Profound Medical Corp. (NASDAQ:PROF) Q3 2023 Earnings Call Transcript

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Arun Menawat: Yeah, I think that’s a very good question actually. One of the things that we have watched is, there has been this paradigm, let’s say of latest technologies are for focal and things like that. And we have if a surgeon wants to do focal, we’ve always said, hey, you can do focal with this. But what we have witnessed over the last several months is that surgeons on their own are in fact ablating more of the prostates than they used to when they started out. What I mean by that is that more often than not focal therapy can certainly ablate the index lesion properly, but there is always a risk that if you do not ablate enough of the prostate or that because it is not a monofocal disease normally, that there is cancer lingering around somewhere else.

And so I think what we have watched is that the amount of ablation of the prostate, actually we’re watching them surgeons increase. Because they’re getting more confident that they can save the vital functions and they’re feeling more comfortable that they can go more towards higher volumes of ablation. And so I think you’re right in the sense that, I think as the physician community or the surgeons become more and more comfortable, chances are they will be ablating more of the prostate than less.

Nelson Cox: Well, congrats with the Cleveland partnership and thanks for taking the questions.

Arun Menawat: Thank you.

Operator: Thank you. [Operator Instructions]. One moment for our next question. Our next question comes from the line of Scott McAuley of Paradigm Capital. Your line is now open.

Scott McAuley: Good afternoon. Thanks for taking the question. Just one for me on risk staffing. As we ramp up these installations and support the early adopters to continue to start using it, do you expect you have the personnel capacity to support your pipeline or do you think you’re going to have to expand the HR base to help make sure everyone’s up to speed quick enough?

Arun Menawat: Yeah, Scott, I think that’s a great question. I think that, to be honest, we have a great team, to be honest. And I think that I’ve seen them in the crunch time install three sites in one week. So I know that we have the capability to do it. We are certainly also managing our cash very carefully and you’ve seen from Rashed’s presentation that in every function except for sales, our costs are actually — our spend is actually down compared to a year ago. And at the moment, our expenses on the sales and marketing side are about the same as what we had this time last year. So the way you might think about this is that incrementally as the schedules for installations increase, we will add people to our sales, marketing, and service functions.

And we’re trying to be a little bit ahead of that, obviously, to make sure our people are trained. So I think, anticipate that incrementally quarter-over-quarter, that’s where the increase will be. But certainly the revenue should catch up to that and the revenue should be perhaps, three to six months behind, as we add the revenue and the sales and marketing functions. So that’s how you might think about it. Just a little bit further, so we hire a little bit earlier, but we think we can now start adding people based upon the rate of installation growth.

Scott McAuley: That’s great. Appreciate it. Congrats, and again thanks for taking the question.

Arun Menawat: Thanks, Scott.

Operator: I am showing no further questions at this time. I would like to turn it back to Dr. Menawat for closing remarks.

Arun Menawat: Excellent. Thank you so much for your time and thank you for being part of this evolution. Talk to you next time.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.

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