of our key areas of focus, which is how do we take and expand the way people are thinking about utilizing the R&S system inside of their patient populations?
Speaker 3: So getting people to think about RNS more broadly from where they perhaps had originally been thinking about a, you know, very specific set of
Specific set of patients inside of focal refractory population to expanding those patient populations either through.
Speaker 3: patients inside of focal refractory population to expanding those patient populations either through targeted STEM and other areas or network stimulation or combination therapy, really just expanding the utilization as well as the adoption inside of those core centers. So that has been helpful in driving growth for sure.
Targeted stem and other areas are networked stimulation or combination therapy.
I'm really just expanding the utilization as well as the adoption inside of those core centers. So that has been helpful in driving growth for sure.
Speaker 3: And then we have been getting benefit out of and we've seen good growth out of Dixie as well and have been seeing where in certain centers we do get a further vertical integration and visibility into that patient pipeline and population of patients that can inform.
And then we have been getting benefit out of and we've seen good growth out of Dixie as well and have been seeing where in certain centers. We do get further vertical integration and visibility into that patient pipeline and population of patients that can inform us.
Speaker 3: help people are thinking about RNS therapy. So that's the primary is the utilization and adoption within those core groups of centers and expanding the way RNS is used, but then also see in vertical integration into some further up the pipeline in some centers as well.
How people are thinking about rns therapy. So.
That's the primary is the utilization and adoption within those within those core groups with centers and expanding the way Rns is used but then also seeing a vertical integration into some further up the pipeline and some centers as well.
Got it that's good color and then maybe to speak about seasonality a little bit I heard the comments around Q3 as well.
Speaker 9: Got it, that's good color. And then maybe to speak about seasonality a little bit, I heard the comments around Q3 is...
Speaker 9: Typically a little seasonally slower. So maybe talk a little bit about regular season alley patterns into Q4 and how you incorporated that into the implied guidance for the
Typically a little seasonally slower so.
So maybe talk a little bit about hot regular seasonality patterns into Q4, and how you incorporated that into the implied guidance for the fourth quarter.
Speaker 3: Yep, we did see some seasonality and so far is that we do see, you know, clinicians and institutions take some vacation over the summer. We did see that in some centers.
Yeah, we do we did see some seasonality in so far is that we do see you know clinicians and institutions take some vacation over the summer we did see that in some some centers.
Hum.
Speaker 3: We also see where Q4 does have some seasonality as it relates to obviously Thanksgiving and the Christmas holidays. AES, the biggest conference of the year, is also in Q4. So.
We also see where Q4 does have some seasonality as it relates to obviously Thanksgiving and the Christmas holidays E. S. The biggest conference of the year. It was also in Q4.
So.
Speaker 3: Those are some of the dynamics along with then, you know, the declining, the minimum contribution we expect from replacement revenue here in Q4, given the calendarization of replacement revenue as well. So those would be some factors that we'd point to as we think about the way Q4 is shaping up.
Those are those are some of the dynamics along with then you know the the declining.
The minimum contribution we expect from a placement revenue here in Q4, given calendar as Asian of replacement revenue as well. So those those would be some factors that we'd point to as we think about the way the way Q4 shaping up.
Speaker 9: Got it, and maybe one last quick one, just to clarify.
Got it and then maybe one last.
Quick one just to clarify here.
Speaker 9: I think I heard replacements is down to 3% of revenue. I didn't hear the distinction of whether or not it was 3% of Q3, or 3% of year to day, or if it's a trailing 12 months, what is that 3% based?
I think I heard replacements as down to 3% of revenue I didn't hear the distinction of whether or not it was 3% of Q3 or 3% of year to date or if it's a trailing 12 months, what does that 3% based off of them.
Rebecca you maybe want to sure Frank.
Speaker 7: Rebecca, you may be one of them. Sure. Frank, that approximately 3% of revenue was a Q3 number. So replacement revenue was about 3% of our total revenue in the third quarter. Perfect. That's great. Thanks.
Think that 3% approximately 3% of revenue was a Q3 number.
Placement revenue was about 3% of total.
Total revenue in the third quarter.
Perfect. That's great. Thanks for taking my questions and congrats again.
Thanks Frank.
Thank you.
Speaker 1: Thank you. Our next question is from Robby Markers with KP Morgan. Please go ahead.
Our next question is from Robbie Marcus with JP Morgan. Please go ahead.
Yeah.
Hi, This is actually Lili on for Robbie Thanks for taking the question could you just talk through the trends that you're seeing at the top of the funnel in terms of your new volumes and how that's translating to rns implants. It seemed like most end markets are basically at or above pre pandemic levels and you had a good quarter. So do you think.
Speaker 10: Hi, this is actually Lily on Ferrabi. Thanks for taking the question. Could you talk through the trends that you're seeing at the top of the funnel in terms of EMU volumes and how that's translating to R&S implants?
Speaker 10: It seems like most end markets are basically at or above pre-pandemic levels and you had a good quarter. So do you think that seems kind of high to you and how are you thinking about the operating environment into fourth quarter in 2024?
So I'm trying to parse for you and how are you thinking about the operating environment.
Quarter, I'm, sorry, 24.
Speaker 3: Thanks for the question, Lily. I think we're seeing the pipeline as good and consistent and strong. You know, we had a, we had a,
Thanks for the question, Yeah, I think we're seeing the pipeline as good and consistent and strong.
We had a we had a.
Speaker 3: really strong quarter off of what was an all time high for the company. And so I think speaking to Pipeline and both strength of Pipeline as well as consistency of the Pipeline those are
Really strong quarter off of what was an all time high for the company and so I think speaking to the pipeline and both strength of pipeline as well as consistency of the pipeline those are.
Speaker 3: You know, that's a really good data point, the strength of the top line that we had, and we've continued to see strength in the pipeline in Q3.
You know that that's a really really good data point the strength of the topline that we had and we've continued to see strength in the pipeline.
In Q3.
Speaker 3: And well, I think we previously commented and I would just reiterate we don't know that pipeline volumes are necessarily all the way back to levels where we were seeing not only the
And well I think we've previously commented and I would just reiterate we don't know that labeling volumes are necessarily it certainly all the way back to <unk> levels.
Where we were Oh I see.
Seeing not only the.
<unk>.
Speaker 3: throughput through the EMU's return, but also then EMU expansion. We're seeing really good throughput and pipeline in the EMU's. Still not quite sure. We're seeing that same level of EMU expansion, but very good and consistent market dynamics from an RNS perspective. And so I think we feel.
Throughput through the E. M use return, but also then IMU expansion, we're seeing really good throughput and pipeline in the E. M use so I'm not quite sure. We're seeing that same level of IMU expansion, but but very good and consistent market dynamics.
From an rns perspective, and so I think we feel we feel bullish there in and when we look at what we see in terms of initial implant growth in the distribution that implant growth what we see in terms of Dixie and the Dixie growth that we've been seeing and then when you combine that with now the pilot start.
Speaker 3: bullish there and when we look at what we see in terms of initial implant growth and the distribution of that implant growth, what we see in terms of Dixie and the Dixie growth that we've been seeing. And then when you combine that with now the pilot starting
<unk> in care.
Speaker 3: the product launches that we've had with Insight as well as the tablet that are going to help us scale with efficiency. We really feel like from a product and market perspective we're really well positioned for the rest of 23 as well as into 24. And something that I haven't mentioned.
The product launches that we've had with insight as well as the tablets that are going to help us scale with efficiency.
We really feel like from a product and market perspective, we're really well positioned.
For the rest of 'twenty, three as well as into 'twenty four.
And that's something that I that I haven't mentioned.
Speaker 3: No, on top of all those things, we've made a lot of progress here with a number of things we've been working on internally and including sales leadership structure and the direct line of sight that that gives us to execution, some changes we've made there. We're also working on and assessing.
On top of all of those things we've made a lot of progress here with a number of things we've been working on internally and including sales leadership structure.
Structure are.
And the direct line of sight that gives us to execution. Some changes we've made there. We're also working on and are assessing.
Speaker 3: our sales compensation structure to ensure that we're properly set up here to really instant, consistent growth in the business. And so I think we feel really good about pipeline as well as the way that we're positioned for execution here, both with markets and products in our own organization.
Our our sales compensation structure to ensure that we're properly set up here to to really incident consistent growth in the business and so I think we feel really good about pipeline as well as the way that we're where we're positioned for execution here, both with markets and products in our own organs.
<unk>.
Speaker 10: Great, thank you. And that's a follow-up. It sounds like growth is coming primarily from growing utilization and existing accounts. So if that's the case, how should we be thinking about the trajectory of new center ads? And where do you think penetration stands within the total center opportunity? Thanks so much.
Great. Thank you and I can follow up it sounds like growth is coming primarily from growing utilization in existing accounts. So if that's the case how should we be thinking about the trajectory of New center adds and where do you think penetration stands within the total center opportunity. Thanks, so much.
Speaker 3: Yes, it's a great question and we of course continue to look to add
Yes, it's a great question and and we of course continue to look to add additional centers, but we've got a strong penetration across the level four centers are in most cases today. So our focus has really been.
Speaker 3: Additional centers, but we've got a strong penetration across the level four centers in most cases today. So our focus has really been expanding adoption within the centers and expanding utilization within current customers. So
Expanding adoption within the centers and expanding utilization within current customers. So.
Speaker 3: That's where our focus has been and where we're seeing most of the growth come from is the expanding adoption and utilization within that core group of centers versus necessarily needing to add.
Where our focus has been and where we're seeing most of the growth come from is expanding adoption and utilization within that core group of centers versus necessarily needing to add.
Speaker 3: A lot of additional level four centers given the penetration that we have within those groups.
A lot of additional level four centers given the penetration that we have within those groups.
Great. Thank you.
Thank you. Thank you.
Speaker 1: Thank you. Thank you. As a runner for the questions, I would now hand the conference over to Joel Becker, CEO for closing comments.
Hi.
As there are no further questions I would now have the conference over to July the backhaul CEO for closing comments.
Speaker 3: Thank you. Yeah, I would just, thanks everybody for being on the call today. Thanks for the questions. I would just close with, you know, another really good strong quarter here with...
Thank you I would just take thanks, everybody for being on the call today. Thanks for the questions.
I would just close with you know another really.
Really good strong quarter here with the year on year revenue growth of 47% increasing guidance for the <unk>.
Speaker 3: The year on your revenue growth of 47% increasing guidance with the range going up from 62 1,000 to 63 1,000 from 59 to 61 where we were. Again.
<unk> gone up from 62, and a half to <unk> 63, and a half from 59 to 61, where we were.
Again.
Speaker 3: consistent revenue performance coming off on all time high for the company with OptX Control and Cash Management and some good operating execution on a number of core initiatives as well. I think with both the near term initiatives of our penetration within the level four centers.
Consistent revenue performance coming off an all time high for the company with Opex control and cash management and some some good operating execution on a number of core initiatives as well I think with both the near term initiatives of our penetration within the level four centers.
The expansion opportunities with Dixie and the recent product launches we've had the way the chair expansion is setting up for us with initial implant started and.
Speaker 3: the expansion opportunities with Dixie and the recent product launches we've had, the way the care expansion is setting up for us with initial implants started and the pilot here in the...
Pilot here in the first half.
Speaker 3: and the sense of urgency and level of focus that we've got on execution within the business.
And the sense of urgency and level of focus that we've got on execution within the business.
Speaker 3: On top of all that, being on track with our Nautilus enrollment, completing in Q1 and expanding this into the IgE population, we feel like we're really well positioned here for the rest of 23 and into 24 to take advantage of...
On top of all of that being on track with our Nautilus enrollment completing in Q1 and expanded NUCYNTA the aging population.
We feel like we're really well positioned here for the rest of 'twenty three and into 'twenty four.
To take advantage of <unk>.
Speaker 3: increasing our NS access into the 1.2 million patients that are drug resistant in the United States today. Our target market is 30,000 patients. So 50,000 a year and level four centers in the focal population inside of that and here with the
Increasing rns access into the $1 2 million patients that are drug resistant in the United States today, our target market is 30000 patients. So 50000, a year in level four centers and the local population inside of that in here with the.
Speaker 3: Actions that we're talking about with the direction of the business and the strategy that we're taking in a short period of time With these activities we're positioning ourselves to expand from that 30,000 to the 1.2 million of drug-resistant populations and population of patients in the US So again, I think we're really well positioned
Actions that we're talking about with the direction of the business and the strategy that were taken in a short period of time with these activities. We are positioning ourselves to expand from that 30000 to the $1 $2 million of drug resistant populations population of patients in the U S.
So again, I think we're really well positioned.
Speaker 3: And we're really focused on consistent demonstration and execution that show how we're moving on that strategy. So appreciate everybody being part of the call today. And thanks for your time.
And we're really focused on because it's a demonstration of execution that show how we're how we're moving on that strategy. So I appreciate everybody being part of the call today.
And thanks for your time.
Okay.
Speaker 1: Thank you. The conference of NeroPace Inc. has now concluded. Thank you for your participation. You may now disconnect your line.
Thank you.
For yourself NATO pace, Inc. Has now concluded. Thank you for your participation you may now disconnect your lines.
[music].