Paragon 28, Inc.

Good afternoon and welcome to Paragon 28 first quarter 2023 earnings conference call. Currently participants are in listen only mode. We will be facilitating a question and answer session at the end of today's call. To register a question please press star followed by one on your telephone keypad. As a reminder this call is being recorded for replay purposes and I would now like to hand over the conference to the host of today Mr. Matthew Brinkman, SVP of Strategy and Investors Relations. Mr. Brinkman, please go ahead.

Good afternoon, and thank you for joining Paragon 28's first quarter 2023 financial results and earnings calls. Presenting on today's call are Albert DaCosta, Chairman and CEO, and Steve Deitch, CFO. Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities law, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made as to the company's or management's intentions, hopes, beliefs, expectations, or predictions of future events, results, or performance. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from these forward-looking statements. All forward-looking statements are based upon current available information, and Paragon 28 assumes no obligation except as required by law to update these statements. Additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today. During this presentation, we will refer to the non-GAAP financial measure of adjusted EBITDA and constant currency net revenue growth. A reconciliation to the most comparable GAAP financial measure net income and reported net revenue growth is contained in our press release issued earlier today. And with that, I will now turn the call over to Albert.

Thanks, Matt. Good afternoon and welcome to our first quarter 2023 earnings call. Throughout this call, I will provide an overview of our first quarter 2023 performance and give a business update. Steve will then provide additional details regarding our financial results and provide an update on our 2023 financial guidance. We will then open the call to Q&A. Total net revenue for the first quarter was a record $52 million, representing constant currency growth of 27% year over year. I'm incredibly pleased with our first quarter performance this year, which is especially impressive against our strong growth comps of 25% in the first quarter of 2022 and 23% in the first quarter of 2021. First quarter U.S. net revenue was $45 million, representing growth of 25% over the first quarter of 2022. I am proud to say that in the first quarter of 2023, our U.S. business delivered 20% or greater growth in each of the five foot and ankle subsegments. Our balanced growth underscores our focus on improving patient outcomes across the entirety of the foot and ankle market. Our U.S. net revenue increased during the first quarter of 2023 was driven in large part by our 247 producing sales reps, an 18% increase compared to the first quarter of 2022. This also represented a 6% increase compared to the fourth quarter of 2022. Despite the sizable increase in the number of producing reps during the quarter, our revenue per producing rep also increased year over year by a mid-single digit percentage, annualizing to more than $700,000 per producing rep. We once again did business with over 2,000 U.S. Surgeon customers during the first quarter, an increase of 12% compared to the prior year. Importantly, in addition to new customer additions, we continue to see nice increases in revenue with existing customers. First quarter international net revenue was a record $7 million, representing 42% constant currency growth over the first quarter of 2022. International revenue growth was driven primarily by our largest international markets of Australia, South Africa, and the United Kingdom. B-28's consolidated revenue growth of 27% for the first quarter was almost four times the estimated foot and ankle market growth rate. The investments we have made are paying dividends and are positioning us well for long-term success, including our exciting and innovative product pipeline that surging customers have come to expect from Paragon 28. Thank you for the extraordinary contributions made by all of our team members around the world. The P28 team has an incredible ability to deliver results and is committed to our mission to improve foot and ankle patient outcomes. I will now turn it over to Steve.