Biolase, Inc.

Good day and welcome to the BioLase first quarter 2024 results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. And to withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Mr. Michael Polyview. Please go ahead, sir.

Thank you, Chuck. Good afternoon, everyone, and thank you for joining us today to discuss BioLaser's financial results for its first quarter ended March 31, 2024. 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 first 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 any statements that are not historical facts, will be made during this 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 forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995 and 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 faux-look statements only represent the company's view as of today, May 13, 2024. 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 Biolaid'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 2024 first 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 just a few minutes ago. The tables we've provided in today's news release offer additional information additional financial information, so we encourage you to review them. The tables include the reconciliation of unaudited GAAP 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, I'll turn the call over to John Beaver, Biolase's President and Chief Executive Officer. John, please go ahead.

Thanks, Michael, and thank you, everyone, for joining us this afternoon. We appreciate your continued interest in BioLase. I want to start by restating our primary objective, which is to ensure our industry-leading dental lasers continue to attract heightened interest and demand. Everything we do at BioLase is to help accelerate the adoption curve of lasers, which we believe will become the gold standard of dental care. I'm pleased to share the progress we've made over the past quarter. The increased adoption of our industry-leading laser technology with approximately 67% of our U.S. water-based cells during the first quarter coming from new customers is a testament to the value and efficacy of our products. Furthermore, approximately 42% of these sales were from dental specialists, indicating a growing recognition among this important contingent as we assess our ability to penetrate the market further. As we've cited on prior calls, there remains a significant untapped opportunity in the dental market for our BioLase lasers. With more than 90% of dentists yet to embrace all-tissue laser technology, As many of you already are aware, the dental community is among the slowest in terms of adopting new technologies compared to other healthcare-related technologies, so it does take time to make an impact, and I believe our efforts are working. We are already the predominant brand in this space, with approximately 60% market share globally under our Waterlace brand, and we continue to actively engage the remaining 90% of the market since this represents the majority of our growth opportunity. Our targeted sales and marketing initiatives and enhanced training programs are expanding our reach among dental specialists and general practitioners as we emphasize the benefits of laser dental solutions to practitioners and patients alike. In the first quarter, we continue to increase awareness of the benefits of laser dentistry by holding over 100 webinars, study clubs, trade shows, and training events. Our strategy to grow market adoption of our lasers includes bolstering our unique education training programs which we continued to implement in the first quarter through our Water Lase and Epic Academies. We have simplified training on our products for dental specialists and dental hygienists, and have articulated the significant return on investment that they can achieve with our lasers, not to mention the significant patient benefits. The state-of-the-art BiLase Education Center also provides dental clinicians with an engaging, hands-on learning environment tailored around laser education. We remain committed to all of these revenue-generating activities as we believe these investments of time and resources will yield revenue opportunities in the future. As a result of these efforts, we continue to generate a strong number of marketing-qualified leads during the quarter and our focus on converting these MQLs to sales. It's important to repeat in what we said in the past. Each 1% increase in adoption of all-tissue laser in the U.S. will equal approximately $50 million in additional revenue for biolase assuming we maintain our estimated 60% market share. This doesn't include potential increased adoption outside the U.S., where historically approximately 30 to 40% of our revenue has been generated, or the consumable revenue generated from the procedures performed with our laser systems. On that note, sales of our consumables experienced remarkable growth this quarter, representing the third strongest quarter for consumable sales in our company's history. Remarkable is the first quarter of the year historically has been our seasonally slowest quarter. With a 14% increase year-over-year driven largely by over 600 memberships, we're thrilled with the momentum we've gained in this area. Additionally, our purposeful and prudent actions have significantly improved our operations. One of the most significant achievements during the quarter was a substantial reduction in our adjusted EBITDA loss. Our relentless focus on cost reduction has enabled us to lower our adjusted EBITDA loss by 21%, compared to the same quarter last year. This underscores our commitment to operational efficiency and financial discipline as we drive toward profitability, which we are on track to achieve by year end. These initiatives, coupled with our revenue expansion plans, position us for success in the quarters ahead. In summary, I believe the accomplishments in the first quarter point to a brighter future. Our performance reflects our unwavering commitment to growth and profitability. As we move forward, we remain focused on delivering value to our customers, driving growth, and maximizing shareholder value. With that, I'll turn the call over to Jennifer to provide further details regarding our first quarter results. Jen?