DENTSPLY SIRONA Inc.

Good day, and thank you for standing by. Welcome to the Quarter 3, 2024 Dentsply Sirona Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during your session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrea Daly, Vice President of Investor Relations.

Thank you, Operator, and good morning, everyone. Welcome to the Dents by Sirona Third Quarter 2024 Earnings Call. Joining me for today's call is Simon Campion, Chief Executive Officer, Glenn Coleman, Chief Financial Officer, and Rich Rosenzweig, EVP, Corporate Development, and General Counsel. I'd like to remind you that an earnings press release and slide presentation related to the call are available in the Investors section of our website at www.densplyserona.com. Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. Our most recently filed Form 10-K and any updating information in subsequent SEC filings list some of the most important risk factors that could cause actual results to differ from our predictions. Additionally, on today's call, Our remarks will be based on non-GAAP financial results. We believe that non-GAAP financial measures offer investors valuable additional insights into our business's financial performance, enable the comparison of financial results between periods where certain items may vary independently of business performance, and enhance transparency regarding key metrics utilized by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. Comparisons provided are to the prior year quarter unless otherwise noted. A webcast replay of today's call will be available on the investor section of the company's website following the call. And with that, I will now turn the call over to Simon.

Thank you, Andrea, and thank you all for joining us this morning for our Q3 2024 earnings call. I will start with an update on Byte, then provide an overview of our Q3 performance and highlights. Then we'll go over Q3 financial results, And I will finish by covering our revised 2024 outlook and a strategic operating update. But first, I want to take a moment to acknowledge Glenn and thank him for his leadership and many contributions to our company and its transformation journey over the past two years. We wish him well in his future endeavors. Let's start with some key points on slide three. In late October, we announced a voluntary suspension of sales, marketing, and shipments of Byte aligners and impression kits while the company conducts its review of certain regulatory requirements related to these products. We made this decision in communication with the FDA and remain in close contact with them. Patients are and will continue to be our top priority. We are committed to doing what's right for them. Byte has communicated to customers that it is not selling impression kits, starting new cases, or processing refinements for patients amid treatment. We are not at a point in our analysis to make a definitive decision concerning BITE, and we are thoroughly evaluating strategic options, which may include a discontinuation of some or all of this business. Our decision will be data-driven, taking into account the legislative environment, recent performance, longer-term prospects, and the ongoing regulatory review, which may take time and require additional investment. We are continuing to assess the resources at Byte for opportunities to leverage capabilities and are already redeploying assets to other parts of our business. In the meantime, we have moved swiftly to significantly reduce discretionary spending. We promised on day one to be transparent with you, and we will continue this philosophy as we determine the next steps for Byte. Turning to third quarter performance, we delivered $951 million in revenue, with organic sales up 1.3%, driven by timing of EDS sales, with distributors purchasing in anticipation of our first US ERP deployment. Excluding this, sales were down 0.8%. We continued to see pressure on our implants and equipment business, and CAD-CAM growth was propelled in part by the launch of PrimeScan2 in September. Reduced conversion rates for Byte drove a sequential double-digit decline, while SureSmile experienced mid-single-digit growth in the quarter over the prior year period. Now let's shift to guidance. As a result of market pressures that continue to impact U.S. equipment, as well as Byte, we are revising our full-year 2024 outlook, which I will cover later. As we told you with the Byte announcement, Byte had approximately $40 million in sales in Q3 and was diluted to adjusted EPS. While we see innovation as a growth catalyst and important value driver for our customers, we remain cautious on the overall macroeconomic environment. Capital equipment and elective procedure headwinds persisted throughout the third quarter, and the environment remains uncertain. Our October customer survey of over 1,300 respondents indicated that our major markets remain largely unchanged. Patient traffic was flat in the U.S. and Germany, while Japan and China both saw declines and results showed a slight decrease in utilization, particularly in elective procedures. Sentiment in Germany remained negative, but it was encouraging to see, at least for now, some improvement in practices' desire to purchase capital equipment. Now, before we discuss Q3 results in more detail, I'd like to share some recent business highlights on slide four. starting with operational updates. On November 1st, we went live with our first ERP deployment in the US, building on our previous rollout in the UK, which I'll cover in a bit more detail shortly. We have now executed the majority of our Phase 2 transformation activities and are on track to deliver full run rate savings by the end of 2025. Moving to innovation, we were pleased to launch PrimeScan 2 in September, which sets a new milestone in digital dentistry. It is hardware independent, wireless, and powered by DS Core. The link between PrimeScan2 and DS Core represents further integration of our digital ecosystem and provides our customers more flexibility and efficiency within their practice while also enabling a better patient experience, which all supports practice growth. With DS Core, we continue to drive adoption with over 32,000 unique users as of the end of Q3, representing approximately 20% growth sequentially. Last quarter, I shared that R&D had identified opportunities to reallocate funds into higher return programs. Specifically, we plan to invest in our SureSmile orthodontic software, accelerate DS Core capabilities, and make further investments across our connected technology platforms. Since the launch of DS Core, we have delivered over 85 new software updates, adding functionality and capability to the platform. We have a healthy innovation pipeline for DS Core and have demonstrated accelerated adoption when we add significant functionality. As we continue to drive innovation, a key component of our strategy is digital connectivity, with DS Core serving as the hub. The transformation to digital dentistry starts with a scan and the versatility and portability of PrimeScan2 with its link to DS-Core provides a gateway to treatment options and planning. Looking forward, we see many more opportunities to advance connected technologies, and we plan to accelerate our pace to get there by allocating more of our R&D dollars to that area. Within CTS, we also expanded the relaunch of the Orthophos SL imaging line, bringing it to additional markets in EMEA and AsiaPac. In EDS, we launched Exmark Pro Plus, our tabletop ender motor in the U.S. Initial reception has exceeded our expectations with our full year projections already achieved by the end of Q3. Sales rep engagement has also been strong with 100% of reps having sold a motor. Through Q3, we successfully received 510K clearances for five products. This is a testament to the improvements we have made in the execution of our NPD and regulatory processes, and we look forward to bringing these innovations to market. Wrapping up our highlights, clinical education remains an important component of how we bring value to our customers. In Q3, we hosted multiple events around the world, including DS World in the US, Spain, and Italy, and our MIS Implant Conference in Europe. At DS World Las Vegas, we hosted over 4,000 total participants and offered more than 100 clinical education courses, and we exceeded our sales projections for this event. Additionally, in Q4, we are holding inaugural DS Worlds in Japan and Brazil. And with that, I'll turn it over to Glenn to provide more details on Q3 financials. Glenn?