Axonics, Inc. (NASDAQ:AXNX) Q4 2022 Earnings Call Transcript

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That’s a product line that you need presence to make sure implants go well to program the patient. So it’s a much heavier lift for us to really open up a new market. Now, last comment, obviously, we are looking to Asia in the future. We understand big potential in places like Japan and China, and that’s something for the future of the company, but right now we’re going to continue to stick to our knitting and focus mainly here in the United States.

Cecilia Furlong: Thank you for the color. And if I could follow up as well, just on where you are at this point in the diluted market release. And if you think about ’23, just the R-20 rollout targeting and also pricing that, how we should think about the impact to gross margin?

Dan Dearen: So I think the – you’re a little broken up, but I think your question, you were referring to our new rechargeable R20. And here’s my comment about that. I’m going to not predict it because the last time I was asked to predict the split between rechargeable and nonrechargeable, I was off a bit. . So we’re optimistic early on, we have seen that this product is capturing the imagination of physician implanters in the United States and their patients. I mean it’s a pretty cool product. So already, we see an increase in rechargeable sales in the few short weeks that we’ve had the product in the marketplace. So – but it’s going to be hard to predict. I mean that F15, I just think it just blew people’s minds, honestly. – about the longevity of the product and how nice and small it is and everything else.

So it’s kind of a fun thing where now we have these really amazing products that are actually competing for mind share with patients and providers. So we’re – last word there is we’re agnostic. We’ve got great margins or good margins, I should say, at least on these products. And whatever it is that a physician and their patients decide to do, we’re just happy that it’s Axonics.

Cecilia Furlong: Thank you for taking the question.

Dan Dearen: Thank you.

Operator: Thank you. Our next question comes from the line of David Rescott with Truist. Your line is now open.

David Rescott: Hi, guys, thanks for taking the questions, and congrats on a strong fourth quarter and strong end of the year, I guess just first on the guidance, wonder if you could provide any color maybe around how we should think about the cadence for the year, I think consensus right now has about 34% growth in Q1. Obviously, there is Q1 seasonality but year-over-year comfortable but easier, and then growth kind of stepping down throughout the year, so just wondering first maybe how we should think about that growth on a quarterly basis to the year.

Raymond Cohen: Yeah, I mean, I think you’ve already – you’ve hit on it, David, which is we’re all aware of the impact of first quarter drop off due to seasonality of people not having met their deductibles. These are elective procedures, both for SNM and Bulkamid, and so we’re in this particular therapy category, we’re particularly sensitive to the seasonality and so as we’ve noted, the guidance for 2023 projects 25% year-over-year revenue growth for both sacral neuromodulation and Bulkamid and because of – and that said, because of the impact of Omicron in Q1 of last year, which contracted the market, we expect growth year-over-year in Q1 to be in the low 30s this quarter year-over-year, and then for the remainder of 2023, what that drops out is we expect to see growth in the low to mid-20s as you look forward, so does that answer the question?

David Rescott: Yes, yes. that’s helpful. I guess just a second one from us, if you could provide any update maybe on ongoing litigation of the upcoming jury trial, maybe any risks associated with that, and whether or not we should be thinking about any type of incremental spend in 2023? Thank you.

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