Financial Data and Key Metrics Changes - The company reported revenue of $13.6 million for Q3 2022, an 11% increase compared to Q3 2021, but negatively impacted by currency fluctuations which reduced revenue by approximately $800,000 [6][15] - Year-to-date consolidated net revenues were $40.1 million, representing an 18% growth compared to $34 million in the same period of 2021, with a currency-adjusted growth of 23.5% [6][19] - The adjusted EBITDA loss for Q3 2022 was $2.5 million, compared to a loss of $1.1 million in Q3 2021 [18] Business Line Data and Key Metrics Changes - U.S. segment revenues increased by 27% to $8.9 million in Q3 2022, with end-user demand reaching a record of 1,061 units, up from 837 units in Q3 2021 [7][15] - International segment revenues decreased to $4.7 million, down approximately 10% year-over-year, but currency-adjusted revenue was up 6% [10][16] - End-user demand in the international segment grew 16% year-to-date compared to the prior year [10] Market Data and Key Metrics Changes - The U.S. segment's end-user demand was driven by a focus on face-to-face interactions with customers, resulting in significant growth [7] - The international segment's performance was affected by varying recovery rates across different countries, with expectations for growth in 2023 [10] Company Strategy and Development Direction - The company aims to expand the Challenge '22 program to five sales regions to enhance focus on key accounts and improve collaboration [8] - Strategic growth opportunities include expanding ILUVIEN's use for non-infectious posterior uveitis, with reimbursement obtained in six European countries [11] - The company is committed to rationalizing operating expenses to achieve sustainable positive EBITDA and cash flow [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving cash flow-neutral to positive status in 2023, supported by reduced operating expenses [29] - The company anticipates that the ongoing NEW DAY study and upcoming studies will enhance ILUVIEN's visibility and utility in treating retinal diseases [22] Other Important Information - The company plans to limit cash operating expenditures to less than $12 million per quarter in 2023, representing a 15% decrease [19] - The company is working with its lender to address the classification of $21 million in debt as current due to upcoming amortization [36] Q&A Session Summary Question: Risks associated with decreasing investments - Management believes that focusing on face-to-face engagement with physicians will sustain sales growth despite cuts in other areas [25][27] Question: Expectations for cash flow in 2023 - Management expects to achieve cash flow-neutral to positive status in 2023 based on projected expenses and moderate growth [29] Question: Changes in sales force structure - No disruption is expected; the company will maintain the number of territories while increasing regional directors for better focus on key accounts [31] Question: Monthly performance in Q3 - Q3 showed inconsistent performance with strong July and August, followed by a drop in September, attributed to competition from new products [34] Question: Timeline for clinical studies - The DRCR study is anticipated to take two years for enrollment, while the NEW DAY study aims for data availability in 2024 [39]
Alimera Sciences(ALIM) - 2022 Q3 - Earnings Call Transcript