Q3 2024 Treace Medical Concepts Inc Earnings Call
Good day and thank you for standing by welcome to the Trees Medical Concepts, 3rd quarter, 2024 earnings conference call. At this time, I'll participants are an elicinally mode.
After the speaker's presentation, there will be a question and answer session to ask a question during the session. You will need to press star 1, 1 on your telephone. You will then hear an automated method advising your hand is raised. To withdraw your question, please press star 1, 1 again.
Speaker Change: Please be advised that today's conference is being recorded. I would now like to hand the conference over to you speaker today, Vivian Cervantes, Investor Relations, Gil Martin Group. Please go ahead.
Vivian Cervantes: Thank you, Operators. Good afternoon everyone and welcome to our third quarter, 2024 earnings conference call. Participating from the Compsies today will be John Treace. Chief Executive Officer and Mark Hair, Chief Financial Officer.
During the call, John will offer commentary on our commercial activities, followed by more to review for third quarter financial results released after Mark's close today.
Vivian Cervantes: We will host a question and answer session following our prepare remark. A press release can be found at the Investor Relations section at our website at investors.treace.com.
Vivian Cervantes: This call is being recorded and will be our private investor section of our website.
Before we begin, we would like to remind you that it is our intent that all forward-looking statements may during today's call will be protected under the private security solidification reform Act of 1995.
Vivian Cervantes: Any statements that relate to expectations or predictions to future events and mark the trends as well as our estimated results or performance or forward-looking statements. All forward-looking statements are based upon our current estimates and various assumptions.
Vivian Cervantes: These estimates involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.
Vivian Cervantes: All forward-looking statements are based upon current available information and Treace Medical assumes no obligation to update these statements.
Vivian Cervantes: Accordingly, you should not place undue reliance on these statements.
Vivian Cervantes: Please refer to our SEC filing, including our Form 10-Q for the third quarter file today, and our Form 10-K for the full year 2023 filed on February 27, 2024, for a detailed presentation of risk.
Speaker Change: With that, I now turn the call over to John.
Speaker Change: Thank you for watching!
John Treace: Thank you, Vivian. Good afternoon, everyone, and thank you for joining us on our third quarter 2024 earnings conference call. We recognize this is a busy and important day for our country, and we greatly appreciate you taking the time to join us.
Speaker Change: Our third quarter results reflect our execution to drive solid growth in the business while steadily improving our operating leverage.
Speaker Change: In addition, we announced a limited market release of the Nanoplasty 3D MIS system, representing our first entry into the large metatarsal osteotomy market, supporting our strategy to significantly increase penetration into the overall bunion market and continue to expand our surging customer base.
Speaker Change: Related to this announcement, we're pleased to report continued progress on our commercial strategy aimed at broadening our presence in the bunion market by further strengthening our product portfolio to address the evolving needs of both patients and surgeons.
Speaker Change: Just as we did with our pioneering lapoplasty system in the Lapidus Fusion segment of the bunion market, we are now excited to introduce unique technologies into the metatarsal osteotomy segment, currently estimated to represent 70% of the 450,000 annual bunion cases performed in the U.S.
Speaker Change: first with our Nanoplasty 3D procedure to be followed by our second MIS osteotomy system at the end of the year. And we'll discuss more later.
Speaker Change: Our focused R&D innovation pipeline is loaded and poised to significantly expand our technology and procedure offerings through 2025 and beyond.
Speaker Change: Turning to the quarter. Third quarter revenue was $45.1 million, representing 11% growth over the third quarter of 2023.
Speaker Change: This growth was fueled by continued commercial execution and driven by product mis-shift that resulted from increased adoption of newer technologies such as a ductoplasty and speed plate, continued strong demand for our other complementary product offerings, as well as increases in our active surgeon users in the quarter.
Speaker Change: Building on these trends, we are committed to expanding our share of procedure volumes from our growing surgeon base, while also attracting new surgeon customers with the introduction of our new MIS osteotomy platforms and our other forthcoming technologies.
Speaker Change: With that in mind, let me now provide you with additional color and share our excitement for our limited market release of Nanoplasty.
Speaker Change: Our Nanoplasty system offers surgeons an elegantly instrumented and reproducible 3D osteotomy procedure that can be performed through a single discreet 1.5 centimeter incision hidden on the side of the foot.
Speaker Change: This system was developed in conjunction with a team of highly experienced and internationally recognized minimally invasive foot and ankle surgeons, and it's designed to offer patients a 3D correction to relieve their lifestyle-limiting bunion pain while minimizing incision size and visible scar.
Speaker Change: We believe Nanoplasty combined with our market-leading Lapoplasty and Adductoplasty systems provides a powerful suite of differentiated technologies to comprehensively address the evolving needs of bunion surgeons and patients.
Speaker Change: And we believe we are uniquely positioned with our expert Bunyan-focused sales force to deliver the clinical support needed to successfully integrate these new technologies and procedures into our surgeons' practices.
Speaker Change: We estimate today's overall procedure volume in the U.S. bunion market is comprised of approximately 30% lapidus fusion and 70% metatarsal osteotomies.
Speaker Change: and we estimate around 10-15% of osteotomies are performed using MIS techniques today.
Speaker Change: Notwithstanding the increasing interest in MIS from surgeons and patients, MIS bunion surgery remains a technically challenging, predominantly freehand operation, thus limiting adoption by the broader foot and ankle surgeon community and limiting patient access.
Speaker Change: With Nanoplasty, we're changing the MIS osteotomy market paradigm with an elegantly instrumented, reproducible 3D correction system.
Speaker Change: This strategy follows our lapoplasty playbook where we made a challenging freehand 3D Lapidus procedure reproducible and in doing so democratized it making it accessible to the broad foot and ankle surgeon community.
Speaker Change: Let me now explain why we believe our entry into the osteotomy space represents a significant and immediate opportunity for Treace and why we expect it will further accelerate our penetration into the bunion market.
Speaker Change: When we look at our existing base of over 3,000 great Lapoplasty customers, Lapoplasty makes up roughly 25% of their annual average bunion case mix.
Speaker Change: And we estimate the majority of the remaining 75% to be metatarsal osteotomies.
Speaker Change: We've experienced great success with our flagship lapoplasty system and have repeatedly shown increased average utilization within our customer surgeons over time as they progressively utilize lapoplasty, initially applying it to their most severe bunions to those that are more moderate in nature over time.
Speaker Change: By contrast, nanoplasty is an immediate pathway to capturing surgeons' more moderate-to-mild bunion cases without the multi-year utilization ramp that we experience with lapoplasty.
Speaker Change: In other words, we don't have to wait for two or more years for surgeons to consistently apply a Treace solution for their moderate to mild bunions.
Speaker Change: Nanoplasty provides a sophisticated advancement in osteotomy surgery with strong benefits to surgeons and patients alike.
Speaker Change: Our customer surgeons are asking for these MIS solutions from Treace, and we are delivering.
Speaker Change: We also believe we have a meaningful opportunity to attract new surgeon customers who today prefer metatarsal osteotomies for the vast majority of their bunion cases and have yet another now reason to engage with Treace.
Speaker Change: We've already trained a significant cohort of surgeons on nanoplasty in the lab setting and based on their consistently strong and positive feedback
Speaker Change: We believe Nanoplasty can disrupt the emerging MIS metatarsal osteotomy space.
Speaker Change: due to its advanced 3D correction capability, rapid learning curve, and its cosmetic appeal to patients.
Speaker Change: We also have a second MIS osteotomy offering coming just behind Nanoplasty. This offering is geared towards the existing base of MIS foot surgeons who use specialized screw implants for their fixation of MIS osteotomies.
Speaker Change: Our goal here is to offer this segment of surgeons a superior option consisting of improved implant designs and importantly the elegant 3D correction instrumentation that Treace is known for to help them achieve greater reproducibility and gaining their 3D bunion correction outcomes.
Speaker Change: We're excited to deliver this second platform and to continue to lead the bunion correction space with our pioneering technologies.
Speaker Change: We look forward to sharing more details on this new platform as we initiate our limited market release later in the quarter.
Speaker Change: In addition to the two new MIS osteotomy systems, which I just discussed, I want to update you on pipeline technologies discussed on previous calls and provide updates on their commercial status.
Speaker Change: First, our microlapoplasty 3D minimally invasive system.
Speaker Change: This allows the patented lapoplasty procedure to be performed through a two centimeter incision. I'm pleased to report microlapoplasty is now fully available to our surgeon customers.
Speaker Change: Our IntelliGuide patient-specific cut guides for lapoplasty and adductoplasty procedures. As a reminder, these utilize our acquired Redpoint PSI technology.
Speaker Change: We continue to perform IntelliGuide procedures with a number of surgeons and we expect expanded surgeon access during Q4 on our pathway to full commercial availability of this exciting technology within the first half of 2025.
Speaker Change: our mini adductoplasty instrumentation which allows surgeons to perform the adductoplasty midfoot procedure through a 50% smaller incision than with our standard adductoplasty approach.
Speaker Change: We expect expanded surgeon access within the fourth quarter, with full access to this instrumentation within the first half of 2025.
Speaker Change: and our SpeedPlate MicroQuad implant. This is a new SpeedPlate designed specifically for high stability and anatomic fit in small surgical incision approaches such as microlapoplasty and mini adductoplasty.
Speaker Change: We expect a limited release of MicroQuad to begin late in the fourth quarter and reach full commercialization within the first half of 2025.
Speaker Change: And there's more coming. Our focused R&D pipeline is loaded and we are poised to significantly expand our technology and procedure offerings through 2025 and beyond.
Speaker Change: I'd now like to give an update on reimbursement.
Speaker Change: CMS recently released its final 2025 Medicare payment rates for hospital outpatient and ASC services to cover facility costs for surgical procedures including supplies and implants used in the surgical case.
Speaker Change: These changes take effect on January 1st, 2025.
Speaker Change: As a reminder, our products are used in procedures covered by well-established specific CPT codes.
Speaker Change: And we're pleased to see that CMS has rendered its final rule and accompanying addenda, which includes the reassignment of CPT code 28297, a primary code used for lapidus fusion and one typically used for the lapoplasty procedure.
Speaker Change: to APC 5115 with a hospital outpatient payment rate of $12,867 for 2025.
Speaker Change: This represents an increase of $6,050 or 89% over 2024.
Speaker Change: In the ASC setting, the 2025 payment is now $9,820, an increase of 100% compared to $4,900 for 2024.
Speaker Change: As the pioneer of the market-leading lapoplasty bunion correction system, we are pleased that the final rule recognizes the value that lapidus fusion offers patients suffering from painful, cell-limiting bunion deformities.
Speaker Change: Turning now to our financial outlook, we're revising our full year 2024 revenue guidance to 204 to 211 million dollars, which reflects an increase of 9% to 13% over 2023 revenue.
Speaker Change: This compares to our previous guidance of $201 million to $211 million.
Speaker Change: For the full year 2024, we continue to expect a Just a Diva Dye improvement of approximately 50% compared to full year 2023.
Speaker Change: Before turning the call over to Mark, I'd like to provide an update on our recently filed patent infringement and unfair competition suit.
Speaker Change: On October 14th, we announced that we filed a lawsuit against Stryker Corporation and its subsidiary, Wright Medical, alleging patent infringement and unfair competition.
Speaker Change: We are proud of the fact that we are the first company to develop, patent and introduce an instrumented 3D bunion correction system, creating a new segment of the U.S. bunion market.
Speaker Change: We've been building our patent portfolio since our inception in 2014, and this lawsuit is consistent with our corporate strategy to assert and enforce our intellectual property rights.
Speaker Change: With that, let me now turn the call over to Mark to review our financial performance. Mark?
Mark Hair: Thank you, John. Good afternoon, everyone. Revenue in the third quarter was $45.1 million, an increase of $4.3 million and 11 percent over the prior year period.
Speaker Change: Growth was driven by product makeshift that resulted from increased adoption of newer technologies, increased sales of ancillary products used in budding cases, and an increase in active surgeons in the quarter.
Speaker Change: Gross margin was 80.1% in the third quarter of 2024 compared to 80.4% in the third quarter of 2023.
Speaker Change: Third quarter gross margin of 80.1% was relatively unchanged from the 80.2% gross margin reported in Q2.
Speaker Change: Total operating expenses were $51.3 million in the third quarter of 2024.
Speaker Change: Total operating expenses were $50.6 million in the third quarter of 2023. The increase in operating expenses reflect increased share-based compensation expense, investment in product innovation, and support for other corporate initiatives.
Speaker Change: Third quarter net loss was $15.4 million, or $0.25 per share, compared to a net loss of $17.5 million, or $0.28 per share, for the same period of 2023.
Speaker Change: Adjusted EBITDA loss in the third quarter was $5.1 million, an improvement of 45% compared to the loss of $9.2 million in Q3 2023.
Speaker Change: Compared to the second quarter, 2024, adjusted EBITDA loss improved 42 percent.
Speaker Change: Cash, Cash Equivalents, and Marketable Securities were $82.8 million as of September 30, 2024.
Speaker Change: Before concluding, let me turn to our outlook for full year 2024.
Speaker Change: As John mentioned, we are revising full year 2024 revenue guidance to $204 to $211 million, which reflects an increase of 9 to 13 percent over 2023 revenue.
Speaker Change: This compares to our previous guidance of $201 million to $211 million.
Speaker Change: For the full year 2024, we continue to expect adjusted EBITDA improvement of approximately 50 percent compared to the full year 2023. With that, let me now turn the call over to the operator to open the line for your questions.
Speaker Change: Thank you. As a reminder, to ask a question please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 1 again. Please stand by while we compile the Q&A roster.
Speaker Change: For more information visit www.FEMA.gov
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Speaker Change: And our first question comes from Robbie Marcus of J.P. Morgan. Your line is open.
Robbie Marcus: Oh, great. Good afternoon. Thanks for taking the question.
Robbie Marcus: Maybe to start, I wanted to ask on the new MIS osteotomy product.
Robbie Marcus: You came to market with lapoplasty with two years best-in-class data and that was really what got you in the door with surgeons and troph uptake.
Robbie Marcus: How do you feel about going to market now without clinical data? Is that important? And do you think you'll be able to get the same differentiation in the market with this product as you did with lapoplasty?
Speaker Change: Hi, Robbie. Thanks for the question.
Speaker Change: It's John, I, it's a great question. And, you know, for the first several years that we marketed lapoplasty, we were we were gathering clinical data, we didn't have really the solid evidence yet. So that was an ongoing project that, you know, took several years, as we were building the business with lapoplasty, customers were seeing the success in their hands. And then we came and reinforced it with the data that further supported the outcomes that they were seeing.
Speaker Change: Thank you.
Speaker Change: With Nanoplasty, you know, we are going to be committed to developing those data sets.
Speaker Change: Thank you.
Speaker Change: The benefit we have is that we're adding the third plane of correction, the rotational component that made lapoplasty so successful. We're adding that to the osteotomy. And there's scientific literature and evidence that demonstrates that if you can get the rotation correct and fix all planes, all three planes in an osteotomy,
Speaker Change: Those osteotomies have higher durability than those where all three planes are not corrected. So we feel like we're bringing forth in multiple ways a more sophisticated osteotomy to the market and we believe there's quite a high degree of surgeon interest in that
Speaker Change: https://www.youtube.com
Speaker Change: Great, I appreciate that.
Robbie Marcus: Maybe for Mark, as we come up on the end of the year, there's a lot of new product launches next year. I believe you've recommitted towards trying to...
Speaker Change: cut the adjusted EBITDA again to, you know, striving towards breakeven next year in 25. Any early thoughts on the rest of 25 as we look up and down the P&L? Thanks a lot.
Speaker Change: Yeah, Robby, this is Mark. And yeah, last call we talked about.
Speaker Change: This year we're going to improve our adjusted EBITDA by 50% over last year, and then we'll get the remaining 50% in 2025.
Speaker Change: And so that would be to an adjusted EBITDA break-even in 2025. And we'll continue to do what we've started to do this year, is just show improved leverage throughout the middle of the P&L, and that should drop down and get us to a better position from an EBITDA perspective at the end of next year. And again, as we've talked about in the past, that's a full-year view. A lot of the EBITDA comes late in the year, especially fourth quarter.
Speaker Change: And any early comments on the top line as we head into next year?
Speaker Change: You know,
Speaker Change: I think it's a little bit early. What we're happy about is, what John talked about in his prepared remarks, that we do have a lot of these new products coming.
Speaker Change: I think we just really want to see how they will be received in the marketplace. We have every reason to believe that they're what...
Speaker Change: surgeon customers are asking for. But, you know, I think we want a little bit more time as we see the adoption.
Speaker Change: before we talk more about 2025. But irrespective of that top line number, we feel really good about managing the cost in the middle of the P&L to get to that adjusted even line. So more to come on the guide for full year 2025.
Speaker Change: Fair enough. Thanks for taking the questions. Appreciate it.
Speaker Change: Our next question comes from Rick Wise of Steeple. Your line is open.
Speaker Change: Hey guys, this is Anton on for Rick. Thanks for taking the questions.
Anton: Maybe maybe to start on on speed plate. We continue to hear positive search and feedback during our checks. You know, earlier this year, I think you highlight speed play was being used in 40% of cases, but you've recently introduced the new larger speed plate design and have
Anton: You know, the quad plate on the horizon. I guess, you know, where are we with the speed plate rollout broadly, supply availability for the new design, and With
Anton: these different speed plate iterations on the market, is the product being used in the majority of cases now, and what do you see as the ceiling for speed plate utilization?
John Treace: Hey Anton, thanks for the question. It's John. Yes, SpeedPlate's been a real game-changer in our product line. Our certain customers are really preferring it as their go-to fixation in more and more of their cases. We have seen the percentage of our fixation climb beyond that 40%.
John Treace: without giving exact numbers, but it continues to grow as an overall percentage. We did launch the newer, larger design for larger bone fusions in the foot, and that is in full supply now, and it's getting good uptake.
John Treace: and the new configurations that are coming. We think they're going to be well-embraced, adopted, and they really dovetail nicely with microlapoplasty and mini-adductoplasty and allowing surgeons to put.
John Treace: you know, more robust fixation into smaller incision sizes. So we think the advances we keep making in speed play keep differentiating that line and driving into the market even further.
Speaker Change: All right, that's great to hear. And on the CMS,
Speaker Change: final reimbursement decision. Could you kind of help me?
Speaker Change: think through what that means from a margin perspective.
Speaker Change: the new
Speaker Change: ASC reimbursement rate would seem to meaningfully narrow the reimbursement gap relative to the hospital outpatient setting and maybe mitigate a previous pricing headwind. I mean, through that lens, is it still right for us to think about Treace's kind of long-term kind of gross margin trajectory as being basically stable?
Mark Hair: And Tom, this is Mark. You know we're pleased with the final ruling with CMS and those.
Tom: Those associated reimbursement rates as far as our gross margin, you know, we'll continue to sell
Tom: into these customer accounts and we are still continuing to target 80% this year and there may be some minor fluctuations next year, but we don't necessarily look at this event being a change to our gross margin profile.
Speaker Change: but it definitely can provide greater access to some patients who are looking for a lapidus type procedure, lapoplasty specifically.
Speaker Change: Thank you.
Speaker Change: and John Dewey. Thank you. Thank you. Thank you.
Speaker Change: Thank you. Bye.
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Speaker Change: and John Dewey. Thank you.
Speaker Change: Operator, may we come back?
Speaker Change: I'll move on to the next person.
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Speaker Change: Our next question comes from Ryan Simmerman of BTIG.
Speaker Change: Hi guys, this is Izzy on for Ryan. Thanks for taking the questions. So I just wanted to stay on the topic of the finalized reimbursement rates for 2025. How are you guys thinking about how this might influence the competitive dynamics that you're seeing going on in the market right now. Do you think it'll be more of a rising tide opportunity or do you see a chance to gain more market share, particularly among surgeons who may not be currently using TMCI products.
Speaker Change: Hi, it's John. Yeah, you know, we were really pleased with those adjustments. They are significant and of particular interest to us because, you know, we believe we are the single largest Lapidus player in the U.S.
Speaker Change: There are a lot of ways that this may benefit that lapidus segment of the market in general. You know, one outcome could be a broadening of patient access to lapidus procedures at different sites of care.
Speaker Change: With that said, we just need to see how it's going to play out next year and report back on any changes we see in demand or access.
Speaker Change: Got it. I understand. And just following up on that, if we think about the actual mix of procedures of lapoplasty relative to osteotomies, do you see the opportunity to see the utilization change in that or even drive more utilization towards lapoplasty given the really awesome rates that we're seeing for next year?
Speaker Change: www.cdc.gov.au
Speaker Change: Yeah, I mean there's there's a lot of you know potentials and theoreticals you know that that's one of them but it's just too early to it's just too early to say and I think we need to get into 2025 and and see how things play out and and become better informed on what what that's going to look like.
Speaker Change: Understood. Thanks for taking my questions.
Speaker Change: Sure thing.
Speaker Change: And we have Richard Neuweider again from Truist Securities, whose line is open.
Speaker Change: Hi all, it's been on for Rich. Can you hear me?
Speaker Change: We can hear you.
Richard Neuweider: Yes, thank you. So I'm wondering what you're seeing in terms of trends in the foot and ankle market. I know there was some commentary from a competitor that they're expecting some reacceleration into 4Q. So I'm wondering if you're seeing similar?
Richard Neuweider: Hi Ben, it's John. Thanks for the question. Yeah, there have been some comments on the foot and ankle market.
John: We uniquely kind of participate in one segment, you know, that highly elected segment, bunion surgery. Some of those other companies have more diversified portfolios that include things like trauma products and other reconstructive products. So it's hard to make a direct comparison, you know, with our business to what these other companies might be saying and seeing.
John: You know, we identified some softening in our space in late Q1 and that continued into Q2, which led to our revised guide in early May. With that said, we're pleased that Q2 and Q3 came in largely as we expected them.
Richard Neuweider: Every year, you know, we see an acceleration in bunion procedures that starts kind of at the tail end of the third quarter and then accelerates as you progress through the fourth quarter.
Speaker Change: So that's kind of the seasonal pattern that we would expect to see in our segment of the foot and ankle market, specifically the bunion market.
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Speaker Change: Okay, thank you.
Speaker Change: Sure thing.
Speaker Change: Thank you.
Speaker Change: And our next question comes from Danielle Antoffee of UBS. Your line is open.
Danielle Antoffee: Hey, good afternoon, guys. Thanks so much for taking the question. Congrats on a good quarter here. Just a quick question on the updated guidance for 2024 and particularly the implication for Q4.
Danielle Antoffee: is a step down in growth, I think, at the midpoint of high single digits. Just curious what the sort of puts and takes of that are. Any hurricane impact in that number? And then just a quick follow-up to push a little bit on 2025.
Danielle Antoffee: Okay.
Speaker Change: Hey Danielle, this is Mark. Let me start and maybe John can fill in any color that I missed, but yeah, we're definitely pleased with the execution.
Speaker Change: that our sales force had in Q3, 11% growth was really largely in line with our projections. You know, as you think about this year and last year, Q3 was an easier comp for us. And when we did provide full year...
Speaker Change: guidance back in May, we really felt like we appropriately factored in all the headwinds.
Speaker Change: of Competitive Activities as well as the tailwinds of some of these new product launches that John has been talking about.
Speaker Change: Just as you mentioned, there are a few new variables here that have come up with respect to maybe some lingering IV bag rationings and a couple hurricanes that were, you know, candidly in our backyard here in Florida. So balancing all of it, we just felt...
Speaker Change: You know, pleased with our third quarter results, but believe it's prudent to really maintain our guide for Q4, given some of that uncertainty.
Speaker Change: Got it. Okay, that's helpful. And then just to push a little bit on 2025, I mean, I think right now where the street sits it's
Speaker Change: single-digit growth or thereabouts.
Speaker Change: you've grown low double digits year to date thus far. I mean, is there any reason to believe just given the cadence of new product launches that you have?
Speaker Change: Growth would actually
Speaker Change: decelerate next year or is it safe to say probably the street's a little bit on the low end? Appreciating you're not giving guidance but just trying to think about this.
Speaker Change: conceptually. Thanks so much.
Speaker Change: Yeah, Danielle, it's a great question and something that we talk a lot about here.
Speaker Change: As we talked about, we had single-digit growth rate in Q2, and the guide has an implied single-digit growth rate as well in Q4. We've got a lot of things that have been...
Speaker Change: in the pipeline, and we're just barely beginning to get them to market. Some of these two MIS systems that John is talking about are just really coming out in the fourth quarter, so we don't have a lot of
Speaker Change: of history just yet. Now, we feel really good about all those coming. There are several other products and systems that are coming out next year as well. But, you know, I think for
Speaker Change: Where we're sitting right now, there has been a lot of change, there's been some challenges this year. And I think we, as we think about next year, we've got a great and strong sales force, we've got some great products coming, including our existing Lapoplasty and Nanoplasty product lines.
Speaker Change: We feel like we have a lot of things in order. I think at this time we're going to wait and see a little bit more of how our surging customers adopt these new systems, and then we'll be ready and prepared to give a little bit more guidance into next year as it gets a little bit closer.
Speaker Change: Got it. Totally fair. Thanks so much.
Speaker Change: Thank you. I'm showing no further questions at this time. I would like to turn it back to Vivian Cervantes for closing remarks.
Vivian Cervantes: Thank you, operator. Thanks everybody for joining us this afternoon. On behalf of Chief Medical, we are concluding our call and we look forward to our next update following the close of the fourth quarter 2024.
Speaker Change: This concludes today's conference call. Thank you for participating and you may now disconnect.