Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the guidance for this year, including assumptions for account additions, utilization, and pricing? A: As discussed, we started investing in our sales infrastructure in Q3 and will continue through mid-2025, which will accelerate growth in 2026 and beyond. We expect 2025 to be consistent with 2024 in terms of growth. We have applied a conservative approach to our guidance. We don't have year-end seasonality like elective procedures, but we do see higher ICU census in Q4 and Q1 due to winter months.
Q: The 25 account additions in Q4 were ahead of expectations. Can you discuss the strength of these additions and what to expect in Q1? A: We communicated with our sales team and customers about shutting down account launches in mid-December. The strength in Q4 reflects good planning and early launches. Some launches that would have occurred in Q1 were pulled forward, so Q4 is a good approximation for Q1 expectations.
Q: Gross margin came in better than expected. What are your thoughts on gross margin and OpEx spend for 2025? A: We have exposure to China for supply chain, with tariffs increasing from 25% to 35%. Our guidance reflects mid to high 80% margins. For OpEx, we plan to increase R&D spending by 40-60% year-over-year due to our upsized IPO, allowing us to pursue projects in parallel. Stock-based compensation will increase, consistent with public company standards, but it won't affect time to profitability.
Q: Can you provide more details on the stroke detection algorithm development and its potential impact? A: We are pleased with the stroke trial progress, focusing on data collection to train the algorithm. With 200 patients, our data science team has built prototype algorithms showing promising results. We plan to expand enrollment to gather more data. It's too early to provide specific FDA submission milestones, but we are confident about the market opportunity.
Q: What are the requirements for the FDA submission for the delirium indication? A: We had pre-submission discussions with the FDA. The core metric is whether the algorithm can detect delirium as accurately as the current standard of care, CAM-ICU. We are improving the algorithm and preparing the submission, which could be a 510(k) or de novo. We expect to submit later this year and will have more clarity on requirements then.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.