Augmedix, Inc. (NASDAQ:AUGX) Q3 2022 Earnings Call Transcript

Marc Wiesenberger: Got it. And then just the final one for me, how do you envision if at all changing the sales cycle and the go-to-market strategy for your potential new offering, which I think you’ve said many times is significantly more automated. And how does that look relative to the current offerings? Thank you.

Manny Krakaris: Well, it’s what we’re thinking of doing is right now we have three distinct solutions that we go into an enterprise with. The three portfolio products we have are Augmedix Live, Augmedix Notes, and Augmedix Prep. We want to be going forward is transition to a platform sale, with Augmedix Skill serving as the foundation or linchpin of that platform. That would be available across the enterprise. And then enabling any doctor that is a subscriber, go to upgrade to other services or add other services to the extent they would want those services. So it’s a — it’s an easier way for us to grow within an enterprise by moving to that strategy.

Marc Wiesenberger: Great, thank you very much.

Operator: Thank you. Next question will be from Brooks O’Neil at Lake Street Capital. Please go ahead.

Charlie Montang: Hi, guys. This is Charlie Montang on for Brooks O’Neil. Just a couple of quick questions for me. My first question, do you guys have any comments on the situation with McKesson?

Manny Krakaris: Paul, you want to .

Paul Ginocchio: Hey, Charlie, it’s — yes, it’s — Charlie, they filed a — they’ve obviously filed some Form 4s and a 13-D. We don’t like to speak for any of our shareholders. But so I think we’ll just leave it at that. I’ll just say that we are working with McKesson to make sure if they at some point in the future, want to dispose of shares that it can be orderly and in an expedited fashion.

Charlie Montang: Okay, got it. And then just one more question for me kind of have the trends that you saw in Q3 continued into October and November?

Manny Krakaris: I beg your pardon. Can you repeat that Charlie?

Charlie Montang: Yes, sorry. Have the strong trends that you’ve seen in Q3 continued into October as well as November?

Manny Krakaris: Well, judging by our pipeline, I would say, yes. We haven’t seen any evidence of anything changing from what we saw in the third quarter. So we’re very encouraged by what we see for the fourth quarter.

Charlie Montang: Okay, that’s it for me. Thank you.

Operator: Thank you. And your next question will be from Allen Klee at Maxim Group. Please go ahead.

Allen Klee: Yes, good morning. Not, good morning, good afternoon. Couple, it’s just on your gross margin for the quarter was better than what you had guided to. In the prior quarter or two, you’d mentioned that some of the impact of the gross margin was due to more U.S customers, or that’s information that had to be stored in the U.S. Could you talk about why it was better? Was it due to that shifting or the mix of the type of businesses that you’re selling? And then second, I just wanted to clarify, did I hear you say that you expect your operating expenses to be up single-digit sequentially in fourth quarter ’22, compared to third quarter ’22? Thank you.