TransMedics Group, Inc. (NASDAQ:TMDX) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 04:30 pm ET

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TransMedics Group, Inc. (NASDAQ:TMDX) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the TransMedics Third Quarter 2019 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference may be recorded.

I would now like to hand the conference over to your speaker today, Brian Johnston from the Gilmartin Group. Please go ahead, sir.

Executive
Brian Johnston

Thanks, operator. Earlier today, TransMedics released financial results for the quarter ended September 28, 2019. A copy of the press release is available on the company's website. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Any statements contained in this call that relate to expectations or predictions of future events, results or performance are forward-looking statements. All forward-looking statements, including, without limitation, our examination of operating trends, the potential commercial opportunity for our products and our future financial expectations, which includes expectations for growth in our organization, regulatory approvals and reimbursement, guidance for revenue, gross margins and operating expenses in 2019 are based upon our current estimates and various assumptions.

These statements involve material risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of the final prospectus relating to our initial public offering that we have filed with the Securities and Exchange Commission.

TransMedics disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise. This call contains time-sensitive information and is accurate only as of the live broadcast today, November 6th, 2019.

And with that, I'll now turn the call over to Waleed Hassanein, President and Chief Executive Officer.

Executive
Waleed Hassanein

Thank you, Brian. Good morning, everyone, and welcome to TransMedics Third Quarter 2019 Earnings Call. Joining me today is Stephen Gordon, our Chief Financial Officer.

We're delighted to report our Q3 results, which demonstrated continued growth of our business. Let me highlight the drivers for this momentum .First, we reported $7.2 million in net revenue for the quarter. This is off of $7.9 million of gross revenue. The $7.2 million represents 78% increase and growth versus the same period of last year. Our revenue growth was fueled by our US programs in all three organs, lung, heart and liver, as well as our international business.

Second, our OCS lung commercial status is on track. We're on track to convert the majority of our lung trials centers to commercial centers by year-end. Importantly, we're actively engaged with several strategic commercial initiatives to enable and facilitate broader adoption of the OCS lung technology.

Third, our OCS Liver PROTECT trial had