Sientra, Inc.

Good afternoon, everybody, and welcome to Cientra's first quarter 2023 financial results conference call. My name is Eric. At this time, all participants will be in a listen-only mode. After the Cientra executives provide their business updates, there will be a question and answer session. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, you may press star, then two. As a reminder, today's conference call is being recorded. Should you need assistance, please signal a conference specialist by pressing the star followed by zero on your telephone keypad. I'd now like to turn the conference over to your host, Oliver Bennett, CNTRA's Chief Legal Compliance and Corporate Development Officer. Mr. Bennett, you may begin.

Thank you, and good afternoon. We are pleased you could join us on today's call to discuss Cientra's first quarter 2023 financial results. On our call today, we have Ron Menezes, Cientra's President and Chief Executive Officer, and Andy Schmidt, Cientra's Chief Financial Officer. As we reported earlier today, Cientra has continued its unbroken record of 11 consecutive quarters of record year over year growth. Importantly, We have achieved this revenue growth while also reducing our expenses and increasing our leverage through continued operational efficiencies and synergistic product additions. We have now had three consecutive quarters of record low free cash flow usage, translating into a $23.6 million year-over-year improvement over that same time period. We have seen similar improvements in our non-GAAP EBITDA performance, which has improved by nearly 30% year-over-year, or $7.8 million, in the past three quarters. As Ron and Andy will describe during the call, our continued market share and revenue growth, combined with our disciplined cost management, gives us confidence that we will reach cash flow break-even run rate by the end of this year. Before I turn the call over to Ron and Andy, I must remind everyone that in our remarks today we will include forward-looking statements in our prepared remarks and in response to any questions you may ask. These forward-looking statements are based on management's current assumptions and expectations of future events and trends. Our actual results may differ materially from those expressed in or implied by the forward-looking statements. the company undertakes no obligation to update or review any estimate, projection, or forward-looking statement. For more detailed discussion of the company's risks and uncertainties, I would refer you to our SEC filings, including our Form 10-K and Form 10-Q to be filed later this month, available on the company's website. With that, I'll ask our President and Chief Executive Officer, Ron, to comment on our exemplary first quarter results.

Thank you, Oliver. And hello, everyone. Our continued success results from our ability to adapt to the ever-changing market and our focus on pursuing healthy, sustainable growth. We'll continue to prioritize operating efficiencies and creating leverage, providing a clear path to profitability. Our all-inclusive plastic surgery platform has enabled us to streamline resources towards the interest of high-growth, high-margin business. We added close to 270 new accounts in the first quarter of 2023 alone, indicating our long-term solid growth prospects. Two and a half years ago, the Cientra management team made a top priority to capitalize on the value of reconstruction and devise a plan to achieve this goal. Cientra already had an impressive portfolio of products, including Allo X2, ThermoSpan, and a fifth generation implant with a decade's worth of unparalleled clinical data, but we lacked soft tissue support and fat transfer products. After adding Violet and SimpliDerm, Sientra now has the most compelling reconstruction platform in the industry. Achieving this was not an easy task. It required significant time and resources to develop this portfolio, penetrate the hospital environment, build relationships with surgeons, and establish a strong brand presence. This has not only allowed us to accelerate our gains in the hospital channel, but also create a moat for Sandra, making it difficult for new competitors to enter the market and compete. Our focus on reconstruction shows that we are not driving growth at any cost, but we are promoting profitable growth, creating clear line of sight to cashflow breakeven run rate by the end of 2023. Reconstruction cases represent a higher revenue opportunity per procedure, given the price points and use of multiple products. The commercial launch of our fat transfer product, Violity, combined with the addition of the SimplyDerm ADM to our portfolio, has more than doubled Cientra's total addressable market in the U.S. Those products are highly synergistic, allowing us to utilize our existing sales and distribution infrastructure without significant incremental investments. Our platform will continue to attract additional products and strategic partnerships with other companies going forward. By adding these complementary products, we expect to accelerate our market share gains and overall growth while increasing operating leverage and advancing our pathway to profitability. In April, at the Static Society Annual Meeting in Miami, we released the interim six-year data of our post-approval study. Our clinical data continues to show impressive results, with over 5,000 patients and more than 10,000 implants across more than 130 sites, demonstrating our implants' efficacy in diverse patient populations and surgical sites rather than hand-picked procedures for the best outcomes. During the meeting, we also hosted a biology symposium. where over 50 plastic surgeons learn from three of our clinical sites about the benefits of Viality and how it is impacting their patients' outcomes. Viality, our innovative fat transfer solution, addresses every facet of our customer needs. The system offers natural, predictable, and safe outcomes, and we're pleased to have received such a positive reception from customers. Fat transfer is an exciting area of growth for Sientra, enabling patients to increase their cup size using their own fat with or without implants. Moreover, our solution also provides additional body contouring benefits. Preliminary results presented at the Aesthetic Society's meeting of one of the ongoing studies of biology have observed a remarkable 88% retention rate in the face of This represents an exciting opportunity for Santa with the potential to open an additional total addressable market of nearly $2 billion as Violity demonstrates its utility in the face, buttocks, and other areas of the body. Our customers have had a unique opportunity to experience the Violity system firsthand through our initial offering and have received overwhelmingly positive feedback. We're thrilled with the results from our initial early experience launch. We're confident Viality will continue to be a driving force behind our growth in the coming years, thanks to exceptional performance and the satisfaction it has delivered to our customers. As we look ahead in the reminder of the year, we're excited to share our plans for the pace of Sientra's product launches and aesthetics market. This quarter, we'll continue to roll out of Viality to most reconstruction and augmentation plastic surgeons, where we have already seen a very positive response. Later this quarter, we expect to launch Simply Derm in the hospital market. Our focus on reconstruction and aesthetics has been a driving force behind our success this quarter. As we expand our portfolio of products and strategic partnerships, we remain committed to delivering the highest quality solutions to our customers. We're proud of what we have accomplished so far, and we're excited about the opportunities that lie ahead. We believe that the Entra plastic surgery platform has the momentum to drive positive change in the market. I'll now turn the call over to Andy to discuss the financials.