Acutus Medical(US:AFIB)2023-03-17 01:12Financial Data and Key Metrics Changes - For Q4 2022, net revenue was $5 million, a 14% increase from $4.4 million in Q4 2021, marking the highest quarterly sales on record [17] - Full year 2022 net revenue was $16.4 million, down from $17.3 million in 2021, primarily due to a $2.3 million decrease in capital equipment sales and $0.4 million in foreign exchange headwinds [18] - Non-GAAP net loss for Q4 2022 was $17.9 million or $0.63 per share, compared to a loss of $28 million or $1.00 per share in Q4 2021 [23] Business Line Data and Key Metrics Changes - Commercial AcQMap procedure volumes increased by 19% in 2022, with console utilization up 13% and revenue per procedure growing 11% in constant currency [8] - Disposables revenue in Q4 2022 was $3.5 million, an 8% increase year-over-year, driven by a 15% growth in global commercial AcQMap procedures [19] - Capital revenue for the full year 2022 was $1.8 million, a 57% decline from $4.1 million in 2021, consistent with strategic prioritization of procedure volume growth [19] Market Data and Key Metrics Changes - The core addressable market for AcQMap is estimated to be between $750 million and $1 billion, with a potential opportunity of $2 billion to $2.5 billion expected to be approached incrementally in 2023 [9] - The total addressable market for AcQMap is approximately 475,000 procedures and $3 billion in disposable revenue, with expectations to exceed $4 billion by 2026 assuming sustained market growth of 10% [9] Company Strategy and Development Direction - The company is focusing on driving utilization and operational excellence, with a strategic shift towards software and catheter development to enhance product offerings [10] - AcQMap 9 software platform is expected to improve catheter localization and procedural efficiency, with significant launches planned for 2023 and 2024 [10][12] - The transition of the left-heart access portfolio to Medtronic is progressing well, with the company eligible for four years of uncapped revenue base earn-out starting February 2023 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in 2023, with expectations for revenue in the range of $18 million to $21 million [24] - The company anticipates continued execution of its strategy to drive procedure volume and utilization growth, despite navigating supply chain disruptions [25] - Management highlighted that 2022 was a transition year, setting the stage for progressive improvements in 2023 and stronger performance in 2024 [15] Other Important Information - Operating expenses in Q4 2022 were approximately $13.9 million, down 35% year-over-year, marking the lowest level since the IPO [22] - Non-GAAP gross margins improved to negative 64% in Q4 2022 from negative 110% in Q3 2022, driven by higher volumes and restructuring actions [21] Q&A Session Summary Question: What is assumed from the Medtronic left-heart access portfolio sales in the 2023 guidance? - Management indicated that while the transfer pricing is lower under the distribution agreement with Medtronic, higher volume offsets this, and expected sales are not significantly different from previous estimates [29] Question: Will the AcQGuide MAX shortage impact Q2? - Management expects to resolve the AcQGuide MAX shortages by Q1, with no significant impact anticipated in Q2 or beyond [32] Question: How will the AcQBlate FORCE Sensing Catheter launch be structured? - The launch will likely involve a limited market release initially, with a focus on improving ease of use and integration with existing systems [36] Question: What is the outlook for operating expenses in 2023? - Operating expenses are expected to be relatively flat after Q4 2022, with selective headcount increases to support software improvements [50] Question: How does the company plan to manage funding moving forward? - The company aims to make existing cash last while exploring various capital vehicles as needed, with a focus on maximizing revenue from partnerships with Medtronic and BIOTRONIK [56]