Apollo Endosurgery, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Apollo Endosurgery Third Quarter 2022 results call. 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, John, and thanks, everyone, for participating in today's call to discuss Apollo's Third Quarter 2022 financial and operating results. Joining me on the call are Chas McCann, Chief Executive Officer, and Jeff Black, our Chief Financial Officer. Today's call will include slides to accompany the audio presentation. For those of you who are joining us by telephone, you can download a copy of the slides at our investor relations site, ir.pauloendo.com, and choosing the Events and Presentations tab. 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 and timing for product development and sales. In addition, there is uncertainty about the continuing effects of the COVID-19 pandemic, the macroeconomic conditions, and the impact it may have on our operations, the demand for our products, global supply chain, and economic activity in general. These forward-looking statements involve material risks and uncertainties, and Apollo's actual results may differ materially. For a 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 date of this live broadcast, November 1, 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 provide an additional tool for evaluating the company's core performance. Management uses these metrics in its own evaluation of continuing operating performance and a baseline for assessing the future earnings potential of the company. Included in the press release issued today with our financial results and corresponding AK 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. Good afternoon, everyone, and thank you very much for joining us. I'm very pleased to report that in Q3, we achieved another quarterly record with nearly $20 million in sales. We've increased our revenue guidance for the year. And in operational terms, we anticipate achieving approximately 25% growth for the year in constant currency. Apollo's business is heading in the right direction. And importantly, our 2022 growth is occurring in advance of four big growth drivers that we're going to discuss on the call. Seizing the endobariatric opportunity with the launch of Apollo ESG and Revise. Continue to scale our commercial channel, especially in the U.S. The exciting launch of a new product, OverStitch NXT, which we have not disclosed publicly before, but I will describe later on the call. And then some new large growth opportunities in markets outside the US. But before we speak about those, let me talk about the quarter. Slide four includes some highlights from some of the key metrics for the quarter. 24% growth year on year in constant currency. and 45% growth in ESS. And as a reminder, that is the combination of both OverStitch and XTAC. We have publicly discussed that we really view those two products as our primary growth drivers in the portfolio, and I think 45% growth is indicative of that. We continue to see excellent depth in our top accounts. So our top 10 accounts worldwide have grown 80% year-on-year as they continue to expand usage of Apollo's products. And XTAC is doing very well. It has grown, essentially doubled year on year. And as we mentioned in the press release, XTAC is now the number two product in our portfolio in the United States. And this is now our seventh consecutive quarter of revenue growth. And so these are some of the operational highlights. In addition, we had two very important strategic milestones through the quarter, which we talked about on our prior call, those being the FDA marketing authorization for Apollo ESG and Apollo Revise, as well as the publication of the merit study in the Lancet. And so I'm thrilled with the results that we achieved in Q3. I am very thankful for the tireless efforts of members of the Apollo team that have allowed us to achieve them. And so with that, I'll hand over to Jeff to provide an update on our financial results, and I'll come back and talk about some of the opportunities we have to build on these successes.