BIOLASE(US:BIOL)2023-05-12 02:25Financial Data and Key Metrics Changes - The company reported net revenue of $10.5 million for Q1 2023, representing a 3% year-over-year growth, marking the ninth consecutive quarter of year-over-year growth [9][83] - GAAP net loss for the quarter was $5.8 million, compared to a net loss of $4.8 million in Q1 2022, while adjusted EBITDA loss was $4.4 million compared to $3.9 million in the same period last year [66][90] - Gross margin decreased to 32% from 49% a year ago, primarily due to supply chain issues and a higher percentage of revenue generated outside the US [90] Business Line Data and Key Metrics Changes - International laser sales increased by 22% year-over-year, indicating a return of international revenue growth [3][65] - Record consumable sales were reported, with US consumable sales up 19% year-over-year, driven by increased procedures using BIOLASE laser systems [3][9] - The success rate of the Waterlase exclusive trial program increased over 20% year-over-year to over 60% [32][87] Market Data and Key Metrics Changes - 58% of US Waterlase sales came from new customers, with approximately 33% of sales coming from dental specialists [65] - The company holds approximately 60% share of the worldwide all-tissue dental laser market [60] - The number of Marketing Qualified Leads (MQLs) increased by 400% to over 4,000 in the US in 2022, with a continued increase of nearly 50% in Q1 2023 [5][26] Company Strategy and Development Direction - The company aims to increase awareness of dental lasers among the majority of the market that is not currently using them, focusing on education and training to drive growth [4][27] - A three-pronged strategy is in place to increase market adoption, targeting dental specialists, corporate dentists, and universities [28][30] - The company plans to leverage its brand and grow the overall market by engaging with the remaining 90% of dentists [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue growth of at least 25% and positive adjusted EBITDA for 2023 [84][92] - The company expects to see improved gross margins due to in-house production of trunk fiber, which is projected to account for approximately 50% of requirements [91][92] - Management noted that while the economic environment is challenging, the sales cycle has not significantly impacted overall sales [46][49] Other Important Information - The company completed an acquisition of a trunk fiber supplier, which is expected to reduce backlog and overall costs [10] - A new training facility has been opened to enhance education and training efforts, which is expected to drive revenue and laser adoption [63][102] Q&A Session Summary Question: How have supply chain constraints impacted the company? - Management acknowledged supply chain issues but noted that transitioning to in-house fiber production is expected to alleviate these constraints [18][19] Question: What is the outlook for gross margins moving forward? - Management indicated that in-house production will reduce costs and improve quality, leading to better gross margins in the future [74][90] Question: How many WETP events will be held in-house versus on the road? - The company plans to host about 35 WETP events this year, with some being held at the new training facility [102][103] Question: What is the current backlog situation? - Management stated that there is minimal backlog currently, with shipping on schedule [106][107]