Zimmer Biomet Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the Zimmer BioMint third quarter 2022 earnings conference call. If anyone needs assistance at any time during the conference, please press star followed by zero. As a reminder, this conference is being recorded today, November 2nd, 2022. Following today's presentation, there will be a question and answer session. At this time, all participants are in a listen-only mode. If you have a question, please press the star followed by the one on your push-button phone. I would now like to turn the conference over to Carrie Maddox, Senior Vice President, Chief Communications and Administration Officer. Please go ahead.

Thank you, Operator, and good morning, everyone. I hope you are all well and safe. Welcome to Zimmer Biomet's third quarter 2022 earnings conference call. Joining me today are Brian Hansen, our Chairman, President, and CEO, EVP and CFO, Sukhi Upadhyay, and COO, Yvonne Tornos. Before we get started, I'd like to remind you that our comments during this call will 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 note, we assume no obligation to update these forward-looking statements, even if actual results or future expectations change materially. Please refer to our SEC filings for a detailed discussion of these risks and uncertainties, in addition to the inherent limitations of such forward-looking statements. Additionally, the discussions on this call will include certain non-GAAP financial measures. Reconciliation of these measures to the most directly comparable GAAP financial measures is included within our Q3 earnings release, which can be found on our website, ZimmerBiomet.com. With that, I'll turn the call over to Brian. Brian? Brian?

Thanks, Kerry, and thanks for joining us for the call this morning. We've got three sections of the call. First, I'm going to briefly talk about our Q3 performance and really the momentum that we saw in Q3 that has allowed us to increase our outlook for the year, and doing so even in the face of some pretty meaningful macro pressures that we're certainly still facing. I also want to spend time talking about our ZB innovation. This is clearly the driver of our continued strong performance and will be the driver as we go forward. And for the second section, Sookie will provide more detail on the quarter, but probably more importantly, our 2022 guidance update. And then we'll close things out by addressing any questions you might have. Before I get started on Q3, I just want to make sure that I take a minute to say thank you. Thank you to the ZB team members that I know are listening. I know a lot of you listened to the call, and I appreciate that. Your continued strong performances, it's just built on day in and day out execution. You're just focused on driving results. And I know you're showing up and facing some very, very real macro challenges right now. And I appreciate it. You know, the fact is I'm just really proud that even in the face of these challenges, you're delivering results for our customers, you're delivering results for our patients and for our shareholders, and you're moving the mission of this company forward every single day. I know it's not easy, but I promise you it is much appreciated. Okay, so turning to the third quarter. You know, although the beginning of the quarter was a bit choppy when it comes to procedure cancellations, we did see very nice improvement throughout the quarter, and we finished strong. And that execution and recovery occurred in all of our regions, but especially in our OUS regions, with both EMEA and APAC performing better than our expectations. Inside of this, we saw good momentum in our large joints business, with our knee franchise growing in the high single digits and our hip business growing just above 10%. And as you've seen, this was somewhat offset by the telegraphed and expected pressure in our SCT business and our other categories. Now, although we did see the strength in the quarter, we continue to face significant challenges across foreign currency, supply, inflation, and staffing. That said, the team has been able to navigate these challenges and mitigate their impact. You can't completely eliminate them, but they've certainly mitigated their impact. And they've done this through operational and commercial discipline, as well as driving our innovation in the field. And as a result, our confidence continues to grow, and you see that reflected in our updated financial guidance. In short, our underlying business is clearly strong, and I truly do believe it's getting stronger. This is an example when we look at the quarter. We announced a first-of-its-kind three-year agreement with Hospital for Special Surgery. or HSS. You know, the partnership creates HSS Zimmer Biomet Innovation Center for Artificial Intelligence and Robotic Joint Replacement. And we're focused here with HSS to develop new tools that will be powered by AI to provide data-driven recommendations or insights to surgeons for robotic-assisted joint surgery. It's really, you know, it's a big deal. We're clearly very excited about it. We really do believe this is a future of medicine opportunity, and we're excited to be involved with HSS. In our Q3, our new product pipeline continued to deliver as well. While it's early, we are definitely excited about the launch of HIP Insight. This is the first FDA-cleared mixed reality navigation system for total hip replacement. HIP Insight is the latest addition to our OptiView portfolio, and it further expands our ZB Edge suite of solutions. Additionally, we announced the FDA clearance of our identity shoulder system. This is a technology that has proprietary capability of aligning each surgeon's approach to an individual patient's anatomy. All of this with the goal first and foremost of alleviating pain, but also optimizing the range of motion for that patient. And I got to tell you, our existing product portfolio kept up the momentum as well. Demand continues for ROSA, both in knee and hip. Persona revision traction in the U.S. remains strong, and our limited launch of Persona IQ is driving positive feedback and interest, and we're focused on aggressive data collection so that we can establish clinical use benefits. And we expect to build on this momentum with new product launches in the coming months, including, as we talked about, our new Persona cementless form factor, additional launches in our set category, and a hit product launch that we're excited about in early 2023. And I can tell you that all of these product innovations, coupled with our ongoing efforts to reshape our business and accelerate DB's transformation, position us very well for future growth. We continue to strive to be a best and preferred place to work for our team members. And we continue to strive to be a top quartile performer for our shareholders and to be a trusted partner to all of our stakeholders, but in particular, our customers and our patients. So just in summary, we're navigating and really managing through some very real macro headwinds that are definitely muting our growth. But we're also seeing an offset via COVID recovery, very strong execution from the team, and meaningful innovation in the field. And against that backdrop, our team continues to execute our strategy, and I feel increasingly confident about our future as a company. And with that, I'm going to turn it to Sukhi to talk more in depth about Q3 and give you an outlook for 2022 guidance. Okay, Sukhi.