Vapotherm Inc (NYSE:VAPO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 04:30 pm ET

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Vapotherm Inc (NYSE:VAPO) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Vapotherm Third Quarter 2019 Financial Results Conference Call. As a reminder, this call is being webcast live and recorded.

It is now my pleasure to introduce your host, Mr. Mark Klausner of Westwicke. Please go ahead, sir.

Executive
Mark R. Klausner

Good afternoon, and thank you for joining us for the Vapotherm third quarter 2019 financial results conference call. Joining us on today's call are Vapotherm's President and Chief Executive Officer, Joe Army; and its Vice President and Chief Financial Officer, John Landry.

I would like to remind you that this call is being webcast live and recorded. A replay of the event will be available following the call on our website. To access the webcast, please visit the Events link in the IR section of our website, vapotherm.com.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements covered under the safe harbor provision of the Private Securities Litigation Reform Act of 1995. These statements are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our annual report filed on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission on March 22, 2019, and in any subsequent filings with the Securities and Exchange Commission. Such risk factors may be updated from time to time in our filings with the SEC, which are publicly available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise, unless required by law.

This call will also include references to certain financial measures that are not calculated in accordance with generally acceptable accounting principles or GAAP. We refer to these as non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website.

With that, it's my pleasure to turn the call over to Vapotherm's President and Chief Executive Officer, Joe Army.

Executive
Joseph F. Army

Good afternoon, and thank you for joining us today. I will begin by discussing the progress we made in 3Q, then I will hand the call over to John Landry, our CFO, to provide the financial details of our 3Q 2019 results and our revised guidance. After which, I will update you on our key areas of focus for the balance of 2019 before taking questions.

I'm generally feeling pretty good about how we're doing in building the Company despite the shortfall in US capital revenue in the quarter. Big picture, total revenue grew by 15% led by 24% growth in disposables. Gross margins were nearly 45%, and our cash burn improvement program is making progress. Operationally, our expanded field sales force is coming