Q1 2025 Outset Medical Inc Earnings Call

May 7, 2025

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Now I'd like to hand, the conference over to your Speaker today, Jim Mazzola head of Investor Relations. Please go ahead.

Speaker Change: Okay. Thanks, Victor and good afternoon, everyone and welcome to our first quarter 2025 earnings call here with me today are Leslie Trig Chair and Chief Executive Officer, and Mobile Ahmed Chief Financial Officer, We issued a news release after the close of market today, which can be found on the investor pages about set medical dot com.

This call is being recorded and will be archived on the investors section of our website.

Speaker Change: Our intent that all forward looking statements made during today's call will be protected under the private Securities Litigation Reform Act of 1095. These statements relate to expectations or predictions of future events are based on our current estimates and various assumptions and involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated.

Speaker Change: <unk> or implied outset assumes no obligation to update these statements for a list and description of the risks and uncertainties associated with our business. Please refer to the risk factors section about the public filing with the SEC, including our latest annual and quarterly reports with that I'll turn the call globally. Thanks, Jim and good afternoon, everyone and thank you for.

Speaker Change: Joining us.

Speaker Change: <unk> results in the first quarter reflect the strong progress we've made with our commercial transformation the durable competitive advantage of tableau in both the acute and home setting and the meaningful impact our operational execution is having on our path to profitability.

Speaker Change: Console sales grew up meaningfully over last quarter utilization remains strong and we demonstrated continued operating leverage.

Speaker Change: Starting at the top revenue for the first quarter of $29 8 million reflected 6% growth from the first quarter of last year.

Speaker Change: We're very pleased with the composition of revenue, which included 23% sequential growth in console revenue, which is a key metric for us this year as we look to sustainably reignite console growth.

Speaker Change: We continue to see strong utilization across the tableau installed base, which resulted in another strong quarter of recurring revenue recurring revenue of $22 $7 million grew 20% over the first quarter of last year.

Speaker Change: Once tableau counsels are placed their use and this utilization frequency it keeps us right on track to exit the fourth quarter on a run rate of more than $100 million annually in recurring revenue alone.

Speaker Change: I mentioned last quarter that it took outset for eight years to reach 1 million cumulative treatments and then an incremental 17 months to reach 2 million cumulative treatments. This quarter, we shipped our three millionth treatment and it took us not another 17 months that just over 12 months.

Speaker Change: To get there.

Speaker Change: We also continue to be pleased with the progress we are making with non-GAAP gross margin, which at 37, 6% continued to expand year over year as we sold more treatments and service across a larger installed base.

Speaker Change: Normalizing for the lower absorption of manufacturing overhead, which we've previously discussed we would've seen non-GAAP gross margin of approximately 40% for the quarter right on our path to the next milestone of 50%.

Speaker Change: Turning to our end markets our results in the quarter were again driven by continued penetration within acute care providers, who have made the decision to reduce costs and improve patient care by in sourcing their dialysis service line the.

Speaker Change: The clinical financial and operational advantages tableau can deliver continue to resonate with the full range of acute providers from community and critical access hospitals to regional IV and the National Health system. For example, one large regional IBM customer deployed there are hundreds tableau during the quarter as part of our system wide <unk>.

Scott, we would've seen non-GAAP gross margin of approximately 40% for the quarter right on our path to the next milestone of 50%.

Speaker Change: Sourcing implementation and continues to expand tableau to use across multiple facilities in several states.

Speaker Change: At one of the largest health systems in the U S. We recently expanded our footprint from in sourcing dialysis in the acute setting to standing up a new dialysis service line at one of their skilled nursing facility.

Turning to our end markets our results in the quarter were again driven by continued penetration within acute care providers, who have made the decision to reduce costs and improve patient care by in sourcing their dialysis service line. So.

Speaker Change: We're early in this rollout, but excited by the acute sub acute expansion potential within this and other large health systems that are using tableau inpatient and beginning to evaluate it for use at the sub acute facilities in their network.

Clinical financial and operational advantages tableau can deliver continued to resonate with the full range of acute providers from community and critical access hospitals to regional IV and the National Health system. For example, one large regional IBM customer deployed there are hundreds of tableau during the quarter as part of our system wide in soy.

Speaker Change: Reflecting on the quarter, we were very pleased to observe continued progress with our sales transformation across both process and people our pipeline grew substantially again in the quarter, reflecting contributions from our enhanced capital sales team and sales process.

Implementation and continues to expand tableau to use across multiple facilities in several states.

At one of the largest health systems in the U S. We recently expanded our footprint from in sourcing dialysis in the acute setting to standing up a new dialysis service line at one of their skilled nursing facilities.

Speaker Change: And growing market recognition of tableau is right to win.

Speaker Change: Our team is becoming increasingly proficient at educating stakeholders at all levels of an enterprise about the benefits tableau can deliver not only financially, but also clinically and operationally in our forecast accuracy has improved.

We're early in this rollout, but excited by the acute to sub acute expansion potential within this and other large health systems that are using tableau inpatient and beginning to evaluate it for use at the sub acute facilities in their network.

Speaker Change: During the quarter, we added new customers adopting tableau for the first time and also saw existing customers buy more tableau to expand their use to new locations.

Reflecting on the quarter, we were very pleased to observe continued progress with our sales transformation across both process and people our pipeline grew substantially again in the quarter, reflecting contributions from our enhanced capital sales team and sales process and growing market recognition of taboo.

Speaker Change: As we look ahead to the rest of the year and the acute end market. We remain confident in our pipeline and see evidence of continued strong market demand powered by increased tableau brand awareness and the consistency of the results our technology and our team produces.

<unk> right to win.

Speaker Change: In sourcing with tableau saves hospitals money. It has a relatively low acquisition cost and a short payback period.

Our team is becoming increasingly proficient at educating stakeholders at all levels of an enterprise about the benefits tableau can deliver not only financially, but also clinically and operationally in our forecast accuracy has improved.

Speaker Change: Clinically a growing number of acute care customers are sharing reductions in hospital acquired infections lower length of ICU stay and hire nurse satisfaction rates post in sourcing with tableau.

During the quarter, we added new customers adopting tableau for the first time and also saw existing customers buy more tableau to expand their use to new locations.

Speaker Change: While federal funding cuts have made the health care environment more dynamics since we provided guidance in February customers are conveying to us that the financial and clinical case for in sourcing with tableau remains compelling as they prioritize their capital expenditures for 2025.

As we look ahead to the rest of the year and the acute end market. We remain confident in our pipeline and see evidence of continued strong market demand powered by increased tableau brand awareness and the consistency of the results our technology and our team produces.

Speaker Change: This customer feedback fuels, our confidence in outlets plan for the rest of the year a plan that remains unchanged and on track.

In sourcing with tableau saves hospitals money. It has a relatively low acquisition cost and a short payback period.

Speaker Change: Turning now to the home and market, we expanded tableau views among mid sized dialysis providers and successfully contracted with one of the last remaining Ngos that hadn't yet adopted tableau.

Clinically a growing number of acute care customers are sharing reductions in hospital acquired infections lower length of ICU stays and hire nurse satisfaction rates post in sourcing with tableau.

Speaker Change: Patient demand continues to play a key role in tableau is home adoption and to that end, we again drove industry, leading retention rates above 90% at 90 days.

While federal funding cuts have made the health care environment more dynamics since we provided guidance in February customers are conveying to us, but the financial and clinical case for in sourcing with tableau remains compelling as they prioritize their capital expenditures for 2025.

Speaker Change: As we said change in the home setting will take a bit longer than the ramp we're seeing in the acute setting, but we continue to make steady progress and remain driven by the stories from people who tell us their lives have been changed for the better by having access to tableau at home or in a post acute setting.

This customer feedback fuels, our confidence in outfits plans for the rest of the year a plan that remains unchanged and on track.

Speaker Change: From an operational perspective, the actions, we have already taken to remove approximately $80 million of annualized spend deliver leverage in the quarter with our lowest non-GAAP operating loss since our IPO.

Turning now to the home and market, we expanded tableau views among mid sized dialysis providers and successfully contracted with one of the last remaining Ngos that haven't yet adopted tableau.

Speaker Change: I want to reiterate that we are aggressively executing against a clear path to profitability that starts with topline growth includes gross margin expansion is reinforced by our disciplined spend management and shows up in a significant reduction in cash used we project for 2025 and the leverage we see.

Patient demand continues to play a key role in tableau is home adoption and to that end, we again drove industry, leading retention rates above 90% at 90 days.

As we said change in the home setting will take a bit longer than the ramp we're seeing in the acute setting, but we continue to make steady progress and remain driven by the stories from people who tell us their lives have been changed for the better by having access to tableau at home or in a post acute setting.

Speaker Change: The bottom line.

Speaker Change: Also related to our operational progress we were pleased with the vote results from our special meeting of stockholders held on March 5th which enabled us to complete the recapitalization of the company that we announced in January on April 11th we filed our proxy statement for the annual meeting of stockholders scheduled for June 2nd.

From an operational perspective, the actions, we have already taken to remove approximately $80 million of annualized spend deliver leverage in the quarter with our lowest non-GAAP operating loss since our IPO.

Speaker Change: In this proxy we are asking shareholders to approve a onetime increase in our stock pool for employee grants as well as a share pool increase under our employee stock purchase plan.

I want to reiterate that we are aggressively executing against a clear path to profitability that starts with topline growth includes gross margin expansion is reinforced very disciplined spend management and shows up in a significant reduction in cash used we project for 2025 and the leverage we see at the bottom.

Speaker Change: Both of these important these important programs are necessary to help us ensure we keep our team's interests tightly aligned with investors' interests and to continue to attract and retain top talent. It out that as we reignite growth and build for the long term.

Your line.

Speaker Change: One final operational note, we spoke on last quarter's call about a special tariff exemption outset received in January for medical devices that survey chronically disabled population.

Also related to our operational progress we were pleased with the vote results from our special meeting of stockholders held on March 5th which enabled us to complete the recapitalization of the company that we announced in January on April 11th we filed our proxy statement for the annual meeting of stockholders scheduled for June 2nd.

Speaker Change: With some of the new tariffs now in place, we can confirm that tableau tableau cart and tableau consumables remain exempt under the special protocol.

In this proxy we are asking shareholders to approve a onetime increase in our stock pool for employee grants as well as a share pool increase under our employee stock purchase plan.

Speaker Change: Additionally, we continue to have a tariff exemption under the U S. MCA and further contingencies such that we continue to expect no impact from proposed or implemented tariffs at this time.

Both of these important these important programs are necessary to help us ensure we keep our team's interests tightly aligned with investors' interests and to continue to attract and retain top talented out that as we reignite growth and build for the long term.

Speaker Change: We remain very bullish on the competitive advantages tableau and if established ecosystem offer customers in the acute and home settings. We've demonstrated time and again that one's tableau has deployed its used consistently and this consistent use drive strong growing and predictable recurring revenue we have them.

One final operational note, we spoke on last quarter's call about a special tariff exemption outset received in January for medical devices that survey chronically disabled population.

With some of the new tariffs now in place, we can confirm that tableau tableau cart and tableau consumables remain exempt under the special protocol. Additionally, we continue to have a tariff exemption under the U S. MCA and further contingencies such that we continue to expect no impact from propose.

Speaker Change: Australia, tableau delivers compelling clinical financial and operational benefits to providers in the acute sub acute and home settings.

Speaker Change: Moreover, the competitive moat around tableau continues to deepen.

Speaker Change: Our growing installed base is extending our reach across the country are.

Speaker Change: Our proprietary data analytics ecosystem powered by tableau integration with epic and Cerner and the 3 million data points sent to the cloud. After every treatment every tableau every day uniquely enables us to deliver value added clinical and operational insights and efficiencies to our customers are.

<unk> or implemented tariffs at this time.

We remain very bullish on the competitive advantages tableau and its established ecosystem offer customers in the acute and home settings. We've demonstrated time and again that one's tableau has deployed its used consistently and this consistent use drive strong growing and predictable recurring revenue.

Speaker Change: Our proprietary knowhow around in sourcing allows us to partner with hospitals as a solution not just a product or.

We have demonstrated the tableau delivers compelling clinical financial and operational benefits to providers in the acute sub acute and home settings.

Speaker Change: Our exceptional at scale field service team drive the customer satisfaction score consistently above 95%.

Moreover, the competitive moat around tableau continues to deepen.

Speaker Change: And our portfolio of reference of all customers continues to grow helping to drive market adoption.

Our growing installed base is extending our reach across the country are.

Speaker Change: With the tableau installed base performing more than 1 million treatments annually and growing we estimate that there is still a half a billion dollars in recurring revenue yet to be realized from the current installed base alone.

Our proprietary data analytics ecosystem powered by tableau integration with epic and Cerner and the 3 million data points sent to the cloud. After every treatment every tableau every day uniquely enables us to deliver value added clinical and operational insights and efficiencies to our customers are.

Speaker Change: I'll close by reiterating our optimism optimism for the year ahead, we entered the year with extraordinary clarity on the vital few priorities for out that.

Proprietary knowhow around in sourcing allows us to partner with hospitals as a solution not just a product.

Speaker Change: Our team is determined to deliver on three priorities in 2025 number one grow console revenue utilization is strong on the console as we place, creating an even more valuable recurring revenue stream as we expand the installed base and gained scale in what remain two of the largest market opportunities in health care.

Our exceptional at scale field service team drive the customer satisfaction score consistently above 95%.

And our portfolio of reference of all customers continues to grow helping to drive market adoption.

Speaker Change: <unk> increased gross margin. This has been a bright spot for outset, and we've increased gross margin by nearly 30 percentage points since our first year following the IPO.

With the tableau installed base performing more than 1 million treatments annually and growing we estimate that there is still a half a billion dollars in recurring revenue yet to be realized from the current installed base alone.

Speaker Change: With product margin nearing 50% service gross margin, increasing the scale and continued efficiencies in our plan, we see a clear path to 50% and beyond.

I'll close by reiterating our optimism optimism for the year ahead, we entered the year with extraordinary clarity on the vital few priorities for outset R.

Speaker Change: Third driving to profitability, our non-GAAP operating loss. This quarter was the lowest has ever been as a public company and our plan calls for it to significantly narrow in 2025, putting us in a strong position to reach cash flow breakeven and profitability within a near term planning horizon.

Our team is determined to deliver on three priorities in 2025 number one grow console revenue utilization is strong on the council's we place, creating an even more valuable recurring revenue stream as we expand the installed base and gained scale in what remain two of the largest market opportunities in health care.

We fully understand the importance of consistent execution. During this pivotal year and intend to remain heads down and focused on doing the work occur.

<unk> increased gross margin this isn't a bright spot for outset, and we've increased gross margin by nearly 30 percentage points since our first year following the IPO.

Speaker Change: Accordingly, we don't want to get ahead of ourselves with just one quarter down in the year and intend to maintain our conservative approach to guidance that said, we are confident about our outlook and believe we are set up very well for the remaining three quarters of the year providers, including the largest health systems in the country are seeing the enormous clinical financial and operational.

With product margin nearing 50% service gross margin, increasing the scale and continued efficiencies in our plan, we see a clear path to 50% and beyond.

Third driving to profitability, our non-GAAP operating loss. This quarter was the lowest has ever been as a public company and our plan calls for it to significantly narrow in 2025, putting us in a strong position to reach cash flow breakeven and profitability within a near term planning horizon.

Speaker Change: Integer is that in sourcing with tableau can deliver the market opportunity remains wide open for us and we continue to gain ground, adding new health care facilities to our growing customer base and driving treatment expansion.

We fully understand the importance of consistent execution. During this pivotal year and intend to remain heads down and focused on doing the work accordingly.

Speaker Change: I want to close by thanking our entire team for their commitment to the patients. We serve in addition should their commitment to driving growth managing spend and reaching our shared goal of profitability.

Accordingly, we don't want to get ahead of ourselves with just one quarter down in the year and intend to maintain our conservative approach to guidance that said, we are confident about our outlook and believe we are set up very well for the remaining three quarters of the year providers, including the largest health systems in the country are seeing the enormous clinical financial and operational.

Bill: And with that I will turn it over to bill.

Bill: Thanks, Leslie Hello, everyone revenue for the first quarter of $29.8 million grew 6% over the first quarter of 2024 due to higher recurring revenue across a larger installed base.

Bill: Revenue of $21 $3 million.

Integer is that in sourcing with tableau can deliver the market opportunity remains wide open for us and we continue to gain ground, adding new health care facilities to our growing customer base and driving treatment expansion.

Bill: Shifting of Controle revenue of $7 $1 million in consumable revenue of $14 $2 million grew 4% from $24 million in the prior year.

Bill: Fortunately console revenue grew 23% sequentially.

I want to close by thanking our entire team for their commitment to the patients. We serve in addition to their commitment to driving growth managing spend and reaching our shared goal of profitability.

Bill: Service and other revenue of even a half million dollars grew 9% from $7 $7 million in the prior year period.

Bill: Recurring revenue from the sale of tableau treatments and service was $22 $7 million, an increase of 20% over the first quarter of 2024.

Bill: And with that I will turn it over to bill.

Bill: Thanks, Leslie Hello, everyone revenue for the first quarter of $29.8 million grew 6% over the first quarter of 2024 due to higher recurring revenue across a larger installed base.

Bill: Now moving to gross margin and operating expenses, which as a reminder, reflect our non-GAAP results.

Bill: Product revenue of $21 $3 million.

Bill: Please refer to the reconciliation of GAAP to non-GAAP measures, which can be found in today's earnings release.

Bill: Assisting of Controle revenue of $7 $1 million in consumable revenue of $14 $2 million grew 4% from $24 million in the prior year.

Bill: Gross margin of 37, 6% for the first quarter. It continued its nearly five year upward progression, increasing 650 basis points from 31, 1% in the prior year period.

Bill: <unk> console revenue grew 23% sequentially.

Bill: Service and other revenue of eight and a half million dollars grew 9% from $7 $7 million in the prior year period.

Bill: This growth was underpinned by progress in both product.

Bill: And service and other gross margin.

Bill: Gross margin increased 860 basis points year over year to 48, 4%.

Bill: Recurring revenue from the sale of tableau treatments and service was $22.7 million, an increase of 20% over the first quarter of 2024.

Bill: Service and other gross margin was 10, 3%.

Bill: Increasing 230 basis points from 8% in the prior year period.

Bill: Now moving to gross margin and operating expenses, which as a reminder, reflect our non-GAAP results.

Bill: As I mentioned last quarter, when we provided guidance for the year gross margin has adversely affected in the short term due to lower absorption of manufacturing overhead as a result of our reduced console build plan and efforts to reduce inventory levels.

Bill: Please refer to the reconciliation of GAAP to non-GAAP measures, which can be found in today's earnings release.

Bill: <unk> margin of 37, 6% for the first quarter. It continued its nearly five your upward progression, increasing 650 basis points from 31, 1% in the prior year period.

Bill: Absent the impact of under absorption of manufacturing overhead, which drove the gross margin by approximately 230 basis points in the quarter. We would have seen non-GAAP gross margin right around 40% and product gross margin above 50% for the first time.

Bill: This growth was underpinned by progress in both product.

Bill: Service and other gross margin.

Bill: Gross margin increased 860 basis points year over year to 48, 4%.

Bill: Operating expenses of $24 $6 million declined by 30% from the prior year period, driven by our ongoing focus on expense management.

Bill: Service and other gross margin was 10, 3%.

Bill: Creasing 230 basis points from 8% in the prior year period.

Bill: non-GAAP operating loss was $13 4 million, 49% below our operating loss in the prior year period and at the lowest level since our IPO.

Bill: As I mentioned last quarter, when we provided guidance for the year gross margin has adversely affected in the short term due to lower absorption of manufacturing overhead.

Bill: Net loss was $22 million or $3 24 per share, 22% lower than the first quarter of 2024.

Bill: As a result of our reduced console build plan and efforts to reduce inventory levels.

Bill: Absent the impact of under absorption of manufacturing overhead, which drove the gross margin by approximately 230 basis points in the quarter, we would've seen non-GAAP gross margin right around 40% and product gross margin above 50% for the first time.

Bill: These measures reflect the positive results of our drive to profitability.

Bill: Moving to our balance sheet, we ended the quarter with $192 $3 million in cash cash equivalents short term investments and restricted cash.

Bill: On our current projections, we continue to believe this level of cash gives us through cash flow breakeven.

Bill: Operating expenses of $24 $6 million declined by 30% from the prior year period, driven by our ongoing focus on expense spend.

Bill: Turning to our guidance for 2025, which we initially provided on the February call with one positive quarter. Joan we continue to expect revenue for the full year to be between $150 million to a $125 million.

Bill: non-GAAP operating loss was $13 $4 million, 49% below our operating loss in the prior year period and at the lowest level since our IPO net loss was $22 million or $3 24 per share, 22% lower than the first quarter of 2024.

Bill: Our intent here is to remain conservative as we work through this year of execution.

Bill: As a reminder, the midpoint of this range implies the installed base.

Bill: These measures reflect the positive results of our drive to profitability.

Bill: And recording revenue both grew by roughly 10%.

Bill: Moving to our balance sheet, we ended the quarter with $192 $3 million in cash cash equivalents short term investments and restricted cash based on our current projections. We continue to believe this level of cash gives us through cash flow breakeven.

Bill: Moving down the income statement, we continue to expect gross margin for the full year in the high 30% range as we discussed on last quarter's call. The rate of expansion will be affected as we bring down our inventory levels and under absorbed manufacturing overhead.

Bill: Turning to our guidance for 2025, which we initially provided on the February call.

Bill: Excluding the impact of under absorption, we would anticipate company gross margin exiting the year above 40% in the fourth quarter of 2025.

Bill: With one positive quarter, Joan we continue to expect revenue for the full year to be between $150 million to $125 million. Our intent here is to remain conservative as we work through this year of execution.

Bill: We plan to continue to quantify this impact to non-GAAP gross margins each quarter to help you model the trajectory, although gross margin may fluctuate on a quarter to quarter basis. As a result of our product mix. We remain right on track to meet our next gross margin most of them at 50%.

Bill: As a reminder, the midpoint of this range implies the installed base.

Bill: And recording revenue both grew by roughly 10%.

Bill: And then fundamental gross margin expansion was driven by recurring revenue from a larger installed base service leverage and our control cost down programs.

Bill: Moving down the income statement, we continue to expect gross margin for the full year in the high 30% range as we discussed on last quarter's call. The rates of expansion will be affected as we bring down our inventory levels and under absorbed manufacturing overhead.

Bill: We continue to anticipate Opex in 2025 of roughly $90 million. The combination of expected revenue growth continued gross margin expansion and ongoing opex and working capital discipline means that we expect to use under $50 million in cash and 2025, which is less than half the $103 million we used in 2024.

Bill: Excluding the impact of under absorption, we would anticipate company gross margin exiting the year above 40% in the fourth quarter of 2025.

Bill: To close we demonstrated in the first quarter of a strong element of our strategy work together to deliver lasting value for providers.

Bill: <unk> I'm sure.

Bill: And she added value proposition of tableau, a recurring revenue business model expanding gross margin and disciplined expense management all contributed to a strong quarter with that I think we're ready for Q&A operator, please open the lines.

Bill: Good fundamental gross margin expansion was driven by recurring revenue from a larger installed base service leverage and our control cost down programs.

Bill: Thank you and as a reminder to ask a question you will need to press star one one on your telephone and wait for them to be announced to withdraw. Your question. Please press star one again, please stand by we compile the Q&A roster.

Bill: One moment for our first question.

Bill: Yeah.

Bill: To close we demonstrated in the first quarter, how the strong elements of our strategy work together to deliver lasting value for providers.

Operator: Our first question will come from the line of Marie Thibault from <unk>. Your line is open.

Bill: <unk> and shareholders.

Marie Thibault: Hi, good afternoon, thanks for taking the questions and congrats to the team on a very nice quarter here.

Bill: When shielded value proposition of tableau, a recurring revenue business model, expanding gross margin and disciplined expense management.

Marie Thibault: Would love to get a little more detail on the turnaround in the console selling process I think in the past Leslie you've talked about you know the new sales force.

Bill: Contributed to a strong quarter with that I think we're ready for Q&A operator, please open the lines.

Bill: Thank you and as a reminder to ask a question you will need to press star one on one on your telephone and wait for them to be announced to withdraw. Your question. Please press star one again, please stand by we compile the Q&A roster.

Marie Thibault: <unk> tenure here in the first half of this year. So I'd love to understand if you think all of the potential disruption to the commercial team are sort of behind us at this point and then any more details on kind of the increase in the console installed base was the console revenue beat was that largely volume or was pricing asps.

Bill: One moment for our first question.

Speaker Change: Our first question will come from the line of Marie Thibault from <unk>. Your line is open.

Marie Thibault: A significant help too.

Speaker Change: Hi, Mary Thanks for the question and thanks for the acknowledgement.

Marie Thibault: Hi, good afternoon, thanks for taking the questions and congrats to the team on a very nice quarter here.

Speaker Change: On the maybe I'll tackle sales transformation first and then kick it over to <unk> on your volume versus ASP question on the on the console growth.

Marie Thibault: Would love to get a little more detail on the turnaround in the console selling process I think in the past Leslie you've talked about you know the new sales force.

Speaker Change: On the sales transformation I mean, first and foremost I'll say that the team here has made a remarkable amount of progress in a relatively short period of time and second I'll say that it's really paying off.

Marie Thibault: Reaching 10 year here in the first half of this year.

Marie Thibault: Love to understand if you think you know all of the potential disruption to the commercial team are sort of behind us at this point and then any more details on kind of the increase in the console installed base was the console revenue beat was that largely volume or was pricing asps are significant help too.

Speaker Change: Our commercial org looks different feels different operates very differently today.

Speaker Change: As a result, and and yes, you you stated it correctly the tenure within our team continues to grow we cited that on our last earnings call as a tailwind for 2025 and that's helped that has helped I think as a result, we saw consistent performance in Q1 across the country and also a pretty consistent and significant <unk>.

Speaker Change: Hi, Mary Thanks for the question and thanks for the acknowledgement.

Speaker Change: On the maybe I'll tackle the sales transformation first and then kick it over to Neil on your volume versus ASP question on the on the console growth.

Speaker Change: Tribune's two pipeline growth across the country as well, which is really great to see.

Speaker Change: In addition to the sales team changes and improvements I'd also cite a number of different new kind of proprietary sales tools that we're using of course, our new sales process kind of the depth and breadth and kind of inspection centric approach, we're taking to forecast accuracy.

Speaker Change: On the sales transformation I mean, first and foremost I'll say that the team here has made a remarkable amount of progress in a in a relatively short period of time and second I'll say that it's really paying off.

Speaker Change: Our commercial org looks different feels different operates very differently today.

Speaker Change: As a result, and and yes, you stated it correctly the tenure within our team continues to grow we decided that on our last earnings call as a tailwind for 2025 and that's helped that has helped I think as a result, we saw consistent performance in Q1 across the country and also pretty consistent and significant car.

Speaker Change: They just said did contribute to improved improvements in forecast accuracy and also a lot more visibility into how deals are progressing through the sales process.

Speaker Change: I think the last part of your question was about you know are we sort of on track or when do we think this will be kind of firmly behind us.

Speaker Change: In the past, we've communicated our expectation or my expectation at least at this this transformation will be fully complete in the first half of 'twenty five and based on what we're seeing that projection is very much intact. I mean, obviously it'll be really important to continue to see additional quarters of similarly positive execution, but.

Speaker Change: Tribune's two pipeline growth across the country as well, which is really great to see.

Speaker Change: But from where we sit today all all indicators are green.

Speaker Change: Maybe I'll just make one other comment and turn it over to it would be on the call for a question, but in terms of the indicators. What we continue to watch first and foremost is customer demand and customer demand remains strong.

Speaker Change: <unk> improved improvements in forecast accuracy and also a lot more visibility into how deals are progressing through the sales process.

Speaker Change: I think the last part of your question was about you know are we sort of on track or when do we think this will be kind of firmly behind us in the past, we've communicated our expectation or my expectation at least that this transformation will be fully complete in the first half of 'twenty five and based on what we're seeing that projection is very much intact I mean.

Speaker Change: I think in in for a couple of reasons, one our existing customers really are seeing the benefits and the payback of in sourcing with tableau.

Speaker Change: And actually in an increasing way of sharing that with others. We are seeing some momentum drivers as a greater and greater number of facilities adopt tableau. It's many many hundreds of health care facilities across the country.

Speaker Change: Obviously, it'll be really important to continue to see additional quarters of similarly positive execution, but but from where we sit today you know all all indicators are green.

Speaker Change: Those results in accumulative fashion are really starting to bubble up too I mentioned increased tableau brand awareness. So we're finding that when we enter into new conversations with potential new customers. They actually already know what tableau is they know who that is and that's actually a little different for us in a positive way compared to past years.

Speaker Change: And maybe I'll just make one other comment and turn it over it's going to be all on the call for a question, but in terms of the indicators.

Speaker Change: We continue to watch first and foremost is customer demand and customer demand remains strong.

Speaker Change: We're also continuing to closely monitor not only the pipeline of opportunities of course, the overall size and the quality, but also the mix and we are seeing a really kind of a cool mix of new I would call. It kind of marquee brand named health systems as well as existing customers that are looking at.

Speaker Change: I think in in for a couple of reasons, one our existing customers really are seeing the benefits and the payback of <unk>.

Speaker Change: In sourcing with tableau.

Speaker Change: And actually in an increasing way sharing that with others we are seeing.

Speaker Change: Some momentum drivers as a greater and greater number of facilities adopt tableau. It's many many hundreds of health care facilities across the country and those results in accumulative fashion are really starting to bubble up too I mentioned increased tableau brand awareness. So we're finding that when we enter into new conversations with potential new customers.

Speaker Change: Further expand on the basis of the results that they've seen with tableau and lastly, we are continuing to monitor where are these deals in the sales process and are they progressing as we look at our top forecasted deals for 2025. The majority of them are already in the last couple of stages of our sales.

Speaker Change: <unk> actually already know what tableau is they know who that is and that's actually a little different for us in a positive way compared to past years.

Speaker Change: <unk>, which which again gives us a lot of confidence as we look forward.

Speaker Change: Comments on copper.

Speaker Change: Marine hates to deal with respect to console the sequential improvement came largely from volume now in terms of <unk>. We're still pleased with ASP in the quarter. Our team does a great job has done a great job on pricing discipline, we haven't historically discounted a lot of you in the quarter and that continues to be the case in the first quarter.

Speaker Change: We mix is important for us and ASP you're on acute as you know is higher because those frequently shrink the pool plus in cards, but again really pleased with ASB and thanks to the team on both ESP and strong volumes.

Speaker Change: Alright, very encouraging all of that thank you for the detail.

Speaker Change: <unk>, which which again gives us a lot of confidence as we look forward.

Speaker Change: I'd like to understand a little bit more about the selling process as you move into the sub acute space what are some of the I guess.

Speaker Change: Comments on copper.

Speaker Change: Marine H could deal with respect to console the sequential improvement came largely from volume now in terms of <unk>. We're still pleased with ASP in the quarter. Our team does a great job has done a great job on pricing discipline, we haven't historically discounted a lot of you in the quarter and that continues to be the case in the first quarter.

Speaker Change: Proof points or evidence that they look for is it very similar to selling into acute how would you sort of characterize both the process what they look for and maybe some of the timelines that are required for decision, making thanks for taking the questions.

Speaker Change: Yeah of course that that's a great question. The headline is very very similar to acute and that has allowed us to drive a lot of our salesforce productivity.

Speaker Change: Mix is important for us and Aspira on acute as you know it was higher because those frequently shaped pool plus in cart, but again really pleased with ASB and thanks to the team on both ESP and strong volumes.

Speaker Change: It's also very similar on the backend.

Speaker Change: It's one sales team, it's one clinical support team, it's one field service team.

Speaker Change: Alright, very encouraging all of that thank you for the detail.

Speaker Change: That's really important to note, but to get a little bit more specific for you in the ways in which it is similar to the sales process first and foremost most of these are post acute sub acute facilities have traditionally been outsourcing their dialysis to a third party provider. So that's similar in the acute which leads to the SEC.

Speaker Change: I'd like to understand a little bit more about the selling process as you move into the sub acute space what are some of the I guess.

Speaker Change: Similarity the value proposition is the same they're looking for number one.

Speaker Change: Yeah of course that that's a great question. The headline is very very similar to acute and that has allowed us to drive a lot of our salesforce productivity.

Speaker Change: Cost reduction and number two improved clinical cure those sub acute facilities in the past also have struggled and been frustrated by the heavy heavy cost of outsourcing it and experiences where their patients oftentimes had to weight them many times for hours and hours.

Speaker Change: It's also very similar on the backend.

Speaker Change: It's one sales team, it's one clinical support team, it's one field service team.

Speaker Change: For a third party provider nurse to show up on site and be able to deliver the treatment that they want their patients to be able to receive immediately when that carriers need it and that's exactly what in sourcing and sort of taking control of their own destiny through tableau enables them to accomplish in terms of the sales cross.

Speaker Change: Similarity the value proposition is the same they are looking for number one.

Speaker Change: That cycle time, I would say also a pretty similar to acute of course it depends on the size of the deployment. We have been very successful so far with <unk> and rehab, who have gone for enterprise level standardization of tableau and in sourcing across their networks.

Speaker Change: And so that's also been a real bright spot for us and has tracked similarly to the way that these larger acute regional and National health systems are thinking about standardizing with tableau and sourcing across their enterprise and the same in the same fashion.

Speaker Change: Thank you so much.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: And one of them and for our next question.

Speaker Change: That cycle time, I would say also pretty similar to acute of course it depends on the size of the deployment. We have been very successful so far with <unk> and rehab, who have gone for enterprise level standardization of tableau and in sourcing across their networks.

Speaker Change: Our next question comes from the line of Josh Jennings from Cowen Your line is open.

Josh Jennings: Hi, good afternoon.

Speaker Change: Start to the year.

Josh Jennings: I think.

Josh Jennings: Answer this question, mostly Leslie.

Josh Jennings: Thinking about the risk.

Speaker Change: And so that's also been a real bright spot for us and has tracked similarly to the way that these larger acute regional and national health systems are thinking about standardizing with tableau and sourcing.

Josh Jennings: Macro headwinds.

Josh Jennings: Hospitals may be facing in the coming quarters.

Josh Jennings: Who knows how long.

Josh Jennings: Previously when hospitals were under pressure coming out of the pandemic on the clinical and economic value proposition of tableau in the acute setting.

Speaker Change: Crossed their enterprise and the same in the same fashion.

Speaker Change: Thank you so much.

Josh Jennings: Hospital kind of rose to the top.

Speaker Change: Yeah.

Speaker Change: Thank you.

Josh Jennings: Maybe just remind us of the success you've had and how tableau is the right place at the right time, even in kind of a recessionary environment.

Speaker Change: And one moment for our next question.

Speaker Change: Our next question comes from the line of Josh Jennings from Cowen Your line is open.

Josh Jennings: And do your competition be onshore.

Josh Jennings: Hi, good afternoon.

Josh Jennings: Third party competition for in service dialysis lines, I mean cost I.

Speaker Change: Start to the year.

Josh Jennings: Thank you.

Josh Jennings: To answer this question, mostly Leslie.

Josh Jennings: I believe would potentially rise in expenses could be even more.

Josh Jennings: Thinking about the risk.

Josh Jennings: Dramatically higher.

Josh Jennings: Macro headwinds.

Josh Jennings: We'll continue to outsource.

Josh Jennings: Hospitals may be facing in the coming quarters.

Speaker Change: Sorry long winded question Hope you get the chance, but wanted to just touch on that.

Josh Jennings: Who knows how long.

Speaker Change: I think you said all of that far better than I could so I'm just going to say ditto.

Josh Jennings: Previously when hospitals were under pressure coming out of the pandemic on the clinical and economic value proposition of tableau in the acute setting.

Speaker Change: [laughter], Yeah, let me take that maybe piece by piece.

Josh Jennings: Hospital kind of rose to the top.

Speaker Change: So far we have not observed any changes in the hospital capital spending climate.

Josh Jennings: Can you just remind us of the success you've had there in.

Josh Jennings: And how tableau is the right place at the right time, even in kind of a recessionary environment.

Speaker Change: So I'd say nothing that has affected us to date.

Josh Jennings: And do your competition.

Speaker Change: And I say that kind of as we sit here with roughly one month down in Q2. In addition to backward looking into Q1, we obviously are all keeping a very close eye on any changes that may affect that but whether it's medicaid or our tariff impacts on pricing, but but nothing so far that.

Josh Jennings: Sure.

Josh Jennings: Third party competition for in service.

Josh Jennings: This line.

Josh Jennings: I believe would potentially rise in expenses could be even more.

Josh Jennings: <unk> dramatically higher FERC.

Josh Jennings: <unk> sorry.

Speaker Change: Right along with your question I Hope you get the Chesapeake wanted to just touch on that.

Speaker Change: It has affected our results to date are nothing.

Speaker Change: I think you said all of that far better than I could so I'm just going to say ditto.

Speaker Change: Nothing that affects our outlook moving forward.

Speaker Change: And one reason for that also is something you just brought up and I'm glad you recognized it is we are advantaged because tableau is value proposition is an economic one.

Speaker Change: [laughter], Yeah, let me take that maybe piece by piece.

Speaker Change: So far we have not observed any changes in the hospital capital spending climate period. So I'd say nothing that has affected us to date.

Speaker Change: We not only save hospitals money, but we save hospitals money in a very tangible way. This is not theoretical. This is not you can save 25% of one hour of nursing time, maybe three years in the future. I mean this is day one dollar one very tangible savings with a short payback period most of our customers.

Speaker Change: And well report back that they have received a return on capital invested inside of 12 months, we had a couple customers actually that came in just over the last quarter and talked to our employees here both of them talked about beating their internal expectations. There are internal ROI expectations.

Speaker Change: Has affected our results to date.

Speaker Change: Nothing that affects our outlook moving forward.

Speaker Change: And one reason for that also is something you just brought out but I'm glad you recognized it is we are advantaged because tableau is value proposition is an economic one.

Speaker Change: By many many months, whereas they had projected 12 months and maybe they got the return in three or four months.

Speaker Change: We not only save hospitals money, but we save hospitals money in a very tangible way. This is not theoretical. This is not you can save 25% of one hour of nursing time, maybe three years in the future. I mean, this is day $1, one very tangible savings with a short payback period most of our customers.

Speaker Change: So I think that while hard dollar cost reduction is obviously of evergreen interest to health systems, I think as you point out, particularly in times of uncertainty our conservatism. It does tend to be the the projects on the capital spending list that are tangible and near term.

Speaker Change: And well report back that they have received a return on capital invested inside of 12 months, we had a couple of customers actually that came in just over the last quarter and talked to our employees here both of them talked about beating their internal expectations. There are internal ROI expectations.

Speaker Change: That rise to the top.

Speaker Change: We did see that play out in Covid also to your excellent point. So we have some history here.

Speaker Change: And yes I.

Speaker Change: All positive and speculating about how costs may rise for competitors, but.

Speaker Change: Purely based on logic is there supply is cost.

Speaker Change: By many many months, whereas they had projected 12 months and maybe they got the return in three or four months.

Speaker Change: Tended to become elevated due to tariffs.

Speaker Change: So I think that while hard dollar cost reduction is obviously, a evergreen interest to health systems I think as you point out, particularly in times of uncertainty our conservatism. It does tend to be the the projects on the capital spending list that are tangible and near term.

Speaker Change: If their labor costs tend to become elevated that would be that probably would show up and elevated pricing for our hospitals that are outsourcing, whereas outset is in control across the board we control our supply chain. We noted in our script that we are fully protected.

Speaker Change: That rise to the top.

Speaker Change: But as we sit here today from any tariff impacts that we've been able to reassure our customers are.

Speaker Change: We did see that play out in Covid also to your excellent point. So we have some history here.

Speaker Change: And yes I.

Speaker Change: Our ability to maintain pricing and we're in control of the the patient experience and the customer experience and as a result, the financial and the clinical and the operational efficiencies and benefits that we deliver so I I think we are very very well positioned no matter what climate, we find ourselves in for the remainder of the year.

Speaker Change: All positive and speculating about how costs may rise for competitors, but.

Speaker Change: Purely based on logic, if their suppliers cost.

Speaker Change: Tended to become elevated due to tariffs.

Speaker Change: Excellent.

Speaker Change: One follow up just wanted to with the sales transformation coming from near completion.

Speaker Change: Got it.

Speaker Change: Strategy bearing fruit just wanted to get a handle on what youre seeing in terms of.

Speaker Change: We control our supply chain, we noted in our script that we are fully protected as we sit here today from any tariff impacts that we've been able to reassure our customers.

Speaker Change: Attrition.

Speaker Change: It seems like it's pretty low.

Speaker Change: And then also just the plans to build on on the commercial foundation and the infrastructure here are you planning on adding if you feel like the sales force and the multiple layers are.

Speaker Change: Our ability to maintain our pricing and we're in control of the the patient experience and the customer experience.

Speaker Change: And as a result, the financial and the clinical and the operational efficiencies and benefits that we deliver so I think we are very very well positioned no matter what climate, we find ourselves in for the remainder of the year.

Speaker Change: Kind of where they need to be.

Speaker Change: You look to achieve your comments this year and then continue to grow in 2026. Thanks.

Speaker Change: Yeah of course.

Speaker Change: You also provided the accurate answer to your question again, which is yes, our attrition in the sales force.

Speaker Change: Excellent.

Speaker Change: One follow up just wanted to with the sales transformation.

Speaker Change: Near completion.

Speaker Change: Is very very low in fact, it was at a record low for us.

Speaker Change: Okay.

Speaker Change: This strategy bearing fruit just wanted to get a handle on what youre seeing in terms of.

Speaker Change: As we moved through Q1 so.

Speaker Change: We're very proud of our team and our culture and our voluntary retention rate.

Speaker Change: Attrition.

Speaker Change: It seems like it's very low.

Speaker Change: And then also just the.

Speaker Change: As a demonstration of that.

Speaker Change: Plans to build on the commercial foundation and the infrastructure here are you planning on adding if you feel like the sales force and the multiple layers are.

Speaker Change: That's 0.1 0.2, I think our sales team for now is exactly right sized when we look and as a reminder, we have two components of our team we have the capital sales team and that's bifurcated between regional capital sales and National accounts, and then we have our clinical sales team.

Speaker Change: Kind of where they need to be.

Speaker Change: As you look to achieve your comments this year and then continue to grow in 2026. Thanks.

Speaker Change: Yeah of course.

Speaker Change: And you also provided the accurate answer to your question again, which is yes, our attrition in the sales force.

Speaker Change: And both of those groups I think we're perfectly sized to do exactly what we need to do and keep the promises that we've made to investors in 2025 and beyond we also are actually really seeing some nice <unk>.

Speaker Change: It is very very low in fact, it was at a record low for us as we move through Q1 so.

Speaker Change: We're very proud of our team and our culture and our voluntary retention rate.

Speaker Change: Increases in sales rep productivity and that's across the board, we're seeing significant increases in clinical sales productivity revenue per person as well as nice increases in capital sales revenue per person and there is plenty of incremental headroom there.

Speaker Change: Is there a demonstration of that.

Speaker Change: That's 0.1 0.2, I think our sales team for now.

Speaker Change: Is exactly right sized when we look and as a reminder, we have two components of our team we have the capital sales team and that's bifurcated between regional capital sales and National accounts and then we have our clinical sales team in both of those groups I think we're perfectly sized to do exactly.

Speaker Change: For us to continue to take advantage of where you'll see us make some continued investments and this is not new you will see us make continued investments in our field service team I mentioned in our prepared remarks that our field service team continues to receive VSAT customer satisfaction. He sat scores consistently above.

Speaker Change: What we need to do and keep the promises that we've made to investors in 2025 and beyond we also are actually really seeing some nice.

Speaker Change: 95%, we measure that religiously every single quarter. The sample size on that is typically hundreds of respondents and so we're very very proud of the patient and the provider experience that we deliver and our field service team is a massive part of that that's the group that's the team that our customers see on a daily.

Speaker Change: And those are the folks that they know and they lean on and they trust. So we will be making I would call it incremental investments as needed.

Speaker Change: For us to continue to take advantage of where you'll see us make some continued investments and this is not new you will see us make continued investments in our field service team I mentioned in our prepared remarks that our field service team continues to receive <unk> customer satisfaction. He sat scores consistently above.

Speaker Change: As our volume and as our installed base continues to grow through 'twenty five and into 2026.

Speaker Change: Okay. Thanks again.

Josh Jennings: Thanks, Josh.

Speaker Change: Thank you and as a reminder, that star one and one for questions. Our next question will come from the line of.

Speaker Change: Sheldon Shing from RBC Your line is open.

Speaker Change: Thank you so much and congratulations on the beat.

Speaker Change: I'm just wondering given the beat you know why you didnt decide to adjust.

Speaker Change: Just the guidance here, although it has a pretty wide range. So whether you're tracking you know the low end or greater confidence at the midpoint or the higher end and then anything you can share on the cadence do you still expect to grow sequentially as you move through the year.

Speaker Change: And those are the folks that they know and they lean on and they trust. So we will be making I would call it incremental investments as needed.

Speaker Change: As our volume and as our installed base continues to grow through 'twenty five and into 2026.

Speaker Change: Thanks, so much for the question and thanks for recognizing the strong start to the year, we felt really good about it I mean, there were three things taking a half step back to go forward here and there are three things, we really really focus on delivering in the first quarter and the team delivered on all three and those three we're growing console revenue done expanding gross margin.

Speaker Change: Okay. Thanks again.

Speaker Change: Yep.

Speaker Change: Thank you.

Speaker Change: And as a reminder, that star one one for questions. Our next question will come from the line.

Speaker Change: Shalgam.

Speaker Change: Sure.

Speaker Change: From RBC your line is open.

Speaker Change: Thank you so much and congratulations on the beat.

Speaker Change: <unk> done keeping outset on track to achieving profitability done.

Speaker Change: I was just wondering given the beat you know why you didn't besides to adjust.

Speaker Change: And as we look ahead toward the rest of the year, we intend to stay focused on and deliver on the exact same three priorities, which are the promises that we've made to to our shareholders. I am very confident that we'll be able to do that and my confidence comes from number one the continued growth in the pipeline that we saw in Q1 and and the reflection of high demand both from new and.

Speaker Change: Just the guidance here, although it has a pretty wide range, so whether you're tracking.

Speaker Change: The low end or is that with greater confidence at the midpoint or the higher end and then anything you can share on the cadence do you still expect to grow sequentially as you move through the year.

Speaker Change: Existing customers and as I mentioned second consistent performance from our capital sales team and that was across all territories all parts of the country, which reflects the the return we're seeing here from our sales transformation at the same time and I'm, just giving you my two cents I will turn it over to be able to get more specific but high level. The way I think about it is one good quarter as well.

Speaker Change: Delivering in the first quarter and the team delivered on all three and those three we're growing console revenue done expanding gross margin done keeping outset on track to achieving profitability done.

Speaker Change: Good quarter, and we've got three more to go.

Speaker Change: We certainly don't want to get ahead of ourselves here I don't want to get ahead of ourselves and so while our our outlook is positive our enthusiasm is high our guidance approach is going to remain conservative, but maybe I'll feel free to chime in yeah. Sharon. So look we were really pleased with Q1 and as well as we said we are confident in our outlook.

Speaker Change: New and existing customers and as I mentioned second consistent performance from our capital sales team and that was across all territories all parts of the country, which reflects the the return we're seeing here from our sales transformation at the same time and I'm, just giving you might be sense I'll turn it over to be able to get more specific but high level. The way I think about it is one good quarter.

Speaker Change: We're one quarter down with three quarters of execution to go we're simply being conservative here and from a modeling perspective, we'd recommend.

Speaker Change: You remain conservative as well now from a cadence for the rest of the year. We do continue to expect good revenue will build through the year.

Speaker Change: Again look we had planned to be conservative here I'll say that again, and we will remain so and you know we'd recommend again, but you're also contributing as you build your models.

Speaker Change: There is one good quarter and we've got three more to go.

Speaker Change: We certainly don't want to get ahead of ourselves here I don't want to get ahead of ourselves and so while our our outlook is positive our enthusiasm is high our guidance approach is going to remain conservative, but maybe I'll feel free to China, Yes, sugar. So look we were really pleased with Q1 and as well as we said we are confident in our outlook.

Speaker Change: Got it and then you.

Speaker Change: You know I think on the last call you had indicated that you were maybe not getting as much business on losing some because of some of the balance sheet issues and I think you've addressed those.

Speaker Change: <unk> also had a reverse stock split.

Speaker Change: Seen any any increased business momentum as a result of that and then just lastly on console installed base growth anything you're willing to share.

Speaker Change: But we're one quarter down with three quarters of execution to go we're simply being conservative here and from a modeling perspective, we'd recommend.

Speaker Change: You remain contributors as well now from a cadence for the rest of the year. We do continue to expect good revenue will build through the year.

Speaker Change: In terms of numbers or acute horses home. Thank you for taking the questions.

Speaker Change: Absolutely and maybe again I'll kick it off here to bill and he can chime in on the on the installed base growth.

Speaker Change: Again look we had planned to be conservative here, I'll say that again, and we will remain so and we'd recommend again, but you're also contributed as you build your models.

Speaker Change: Short answer is.

Speaker Change: Yes.

Speaker Change: I, absolutely think it has helped us.

Speaker Change: Got it and then.

Speaker Change: It's is our performance in Q1 was fundamentally driven by the by the benefits of all the hard work. The team has put into sales team sales process.

Speaker Change: I came on the last call you had indicated that you were maybe not getting as much business on losing some because of some of the balance sheet issues and I think you've addressed those.

Speaker Change: So 100 of those stocks, but are you seeing any any increased business momentum as a result of that and then just lastly on console installed base growth anything youre willing to share.

Speaker Change: New tools, and and and that that remains unchanged, but yes around the margin.

Speaker Change: Is it helpful to remove a why not absolutely is it helpful to remove three or four more customer questions or question marks absolutely. So it was great to get that behind us and also great to get some of the regulatory challenges behind us as well. So as we had noted in February you know I felt like this.

Speaker Change: In terms of numbers or acute horses home. Thank you for taking the questions.

Speaker Change: Absolutely and maybe again I'll kick it off here to bill and he can chime in on the on the installed base growth.

Speaker Change: Short answer is.

Speaker Change: Yes.

Speaker Change: I, absolutely think it has helped us.

Speaker Change: Beam of of our February call with.

Speaker Change: It's is our performance in Q1 was fundamentally driven by the by the benefits of all the hard work. The team has put into sales team sales process.

Speaker Change: Kind of cleared for takeoff and.

Speaker Change: And I think the theme for Q2 for this call as you know we're on our way.

Speaker Change: Chevron with respect to the console placements, we disclose that annually what I can tell you today is that consumer revenue went up 23% from Q4, we are pleased with the number of consoles we shipped.

Speaker Change: New tools.

Speaker Change: And and and that that remains unchanged, but yes around the margin.

Speaker Change: Again on treatments, we had another strong quarter here.

Speaker Change: Thank you.

Speaker Change: And I'm not showing any further questions in the queue.

Speaker Change: Like to turn the call back over to Leslie trig for any closing remarks.

Leslie Trig: Great. Thanks to everyone for joining today I'd like to close again by thanking our entire team for the meaningful difference.

Speaker Change: Felt like the theme of of our February call with <unk>.

Speaker Change: Kind of cleared for takeoff and.

Speaker Change: And I think the theme for Q2 for this call as you know we're on our way.

Leslie Trig: They are making everyday in the lives of dialysis patients have a great evening, everyone. Thanks again.

Speaker Change: Chevron with respect to the console placements, we disclosed that annually what I can tell you today is that consumer revenue went up 23% from Q4, we are pleased with the number of consoles we shipped.

Leslie Trig: Thank you for your participation in today's conference. This does conclude the program and you may now disconnect everyone have a great day.

Speaker Change: Again on treatments, we had another strong quarter here.

Speaker Change: Thank you.

Speaker Change: And I'm not showing any further questions in the queue I'd like to turn the call back over to Leslie trig for any closing remarks.

Speaker Change: Great. Thanks to everyone for joining today I'd like to close again by thanking our entire team for the meaningful difference.

Speaker Change: They are making everyday in the lives of dialysis patients have a great evening, everyone. Thanks again.

Speaker Change: Thank you for your participation in today's conference. This does conclude the program and you may now disconnect everyone have a great day.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Hum.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Q1 2025 Outset Medical Inc Earnings Call

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