Asensus Surgical(ASXC) - 2022 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q1 2022, the company reported revenues of $1.1 million, a decrease from $2.1 million in Q1 2021, with total operating expenses rising to $18.2 million from $14.4 million year-over-year [11][12] - The net loss attributable to common stockholders was $19.1 million or $0.08 per share, compared to a net loss of $17.3 million or $0.08 per share in the same period last year [11][12] - The adjusted net loss attributable to common stockholders was $16.6 million or $0.07 per share, up from an adjusted net loss of $12.2 million or $0.06 per share in Q1 2021 [12] Business Line Data and Key Metrics Changes - Total case volumes increased by 29% year-over-year and 16% sequentially, with over 650 procedures performed, marking the highest quarter to date [8][19] - Revenue in Q1 2022 included $0.4 million in lease revenue, $0.4 million in instruments and accessories, and $0.3 million in services [11] Market Data and Key Metrics Changes - Procedure volumes in the EMEA region grew by 43% compared to the prior year, while the U.S. and Asia experienced low single-digit growth due to COVID spikes [19] - The company faced challenges in Eastern Europe due to political instability, impacting its ability to access hospitals and grow its installed base [18] Company Strategy and Development Direction - The company is focused on market development of the Senhance system and ongoing product portfolio development, including the launch of 5-millimeter articulating instruments and pediatric clearance applications [24][25] - The company aims to increase awareness of the Senhance system and its health economic benefits through publications and clinical data collection [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that COVID-related issues are settling down, and they are optimistic about continued growth in procedure volumes despite macro challenges [28][29] - The company anticipates 10 to 12 new program initiations by the end of the year, despite a slower-than-expected start in 2022 [18] Other Important Information - The company has approximately $118.5 million in cash and investments, with working capital of $110 million as of March 31, 2022 [12] - The clinical registry, referred to as "trust," is expected to support regulatory filings and commercial efforts, providing valuable data for various purposes [33] Q&A Session Summary Question: Impact of macro situation on European procedure growth - Management indicated that COVID-related issues are settling down, and they do not anticipate significant negative impacts on procedure volumes in Europe, despite challenges in Eastern Europe [28][29] Question: Potential conversions of machines in the next 3 to 6 months - Management stated that while it is difficult to predict specific conversion percentages, they are actively engaging with hospitals to facilitate conversions as part of their strategy [30][31] Question: Use of clinical registry data for regulatory filings - Management confirmed that the data collected in the clinical registry can be utilized for regulatory and customer-related purposes, as it is a controlled database [32]