Inogen, Inc

Q4 2021 Earnings Conference Call


spk_0: welcome to indulgence two thousand and twenty one fourth quarter financial results conference call at this time or participants are in the listen only mode following a management's prepared remarks we will hold a pew and a session the ask a question at that time please press star followed by one on your touchstone phone if anyone has difficulty here in the conference please press start zero for operators system as a reminder this conference is been recorded today february twenty fourth two thousand and twenty two i would now like to turn the call over to jason summer general counsel
spk_1: thank you for participating in bit call join me or energy the own the bill chop shop and are the though mike serve there earlier today in are generally finance results for the fourth quarter twenty twenty one this early really an indigent clip a presentation are currently available in investor relations section of the company's website as a reminder the information presented today will include forward looking statements including without limitation thing with butter growth brought back the strategy for twenty twenty two and beyond expectations related to our financial results for the first quarter and four year twenty twenty two the rectifications with expected be by challenge oh and caught inflation related to semiconductor chipped you can are better than caught the craters her cases of european regulatory claritin and related impact on our international build our ability to create shareholder value by driving awareness of our products advocates of regarding our international and domestic fell channels advocates of related to our record channel explication related you are prescribed film organization including expansion of the filthy theme and implementation of and tell the platforms and to through our permission or with advil healthcare alfie hiring application expectations regarding reimbursement and regulatory changes per application for regarding in the market for a product and the impact the governor kaine pandemic on are bigger than supply and demand preparing can work in got a short amount of the poor that contained in this call are based on information currently available to act as a a bit deeper looking famous early predictions and well written and enter into that are support in more detail and are most recent periodic reports bad with the securities and exchange commission afterwards of mayberry and we did when any obligations update the overlooking payment today may be required by law we have posted circle financial payment on on and a for the patients in in that your religion section of the company's website please refer to the pouch more detail or commission author during the call will prevent term financial information on a non gaap it man who believe that non gaap financial measures taken conception of us got financial manager provide useful information for both management investors by excluding certain oncotype and and other better than are not indicative of and corroborating so management either non gaap measures internally to understand manage and evaluate are bigger than make operating system reconciliation between us gap and non gaap results are presented in table within our earnings will but that offer the power to an urgent president and ceo the bill shuster the bill think jason good afternoon and thank you for joining or for school coupon for that when it the one conference call
spk_2: we have made steady progress on the diffusion for strategy they expand and effectively include are still footprint while driving the productivity of our commercial operations we also continue to make progress and mitigating the obliging challenger in order to meet the market demand and we are investing in the and clinical was strengthening other critical capable the in support of short term growth was setting us up for long term sustainable and durable gotten possibility a few months back we announced an important new partnership with as field or conflict filled organization the affected effectively advance or prescribed go strategy and we have made significant progress have a plan and terms of training and deploying the addition of a representative and then having the operating margin in addition to helping out over all commercial excellent we successfully the queue to the price increase in september twenty twenty one that primarily offset the cost of inflation associated with the industry wide limited semiconductor to buy they live a little turning to the fourth quarter results with so total revenue growth of three point three percent from the fourth quarter of twenty twenty primarily driven by improved average selling price of the thing demand and reduce the impact of the covered my being pandemic and related public health emergency or the e versus the competitive period and a five year which was partially the of the by supply chain constraints that primary limited sales and own domestic business to the of channel this was in line with the midpoint of our preliminary unaudited revenue at them as provided on the january ten twenty twenty two and results were each regular channel reported what in line with those estimates as well with ongoing supply chain constraints and while attempting to fulfill critical order for out domestic that if the business partners we intentionally focus are available capacity on for my i'll direct to consumer and rental channel and our international business the didn't say and german in an effort optimized revenue and much additionally in anticipation of the temporary suspension of manufacturing operations effective january third twenty twenty two we have reserved a portion of our supply reduced in december twenty twenty one departure they meet the demand primarily for a direct or humor failed and for customers we expected in the first quarter of twenty twenty two and then the time we had restarted production before we go through the fourth quarter financial results in more detail i would like to provide an update on the two items were reported in the january tenth leave relating to preliminary weaponry dogs for fourth quarter and full year twenty twenty one with respect to the impact from supply chain disruption associated with the semiconductor chips youth on the printed circuit board and battery the hot water the oxygen concentrate those we are seeing continued pressure on supply with some early signs of improvement and the regular my channel for these chips we are working closely with a regular semiconductor suppliers the from up there overall a commitment and more of delivery schedule for the order they had initially that for twenty twenty two despite early promising sign the semiconductor shortages lingered and likely will continue to limit our ability to falling demand and twenty twenty two we reported in the fourth quarter of twenty twenty one greedily is that the release announcement that were temporarily suspending manufacturing operations you to the semiconductor shortage related to the commitment from various programs on the open semiconductor market the late cancellation of committed but outstanding from the conduct an order resulted in the decision i'm to temporarily suspend operations beginning january third twenty twenty two as expected that suspension or the brief one and we have now what he started out production at our texas and california facility and at foxconn or contract manufacturer in the czech republic between february seven and nine twenty twenty two ahead of the plan we laid out on january ten twenty twenty two and we are back at know that production levels we are continuing to walk across the semiconductor supply of of our oil and and leveraging to the extent possible the open market channel to purchase the necessary semiconductor chips we additionally outcome completing the redesign of the motherboard on our image and ones you fight be or see the utilized alternative chipset the currently have a higher level of availability which we expect to begin using and production starting in the second quarter of twenty twenty two with the motherboard redesign that would be no material and back on the functionality performance patient you that interfaith or patient experience but we expect greater optionality and sourcing semiconductors moving forward the cost of for the chipset for from the open market have planted higher in the fourth quarter of twenty twenty one person the third quarter twenty two and one as a result of high demand and consent supply this resulted in inflated costs related to the acquisition of and conduct a chip that negatively impacted our got a good solid in the fourth quarter of when it twenty one we expect the increase costs of shed the have an increased impact on our material cost and twenty twenty two based on coach to the already made to secure supply we also expect such impact will increase as the regular supply chains ability to catch up to the mansour that aggressive and the ultimate ships that are and that he designed motherboard start to admit similar sort the judge you to the heightened demand the higher semiconductor cost and got them the fourth quarter of clinical one as a result of posting on the open market have also includes a prepaid expensive and other current assets and inventory given the most of the components were not yet and finished goods that was killed during that period with the believe based on industry feedback and out evaluation that the supply shortages are likely to continue through the second half of twenty twenty two despite some expected improvements as part of our strategy to minimise supply disruptions and meet the higher portion of the expected twenty twenty two the man we decided the forward by abortion or force them to conduct a requirement for twenty twenty two opportunistically during the second half of twenty twenty one as a result we expect increase costs of goods sold three and for our twenty twenty two to the higher than the cost increase in the fourth worth roughly twenty one especially given that we will continue to sore spot the for semiconductor requirement during the first papworth when it went into and possibly into the second half of twenty twenty two from the open market channel while the supply chain shit that situation remains fluid we are pleased with the motherboard redesigned for our image and ones you fight the o c and are aggressively continuing to pursue effort to get saddam a commitment from the regular supply my channel while simultaneously canvassing the open market for additional quantities again out of the fusion around the price increase we took back in september twenty twenty one has allowed us to cover most of the cost inflation due to the chip shortages at mentioned and or pre announcement on january ten twenty twenty two current and the gym products or commercial in the european union and the medical device director certificates and hours of expected they expire on may eighteen twenty twenty two loud repairing the filing for the end the our submission for certification under the your medical device regulation and earlier part of twenty twenty two for both existing and new and improved system and expect them to our certificates to be issued during the third quarter of late when he can we have verified or ability to meet most of the demand and terms of a good thing or to our shipments up to may eighteen twenty twenty two entity certificate expiry additionally we are in the process of applying for select your computer eleven delegations or exemption as an additional mitigation measures we are also working towards securing the necessary certification for great britain it's would the land where the you and the are not directly applicable allow me for completed operation and those two territory independent of the timeframe for certification under the you and the i i would like to reiterate that the anticipated gap and your marketing is unrelated to public safety what performance and will not impact us commercialization based on our latest discussions with the notified buddies we expect the you and the a dossier for out into products to be reviewed and potentially clear and time for longtime operation than day you would that i would not provide details for a fourth quarter twenty twenty one revenue by channel
spk_1: for the fourth quarter of twenty twenty one we generate a total revenue for me to six point four million dollars compared to seventy four million dollars and the fourth quarter twenty twenty which represents an increase of three point three percent over the competitive period
spk_2: domestic the incident on sale and the fourth quarter of twenty twenty one degrees fifty seven point six percent the ten point three million dollars compared to twenty four point two million dollars and the fourth quarter flame twenty primarily due to supply chain constraints that limited product available at the end of channel international business with a net sales and the fourth quarter flag twenty one increased by forty seven point six percent or fifty percent on a constant currency vapor to twenty point one billion dollars compared to thirteen point six million dollars and the fourth quarter for hit one the increase was primarily driven by concrete and relation patient and europe and and go operational capacity or certain europeans are good at it as a friend sent us closer than on the level at improving called it might be a vaccination rate has enabled patient to return to normal non the like the activity at level and seek treatment partially offset by supply chain constraints that limited product available gonna get the channel domestic direct to consumer same increase twenty three point three percent to thirty three million and the fourth quarter of twenty twenty one from twenty six point eight million and the fourth quarter of twenty twenty primarily driven by include the average selling prices i said representative productivity and cleveland the quarter despite lower average and by said the look the pet count which was down approximately three percent from the competitive spirit and the players we are continuing talk to my about and fight say the present the representative thing and by increasing our focus on enhancing management disciplines and utilizing day the driven and and sites led fierce technique aimed at improving the productivity of such a source we're pleased with the performance of are infected fame and the fourth quarter every for improved that the consumers pay for the activity but representative and in crete average revenue per that was the fourth quarter twenty twenty including the price increase effective september one twenty twenty one tampa revenue and the fourth quarter of like twenty one in three thirty nine point one percent to thirty million dollars from my point four million dollars and the same period and twenty twenty primarily due to injury bishop whatever hired medicare reimbursement paid and hide benefit patients at the percent of top impatient concerns as of december thirty one twenty twenty one we had approximately forty two thousand nine hundred patients for a thermos which was up to six point two percent sequentially compared to september thirty twenty twenty one and up thirty three point two percent compared to december thirty one twenty twenty the increase in patient or service was primarily driven by greater utilization of patiently for rent that opportunity and for the shown facing and initiatives to increase prescribe our misfire fates was as well as that elect medicare criteria for of the up reimbursement you to the covered maybe ppg despite the supply chain challenges being what through will remain cautiously optimistic about the direct to consumer sales and dental channel while we continue that that the potential impact including changing feel pity that not be plate and other variables as a result of the covered my team b u s and other major markets where the opening moving to the strategic initiatives focus on increasing or prescriber think organization or total for failed representation representative headcount was certified as of december thirty one twenty twenty one compared to twenty four as of december thirty one twenty twenty and agreed of approximately forty six percent however and light of the collaboration with our contractor organization as field as of january twenty twenty two are rather facing felt organizational at at forty seven say that in place and ten favorite food accepted offers that will be in the field early march twenty twenty two well ahead of the timing we have communicated when we enough to say greenland the support the combined fifty seventh edition faith in favor of we have evolved or operating modern by adding twelfth as field country so the fact that would be assuming admit that the responsibility which we believe when it comes the selling time of the federal by about sixty percent according god and done early estimates what building the customer and patient period we're expecting you strategy and action plan was significant mental or coverage of the higher the five prescribers would have adequate core frequency were driving physical activity or little proprietary prescribe it inside and available for the first time of and the gym the and have to do with been pick me as well as the classiest and more them will benefit the combined said force including image and and ashley of representatives and we expect will include our coverage of the bought to the oxygen patients that are diagnosed that prescribed and the prescriber channel from forty percent approximately sixty five percent regarding reimbursement rate we continue to smoke lisa and medicare rate for oxygen therapy with medicare reimbursement rate increasing approximately five percent effective january one twenty twenty two you to the annual inflation adjustment the two percent medicare sequestered benefit that have been in place and may twenty twenty you to the covered by pp issue he was set to expire december thirty one twenty twenty one but has now been extended until march thirty one twenty twenty two the sequester than two years with the one percent reduction to rates from april one twenty twenty two and a joint thirty twenty twenty two when the full two percent medicare sequester human july one twenty twenty two and continuing to september thirty twenty thirty as we look ahead despite some it and challenger the underlying them for were offered a strong and we're committed to increase in the deal with new market penetration and unfolding patient access and the meantime we are committed to working with ongoing up my challenges and mitigating most of the material cost inflation focusing on commercial xl and i'm driving out operational efficiency we will continue to invest in infrastructure and capability the clinical evidence innovation a new product development as well as commercial capability to strengthen an advance or market leadership position and portable oxygen therapy
spk_3: will believe that the focus areas and investments with country the thought aspiration of like them to stay in the been entrusted growth and value creation would that i would love to the cold are entering fear or might shows get those mike
spk_4: i do to bail at the meal noted total revenue for the fourth quarter of twenty twenty one was seventy six point four million dollars representing an increase of three point three percent over the cupboard period and twenty twenty trying to gross margin
spk_3: for the fourth quarter of twenty twenty one total gross margin was fifty point five percent compared to forty six percent and the fourth quarter of twenty twenty
spk_4: or failed revenue growth march increased to forty nine point two percent in the fourth quarter twenty twenty one vs forty four point five percent of the same period of twenty twenty
spk_3: the increase was primarily due to higher average selling price and decrease mix for domestic business to business sales which have a lower gross margin and direct to consumer an international sales
spk_4: the increase was partially offset by our cost a good so per unit in a corner or merely you to hire material may have an oregon the fourth quarter of twenty twenty one included two point three million dollars of higher material costs associated with open market purchases the semiconductor just used in our batteries and b o c which represents approximately three hundred sixty basic points of gross margin his cost is lower than our previous expectation of four point one million dollars to six point one million dollars a higher costs of goods sold in the fourth quarter of twenty twenty one for open market purchases of semiconductor chips due to the timing of usage or just purchased
spk_3: read or revenues gross margin increased to fifty six point eight percent in the fourth quarter of twenty twenty one vs fifty six point five percent and fourth quarter of twenty twenty primarily due to higher medicare reimbursement rate higher bilbo patients as a percent of total patients on service and lower service expense for patient on server it's partially offset by hard to create an expense per patient on service
spk_4: as for operating expenses a total operating expansion increased to fifty to forty five point three million dollars in the fourth quarter twenty twenty one versus thirty nine point six million dollars in the fourth quarter twenty twenty primarily due to increase personnel related and consulting expense partially offset by two point nine million dollar nine cash decrease in the change and fair value of the new era or out liability versus the comparative gary
spk_3: research and development expense increase to four point seven million dollars in the fourth quarter twenty twenty one compared to three point seven million dollars in the fourth quarter of twenty twenty primarily associated with increased personnel related expense
spk_4: sales and marketing expanse increased to twenty nine point seven million dollars in the fourth quarter twenty twenty one vs twenty five point four million dollars and a comparative period of twenty twenty primarily due to increased personnel related expanse consulting expand and credit card and financial be media and advertising costs were nine point five million dollars in the fourth quarter twenty twenty one compared to nine point three million dollars in the fourth quarter of twenty twenty general and administrative expand increased you can boy nine million dollars in the fourth quarter of twenty twenty one vs ten point five million dollars in the fourth quarter twenty twenty or merely you to increase personnel related it's been an increase in in expand offset by the nine cash change in the air value of the there are now out liability versus the comparative period in the fourth quarter of twenty twenty one we recorded and in contact for expensive sixteen million dollars which included a seventeen point four million dollar died cash income tax provision expanse associated with a revaluation of our to or attack that that the valuation allows was recorded in the period do you uncertainty around the ability to utilize existing depart access that to after tax liabilities and future periods primarily due to cumulative pretax law firm am strategic investments in future periods and the impact of the code eighteen pandemic including
spk_3: related supply chain impact on parts availability and cost inflation in the fourth quarter twenty twenty one years old and operating lots of six point seven million dollars adjusted ebitda of negative point five million dollars net loss of twenty two point nine million dollars and loss per diluted common and share of want our and one day
spk_4: finally we ended fourth quarter of twenty twenty one with cash cash equivalents and marketable securities a two hundred and forty five point five million dollars with no debt outstanding as the bill mentioned repaid significant additional costs in the fourth quarter of twenty twenty one or the semiconductor chips purchased on the open market but not yet sold and finish your which increased or prepaid expands and other current out that an inventory as of december thirty first twenty twenty one i fifteen point four million dollars
spk_3: i and point seven million dollars respectively
spk_2: now turning to our outlook or we continue to make progress addressing the uncertainties caused by teapot supply chain disruptions we do i expect the we do expect they will continue to impact twenty twenty two result in terms of the increase costs we do believe material costs will be incrementally lower in the second half of twenty twenty two vs the first half of twenty twenty to watch the motherboard redesign effort is complete and a regular supply chain further return to normalcy we are also closely watching for any potential impact from the omagh kronur other potential variants of the golden eighteen pandemic and it's potential impact on your pt diagnosis right
spk_3: as a result of this point we will not be providing detail guidance for four year twenty twenty two
spk_2: however we can provide some general context or expectations for the first quarter and boy year a twenty twenty two
spk_3: due to the expected for fighting constraints and packing semiconductor chips a boy respect total revenue in the first quarter of twenty twenty two to be similar to the fourth quarter twenty twenty one with the four year over year revenue growth expected to be in the mid single digit range over twenty twenty one
spk_2: while we have spent two point three million dollars of higher but your costs associated with open market purchases of our semiconductor chip used in our batteries and p o c in the fourth quarter of twenty twenty one respect is cause to increase significantly of the first quarter of twenty twenty two it cost inflation and materials and
spk_3: labour throughout the supply chain primarily related semiconductor kept we forward bought in two thousand twenty one
spk_4: we expect approximately four point five million to five point five million dollars of incrementally higher material costs associated with open market purchases a semiconductor chit chat used in our batteries and bios these are the first quarter of twenty twenty two at the same time we're still committed to making multiyear vestments and clinical research research and development and building a necessary infrastructure to support future durable revenue growth and margin expansion given such investment agnes initiatives we expect increased operating expense or four year twenty twenty two compared to twenty twenty one with the expectation that these investments will begin to meaningfully that their results and twenty twenty three and beyond
spk_2: in summary while we believe our pricing actions will cover most of the material cost inflation we expect negative operating and that losses well all year of twenty twenty two reflecting the anticipated supply constrained revenue increased costs a good sold per unit higher operating expense and incremental grow
spk_4: both investments versus the prior year
spk_3: to reiterate what bill said earlier while in the short term or outlook is impact by search supply constraints we are proud of the actions we have taken to make structural improvements in our business including our investments in our prescriber sales and service organization productivity improvements in are direct to consumer channel
spk_2: and increases in our average selling price
spk_0: we leave over the long term strategy to optimize the car to lack of structure and dry productivity you asking and clinical research and research and development around commercial opportunities will help us worked order plan to return to sustainable revenue growth and profitability with that will be happy to take your questions a go do we have any questions in the queue
spk_5: thank you sir and at a time to the audience if you'd like to have a question please press star one on your telephone keypad a confirmation tunnel indicate that your life question q he may pass the starkey mile by the number two if you would like to remove your question from the queue for participants using speaker quickly it may be necessary to pick up your have happened for press starkey with again a question press star one on a telephone keypad a first question comes from robbie markets with jp morgan gun oh great at congrats on the corridor and
spk_2: you know wanted to ask as a lot of moving pieces and twenty twenty two and i i do really appreciate the mid single digit sales growth over twenty twenty one the navy could walk us through the different moving pieces and had it think about the components of each other businesses i just given the out there it there is that with iraq and be to be there's a lot of ups and downs to the years i think that would be a great place to start
spk_6: yeah thank you know the it's gonna be on clothing for the question tiny it may be that they take sit back and say that the good thing is the underlying demand that we feel that if the thing the gone and huge and what should the good thing
spk_5: as you can tell from the prepared comment that that is a supply situation that though is lingering over performance with that said would feel confident that with the channel makes that we have a plan for and will execute their own that will get to that much single digit go as expected of course would want to be focused on carla below the diving what do we get their highest level and margin not too dissimilar from atlanta twenty one that we hope with the improve of my situation will be able to also serve the needs of the the to be domestic channel and let the better than with with done and twenty twenty one got it and have you think the
spk_2: the encourage non hm me it the health of the hm is are in the us you know do you think once you get supply back on line that they'll be a willingness to go out and buy an engine p a caesar you do you first see more of than btc and and rental dollars the biggest driver it's gone forward thanks yeah maybe let let me let me make a comment first one day to me i think that is an understanding that what we're trying to do it the company and terms of the pile by vision of the channel and on a affected everybody would behave the same way if they were only that one that so despite the fact that that is some media uncertain get out of the planning that hm even know that it's some understanding to the fact of why we're doing it now with that said we continue to see a a order that are in the system that not been cancelled we get also additional orders and then indication that also that supply of constraint on around robbie so it's not only us and we believe that most of that will remain in place
spk_5: as at that might come back online
spk_2: but the we that that a normal part of the uncertainty that we're all living through but we believe that most of it was faintly great i could just like by one more question in it out with the first quarter guide below consensus had he get confidence in mid single digit growth for the full year if they're still going to be some supply issues at different points during the year and that's it for me thanks yeah not thank you
spk_5: so i think that despite the fact that the fourth quarter was that a bit lower we believe that from the visibility we haven't been the supply chain of when about ability to ramp up production at the second half of course of the you're going to be stronger than under first couple of the year giving us that confidence that they put us to at the at least
spk_7: that the high level indicate what we believe the growth rates are going to land
spk_8: great thanks a lot
spk_9: nokia lobby our next question comes from that mission with keybank please the question a map a guy did with actually read on tape from that to pay rent a question i had entropy are you i'm just a couple of options from up tonight i'm just wanted to start with gross margin
spk_2: god fifty percent in number of pretty hard that imports you and with the understanding
spk_4: some of the supply chain coffee to be increasing and another moving pieces just how would you be thinking about gross margins directional eat in one two versus for to you and then and an awesome just on the kittens for hundred and twenty twenty two and a young for that
spk_3: yeah added this is mike yours you are you think about gross margin with we talked about what we expect into one in terms of birth top line
spk_4: and we also put a number out there and terms of what we expect these by chain premiums at that we're gonna be absorbing and cute one and so if you if you take in terms of we were pretty good gross margins and cute or i'm obviously they were propped up little bit by the price increase and a little lower material cost of fact that we had planned in a quarter so came at higher higher than we thought we would inside they get you a you look at q why you have to kind of background is accurate are going to have about the double the amount of ppv that's kind of you flowing through our or financials on a similar revenue and i think i can get you pretty close probably to to a number in terms of what to expect for you one now do you think about the four year obviously we're going to be wrapping up we think in the back half of the year
spk_10: and we expect things to improve in the back up the around supply chain as we see some more normalcy come back to do to supply chain
spk_9: so yeah we we would hope that games we moved to the yearbook continue to see improvement in are gross margins from that from that low point in one
spk_2: i think thanks for that additional color and then it's too little bit of a bigger picture question here and a i appreciate this could deal a bit tough cancer but a d keep out have a sense of what underlying demand might look like you know if not at the supply chain constraints and and what upside to your the initial midfield digit growth items could be in in one the normalized environment yeah so brett i'm going to take that so if i look at underline demand i have with that characterizes and to them from one as are we continue to see the demand in the cash channel and the cash them as well as the orders the to receive from be to be and the anthem a would think that the man the from both but the channel dear tabby to be in europe or the it be to be and deal you of one gonna the only to see
spk_1: so does not a significant concern that much like for pot and under let bottom line demanded weakening the other side or the other let that i look at it also we don't believe had to our knowledge the build any major reduction and prescription as off as a result of diagnosed the prescription paid nothing
spk_2: that we have been able to see or determined four bucks for that bob and gum that said that the underlying demand into the steady and healthy i'm not going to make a comment or thing including but it's actually said as we as we got to the early part of twenty twenty two i totally fair and then last question for me today just thinking about capital allocation for twenty twenty two and what what would you consider your biggest priority that the stage and how would you characterize the current pipeline for potential acquisitions meet him out of to a year ago take you very much for taking the questions yeah so to that i'm i'm going to pay the price priority and we have a good strategy we're going to make sure that we found that was shattered you will believe that's one of the best you don't we can give back our shareholders but would that said as you know and that you can see from about she had that we have an ability to continue to look for an acceleration of our growth rate if we happen to find the right in organic play through mm day so that would be part of it and of course as you can feel our what funding from of the agree of them alcott paper from the cash that we have will believe the balance between the three thing mean they were doing some investments like with that and multiple area we are actually overcoming of the challenges
spk_0: on the cost increases as well as we are constantly engaged in dialogue around potentially finding the mm day acceleration that we would hope to get to in the future so way but the web were in the good place in terms of the cash on on hand to be able to do all of them at the same time
spk_11: thank you and a reminder at catholic question at this time press star one on your telephone keypad
spk_2: our next question comes from margaret cash or with william blair police the question hey guys this is maggie on from margaret today and i wanted to ask a question on the suggest that this and fails for on the backs of added several new rat ted that addition to fourth in the first quarter land the how long does it take the threat to ramp and then when do you expect the draft to be fully productive and you think we can see material and pack to the top line the fear from a threat
spk_11: a you to be and how are you doing go a great question though first i think the with the new not only that edition i'm faith people but the inside behind them and terms with the faithul as well as the data driven by for providing as well as the operating mother and does not giving people the productive time back to the not doing administrative work that focused on telling we'd definitely believe that would see a first draft of productivity
spk_2: that and before you have to be a lot of the fifteen months more tending towards the end what i'm going to make a comment on how do they expect that that to be but we expected to be shorter than we've seen before with higher productivity of you on the on the back end of it
spk_11: okay thank you and you can talk about the level of investment you've made and twenty twenty one and plants bacon twenty try to beginning to see impact than twenty twenty three so i know it's still early that assuming that you'll have an improving supply backdrop as it reasonable to assume that
spk_1: you guys can begin to defeat i think they didn't the double digit growth thank you
spk_11: but by when is the great but you have been by twenty twenty three
spk_2: yeah by twenty twenty three
spk_0: yep we we believe that the within the coming couple of years we'll we'll be back to that level of the of double digit growth as well as defending the possibility and maggie
spk_12: okay great thank him you're welcome thank you
spk_2: our next question comes from matthew blackmon with people please go ahead i get after rebate thanks shirt for take my questions are just a couple
spk_12: even if starting guidance if if you're willing to share that single digit revenue growth you're expecting for twenty two that way to parse that between price and volume on and a couple follow ups but one at the a good point and hi that it may be a lot different than time but we're not going to push them out i think of the good know they're good got the ability to a successful leg the cute on a frightening three and the because of the fact that sublet soft lie is the issue here i would rather than up answer that question now because of my face and then that asia what changed significantly between well we're sort of that revenue go from
spk_4: fair enough arm and then another one on a gonna fish want to clarify am the way read in the press release and i apologize if you expanded on it
spk_12: and i prepared remarks but it sounds like for the whole year for you're expecting positive adjusted ebitda my and i read that correctly while already in the first quarter for the full year it's it's was hip hop in popular yeah that that's yeah that's what we were signaling under pressure lisa the absolutely them okay appreciate that and then the my final question of your arm the and i apologize again it you know there's a lot lot of only part particularly in europe
spk_2: he doing a lot of thing there but but it is that a take way messages you know you're not expecting to see material disruption in the business the is that sort of the take wow this is a lot of your different initially you gotten place but that's the bottom line take away i would assume so because you be wouldn't be able to grow mid single digits if you release substantial revenues in europe or just i just want to clarify that that should be the take a burden it's a good question that so let me may be a for and the to bought and sold one a we believe that that existing been ordered the poor and it with them good the
spk_13: long a little bit then europe also like here we can meet the thing old the without ability to as good and be the legislation should go that before made me feel so that component to that with the from to do like you're at it of course we have also applied for the and the odds with the for good and to the to our knowledge of the and
spk_14: the march we feel that the to be cleared than time for longer than operation but i can sit here and say they don't have a huge backlog or that would be some question that might come back but we feel as if you ask me today i feel that will get that back on track and terms of the empty are certificate issued on time for me to have major
spk_15: deception but i'm not going to take it off with a gun altogether
spk_16: okay but does that make a secret education
spk_12: so larry and i wouldn't have the midst yeah go ahead of the i apologize no no no no not mature enough go him
spk_1: i was just going to ask if that mid single digit which i assume it's like forty six percent is there some question and there to give you a little bit of flaccid case
spk_17: you know things take a little bit longer i'm just trying to get a sense of what's baked into that minute thing with that guy in the am you know i'm going to add to that
spk_18: if
spk_0: i mean i can ask but that
spk_2: at about before before where you know like that they would be related to are fair enough that you appreciate it
spk_0: okay thank you

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