Beyond Air, Inc. (NASDAQ:XAIR) Q2 2024 Earnings Call Transcript

I don’t think the adoption curve was going to be any different than what we saw. Maybe it could have been a little faster with a few things falling in our favor but it’s just where we are.

UnidentifiedAnalyst: Appreciate that, Steve. And then just piggybacking off of your comments there about gaining share, are you seeing any pickup in interest or great interactions with potential customers as a result of competitive struggles across the landscape?

Steve Lisi: Absolutely, 100%. Our system, we had this big Respiratory Conference in Nashville last week and it’s clear if anybody was there. I’m sure there weren’t too many people on this call that were there but it’s clear we have the best system out there overall and, there are some struggles from our competitors and it’s certainly coming our way. There’s no doubt that there’s increased interest in our system, increased interest in doing business with us. We wouldn’t have put that guidance out there. This is a very, very careful decision that we made to put that guidance out.

UnidentifiedAnalyst: Great. Thanks, Steve. Appreciate it.

Operator: The next question we have is from Matt Kaplan is from Ladenburg Thalmann. Please go ahead.

Matt Kaplan: Hey, guys. Thanks for taking the question. Just wanted to get a little bit more, perhaps some granularity with respect to when we should start to see an inflection with respect to the impact that the new software and the GPO contract should have to have, should start to have on revenues and is that something we’re starting to see, the momentum, I guess you’re seeing in October in terms of the filters. When does that translate in terms of increase in revenues?

Steve Lisi: Thanks, Matt. like I said, this is about three months to six months to feel the impact of these events, which took place in September and October. So you’re really looking in the Jan, Feb March timeframe when you’re going to see us, in our opinion picking up significant contracts and volume picking up. I wish it were sooner. I wish I could tell you December is going to be a bang up month, but, this is just the time that it takes. Things don’t move that quickly. I do think there’ll be progress in the December quarter over the September quarter, we just reported, but I wouldn’t expect it to be massive magnitudes because this is a three to six month process. So that would put us in the Jan, Feb, March timeframe for us putting up numbers that that would give you comfort and confidence that we’re going to do what we say we’re going to do.

Matt Kaplan: Okay. No that’s helpful. And do you think the kind of increases in revenue would be kind of chunky and as you get additional GPOs and additional contracts, or how should we think about that ramp?

Steve Lisi: Oh, yeah, it’s going to be chunky, Matt. I can’t predict when certain contracts coming up. So one month could be, three new hospitals and they’re small. The next one could be one hospital that’s five times those three combined. These are just timing issues with respect to when contracts are up and, that’s something that is obviously beyond our control. So, it may not be as smooth as you would like to model, but, we’ve taken that into account and that’s why we’re putting the guidance after fiscal ’25, and March 31, 2025 and that’s why we’re doing it this way, because it’s very difficult to predict on a monthly or quarterly basis. We’ll get better clarity as we go forward. I hope to give better clarity, either in February or June, when we report our next two quarters. Hopefully we’ll have a, I’ll be able to give more details on how chunky it might be and when, but right now, it’s very difficult.

Matt Kaplan: That’s helpful. Thanks for giving the guidance and then one question on the pipeline with your, the VCAP study that you just started, what do you hope to show when you complete that study?