Axonics(US:AXNX)2023-10-31 02:15Financial Data and Key Metrics Changes - Axonics generated revenue of $93.1 million in Q3 2023, a 32% increase compared to the prior year period [6][15] - Sacral neuromodulation revenue was $73.9 million, up 30% year-over-year, despite a 42% growth comparison in Q3 of the previous year [6][15] - Bulkamid revenue reached $19.2 million, reflecting a 42% increase compared to the prior year [9][15] - Gross margin improved to 74.2%, up from 72.8% in Q3 of the previous year [9][15] - Adjusted EBITDA was $14 million, compared to $3.3 million in the prior year [17] Business Line Data and Key Metrics Changes - Sacral neuromodulation (SNM) revenue growth in the U.S. was driven by higher utilization and new competitive accounts [6][7] - Internationally, SNM system sales grew nearly 40% year-over-year, aided by a new direct sales force in Australia [8] - Bulkamid's growth was attributed to increased reorder rates and onboarding of new accounts [9] Market Data and Key Metrics Changes - Approximately half of SNM revenue growth in the U.S. came from existing customers increasing procedural volumes [6][7] - The DTC campaign generated over 10,000 qualified leads monthly, with over half of respondents being treatment naive [11][12] Company Strategy and Development Direction - The company aims to deepen relationships with existing accounts and enhance patient care pathways [22][25] - Axonics is focused on expanding its market share in the U.S. and internationally, particularly with the upcoming F15 product approval [8][14] - The company plans to continue its DTC advertising campaign and has launched new commercials targeting specific conditions [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 25% growth in SNM revenue year-over-year, with a market growth expectation of around 15% [28] - The company anticipates a gross margin of 74% to 75% for Q4 2023, with ongoing improvements expected [16][31] - Management highlighted the importance of the DTC campaign in driving awareness and revenue growth [12][68] Other Important Information - Axonics has approximately 415 commercial team members in the U.S., with a modest increase in headcount expected heading into 2024 [10][48] - The company is working on new product developments, including a foramen finder lead placement technology expected to be available in mid-2024 [14][52] Q&A Session Summary Question: What are the drivers of existing customer growth? - Management indicated that multiple initiatives, including symptom questionnaires and clinical specialist support, are driving growth in existing accounts [21][24] Question: What are the drivers to market leadership in the U.S.? - Management remains confident in achieving 25% growth in SNM revenue, with a focus on execution and market penetration [28] Question: Can you elaborate on margin expansion? - Management noted improvements in gross margin due to better production processes and supply chain management, with expectations for continued growth [31][32] Question: What is the outlook for international business? - Management emphasized the need for product approvals to enhance competitiveness internationally, particularly for the F15 product [37][39] Question: How does the DTC campaign impact demographics? - Management observed an increase in male inquiries through the DTC campaign, with plans to target specific conditions in upcoming commercials [66][68]