Restoration Robotics, Inc. (NASDAQ:HAIR) Q3 2018 Earnings Conference Call Transcript
Nov 05, 2018 • 08:15 am ET
Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 Restoration Robotics Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference, Mr. Brian Johnston from The Ruth Group. Please go ahead.
Thanks, operator, and thanks everybody for participating in today's call. Joining me from the company are Ryan Rhodes, CEO, and Mark Hair, CFO. This call is also being broadcast live over the Internet at www.restorationrobotics.com, and a replay of the call will be available on the company's website for 90 days.
(Forward-Looking Cautionary Statements)
With that said, I'd like to turn the call over to Ryan Rhodes.
In the third quarter, we successfully launched our new platform, the ARTAS iX System. ARTAS iX is the only intelligent solution in the market to offer precise minimally invasive repeatable harvesting with simultaneous site making and implantation functionality in one compact system.
During the quarter, we recognized total revenue of $4.8 million, driven primarily by the sale of 11 ARTAS Systems, all of which were ARTAS iX Systems. These included eight iX Systems to new US accounts, one iX System to an existing US customer and two iX Systems to customers upgrading from a previous iteration, one in the US and one in the Asia-Pacific region. For perspective, we only announced the new ARTAS iX platform in early July and began shipping the ARTAS iX System in late Q3.
Of the 11 systems sold in the third quarter, 10 were sold in the US, demonstrating successful early traction in our pivot to focusing predominantly on growing our domestic business where we are at best position to influence and drive utilization. By comparison, we sold five ARTAS 9x Systems in the US in Q2, further signaling early success in our US focused strategy. US sales comprised of 57% of our consolidated revenue year-to-date compared to 40% in the first nine months of 2017.
We were also pleased with our ability to sell to hair restoration specialists in the third quarter. These specialists represent a key customer cohort that has been continuing to demonstrate interest in the enhanced functionality and capability of our new ARTAS iX platform. We will continue to focus on hair restoration specialists, given their expertise and focus on hair restoration as they typically integrate ARTAS technology into their practices more quickly and at higher annual utilization levels.
Last month, we interacted with a number of existing and potential hair restoration specialist customers at the World Congress of the International Society of Hair Restoration Surgery, or ISHRS, in Hollywood, California. At this meeting, we had the opportunity to reinforce our presence in the market, educate market-leading KOLs and generate leads, which we believe will help us drive broader future adoption.
In addition to our time at ISHRS, we also recently