Heartflow (NasdaqGS:HTFL) FY Conference Transcript

HeartFlow (NasdaqGS:HTFL) FY Conference Summary Company Overview - HeartFlow is a software company utilizing AI for the treatment, diagnosis, and management of coronary artery disease, founded in 2010 with FDA clearance in 2014 [1][2] - The company targets the symptomatic market, estimating a total addressable market (TAM) of $5 billion [2] Key Financial Performance - In 2025, HeartFlow added 340 new accounts, reaching a total of 1,465 accounts, marking the best fiscal year for account additions [2] - Trailing 12 months revenue reached $162 million, reflecting a 41% growth [3] - Strong Q4 performance with no negative surprises, exceeding consensus expectations [3][4] Product and Technology Developments - HeartFlow has developed the world's largest proprietary database of coronary CCTA images, with over 160 million annotated images [3] - The company is expanding its product offerings with plaque analysis, currently live in 489 accounts, with a goal of over 1,000 accounts by the end of 2026 [4][26] - New randomized controlled trials (RCTs) will be initiated in 2026 to expand into the asymptomatic market [4][34] Clinical Evidence and Market Position - HeartFlow has over 600 peer-reviewed publications supporting its clinical evidence [3] - The company aims to create a new standard of care in coronary artery disease, currently having less than 2% market penetration [9][32] - The company’s AI-driven approach is compared to advancements in cancer diagnostics, emphasizing improved accuracy and patient outcomes [8][9] Growth Strategy - HeartFlow's strategy involves starting with the most diseased patients and gradually moving to less urgent cases, including asymptomatic patients [9][34] - The company plans to leverage its existing technology to enter the asymptomatic market, targeting a TAM of $6 billion [34] Market Dynamics and Competition - HeartFlow faces competition from the current standard of care, which is deemed inaccurate [5][32] - The company is focused on educating the market and driving adoption of its plaque analysis technology [40][42] Financial Outlook - HeartFlow aims for profitability within three years post-IPO, targeting 2028 for cash flow break-even [47] - The company expects continued revenue growth driven by its subscription model and expansion into new markets [48] Coverage and Reimbursement - Over 70% of lives are covered for plaque analysis, with a Category I CPT code in place [13][28] - The company is actively working with payers to expand coverage based on clinical data from its DECIDE registry [27][43] Conclusion - HeartFlow is positioned for significant growth with a strong focus on clinical evidence, market education, and expanding its product offerings in the coronary artery disease space [37][48]