Biolase, Inc.

Good day, and welcome to the BioLase second quarter 2023 financial results conference call. Please note this call is being recorded. 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. I would now like to turn the conference over to Todd Curley of EVC Group. You may begin.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us today to discuss BioLase's financial results for its second quarter ended June 30, 2023. On the call today from BioLaser, John Beaver, President and Chief Executive Officer, and Jennifer Bright, Chief Financial Officer. John will review the company's operating performance for the second quarter and then turn the call over to Jennifer to review the financials in more detail before opening the call for questions. Before we begin, I'd like to remind everyone that a number of forward-looking statements, which are statements that are not historical facts, will be made during the presentation and subsequent Q&A session, including forward-looking statements regarding the company's strategic initiatives and anticipated financial performance. These forward-looking statements are defined under the Private Securities Litigation Reform Act of 1995 and are based on BioLase's current expectations and assumptions and are subject to a variety of risks and uncertainties that could cause the company's actual results to differ materially from the statements made. Such forward-looking statements are only representative of the company's view as of today, August 10, 2023. These risks are discussed in the company's filings with the Securities and Exchange Commission. A replay of this conference call will be available on the company's website shortly after the completion of today's call. When listening to this call, please refer to the news release issued earlier today announcing the company's 2023 second quarter financial results. If you do not have a copy of the news release, it is available in the investor section of the Biolase website at www.biolase.com. Biolase's financial results can also be found in the company's report on Form 10-Q, which will be filed with the SEC. The tables we've provided in today's news release offer additional financial information, so we encourage you to review them. The tables include the reconciliation of unaudited gap, net loss, and net loss per share, to non-GAAP adjusted EBITDA loss and adjusted EBITDA loss per share, as well as more information regarding the company's non-GAAP disclosures. With that said, I'll now turn the call over to Biolase's President and Chief Executive Officer, John Bieber. John?

Good afternoon, everyone. Thank you for joining us today to discuss our second quarter earnings results. We reported another strong quarter, and we are excited to share the significant highlights, so let's get right into it. Our revenue for the quarter was $14.3 million. This represents the highest quarterly revenue we've achieved since the fourth quarter of 2015. It's also worth mentioning that the quarter's laser revenue was the highest we reported since 2012, taking into account the imaging products that we no longer sell. These are important achievements because I believe they clearly demonstrate that Tipping Point is here for dental lasers to become the gold standard of care in dentistry. Furthermore, we are proud to report another consumable revenue record with $4.1 million generated during the quarter. This figure is 36% better than our previous record of $3 million in the last quarter and is up year over year, demonstrating the growing demand for our consumable products. Our Water Lays Trial Program, or WTP, is also contributing to experience success with our year-to-date conversion success rate reaching 56%. This is a 10% improvement compared to a success rate for all of 2022, which we believe showcases the effectiveness of our trial program and its positive impact on customer adoption. We hosted seven WTPs during the second quarter, and we are on track to host about 24 for the full year 2023 due to the high level of interest. Another key driver of our increased success is our focus on education and training. We are witnessing rising interest from dentists in our novel training education programs, which is translating into higher WTP attendance and engagement rates. The positive response from the dental community has led to increased sales of our state-of-the-art lasers. As we continue to penetrate the market, new customers accounted for about 69% of U.S. water-laced sales in the second quarter. Additionally, almost a third of water-laced sales in the U.S. were to dental specialists, highlighting the appeal of our products to this product segment. Our efforts to educate and train the dental community have been instrumental in raising awareness of our dental lasers within the market. Through peer-reviewed studies and targeted go-to-market efforts, more dental practitioners are recognizing the benefits of upgrading their practices with our best-in-class dental lasers. Currently, we command approximately 60% of the worldwide all-tissue dental laser market with our WaterLase brand. While we have established ourselves as the go-to brand for quality, reliability, and after-sales service and training, We estimate over 90% of dentists are still not using an all-tissue laser in the practice, representing a significant market opportunity for BioLase. We are actively pursuing a three-pronged strategy to engage dentists who have not yet incorporated dental lasers into the practice. First, we have significantly increased our efforts to engage dental specialists such as periodontists, pediatric dentists, endodontists, and dental hygienists. By launching academies for each of our product families, WaterLase and Epic, we have simplified training for these specialists. Second, we are actually engaging the over 150,000 general practitioner dentists in the U.S. by increasing education and training through initiatives like the Water Lase Trial Program and our recently opened state-of-the-art training facility, the BioLase Education Center, which provides dental clinicians with a comfortable, engaging learning environment tailored around laser education. The BioLase Education Center is also designed to host a variety of events and courses, including our WTPs. The BioLase Education Center is also located adjacent to a state-of-the-art dental office, LaserSmiles, which provides access to live patient education. Through these initiatives, we are driving laser adoption and providing dentists with safer and more advanced alternatives to improve patient outcomes. As we look ahead to the future, our focus remains on fostering strong partnerships with corporate dentists and universities. The adoption of our WaterLase and Epic lasers have gained substantial momentum in various dental schools and postgraduate programs across the country. allowing aspiring dentists to embrace laser dentistry early in their careers and equip them with the essential skills from residency to retirement. Additionally, the interest and enthusiasm for laser adoption within dental service organizations, or DSOs, have seen remarkable growth. In the past quarter alone, we conducted over 30 dedicated training events for our DSO partners, aiding in the adoption of purchased Waterlays and Epic laser brands. We envision the integration to continue expanding within their networks in the near future, further elevating the standard of care and propelling the advancement of laser dentistry in the industry. In summary, we are pleased with our strong second quarter performance and are confident in our ability to capture the substantial growth opportunities ahead. We are successfully executing our growth plan as evidenced by our 10 consecutive quarters of revenue growth, but the vast majority of our substantial market opportunities are still in front of us. Increased education and training and the continued success of the Waterways Trial Program will propel us toward achieving our revenue and profitability objectives. At this point, I will turn the call over to Jennifer Bright, our Chief Financial Officer, to provide more in-depth insights into our financial results for the quarter and talk about our guidance for the remainder of the year. Thank you again for your participation. We look forward to addressing your questions. Jennifer?