InfuSystem Holdings, Inc. (AMEX:INFU) Q4 2022 Earnings Call Transcript

It was a way to get in, see if we could — see if we were interested in it and see if we could perform. It wasn’t a great relationship with Cardinal and ultimately, they ended up pulling their device from the market. What we launched in November with Sanara and we’re currently rolling out now, totally different offering, totally different market space, totally different addressable market. It’s as if we started over in November, and I think that’s a great thing because where we were prior to that was — it was something we probably wouldn’t have continued with, if that’s all we had.

Alex Nowak : Okay. That’s extremely helpful just to give us kind of a high-level overview on the shift, and it makes a lot more sense when you laid it out like that. But push back on the Pain piece, you did see something like, what, 40% growth in Pain this quarter. Is there a concern by you or internal to the team that maybe you’re letting off the gas on Pain just as it’s starting to ramp? Or is it really kind of come down to the ROI where we could allocate those resources to GE or the Wound piece, and we could see a greater return on our investment in a shorter amount of time and as simple as that?

Richard DiIorio : Yes. I think it’s a little bit of that. So we made a lot of investments in Pain last year. That was on the priority list because Sanara wasn’t kind of there until the end of the year. So Pain was 1 of the priorities with GE. So we made a lot of those investments in time, energy and financial resources last year, which started to prove itself out in the back half of the year, like you said, with the 40-plus percent growth in the fourth quarter. Those investments are going to continue to pay off. We still expect strong double-digit growth from Pain. It’s not like we expect it to be flat this year at all. I think we’re looking at 30%, 40% growth this year. So we expect it to continue. We just don’t need to pour a lot of the resources we put into that last year back into Pain.

We’d rather put that in Sanara because the opportunity is just too big. Specifically on the ITS side, obviously, we’re going to continue with the GE priority. But yes, it’s — we invested in it last year. It started to prove itself out at the end of the year. We’re not taking our foot off the gas. We just don’t need to put additional resources in. And actually, we can take some of those off of that program and now redeploy them into the Sanara and Wound Care piece. We — we’re like any company, right? There is finite resources, where do you put them. Long term, the opportunity set with Wound Care is just so great. We have to start putting a push behind that to get it going.

Alex Nowak : Okay. Makes sense. And then, Rich, you did start to call off talking about a few deals that didn’t materialize. And this led into the conversation about setting guidance conservative, and we’ve heard that over the last year here in 2022 talking about conservative guidance. So as you’re entering 2023 with the 8% to 10% growth that you have outlined, how can you give us confidence that, that is actually a conservative view that there couldn’t potentially be a slip off GE delays, Sanara is not included, but perhaps Pain comes in more around that 20% versus the 40% that you just mentioned. Just how to help investors around that conservatism we’re thinking about 2023?