ZimVie Inc.

Good afternoon, and welcome to Zimpy's third quarter 2024 earnings conference call. Currently, all participants are in a listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to turn the call over to Marissa Beisch from Gil Martin Group for introductory disclosures.

Thank you all for joining today's call. Earlier today, Zimby released financial results for the quarter ended September 30, 2024. A copy of the press release is available on the company's website, zimby.com, as well as on sec.gov. Before we begin, I'd like to remind you that management will make comments during this call that include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties. Please refer to the company's most recent periodic report filed with the SEC and subsequent SEC filings for a detailed discussion of these risks and uncertainties. In addition, the discussion on this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included within the earnings release or the investor deck issued today found on the investor relations section of the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, October 30th, 2024. Zimby disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise. And with that, I will turn the call over to Zafa Jamali, President and Chief Executive Officer of Zimby.

Good afternoon, and thank you for joining us. Our team executed another strong quarter delivering revenue of $103 million as we continue to innovate across the portfolio of implants, biomaterials, and digital solutions. During the quarter, we continue to make significant progress improving the operating profile of our business. This included improving our manufacturing efficiency, decreasing the cost of products sold on both a year-over-year and sequential basis for the quarter. In addition, we paid down $50 million in debt, leaving us with a gross debt of $220 million and a net debt balance of $153 million, when including our quarter-end cash of $67 million. We continue to think carefully about capital allocation and the interest expense planning in order to improve both the profile and the profitability of our business. Meanwhile, we continue to make thoughtful investments in our sales teams, our training programs, expanding our digital dentistry symposia to accommodate more physicians after several sold-out sessions. We're also making some incremental investments in R&D to fill the product portfolio gaps and capitalize on opportunities that we see in this market today. Before discussing updates on our product offerings, I would like to comment on the recent hurricanes that affected a large portion of the southeast of the United States, including near our headquarters in Palm Beach Gardens, Florida. Fortunately, we did not experience any material impact to our operations or financial results in the third quarter or early fourth quarter associated with these storms. More importantly, our best wishes go out to all that were affected. We're doing our best to support our local community, our employees, and the customers that were impacted. Let me now provide a portfolio update, starting with dental implants. We are seeing resilience in the U.S. dental market as we drove another quarter of modest overall year-over-year growth. In certain practices and regions, we are beginning to see improvements in the health of the North American dental market, and we are confident that should these trends develop further, we have positions in the advantageously to capitalize on improving market conditions. Following up from last quarter's US launch of our portfolio of Gentech restorative components, we've seen a remarkable adoption of these offerings as part of our expanded portfolio. Additionally, our latest implanted deductions, the TSX and T3 Prout, have continued to be positively received by providers. We believe our implant portfolio's growth is outpacing the premium market, and we are working to expand market share through innovation and quality of our products. As a reminder, dental implants are predominantly paid by patients out of pocket. Given this dynamic, we believe that a lower interest rate environment in the United States may allow patients to access more favorable financing arrangements and thus drive implant procedure growth. The market opportunity for dental implants remains underpenetrated and exciting. We look forward to continuing to deliver innovative and effective solutions for implantologists around the world. Next, shifting to biomaterials. Our biomaterials portfolio grew at a healthy rate in the quarter, reflecting what we believe is a leading indicator of future implant procedures. Patients with diseased or damaged tooth structures received these bone substitutes to provide a suitable surface for future implants insertion. As such, growth in biomaterials should serve as a leading indicator for patients to receive implants. Finally, our digital portfolio fuels growth and procedure adoption by offering solutions that greatly increase the efficiency of dental practices. Our complete digital portfolio, excluding iTero scanner sales, grew over 10% in the third quarter, fueled by the increasing adoption of our recently introduced WheelGuide 5.4 software and our Meta partnership. Our implant concierge service grew 20% in the quarter and is receiving very positive feedback from adopters, reflecting the value we provide to dentists by removing hours of labor and cost from the dental office. We're also continuing to drive further uptake of surgical guide sales, which grew over 30%, driven in large part by the adoption of our recently launched RealGuide 5.4 software. We continue to innovate on this software, and will continue launching meaningful updates. By making implant procedures faster and more effective, our digital platform aims to drive further adoption and grow the market for this under-penetrated solution. With our continued investments into our sales force, our product portfolio, and a focus on medical education and training efforts, we are positioning Zimbi for growth into the future. I will now turn the line to Rich to review our financial performance and forward outlook in greater detail.