Outset Medical, Inc. (NASDAQ:OM) Q4 2022 Earnings Call Transcript

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So I just see this as a big growth opportunity for HHD over time. That’s my thoughts on home. I think in terms of the catalyst for ’23 and maybe I’ll widen the aperture beyond new products in VA. Obviously I think our biggest opportunity is the one that we are pursuing right now in the land and expand approach to acute and home. I continue to talk with health system executives that are really seeing and feeling the value that Tablo is delivering economically, operationally and really eyeing this home opportunity now has a very, very compelling one for them, for all sorts of reasons. So, I think that’s kind of catalyst one. Catalyst two, we intend to stay very ambitious and very inventive. We are not done with the Tablo platform, and we will innovate on the tablet platform across hardware, software and data far, far, far into the future.

I hope we do have some new things to talk about for 2023, and I think you know in terms of the new customer base, yes, we do have a really interesting opportunity over the next five years with the VA and with some new kind of adjacent specialty providers in the home space. So we’ll leave you in suspense on all of those things, Drew, but I think what’s most important as we look at 2023 in our guidance range is doing what we have done in the past to produce success, is what will produce success for us in 2023 and again, entering the year with a very high degree of conviction around that.

Operator: Thank you. One moment for our next question please. And it comes from the line of Joshua Jennings with Cowen. Please proceed.

Unidentified Analyst: Hi! This is Brian here for Josh. Thank you for taking my question. Just on pricing in the acute segment, I believe you commented that competitors have either raised or attempted to raise prices in recent months. Is there an opportunity for outset to increase pricing in the current environment as well or do you see your ASP increases this year primarily coming from the continued rollout of XT and TabloCart?

Nabeel Ahmed: Hey Brian! Look, we don’t comment on pricing matter as you can imagine. I think what I’ll say is a couple of things. Number one, we have absolutely seen ASP increases from the XT attach, which is again adding value to our customers instead of monetizing that value, which we like. We’ve also seen TabloCart be a big driver or be a driver rather of ASP sort of in the quarter here and are really pleased with the performance there. You know the one thing, we have also talked a lot about the fact that we haven’t had to discount very heavily in our past, which we view as again, a testament to Tablo’s economic value proposition. So pricing, we have no complaints about pricing and pricing is favorable, was favorable for us.

Operator: Thank you. And I’m not showing any further questions in the queue. I will pass it back to Leslie Trigg for final thoughts.

Leslie Trigg: Great! Thank you, operator, and thanks to all of you for joining us today. Have a great evening!

Operator: And with that ladies and gentlemen, we concludes today’s program. Thank you for participating and you may now disconnect.

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