Establishment Labs Holdings Inc (NASDAQ:ESTA) Q1 2019 Earnings Conference Call Transcript

May 15, 2019 • 08:30 am ET

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Establishment Labs Holdings Inc (NASDAQ:ESTA) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. Welcome to Establishment Labs First Quarter 2019 Earnings Call. At this time, all participants will be on mute. At the end of this call, we will open the lines for a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I will now turn the call over to Kaitlyn Rawlett from Weber Shandwick. Please go ahead.

Executive
Kaitlyn Rawlett

Thank you, Operator, and thank you, everyone for participating on today's call. Joining me from the Company includes Juan Jose Chacon-Quiros, Chief Executive Officer; and Renee Gaeta, Chief Financial Officer. Before we begin, I would like to caution listeners that comments made by management during this call will include forward-looking statements within the meaning of the federal securities laws. These include statements on the Company's financial outlook and the Company's plans and timing for product development and sales.

These forward-looking statements involve material risks and uncertainties and the Company's actual results may differ materially. For a discussion of risk factors, I encourage you to review the Company's quarterly report on Form 10-Q that will be filed later today with the SEC. The content of this conference call contains time-sensitive information accurate only as of the date of this live broadcast May 15th, 2019. Except as required by law, the Company undertakes no obligation to revise or otherwise update statements to reflect events or circumstances after the date of this call.

With that being said, it is my pleasure to turn the call over to the Company's Chief Executive Officer, Juan Jose Chacon-Quiros.

Executive
Juan Jose Chacon-Quiros

Thank you, Kaitlyn, and good morning, everyone. I'm pleased to report a strong first quarter and start to the year. For the first quarter of 2019, revenue was $20.8 million, representing a year-over-year increase of 40.2%. This performance is a record high for Establishment Labs and is driven by the continued adoption of Motiva Implants. Our increased direct sales effort and the ongoing strong performance of our distributors worldwide.

We continue to see strong demand for Motiva Implants from both new and existing customers. Patients and surgeons are increasingly informed and enthusiastic about our differentiated products and our commitment to women's health. Even with the industry headwinds that started in the fourth quarter of 2018, we did not see a reduction in surgical volumes. We continued to attract new surgeons and receive consistent feedback that adopting Motiva Implants as part of their practice can result in increased patient inquiries.

With the continued momentum experienced in the first quarter, we are now issuing guidance and anticipate 2019 revenues in the range of $80 million to $84 million. We are very pleased with our growth and remain focused on expanding our market share and delivering shareholder value for years to come.

In first quarter business highlights, we experienced increased market share across all regions. Our product portfolio, which incorporates Advanced Material Sciences is attracting many surgeons who have used a wide variety of implants. We continue to expand our geographic footprint, and