Minerva Surgical Inc (UTRS) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Minerva Surgical Q2 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Minerva Surgical 2023 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Caroline Corner, Investor Relations. Thank you, ma'am. You may begin.

現在我很高興向您介紹主持人，投資者關係部門的卡羅琳·科納 (Caroline Corner)。謝謝你，女士。你可以開始了。

Thank you, operator. Welcome to Minerva's Second Quarter 2023 Earnings Call. Joining me on today's call are Todd Usen, President and Chief Executive Officer; and Joel Jung, Chief Financial Officer.

謝謝你，接線生。歡迎參加 Minerva 2023 年第二季財報電話會議。與我一起參加今天電話會議的還有總裁兼執行長 Todd Usen；喬爾‧榮格（Joel Jung），財務長。

This call will provide forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding the markets in which Minerva Surgical operates, trends and expectations from Minerva's products and technology, trends and demand for Minerva's products, Minerva's expected financial performance, expenses and position in the market and outlook for fiscal year 2023. These statements are neither promises nor guarantees and involve known and unknown risks and uncertainties that could cause actual results, performance or achievements to differ materially from any results, performance or achievements expressed or implied by the forward-looking statements.

本次電話會議將提供1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。的陳述。 ，涉及已知和未知的風險和不確定性可能導致實際結果、績效或成就與前瞻性陳述明示或暗示的任何結果、績效或成就有重大差異。

Please review Minerva's most recent filings with the SEC for additional information, particularly the risk factors described in Minerva's quarterly report on Form 10-Q for the quarter ended March 31, 2023, which was filed on May 3, 2023, and will be updated in the company's quarterly report on Form 10-Q for the quarter ended June 30, 2023, which is expected to be filed with the SEC on August 3, 2023. Any forward-looking statements provided during this call, including projections for future performance, are based on management's expectations as of today. Minerva undertakes no obligation to update these statements to reflect events that occur or circumstances that exist after today except as required by applicable law.

請查看Minerva 最近向SEC 提交的文件，以了解更多信息，特別是Minerva 截至2023 年3 月31 日的季度10-Q 表格季度報告中描述的風險因素，該報告於2023 年5 月3 日提交，並將於2023 年5 月3 日更新。任何前瞻性陳述，包括對未來績效的預測是基於截至目前管理層的預期。 Minerva 不承擔更新這些聲明以反映今天之後發生的事件或存在的情況的義務，除非適用法律要求。

Minerva's press release for second quarter 2023 results is available on Minerva's website, www.minervasurgical.com under the Investors section and includes additional details about Minerva's financial results. Minerva's website also has the latest SEC filings, which you are encouraged to review. A recording of today's call will be available on Minerva's website by 5:00 p.m. Pacific Time today.

Minerva 2023 年第二季業績的新聞稿可在 Minerva 網站 www.minervasurgical.com 的「投資者」部分查看，其中包含有關 Minerva 財務業績的更多詳細資訊。 Minerva 的網站還提供最新的 SEC 文件，鼓勵您查看。今天的通話錄音將於下午 5:00 之前在 Minerva 網站上發布。今天太平洋時間。

With that, I will hand the call over to Todd.

這樣，我會將電話轉交給托德。

Thank you, Caroline. And thanks to all of you for joining us on our second quarter earnings call. As I have now completed my first 2 quarters with Minerva Surgical, I continue to be optimistic about the company's mission and future in meeting the distinct health care needs of women. Our commercial team has a deep level of talent that is responding to the changes introduced this past quarter to develop and deliver our products for the benefit of our customers and the women they serve, our investors and our employees.

謝謝你，卡洛琳。感謝大家參加我們的第二季財報電話會議。由於我現在已經完成了在 Minerva Surgical 的前兩個季度，我仍然對公司在滿足女性獨特的醫療保健需求方面的使命和未來持樂觀態度。我們的商業團隊擁有深厚的人才，他們正在響應上個季度引入的變化，開發和交付我們的產品，以造福我們的客戶及其服務的女性、我們的投資者和我們的員工。

While there is still much work that lies ahead to build the company that we all believe we can be, I continue to be extremely impressed with the talent we have on board and the team's willingness to change the playbook and implement new thoughts and ideas. Last quarter, we completed a small reorganization of the commercial team to realign some of our operating costs, more effectively deliver our products to our customers and we have progressed our operational review of our production activities with the goal of improving costs and increasing our gross margins. We have continued to evaluate both internal and external opportunities to drive commercial success and I look forward to updating you on those efforts when we have more tangible results to report.

儘管要打造我們都相信我們能夠成為的公司還有很多工作要做，但我仍然對我們擁有的人才以及團隊改變策略和實施新想法和想法的意願印象深刻。上季度，我們完成了對商業團隊的小規模重組，以重新調整我們的一些營運成本，更有效地向客戶交付我們的產品，並且我們已經對生產活動進行了營運審查，目標是降低成本並提高毛利率。我們繼續評估內部和外部機會以推動商業成功，我期待在我們有更具體的成果要報告時向您通報這些努力的最新情況。

I've spent a great deal of my time and effort meeting with our customers and society partners, as well as key suppliers, contract manufacturers while digging into our overall operations to identify areas and opportunities for efficiency improvements. The entire organization has focused on aligning our internal resources with our external customer needs. And while it's still early days, I'm pleased with how the team is progressing.

我花了大量的時間和精力與我們的客戶和社會合作夥伴以及主要供應商、合約製造商會面，同時深入了解我們的整體營運情況，以確定提高效率的領域和機會。整個組織致力於將我們的內部資源與外部客戶的需求結合。雖然現在還處於早期階段，但我對團隊的進展感到滿意。

In my time in the field, what I'm hearing from our customers, echoing my prior conversations, is Minerva's technology provides outstanding solutions and outcomes and is solving real problems in uterine health. People are our #1 asset and I have enjoyed spending time with small groups of employees throughout the organization from all functions to dig deep to understand what makes our individuals pick and to listen and hear some wonderful thoughts and ideas to continue to grow Minerva Surgical.

在該領域的時間裡，我從客戶那裡聽到的與我之前的談話相呼應的是，Minerva 的技術提供了出色的解決方案和成果，正在解決子宮健康的實際問題。人才是我們的第一資產，我很高興與整個組織中各個職能部門的一小群員工一起度過，深入了解是什麼讓我們的個人做出選擇，並傾聽和聽到一些美妙的想法和想法，以繼續發展Minerva Surgical。

Turning quickly to some financial highlights. This past quarter, we reported revenues of $13.4 million, increasing from $13 million in the same period of 2022 and from $12.5 million in the first quarter of 2023. We believe that our Symphion system continues to outpace growth in the tissue resection market. Symphion revenue increased 7% this past quarter compared to the second quarter of 2022 and has increased 13% year-to-date during the first half of 2023 compared to the same period in 2022. We believe this indicates that we are successfully increasing our market share in this important segment, exclusive product efficiency and safety features unique to Symphion and our ability to compete with a full suite of products for abnormal uterine bleeding are continuing to show results.

快速轉向一些財務亮點。上個季度，我們報告的營收為 1,340 萬美元，高於 2022 年同期的 1,300 萬美元和 2023 年第一季的 1,250 萬美元。與 2022 年第二季相比，Symphion 上一季的營收成長了 7%，2023 年上半年迄今的營收與 2022 年同期相比成長了 13%。在一重要細分市場中，Symphion 獨有的產品效率和安全特性以及我們與異常子宮出血全套產品競爭的能力正在繼續顯現成果。

In the ablation market, we were pleased that revenue from Minerva ES this past quarter increased 7% compared to the same period of 2022. While outpacing the growth of the overall market, we believe this product has additional room to grow in coming quarters. Our entire team today is keenly focused on execution and delivering value to our customers, shareholders and other stakeholders. I look forward to updating you all on our progress over future quarters.

在消融市場，我們很高興看到Minerva ES 上個季度的收入與2022 年同期相比增長了7%。 。如今，我們整個團隊都非常專注於執行力，並為我們的客戶、股東和其他利害關係人創造價值。我期待著向大家通報我們未來幾季的進展。

With that, I'll hand things over to Joel for a deeper dive into our financial results. Joel?

這樣，我將把事情交給喬爾，讓他更深入地了解我們的財務表現。喬爾？

Thanks, Todd, and good afternoon, everyone. As Todd mentioned, we were pleased with the revenue growth we experienced for Minerva ES and Symphion. Despite the temporary distraction from a small reorganization this quarter, the commercial team has made progress with both customer retention and bringing on new customers in the ablation and tissue resection markets.

謝謝托德，大家下午好。正如托德所提到的，我們對 Minerva ES 和 Symphion 的收入成長感到滿意。儘管本季的小規模重組暫時分散了注意力，但商業團隊在保留客戶和在消融和組織切除市場引入新客戶方面都取得了進展。

Total revenue for the second quarter of 2023 was $13.4 million compared to $13 million in the second quarter of 2022. At the product level for the quarter, Minerva ES revenue was $6.1 million or 46% of total revenue, increasing 7% from $5.8 million in the second quarter of last year. Genesys HTA revenue was $3.6 million or 27% of total revenue in the second quarter of 2023, decreasing 8% from $3.9 million in the second quarter of last year and Symphion revenue was $3.5 million or 26% of total revenue in the second quarter of 2023, increasing 7% from $3.3 million in the second quarter of last year.

2023 年第二季的總營收為1,340 萬美元，而2022 年第二季的總營收為1,300 萬美元。 2022 年第二季的580 萬美元成長了7%。 Genesys HTA 營收為360 萬美元，佔2023 年第二季總營收的27%，較去年第二季的390 萬美元下降8%；Symphion 營收為350 萬美元，佔2023 年第二季總營收的26 % ，較去年第二季的 330 萬美元成長 7%。

Our gross margin in the second quarter of 2023 was 55.3%, which was a decrease from the gross margin of 59% reported in the second quarter of last year, but remaining relatively stable with the gross margin of 56% from the first quarter of this year. While we experienced a gross margin decline in the second quarter of 2023 compared to the same period of 2022, the gross margin for the first half of 2023 was 55.6% compared to 54.6% in the same period in 2022. We're working to improve our gross margin through operational initiatives now that supply chains are stabilizing. Our margins in the second quarter of 2023 were negatively impacted by a product mix shift away from Genesys HTA to Symphion which currently has a growth -- a lower gross margin.

2023年第二季的毛利率為55.3%，較去年第二季的毛利率59%有所下降，但與今年第一季的毛利率56%相比保持相對穩定年。雖然我們在 2023 年第二季的毛利率較 2022 年同期有所下降，但 2023 年上半年的毛利率為 55.6%，而 2022 年同期為 54.6%。透過營運措施提高了毛利率。我們在 2023 年第二季的利潤受到產品組合從 Genesys HTA 轉向 Symphion 的負面影響，Symphion 目前正在成長，但毛利率較低。

Additionally, we have experienced an increase in the transfer price from -- for some of our products from our contract manufacturers, contributing to the challenges in our efforts to increase our overall gross margin. Our product average selling prices have remained relatively stable over the past 12 months. Total operating expenses in the second quarter of 2023 were $15.1 million compared to $12.5 million in the same period of 2022. The comparable period in 2022 included a $3.9 million noncash reduction in the fair value of contingent consideration recorded in the second quarter of 2022 associated with a milestone payment due to Boston Scientific from our prior product acquisition.

此外，我們的合約製造商的一些產品的轉讓價格有所上漲，這給我們提高整體毛利率的努力帶來了挑戰。過去 12 個月，我們的產品平均售價保持相對穩定。 2023 年第二季的總營運費用為 1,510 萬美元，而 2022 年同期為 1,250 萬美元。公司因我們先前的產品收購而支付的里程碑付款。

Absent this fair value adjustment, operating expenses decreased $1.4 million in the current quarter when compared to the second quarter of 2022. The net reduction was mainly driven by a decrease in stock-based compensation expenses, a reduction in depreciation and amortization charges and a reduction in insurance premiums. Noncash depreciation and amortization expense included in operating expenses was approximately $1.5 million in the second quarter of 2023, which was a reduction of $0.6 million from the second quarter of 2022. Noncash stock-based compensation expense included in total operating expenses was $1.1 million in the second quarter of 2023 versus $1.6 million in the second quarter of 2022. Our reported net loss for the quarter of 2020 -- for the second quarter of 2023 was $8.7 million compared to a net loss of $5.6 million in the second quarter of 2022.

如果不進行此公允價值調整，與 2022 年第二季相比，本季營運費用減少 140 萬美元。 2023 年第二季度，包含在營運費用中的非現金折舊和攤銷費用約為150 萬美元，比2022 年第二季減少了60 萬美元。非現金股票補償費用為110 萬美元。季度）的淨虧損為870 萬美元，而2022 年第二季的淨虧損為560 萬美元。

On a non-GAAP basis, we reported negative $4.6 million in adjusted EBITDA for the second quarter of 2023 compared to negative $4.5 million in adjusted EBITDA in the second quarter of 2022. As a reminder, we have significant noncash expenses related to the amortization of intangibles from the May 2020 acquisition of the Genesys HTA, Symphion and Resectr assets as well as significant noncash stock-based compensation expenses.

根據非公認會計原則，我們報告2023 年第二季調整後EBITDA 為負460 萬美元，而2022 年第二季調整後EBITDA 為負450 萬美元。非現金費用。

Turning to the balance sheet. We finished the quarter with $15.7 million in unrestricted cash. Our long-term liabilities were substantially unchanged from the fourth quarter of 2021 following our IPO and the refinancing of our previous long-term debt facility.

轉向資產負債表。本季結束時，我們擁有 1,570 萬美元的非限制性現金。在我們首次公開發行和先前的長期債務融資再融資後，我們的長期負債與 2021 年第四季相比基本上沒有變化。

Turning now to guidance. We expect full year 2023 revenue to be in the range of $52 million to $55 million.

現在轉向指導。我們預計 2023 年全年收入將在 5,200 萬美元至 5,500 萬美元之間。

With that, I'll say thank you and turn the call back to the operator.

說完，我會說謝謝，然後把電話轉給接線生。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。