Sientra, Inc.

Good afternoon, and welcome to the Cientra Third Quarter 2023 Financial Results Conference Call. My name is Dave. At this time, all participants are in a listen-only mode. After Cientra executives provide their business updates, we will open the floor for a question and answer session. Today's conference call is being recorded. I'd like to turn the conference call over to your host, Oliver Bennett. Cientra's Chief Legal Compliance and Corporate Development Officer. Mr. Bennett, you may begin.

Welcome, and thank you for joining us on today's call to discuss Cientra's third quarter 2023 financial results. On our call today, we have Ron Menezes, Cientra's President and Chief Executive Officer, Denise Dylers, Cientra's Chief Technology Officer, and Andy Schmidt, Cientra's Chief Financial Officer. Before I turn the call over to Ron, I must remind everyone that we will include forward-looking statements in our prepared remarks and 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 statements. For a 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 Ron to comment on our third quarter results.

Thank you, Oliver. The third quarter was a challenging quarter for Centrix. as we experienced a much larger impact from seasonality during the summer months than we had in prior years. This impact was most pronounced in our augmentation business, which is more prone to seasonality and changes in consumer spending. Our reconstruction business, which is less vulnerable to these trends, was less impacted by seasonality this quarter. Importantly, those trends were not unique to Sientra or to Brassene plants. There has been a broad trend across aesthetic companies reporting lower than expected procedural volumes during the third quarter. This also has been reflected in our discussions with surgeons. We have reported lower than average surgical cases during the third quarter, driven by consumer uncertainty over microeconomic trends, as well as an increase in physician inpatient leisure travel during the summer. We believe that those trends are cyclical and short-term, and there remains a durable market for breast procedures. The American Society of Plastic Surgeons, for example, recently reported that breast augmentation procedural volumes had returned to pre-pandemic levels, while also seeing an increase in other breast procedures, such as breast lifts. This highlights the importance of Cientra's strategy of having a diversified portfolio of products designed to meet the needs of plastic surgeons in both augmentation and reconstruction procedures. We're encouraged by the fact that over half of our total revenue in Q3 came from reconstruction. This supports our growth strategy of portfolio diversification, which we believe will give us a competitive edge by allowing surgeons, hospitals, and accounts to source all their breast procedures products from us. It is early Q4, but we're seeing some recovering seasonality so far. We're also encouraged by the customer response to Violity and Simply Derm, as we are in the initial stages of our control launches of those products. As a reminder, with the launch of those two new products, Cientra has more than doubled its total addressable market and set up the platform for growth. We're now one of only two companies that offers the full suite of products for brass reconstruction procedures. Given the early stages of those launches, however, the microeconomic uncertainty specific to aesthetics and economy more broadly We felt it prudent to withdraw guidance at this time. In the meantime, we'll continue to take steps to improve our cost structure, and we're focusing on cash flow and profitability goals, which will position us well when demand rebounds. I'll now turn the call over to Denise to review the impressive clinical data on a biology fat transfer system that we presented last month at the plastic surgery, the meeting in Austin, Texas. Denise?