Q3 2023 Transmedics Group Inc Earnings Call

TransMedics Group, Inc. Third Quarter 2023 Earnings Conference Call Participants

Present:
– Stephen Gordon; CFO, Treasurer & Secretary
– Waleed H. Hassanein; Founder, President, CEO & Director
– Allen Gong
– Bill Plovanic
– Joshua Thomas Jennings; MD & Senior Research Analyst
– Ryan Scott Daniels; Partner & Co-Group Head of Healthcare Technology and Services
– Suraj Kalia; MD & Senior Analyst
– Brian Johnston; Principal

Operator: Good afternoon, and welcome to the TransMedics Third Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.

Brian Johnston: Thank you. Earlier today, TransMedics released financial results for the quarter ended September 30, 2023. A copy of the press release is available on the company’s website.

Waleed H. Hassanein: Thank you, Brian. Good afternoon, everyone, and welcome to TransMedics Third Quarter 2023 Earnings Call. As always, joining me today is Stephen Gordon, our Chief Financial Officer.

The third quarter was an important foundation building quarter for TransMedics. We closed 2 strategic acquisitions, one with Summit Aviation for near-term growth and one with Bridge to Life Technologies for long-term growth. We initiated a limited launch of our transplant logistics service in late 3Q, with early positive impact on revenue and overall clinical adoption. Our total revenue was $66.4 million, representing 159% growth over the same period in 2022 and 27% sequential quarter-over-quarter growth from 2Q 2023. We are thrilled by the early performance of our transplant aviation and logistics service as it raises our confidence in our long-term plans.

We also saw continued operational efficiencies in 3Q and met our goal of having NOP contribute the lion’s share of our U.S. revenue. We added 45 new clinical specialists and 10 surgeons in 3Q to meet growing demand. We are well on our way to reaching our goal of completing more than 2,000 U.S. NOP transplants in 2023.

We initiated a limited launch of our new transplant logistics business with aviation in 3Q, and we are pleased with the early results. We plan to expand our fleet to around 15 to 20 operational planes by the second half of 2024.

Overall, 3Q represents the beginning of an important new TransMedics business offering.

This call contains forward-looking statements. All forward-looking statements involve material risks and uncertainties. Additional information regarding these risks and uncertainties can be found in our filings with the Securities and Exchange Commission.

And with that, we conclude the prepared remarks. Thank you for joining us today.

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