Yahoo Finance TransMedics Group Inc (TMDX) Q1 2024 Earnings Call Transcript Highlights: Soaring Revenues and ...
Total Revenue: $96.9 million, a 133% increase year-over-year and 19% sequentially from Q4 2023.
TransMedics Transplant Logistics Service Revenue: $14.5 million, up 58% from $9.2 million in Q4 2023.
Gross Margin: 62%, increased from 59% last quarter.
GAAP Operating Profit: $12.4 million, representing 13% of total revenue.
Net Income: $12.2 million.
Annual Revenue Guidance: Updated to $390 million to $400 million, indicating 61% to 66% growth over full year 2023.
Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Thanks for the question and congratulations on a really strong quarter out of the gate. Other than pull through of some of the NOP cases that you were maybe previously losing due to the limitations of outside logistics, what else kind of went right in the quarter for you to drive these additional volumes? A: (Waleed Hassanein - President and CEO, Transmedics Group, Inc.) Thank you, Allen, for the question. A lot of things went right in the first quarter, and we hope to continue to execute in the same tone going forward. The most important thing is the outcomes that are being achieved across the board are now more transparent to the clinical users. Specifically, the liver continues to grow, but specifically for Heart and Lung, the outcomes are getting better. Our team has been working very hard at educating the market, demonstrating the better outcomes achieved with our newer use model, and it resonated in the quarter. Also, we're seeing that the outcomes in heart are really helping grow the heart market.
Q: Hi, good evening. It's great to see such an impressive start to the year. I was hoping that Waleed could just circle back on the discussion we had earlier in the quarter, just about you have you have a lot of pipeline initiatives both on the technology front and on the clinical development front. But just how should we be thinking about the OCS system potentially reducing the percentage of DCO donors, DCD donors that do not progress in heart liver and lung, and is that something that could happen in the next 12 to 24 months? A: (Waleed Hassanein - President and CEO, Transmedics Group, Inc.) And Josh, that's exactly our goal. As we discussed, this is the only system that we're aware of that exists out there that could help that picture. That's something we're planning to leverage over the next 12 to 24 months for sure. And we're hoping that once we launch these clinical programs, that becomes an opening on to the next program being focused on specifically growing the DCD utilization.
Q: John on for Will tonight. Thanks for taking our questions. I just wanted to first touch on the aviation. You said 80% with probably the term rate of direct cases that can be supported by you and what services and what level of jets are needed to reach the 80%? And when could we see that? A: (Waleed Hassanein - President and CEO, Transmedics Group, Inc.) Thank you, John. We think that at the current estimates, we think somewhere between 25 and 30 planes will get us there, but we fully expect to increase those estimates beyond 10,000 on so far. That's our expectation. The key for us is to build enough in this Phase two to continue to demonstrate the growth. And as we need more, we will have more planes on. But right now we're hoping to end this year around 20 between 15 and 20 planes and hopefully by end of next year to be between 25 and 30. And then we'll assess from there.
Q: While these Can you hear me. All right. Yes, gentlemen, congrats again on a blockbuster quarter. So really just want to go back on one of the points that you made at our conference a month or so ago. And even on this call you were talking about them generation trial So will you stratify for us the standard criteria, DBD heart that are technically off label for you all today? Just so that people can compare and contrast as to what the denominator should be in terms of market penetration also will the trial that you mentioned that would be beginning, I believe you said next year, early next year that is called profusion But would it also have is the logic behind? A: (Waleed Hassanein - President and CEO, Transmedics Group, Inc.) Thank you, Suraj, for the questions. So let me address this in multiple points. First, right now, our FDA approved indication does not cover standard criteria. Dbd hearts. Our plan is to have an new indication to cover that. And is it four hours is six hours. The market segment of between less than four hours is about 900. If you go down to up to six hours, about maybe 1,200 transplants plus or minus some at least that's based on last year's number. The reality is we want to access this segment of the market, no matter how big or how small it is. We want to be two years from now every heart transplanted in this country should be preserved on a TransMedics technology, whether cold perfusion for warm perfusion. It will be at TransMedics technology and we want to have the full gamut of FDA indications like we have it for lung and we have it for liver. So that's number one.
Q: Yes, hey, guys. This is Jackson on for Ryan, Daniel, thanks for taking the question and congrats on the strong start to the year. Can you share any general feedback from customers that have used TransMedics aviation and maybe if or how that feedback has changed since you began integrating the aviation segment? A: (Waleed Hassanein - President and CEO, Transmedics Group, Inc.) Thank you for the question on. I think the only thing that I can share publicly is just if I point out to the results, I point out to the their rapid pace by which we went from 0 to 105 customers are using our TransMedics logistical services and we expect to go deeper within these accounts. And I'll leave it at that. I think centers are beginning or are actually witnessing the at the better structure. The more efficient cost structure and availability that is afforded by TransMedics logistics. And again, I point to the results.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
