BIOLASE(BIOL)2023-03-29 01:31Financial Data and Key Metrics Changes - Total revenue for 2022 was 20.4 million, while U.S. consumables sales increased by 25% to 20.1 million, compared to a loss of 28.6 million, compared to a net loss of $16.2 million in 2021 [57] Business Line Data and Key Metrics Changes - The success rate of the Waterlase exclusive trial program improved to nearly 50% in 2022, with expectations to reach 60% in 2023 [22][74] - 84% of U.S. Waterlase sales in 2022 came from new customers, with 47% from dental specialists [55] - Record-breaking consumable sales in 2022 were driven by an increase in procedures using BIOLASE lasers [37] Market Data and Key Metrics Changes - Less than 10% of dentists in the U.S. and less than 2% outside the U.S. currently use dental lasers, indicating significant market growth potential [9] - The number of marketing qualified leads (MQLs) in the U.S. increased by 400% compared to 2018, growing from less than 1,000 to 4,000 in 2022 [10] Company Strategy and Development Direction - The company plans to combine specialist academies into two academies for its product families, aiming to enhance education and training [26] - A focus on increasing education and training for dental specialists is expected to drive higher demand for BIOLASE products [13] - The company aims to leverage its brand to engage with the remaining 90% of dentists who do not currently use dental lasers [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving at least 25% revenue growth in 2023, despite a slower start [43][86] - The recent banking environment has created uncertainty, but management believes it will be short-lived [61] - The company expects to achieve positive adjusted EBITDA for the full year 2023 [43][60] Other Important Information - The gross margin for 2022 was 33%, down from 42% in the previous year, primarily due to supply chain issues [38] - The company completed an acquisition of a trunk fiber supplier, which is expected to reduce costs and improve cash flow [56][59] Q&A Session Summary Question: What is the expected gross margin progression for 2023? - Management expects to approach 50% gross margins by the fourth quarter of next year, with improvements from in-house production and reduced training costs [62] Question: Can you provide more details on the growth guidance and revenue split? - Management anticipates gradual revenue growth in Q2 and Q3, with a similar revenue split among systems, services, and consumables [48][65] Question: How is the Heartland study progressing? - The trial with Heartland showed positive results, with lasers being paid off in four to seven months through additional procedures [63][82] Question: Have there been any financing issues due to recent banking events? - There has been no significant pullback in financing for dentists, although market sentiment has affected some sales [66][104] Question: What is the reception of the new fractional handpiece? - The reception has been positive, with many inquiries from dentists, and it is expected to provide a recurring revenue stream [99]