Silk Road Medical, Inc (NASDAQ:SILK) Q4 2022 Earnings Call Transcript

Travis Steed: Great, very helpful. And I got the follow-up for Lucas, would it be on the better leverage you can get this year. Just curious how you can put some numbers around the leverage bit get or market penetration for breakeven? And then a follow-up for Erica would just be on the CMS NCD review. Anything that come out of that are curious what would happen if it is the sense that the reimbursement there?

Lucas Buchanan: Yes, so we certainly expect revenue to grow faster than operating expenses this year. We are in 2023, will have the full-year effect of quite a bit of hiring we did in 2022. We will also incrementally invest in salesforce expansion, as I mentioned, but we do expect operating expenses as a percentage of revenue to continue to tick down. We did not provide a specific revenue scale or timing of profitability again, we really want 2023 the year of commercial execution to show us what we are capable of with the full label, the additional product of the product portfolio and the overall critical mass. And so as we progress throughout the year on revenue growth, and see that operating leverage, we can start to think about that that path to profitability.

Erica Rogers: Yes, and Travis on your NCD reconsideration question. We continue to believe there are a range of favorable outcomes for Silk Road and for TCAR. And generally we welcome this opportunity for a wholesome review of the evidence. As you heard in the prepared remarks were sitting here with greater than 25,000 patients worth of data. In peer review, high impact factor journals and more data are generated on a daily basis in the real world evidence of the TCAR surveillance project. So we are pleased with the outcomes that have been posted so far. We know that the training metric, so let’s with less restrictive patient criteria, all of those things are in our favor. In terms of where we are, from a process point of view, the first comment period behind us.

The public comments are public, so you can see them. And we did of course, post a public comment. July is the first draft decision memo that will come from CMS and we will wait to see what happens and keep our heads down and do the good work we are doing in the meantime.

Travis Steed: Okay, great. Thanks for taking the questions.

Operator: Our next question comes from Robbie Marcus of JP Morgan. Robbie your line is open.

Robbie Marcus: Great, congrats on a nice quarter. Maybe the follow-up after Travis asked all the questions. If I take Lucas at 25,000 procedures, it gives us revenue per procedure about $7,200 for the year. How do we think about the cadence of that through the year as you add in the balloon, is it a more second half weighted revenue per procedure or similar to how you are building out the territories and I appreciate the first quarter color. But is there anything abnormal about the 2Q to 3Q, 4Q ramp we should be thinking about?

Lucas Buchanan: Yes. First of all, I would interpret the roughly 25,000 is on the under nothing over. And again, I think the average is probably going to be in that 70 to 50 range, there has always been quarter-to-quarter variability. But yes, it would likely scale from the 7,200 range up towards the 7300 range. Again, there is some uncertainty on exactly how much utilization and units per procedure as we get into the full market release in Q2 and beyond and a full market release still requires the administrative churn of that committees and pricing contracts and those things. So we will progress throughout the year in terms of both the territory expansion, the procedures per-physician and the on flight contribution on the margin.