Profound(PROF)2024-11-10 13:50Financial Data and Key Metrics Changes - For Q3 2024, the company recorded revenue of 1.73 million in Q3 2023, with 179,000 from one-time capital equipment sales [7] - Gross margin in Q3 2024 was 64%, up from 61% in Q3 2023, with expectations to maintain or improve this margin throughout 2024 [8] - Total operating expenses for Q3 2024 were 7.6 million in Q3 2023, with R&D expenses up 22%, G&A expenses up 84%, and sales and distribution expenses up 34% [9] - The net loss for Q3 2024 was 0.38 per share, compared to a net loss of 0.26 per share, in Q3 2023 [10] Business Line Data and Key Metrics Changes - The TULSA procedure is gaining traction, with 64% of treatments for primary prostate cancer, 28% for hybrid patients with both cancer and BPH, and 6% for salvage treatments [18] - The commercial use of the TULSA procedure continues to grow, with 82% of treated patients classified as intermediate risk and 11% as high risk [18] Market Data and Key Metrics Changes - The company anticipates revenue for the full year 2024 to be in the range of 12 million, based on current business planning [8] - The Medicare national average facility payment for the TULSA procedure will be $12,992, which is 25% higher than that for robotic radical prostatectomy [20] Company Strategy and Development Direction - The company is transitioning from a recurring revenue model to a more traditional medical device business model, which includes upfront capital sales and service agreements [31] - The introduction of TULSA AI modules is expected to enhance treatment efficiency and confidence among urologists, with plans to launch a BPH TULSA AI module in the second half of 2025 [28] - The CAPTAIN study is ongoing, with expectations for data to support further reimbursement acceptance by private insurance companies [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pipeline and the positive reception of the TULSA procedure following the PRO-TALK Live event [26][38] - The upgraded reimbursement codes are expected to drive adoption and utilization of the TULSA procedure, with management optimistic about achieving growth in 2025 [41][42] Other Important Information - The company held a successful PRO-TALK Live event, which attracted 70 physicians and highlighted the capabilities of the TULSA procedure [11] - The company is actively recruiting to expand its sales team, aiming to grow from 13-15 salespeople to about 40 [53] Q&A Session Summary Question: Update on the goal of reaching 75 installs by year-end - Management reaffirmed strong pipeline and revenue guidance, but achieving 75 installs by year-end may be optimistic due to the transition period [35][36] Question: Response from attendees of the PRO-TALK Live event - Attendees had a strong positive reaction, with many ready to discuss financial justification and moving forward with installations [38] Question: Implications of higher reimbursement on physician uptake and revenue growth - Management believes the upgraded reimbursement will positively impact physician uptake and revenue growth, aligning well with clinical data and existing user satisfaction [40][41] Question: Dynamics behind sales and install pipeline - There was a notable wait-and-see approach from prospects regarding the final reimbursement rule, but now there is increased urgency to close deals [46][49] Question: Sales team hiring plans - The company plans to add at least five more salespeople this year, aiming for a total of about 40 to support growth [53] Question: Interest in traditional model versus pay-per-use model - The shift to a traditional model is driven by increased predictability in patient treatment volumes, making it easier for practices to justify capital expenditures [56][59] Question: Plans for commercial insurance reimbursement - The company is prioritizing getting added to commercial insurance plans, leveraging clinical data from the CAPTAIN trial to support these efforts [63][66]