AVITA Medical, Inc. (NASDAQ:RCEL) Q3 2023 Results Conference Call November 9, 2023 4:30 PM ET

Company Participants

Jessica Ekeberg - Director of Investor Relations

Jim Corbett - Chief Executive Officer

David O’Toole - Chief Financial Officer

Conference Call Participants

Joshua Jennings - Cowen

Brooks O'Neil - Lake Street Capital Markets

John Hester - Bell Potter

Ross Osborne - Cantor Fitzgerald

Madeline Williams - Wilsons

Operator

Good day, and thank you for standing by. Welcome to the AVITA Medical Third Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to turn the conference over to your first speaker today, Jessica Ekeberg, Director of Investor Relations. Jessica, please go ahead.

Jessica Ekeberg

Thank you, operator. Welcome to AVITA Medical's third quarter 2023 earnings call. Before we begin, let me remind you that this call will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are neither promises nor guarantees and involve known and unknown risks and uncertainties that could cause actual results to differ materially from any expectations expressed or implied by the forward-looking statements. Please review AVITA Medical’s most recent filings with the SEC, specifically the risk factors described within Form 10-Q for the quarter ended September 30, 2023 for additional information. Any forward-looking statements provided during this call are based on management’s expectations as of today. AVITA Medical’s press release for the third quarter 2023 results is available on our Web site, www.avitamedical.com under the Investor Relations section. A recording of today’s call will be available on our Web site by 5:00 PM Pacific Time today. Joining me on today’s call are Jim Corbett, Chief Executive Officer; and David O’Toole, Chief Financial Officer. I will now turn the call over to Jim for his comments.

Jim Corbett

Thank you, Jessica. Good afternoon. And thank you for joining us today. I will begin today's call by discussing highlights of the third quarter, followed by an update on priorities. Following this update, I will turn the call over to David, who will provide commentary on our financial performance for the quarter. I'm pleased to relay that our team drove third quarter commercial revenue of $13.5 million, representing a 51% increase over the same period in 2022 and marking our highest quarterly growth rate over the prior year. This achievement underscores our commitment to sustained growth. Our burns business continues to drive our growth as it has all year. However, we could not achieve these results without the substantial contribution from revenues stemming from full thickness skin defects. I'll provide an update on this launch shortly. Moving on to our top priorities and recent activity. During the first quarter, I committed to defining our international expansion strategy during this earnings cycle and after months of strategic planning, I'm excited to unveil our plans today. Before doing so, I want to give credit to Terry Bromley, our Senior Vice President of Global Sales, who is leading our international efforts in addition to his US responsibilities. First, our team has defined a focused international market for AVITA Medical. As we surveyed the globe, we looked at countries with sizable populations, robust healthcare systems and the resources to invest in our technology. These three factors are key because our device is not just a product you can export without training into an unstructured healthcare system. To ensure proper device use and to have a meaningful impact on patients, trained medical professionals within a well established healthcare system and strong economic support for treatment are fundamental requirements. When we apply these filters, the prime prospects are Australia, Japan and most of the European Union.