Apollo Endosurgery, Inc.

Good afternoon, ladies and gentlemen, and welcome to Apollo Endosurgery Second Quarter 2022 results. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Matt Kreps. Sir, the floor is yours.

Thank you, Matthew, and thanks, everyone, for participating in today's call to discuss Apollo's Second Quarter 2022 financial and operating results. Joining me on the call are Chas McCann, Chief Executive Officer, and Jeff Black, Chief Financial Officer. Today's call will include slides to accompany the audio presentation. For those joining us by telephone, you can download a copy of the slides at our investor relations site, ir.apolloindo.com, under Events and Presentations. Before we begin, I'd like to caution listeners that comments made by management during this conference call will include forward-looking statements within the meaning of federal securities laws. including Apollo's financial outlook and Apollo's plans for timing for product development and sales. In addition, there is uncertainty about the continued spread of the COVID-19 virus and the ongoing impact it may have on our operations, the demand for our products, global supply chains, and economic activity in general. These forward-looking statements involve material risks and uncertainties, and Apollo's actual results may differ materially. For discussion of risk factors, I encourage you to review the company's most recent annual report on Form 10-K, and our most recent Form 10-Q. The content of this conference call contains time-sensitive information that is accurate only as of the day of the live broadcast of August 2, 2022. Except as required by law, Apollo undertakes no obligation to revise or update any statement to reflect events or circumstances after the day of this call. Additionally, today's discussion will include certain non-GAAP financial measures, which we believe provides an additional tool for evaluating the company's core performance. Management uses these metrics in its own evaluation of continuing operating performance and as a baseline for assessing the future earnings potential of the company. Included in the press release today with our financial results and corresponding 8K filing are supplemental tables reconciling non-GAAP figures to their closest GAAP comparable. Now I'd like to turn the call over to Chas.

Thanks, Matt, and good afternoon. Thank you, everyone, for joining us. On today's call, I'll cover highlights of our Q2 performance. Jeff will then cover our financial results. And then I'll come back and talk to you in more detail about our recent milestones and launch plans for the Apollo ESG and the Apollo revised devices. So starting on page three of our deck, our strategy has been to pursue large market opportunities and build an organization that is primed to capitalize on them. And I'm pleased to say that our recent performance has been good validation of this approach. Q2 was a solid quarter for us. We demonstrated revenue of $19.3 million in reported sales and just under $20 million in constant currency. This performance represents a really nice step up compared to our recent sales levels. And the growth has come ahead of two very recent and important catalysts that we've just announced in the last month. the FDA market authorization for the Apollo ESG and Apollo revised devices and publication just last week of the merit study in the Lancet. So turning to page five where we've listed both constant currency growth on the left and then gap growth on the right. In Q2, we achieved 20% growth in constant currency. and 16% year-on-year growth on a GAAP basis. Once again, our growth has been well-balanced across both products and geographies. On a GAAP basis, ESS grew 23%, with strong growth in the U.S. of 22%, and international growth of 24%. Our IGB franchise grew 6% on a reported basis, 7% in the U.S., 5% outside the US. So again, nice balance across the business and across geographies. As with any US-based company that has a significant presence in Europe, foreign exchange has presented a headwind. It's important to note that Apollo, unusual for a med tech company of our size, has just under 45% of our sales from outside the US, and more than half of that is in Europe. Many of you will know that a year ago, the Euro was at $1.20. It's now at $1.02. And so it is a significant impact. But again, we're pleased with the reported 16% and the 20% year-on-year growth from a constant currency standpoint. So again, I'll come back to you with an update from a business and strategic standpoint, but let's allow Jeff to walk through the financials. Jeff?