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Tenon Medical(TNON) - 2023 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full year of 2023, revenue grew 324% to 2.9million,andgrossprofitincreasedto2.9 million, and gross profit increased to 1.2 million compared to a gross loss for the full year of 2022 [6][9][21] - Operating losses totaled 3.1millioninthefourthquartercomparedtoalossof3.1 million in the fourth quarter compared to a loss of 7.9 million in the fourth quarter of 2022, and for the year ended December 31, 2023, operating losses totaled 15.7millioncomparedto15.7 million compared to 18.7 million in the prior year [10][38] - Gross margin improved to 69% in the fourth quarter, up from 57% in the third quarter [17] Business Line Data and Key Metrics Changes - The Catamaran System experienced a 312% increase in the number of surgical procedures from the prior year, driving strong revenue growth with a 192% increase year-over-year [33][37] - The company trained 28 physicians in the fourth quarter and 133 over the entire year [25] Market Data and Key Metrics Changes - The company ended the fourth quarter with solid momentum in revenue and a third consecutive quarter of positive gross margin [23] - Cash and cash equivalents totaled 2.4millionasofDecember31,2023,downfrom2.4 million as of December 31, 2023, down from 8.6 million as of December 31, 2022 [22] Company Strategy and Development Direction - The company focuses on building market share and enhancing commercialization efforts for the Catamaran System [16] - There is a commitment to validating patient outcomes and expanding the application of the product offering to address SI revision surgery and adjunct to multilevel fusion [40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued growth in commercialization, supported by an expanding sales and marketing infrastructure [23] - The company expects to incur additional losses in the future but remains focused on achieving long-term value for shareholders [38] Other Important Information - The company successfully passed a full Quality System Inspection Technique (QSIT) Level 2 inspection conducted by the FDA, validating its quality system and operational procedures [19] Q&A Session Summary Question: How many surgeons did you train during the quarter? - The company trained 28 physicians over the quarter and 133 over the entire year [25] Question: What is the final enrollment number for the post-approval study? - The study was approved for 50 patients, with an expected final enrollment between 40 and 50 [26] Question: Do you have a target for physician training per quarter in 2024? - The company aims to train approximately 25 to 30 well-targeted physicians each quarter [45] Question: What trends are you seeing in the utilization of the Catamaran System? - The number of procedures is still growing, with physicians increasingly incorporating SI into their practice [46] Question: What has been the reception of the new instrumentation kit? - The reaction to the new JIB technology has been outstanding, improving visualization during procedures [48]