Obalon Therapeutics, Inc. (NASDAQ:OBLN) Q3 2018 Earnings Conference Call Transcript
Nov 02, 2018 • 08:30 am ET
Welcome to Obalon Therapeutics' Third Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. (Operator Instructions)
I would now like to turn the conference over to Bill Plovanic, Chief Financial Officer for Obalon. You may begin.
Welcome to Obalon Therapeutics third quarter 2018 financial results conference call. With me on today's call is Andy Rasdal, Chief Executive Officer; and Kelly Huang, President and Chief Operating Officer of Obalon. This morning, the company issued a press release detailing our financial results for the three and nine months ended September 30th, 2018. This release can be accessed through the Investor Relations section of the Obalon website at obalon.com. You can also access the webcast of this call from there.
(Forward-Looking Cautionary Statements)
And with that, I'll turn the call over to Obalon's CEO, Andy Rasdal.
This morning, we announced that as a part of a planned succession on January 2nd, 2019, the Company will promote Kelly Huang to the role of Chief Executive Officer and I will be moving to the role of Chairman of the Board. More than a year ago, we brought Kelly in as Chief Operating Officer to lead commercial operations, including sales, marketing, manufacturing and quality assurance. Based on his strong performance in that initial role, in August, we promoted Kelly to the President of Obalon and added the R&D and clinical regulatory functions to his responsibility. Kelly has continued to demonstrate that he is a strong and capable leader and we believe that he will be effective as CEO of Obalon.
After serving as CEO for over 10 years, I continue to be as optimistic as ever about Obalon's future. Most importantly, we have demonstrated that we have a differentiated solution that is functioning as intended to meaningfully address one of the largest global health care crises, obesity. I intend to stay actively involved as Chairman, primarily to serve as a resource to Kelly and will also focus on several key strategic projects to help build the intragastric balloon market and create sustainable value for Obalon. We will provide more specifics on the transition in roles when the change becomes effective in January.
I will now review the highlights of our commercial progress and our product and clinical performance in the third quarter. I will then hand the call over to Kelly to discuss his thoughts about the transition and future strategies. Following that, Bill will review our third quarter financial results and specifics about our underlying business. We will then briefly answer questions.
We were pleased to see Q3 2018 global revenue improve 9% as compared to Q2 2018, led by a growth in US revenues of 17% versus the second quarter of 2018. Reorder sales continued to drive growth sequentially, rising 45% from Q2 '18 and accounting for 79% of US revenues in Q3 '18. We're very pleased that our customers are finding both clinical and economic value from using the Obalon balloon system in their practices.