Establishment Labs Holdings Inc (NASDAQ:ESTA) Q2 2019 Earnings Conference Call - Final Transcript

Aug 14, 2019 • 08:30 am ET

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Establishment Labs Holdings Inc (NASDAQ:ESTA) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. Welcome to Establishment Labs' Second Quarter 2019 Earnings Call. [Operator Instructions] At the end of this call, we will open the line for question-and-answer session and instructions will follow at that time. [Operator Instructions]

I will now turn the call over to Jeremy Feffer of LifeSci Advisors. Please go ahead.

Executive
Jeremy Feffer

Thank you, Jimmy, and thank you, everyone, for participating on today's call. Joining me from the Company are 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 federal securities laws. These include statements on Establishment Labs' 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, August 13th, 2019. Except as required by law, Establishment Labs undertakes no obligation to revise or otherwise update any statement to reflect events or circumstances after the date of this call.

With that 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, Jeremy, and good morning everyone. During the second quarter of this year, revenue was $21.7 million, an increase of 58.2% over the same period of 2018. This record high-performance was made possible by the continued global adoption of Motiva Implants and the success of our direct sales force across Europe and Brazil. With patient safety and improved outcomes as the main drivers for capturing market share, we believe that our Company's singular focus on breast aesthetics and reconstruction has allowed us to consistently drive strong revenue growth.

We continue to add to the growing body of evidence regarding Motiva Implants' unique safety profile, and we are confident that our ongoing U.S. FDA clinical trial will further demonstrate the transformational aspects of our technology. With our continued momentum in Q2, we are comfortable raising our full year 2019 revenue guidance to a range of $84 million to $86 million, up from the prior guidance range of $80 million to $84 million. We are very pleased with our sales growth trajectory, and this guidance reflects our conviction that we will achieve a minimum of 35% year-over-year growth from full year 2018 to -- full year 2019. As we have seen in previous quarters, our increased market share was driven by growth across all regions of the world, highlighted by double-digit growth in Latin America, Europe, Middle East, Africa and Asia Pacific. The launch of our direct sales forces across Europe and Brazil, positively impacted our performance. For the second quarter, our total direct market revenue again accounted