Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the new marketing model at the clinic and what gives you confidence to expand it to additional locations? A: (Kirk Huntsman, CEO) We conducted extensive testing and pilot work before launching the new model. The conversion rates, patient acceptance, and provider enthusiasm have been very high, as expected. We are now confident in expanding to additional locations, with plans to open two more in the Denver area by December or early 2025.
Q: How do you plan to incorporate the pediatric population into your marketing strategy following the recent FDA clearance? A: (Kirk Huntsman, CEO) We are already treating entire families, as parents often bring their children after seeing their own results. We are also educating medical professionals to consider sleep and breathing problems in children. Our marketing efforts include social media campaigns and educational content to reach parents and healthcare providers.
Q: What is the path to achieving positive cash flow from operations by mid-next year? A: (Brad Amman, CFO) The focus will be more on revenue growth than cost-cutting. The new model allows us to sell directly to patients, which results in higher revenue per patient. We believe that with a few hundred new patients per month, we can reach cash flow break-even.
Q: How should we think about the fourth quarter sequentially from the third quarter? A: (Kirk Huntsman, CEO) The fourth quarter is a transition period as we shift from the dental channel to the new strategic alliance model. While we may see some replacement of revenue, the full impact will likely be seen in 2025 as the new model gains traction.
Q: Can you provide more details on the business model for the new marketing strategy? A: (Kirk Huntsman, CEO) The sleep physician and dentist work under a management services organization (MSO) that operates the clinic. The patient interacts with a medical practice led by a doctor and a dentist, allowing for a more efficient and profitable model. This setup benefits both the patients and the providers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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