ViewRay, Inc.

Good afternoon, ladies and gentlemen, and welcome to the ViewRay Q4 2022 earnings call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, February 27, 2023. I would now like to turn the conference over to Matt Harrison, Director of Investor Relations. Please go ahead.

Thank you, Operator, and welcome to ViewRay's fourth quarter conference call. Joining me today are Scott Drake, our President and Chief Executive Officer, and Bill Burke, our Chief Financial Officer. Earlier today, ViewRay issued a press release and appendix for today's call, both of which are available on our website. Going forward, we will be providing an appendix of key metrics, which will be filed with our 8-K in lieu of an earnings presentation. Today's call is being broadcast and webcast live. A replay will be available on our website for 14 days. Before we begin, I would like to remind you that the discussion during this conference call will include forward-looking statements. Factors that could cause actual results to differ materially are discussed in the company's most recent filings with the SEC. Also, the discussion will include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measure and two years of historical results can be found in our appendix. an exhibit of our current report on Form 8-K, filed today with the SEC. I will now turn the call over to Scott.

Thanks, Matt. Good afternoon, everyone, and thank you for joining us to review our 2022 fourth quarter and full year results. Before we begin, I'd like to welcome our new Chief Financial Officer, Bill Burke. Bill previously served as CFO of Heyman Etics, and brings over 25 years of global financial and operational experience to Vuret. He and I have known each other and worked together for many years, and he's a significant addition to our team. Welcome, Bill. I'll start today's call by covering key patient metrics. I'll highlight our full-year financial performance and some key innovation, clinical, and commercial wins. Following my comments, Bill will cover our financial performance and guidance. Finally, I'll provide closing thoughts and open the call for Q&A. As we've stated many times, therapy adoption is the precursor to our growth as a company. To date, Meridian has treated over 29,000 patients. This number continues to grow rapidly as we expand the footprint of Meridian centers and accelerate patient throughput. The vast majority of these patients were treated in five or fewer fractions with highly effective virtually side-effect-free therapy, allowing them to get back to health and get back to life quickly. The stark contrast between meridian and conventional treatment is what drives our team to pursue therapy adoption day in and day out. We ended the year with 56 meridians in the ground, with about 80 more in backlog or some stage of installation. Turning to our full-year financial results, we hit a major milestone by crossing over $100 billion in revenue, driven by 46% top-line growth. This performance is a testament to the great work our team has done. As projected, gross margin improved about 1,000 basis points. Gross margin was also at an all-time high for the company, and we will continue to drive this crucial metric higher. We finished the year with 32 orders, which reflects the impact of our clinical and commercial success and the backlog increase to $380 million. On the clinical front, we're pleased to share that the MIRAGE results were accepted in JAMA Oncology, a leading publication in the field. As a reminder, MIRAGE was a Phase III randomized controlled trial conducted by UCLA comparing meridian versus conventional SPRT for localized prostate cancer. JAMA Oncology highlighted that Meridian significantly lowered acute grade 2 GU toxicity and GI toxicity was zero. Acute toxicity for these patients takes the form of sexual dysfunction and the life-altering effects of incontinence. We're pleased to see the great work by UCLA get picked up in this major publication. This adds to the growing body of evidence supporting the adoption of Meridian therapy and is already helping our commercial efforts. 2022 yielded many strategic wins across the organization. On the innovation front, A3i, our next generation feature set, was launched. Customer feedback on workflow, ease of use, throughput, and brain treatment are resoundingly positive. Our clinical pipeline continues to take steps forward. Customers are proving critical value in both tough to treat and more common cancers alike. Through the Smart Pancreas Trial, we saw positive survival signals and the safety of Meridian when treating with ablative short course therapy in this deadly disease. We also announced Lapablate, a phase three, global, multi-center, randomized controlled trial in locally advanced pancreatic cancer. This trial is intended to demonstrate the survival benefits of Meridian and change therapeutic guidelines for how pancreatic cancer is treated. We are also driving increased patient and clinician engagement through our market awareness efforts. Patient advocacy groups like PanCan and Xero have begun to highlight our data and are requesting educational events from our customers. This is driving greater levels of awareness and adoption. I've seen firsthand that when patients learn that highly effective, short course, virtually side effect-free therapy is available, they will demand it and travel for it. To further our efforts in patient awareness, we entered into a partnership with Katie Couric Media to leverage a trusted source and highlight that such therapy is available today to a broader and broader patient population. These results are evidence that our strategy is working as intended. Our innovation pipeline enables our clinical pipeline. Clinical data drives commercial demand, and market awareness amplifies the effect. All of these efforts drive therapy adoption, the precursor to revenue growth, margin expansion, and P&L leverage. I'm proud of the work that we've done over the past year and all that was accomplished. Our team hit several major milestones and delivered on our promises despite significant macro challenges that persist. We very much look forward to 2023, another promising year for Vure, our customers, and most importantly, cancer patients who need and deserve personalized, precise therapy. With that, I'll now turn the call over to Bill.