Thank you for standing by, welcome to the Axonics' First Quarter 2023 Results Conference Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question- and- answer session. To ask a question during this session, you'll need to press star one one on your telephone. To remove yourself from the queue, simply press star one one again. As a reminder, today's program is being recorded. Now I'd like to introduce your host for today's program, Neil Bhalodkar. Please go ahead, sir. Thank you, Jonathan. Good afternoon, and thank you for joining Axonics' first quarter 2023 results conference call. Presenting on today's call are Raymond Cohen, Chief Executive Officer, and Dan Dearen, President and Chief Financial Officer. Before we begin, I would like to remind listeners that statements made on this conference call that relate to future plans, events, prospects or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. While these forward-looking statements are based on management's current expectations and beliefs, these statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause results to differ materially from the expectations expressed on this conference call. These risks and uncertainties are disclosed in more detail in Axonics' filings with the Securities and Exchange Commission, all of which are available online at www.sec.gov. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today's date, May 1st, 2023. Except as required by law, Axonics undertakes no obligation to update or revise any forward-looking statements to reflect new information, circumstances or unanticipated events that may arise. With that, I'd now like to turn the call over to Ray. Thanks, Neil. I'd like to welcome everyone who's joining this afternoon's call or may listen to the playback. Axonics generated revenue of $71 million in the first quarter, an increase of 46% compared to the prior year period. More specifically, sacral neuromodulation revenue was $55.2 million, representing an increase of 41% compared to the prior year period. Revenue growth is being driven by a combination of higher utilization of our SNM systems in existing accounts and continued share gains from the addition of newly acquired competitive accounts. Bulkamid revenue was $15.5 million, an increase of 66% compared to the prior year period. Results for Bulkamid were driven by solid reorder rates from existing accounts, the onboarding of new accounts, and the addition of new sales representatives focused primarily on promoting Bulkamid. Bulkamid continues to rapidly gain traction in the U.S. and is fast becoming first line therapy for women with stress urinary incontinence. It's also worth noting that despite the sequential step-down in revenue from seasonality, we still generated positive adjusted EBITDA in the quarter. Dan will discuss our financial performance and outlook in further detail in his prepared remarks. I would now like to provide some updates on other corporate initiatives. Last week, we announced the acquisition of a lead placement technology that complements Axonics' existing sacral neuromodulation offering. Let me start by saying our business development strategy is to develop or acquire innovative technologies that enhance the physician and patient experience with the goal of increasing the penetration of advanced therapies for this vastly under-penetrated incontinence population. With that as a backdrop, as many of you know, physicians determine a patient's eligibility for long-term sacral neuromodulation therapy by performing a short two or three-day external trial or peripheral nerve evaluation, typically referred to as a PNE. In a PNE, the temporary lead is placed and is often done in an office setting without real-time imaging. Due to anatomic variability between patients, locating the appropriate sacral foramen closest to the desired root of the sacral nerve can be challenging without fluoroscopy. The acquired technology addresses this challenge with an elegant solution comprising of a software application and a hardware tool that makes the PNE lead placement easier, faster, and more accurate. The technology has the potential to reduce procedure time and facilitate a more accurate placement, which in turn can increase physicians' confidence in sacral neuromodulation procedure and drive increased therapy adoption, utilization, and the permanent implant conversion rates. With a standard X-ray of the patient's pelvis, a physician can leverage the software to determine the optimal location for needle entry and lead placement based on that patient's specific anatomy. The technology can readily be implemented into existing clinical workflows as it takes only minutes to use and requires minimal training. We believe this solution has the potential to drive increased utilization of sacral neuromodulation therapy, and we're eager to get this technology into the marketplace. We expect the product to receive FDA clearance and to be commercially available by mid 2024. Turning to an update on our commercial team. We now have approximately 360 field-based personnel in the United States, of which 175 are directly involved in selling or sales management. The balance of our personnel are clinical specialists and field marketing specialists. Internationally, we have a more modest footprint with 25 field-based personnel located in Europe and a handful in Australia. We are well-staffed at this time and expect only a modest increase in our commercial team headcount during the remainder of 2023. Now turning to the Axonics Find Real Relief DTC advertising campaign. Many of our customers continue to tell us that patients come into their practices asking about Axonics therapy after seeing our ads on television or on the Internet. The campaign continues to generate goodwill with our physician customers, as they are grateful that we are helping to ensure that adults with these conditions are being seen by a clinician and advancing along the care pathway. Qualified leads are those individuals that complete a symptom questionnaire on the website. We continue to generate over 10,000 leads each month and have found that over 1/2 of those individuals filling out these questionnaires are treatment naive, underscoring the notion that people don't know that it's not a normal part of aging to leak urine, and that advanced therapies do exist to treat incontinence. Our call center continues to work diligently to connect qualified leads with a physician specialist in their local community. Now turning to product development initiatives. We recently received regulatory approval for the Axonics R20 rechargeable neurostimulator from the FDA in the month of January. The device utilizes the same small 5 CC form factor as the R15 and requires echarging just once every six to 10 months for one hour. The device has an expected useful life in the body of at least 20 years. Feedback from customers that have implanted device has been overwhelmingly positive. That said, the long-lived F15 recharge-free system continues to represent a significant portion of SNM sales in the United States. This past week, we also introduced an electronic diary called myAxonics, which is now available for download for free in the Apple and Android app stores. While anyone can use the electronic diary, we developed it to move patients from paper diaries to an electronic format that allows us to upload diary results into our cloud-based patient care management portal. Since diary results are used to confirm a patient's eligibility for sacral neuromodulation, being able to store these records for our customers is a nice service and is helpful with pre-authorization and reimbursement processes. In closing, we feel like we are just scratching the surface of what is possible in the large, underserved, underpenetrated markets in which we participate. Our mission-driven team remains committed to innovating and supporting our dedicated physician customers and their patients, as well as raising awareness of our best-in-class therapies. With that said, I'd like to turn the call over to my colleague Dan for his detailed remarks on financial results. Dan? Thanks, Ray. As Ray noted, Axonics generated net revenue of $70.7 million in the first quarter of 2023. This represented an increase of 46% compared to the prior year period. Sacral neuromodulation revenue was $55.2 million, of which 98% was generated in the United States. Bulkamid revenue was $15.5 million, of which 75% was generated in the United States. Gross profit for the first quarter of 2023 was $52.5 million, representing a gross margin of 74.3% compared to 68.7% in the prior year period. Higher sales volume, Bulkamid sales, and a product mix weighted toward the F15 neurostimulator contributed to a favorable gross margin compared to the prior year period. Operating expenses in the first quarter of 2023 were $66.9 million. Included in operating expenses is a $1.8 million non-cash charge for the change in the fair value contingent consideration related to the Bulkamid acquisition. Excluding acquisition-related charges, adjusted operating expenses were $65.1 million in the first quarter of 2023, and $56.8 million in the prior year period. Net loss in the first quarter was $9.2 million compared to a net loss in the prior year period of $22.7 million. In the first quarter, Axonics generated $900,000 of adjusted EBITDA. We are pleased to note that this marks the fourth quarter in a row that Axonics has generated positive adjusted EBITDA. The attractive financial profile of the company and the inherent operating leverage in our business model is becoming more evident in our financial results. As of March 31st, cash equivalents, and short-term investments totaled $357 million, which is unchanged from December 31st, 2022. On a related note, I wanted to mention one housekeeping item. Our existing shelf registration is expiring at the end of this week, we will be filing a new shelf registration statement tomorrow. I want to be very clear. We are making this filing as a corporate finance best practice, and we have no need or intent to raise equity capital for the balance sheet going forward, considering our strong cash position and progress towards break even and ultimately profitability. Turning to fiscal year 2023 guidance, our updated outlook is as follows. Total company revenue of $348 million, an increase of $6 million compared to prior guidance. This represents an overall revenue increase of 27% compared to fiscal year 2022. We now anticipate sacral neuromodulation revenue of $280.5 million, an increase of 26% compared to fiscal year 2022, and Bulkamid revenue of $67.5 million, an increase of 31% compared to fiscal year 2022. This concludes our prepared remarks, and I will now turn the call back over to Neil. Thanks, Dan. At this time, we are ready to begin the Q&A session. We would like each analyst to have an opportunity to ask a question, so we request that you please limit yourself to one question. If you have an additional question, please reenter the queue, and we will take additional questions if time permits. With that, Jonathan, please begin the Q&A session. Certainly. One moment for our first question. Our first question comes from the line of Chris Pasquale from Nephron Research. Your question, please. Thanks, appreciate it, guys. Dan, maybe I'll just start where you finished with the guidance. You talked about top line. Curious how you're thinking about gross margin operating expenses for the year, given the strong start you guys got off to here from a margin perspective? No, great question. From a revenue standpoint, you know, what we did is we guided up. If you break it down by SNM and Bulkamid, you know, what you can see is, you know, we increased the SNM number by $3 million or 1% total, and on Bulkamid, 3% or 4.6%. In aggregate, that represents a 1.7% increase in the revenue guidance for 2023. The gross margin for the quarter came in, you know, in accordance with plan. We've been talking for a long time about mid-70s margin. 74.3% is slightly ahead of what we projected for the quarter as we ramp through the rest of the year. Since we're bringing new products online, we don't wanna change that guidance. OpEx remains unchanged for the remainder of the year for the next three quarters. Okay, that's helpful. Ray, would just love your latest thoughts on what you're seeing out there in the market? You guys continue to do a lot of work on market development. Do you feel like that's starting to pay dividends, and you're seeing some of these patients come through that funnel that you're starting them on the journey towards? No doubt. Our DTC efforts have continued to yield dividends. I think the difference today, May the first, as compared to where we were a year ago when we started this, is that now patients have had an opportunity to kind of work through the care pathway. We're starting to see and yield a lot more procedures as a result of the advertising. What we had hoped for is actually happening and is measurable now in terms of us, you know, getting a return on the invested dollars that we put forth. We don't track the Bulkamid names as we do the sacral neuromodulation names 'cause there's just so many patients coming through the process on Bulkamid. We're getting a lot of Bulkamid procedures as a result of the DTC advertising also. Just to remind people, you know, our ads are not specific. We're not selling product in our ads, either on Facebook or on television. We're just saying that, you know, if you have this problem, then we can get you with a physician and get you a consult. That's the game for us, is to just get these patients in with docs, let them work them up and figure out what the appropriate therapy is. It's working really, really well, and we're gonna continue, you know, to invest in this activity. Great. Thanks. Yeah. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Richard Newitter from Truist Securities. Your question, please. Hi. Thanks for taking the questions. Maybe just to start on Bulkamid. You know, nice performance there. You've owned this product for two years now. I'm curious where you are on the kind of the, you know, getting deeper into your existing accounts there versus, you know, how many more your guys are to go after. I'm just curious, you know, have you or when do you plan to start targeting gynecologists? So thanks for your question. You know, we have some GYNs that are customers of ours, but it's not been a main target, and we have talked about it that this is an area that we'd like to put more energy behind. You know, this year, we do anticipate to focus a bit more, if you may, on calling on and marketing to GYN practices. I mean, let's face it, they should be doing Bulkamid. I mean, these women are coming into the practices and that'd be a great place for them to get treated. Having said that. You know, Bulkamid has been an incredible product for us and is really capturing the imagination of any physician who treats women. We have over 1,500 physicians now, injecting Bulkamid across the United States. This is, you know, over and above what, you know, the base kind of international business that we inherited. It's going well, and we expect that this will continue to grow. What's most important is that the existing customers that we have seem to be doing more, and increasing, you know, quote-unquote, same store sales. So this thing is going great, and we don't see anything at this point that's gonna slow the adoption of this product down. Great. Just if I could on the SNM, you know, over the next few quarters or the next year or even what's contemplated in your updated guide, you know, what do you expect more growth to come from share capture or the market expansion side? I know you have both levers to kind of get to your forecasts over the long run. You know, it's interesting, you know, we understand the comment around share capture, but in our business it's a little bit different because it's not like there's budgets and we're selling capital equipment and so forth. People are just walking through the door every day that are candidates for our therapy. Every physician practice that we work with has literally hundreds, if not thousands of patients that could benefit from sacral neuromodulation. Here's what I would say. We're just coming right out of the American Urological Association meeting, where there were 18,000 urologists that went to that particular congress. What I can tell you is that, man, the word is out that Axonics has got the goods. We've got great products, we've got great people, and there's a lot of buzz around folks who've tried our product that might have been working with our competitor previously and the great experience they're having. There's a lot of discussion going around amongst and between these physicians. We fully expect that more and more physicians will be coming our way in 2023 and adding to these kind of bucket of newly acquired competitive accounts. You know, we look at it that way, right? When, when we talk about market share, we're talking about, you know, wanting to get the maximum amount of money, or excuse me, a maximum amount of procedures out of our existing accounts. you know, we've subsequently kind of mitigated this whole concept that, you know, docs are working with both customers. We see more and more docs coming our way and giving us absolutely the lion's share, if not all of their procedural volume. I think there's a lot of blue sky ahead of us, and the combination of increasing procedures in existing accounts and then, you know, having new accounts come our way, I think will continue to fuel not only our revenue growth that we're predicting in 2023, but for many years to come. Thank you. One moment for our next question. Our next question comes from the line of Larry Biegelsen from Wells Fargo. Your question, please. Hi, this is Nathan Treybeck on for Larry. Q1 was generally strong for med tech, your U.S. SNM sales were down 22% sequentially, which you noted was seasonality, this was more than the decline of 14% last year. Can you just give more color on why seasonality was more pronounced this year? Any color on trends you've seen, you know, monthly trends you've seen in Q1 and in April? Thanks. You know, it's kind of a late question about seasonality now that we're already into May. What I can tell you is that, you know, you quoted a statistic, but you quoted a decrease from our strongest quarter in the history of the company in Q4, which is the strongest quarter in generally in medtech as patients have met their deductibles. Okay, you've reset the clock, and you got to start all over again. As we've explained numerous times in numerous forums, the first quarter is in a highly elective procedure. Once again, you know, this is an elective procedure that we have. We expect to and expect it to have more seasonality in Q1, and that's what we've seen. Having said that, we feel very good about Q1 results. We think, 46% year-over-year increase is nothing to sneeze at, whether it includes a seasonal drop from our strongest quarter of the year. I'm not sure there's much more to say about that. What I can tell you is that, things are going great. We've got great momentum in our business and, this quarter is looking real strong. Great. Thanks for that. In terms of can you talk about the traction you're seeing with the R20 rechargeable system? How do you expect your mix to play out through 2023? You know, we haven't spent a lot of time talking about mix. I mean, I think partially because we're agnostic. I mean, we're happy, you know, for our physicians implanting Axonics' sacral neuromodulation and using Bulkamid. Whether they use the R20, or the R15, which is still being used and under contract with a lot of accounts, or they go with the F15, really makes no difference to us. We got great margins on both of these products. We don't have a huge incentive one way or another as a company. Having said that, I think that R20 has really captured the imagination of these physicians and I dare say patients. The idea that you can have a rechargeable product that you only have to recharge once or twice in a year is incredible. It's not burdensome, and the advantage of the R20 is the small size. It's going well. I mean, we're selling, I think, the demand for R20 is a little more than, let's say, what we saw in 2022 with R15. Having said that, you know, we are selling more recharge-free systems today than we are rechargeable systems. I think just part of that is the 20-something year legacy of physicians only having access to a non-rechargeable stimulator. They are a little more comfortable, it seems, to talk about that product. You know, R20 has gone really well, and I think it really underscores the point. You know, here's Axonics, you know, we've now had the fourth generation rechargeable product out in the market in 3.5 years. We've got a great winning, non-rechargeable device or recharge-free device. You know, we are the message is out. If you wanna make a bet on Axonics. We're the ones that are, you know, continuing to innovate and are committed to the space and providing the max, the best solutions that we can for these patients. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Adam Maeder from Piper Sandler. Your question, please. Hi, Ray. Hi, Dan. Good afternoon, and thank you for taking the questions. Wanted to start on the guidance. You know, you beat Q1, I think, by $6 million. That's the same amount that you raised the full year guide by. You know, maybe just walk us through the considerations, the philosophy, and maybe the decision to perhaps not get a little bit more aggressive, given that you did have a nice start to the year. Perhaps it's very well just some conservatism, but would love to hear more there. Thanks. Then I have a follow-up. Sure. Hi, Adam. Always good to hear from you. Now, look, you know, look, we're being very measured. We're very happy with where Q1 came in. It was perfectly consistent with the guidance. I think as we look forward, you know, no surprise here, and you've heard this from us quarter after quarter now, which is, look, both products continue to do extremely well. There's a lot of momentum, as Ray said. Bulkamid, you know, still manages to outrun even our best expectations. Look, with SNM, we were asking on a previous question if the growth coming from increase in utilization or capturing additional customers. You know, the answer is both, but we're seeing an uptick in procedures per practice. Everything's trending the right direction, and we're trying to be prudent. The $6 million increase in the guide is just, you know, realistic layering on top of the prior guidance. It's just as straightforward as that. Okay. Thank you for the color there, Dan. Maybe just one quick follow-up, if I may. Wanted to actually ask about the evolution of sacral neuromodulation therapy. You know, clearly, you guys have been very active from an innovation standpoint. You just announced this lead placement acquisition. You know, are there other ways to further streamline the procedure or the technology? You know, one question that often I get asked is, do you think over time that sacral neuromodulation could be moved to local anesthetic? Thanks so much for taking the questions. Thanks, Adam. This is Ray. Well, I think there's a big. When you say local anesthetic, you mean just like lidocaine injection in the upper buttocks maybe when somebody lets you? Can he respond? Can you respond, Adam? Is that what you? Sorry. Maybe just the change from kind of general anesthesia and just, you know, maybe it's conscious sedation or just something that's, you know, where the patient isn't fully under. Okay. Understood. The patients aren't really fully under for our procedure. I think this is a misconception. This is not. You know, we use the word procedure room, hospital outpatient procedure room, ambulatory surgery center. That's where these procedures are done. This is like a colonoscopy. You know, patients are getting propofol. I mean, that's basically it. It's not a big deal. Nobody's going under a major anesthetic, you know, so on and so forth for these procedures. These are fast procedures. I know you know this, Adam. This is a day case. I mean, when we talk about a day case, we're talking people go in, they get the procedures done, they're out. It's like the whole thing is two hours. This is not a big deal. It's the appropriate, you know, doing it in these outpatient procedure rooms is the appropriate place to do it. You've got fluoroscopy there, you know, so on and so forth. Are there some docs who, you know, inject a little lidocaine and when they do the tunneling of the, you know, creating the pocket or doing the tunneling of the needle? Yeah, some do it that way. I think that, you know, most people would prefer just to get some propofol. It's a good sleep, nice little rest. You know, you wake up, you don't remember much, and you're on your way. I understand why you're asking this question, but I think that you. If this notion of, oh, somehow people would wanna have things done in an office, I mean, as if that's gonna make it easier for patients or somehow more open to getting something done, I mean, I don't know. I don't think that the average person wants to do something in an exam room. Okay. I think you're a lot more comfortable, you know, going to a procedure room in, in a hospital outpatient or an ASC. I, you know, I don't think that's a big deal. It's not something that is being discussed, or being requested. I appreciate the question, but I think there's a big difference between the fantasy or perception that something is quick and easy and versus, you know, doing something that is safe, and that you're gonna get great outcomes. But I appreciate the question, Adam. Thanks for the color, Ray. Yeah, you bet. Thank you. One moment for our next question. Our next question comes from the line of Mike Polark from Wolfe Research. Your question please. Good afternoon. I just wanna be clear on the model, like you didn't mention a 2Q revenue target. Wanna make sure the street's thinking about the sequential phasing correctly. Anything that you disagree with on the street's build prior to this update, I think $86 million or so for 2Q, is that a fair starting point? Yes. Yes. Yeah. Yeah. That's the number. That is. Clear. Follow-up on the lead placement technology. You know, how impactful is this gonna be in mid-2024 and beyond? Is this something that, you know, you'd use to enhance your operations? Or is this a product that you would look to commercialize and generate revenue from? I'm not really sure about the word operations, because this is something would be used by, you know, physicians. We're obviously keen on this approach because what it does is it just makes things faster and easier for people to be able to find the S3 fora men and, you know, get the needle placed and the lead placed easier without fluoroscopy. That's really the key here. You know, if you can do this procedure in the office, back to that comment, in the office without fluoroscopy, without the physician or a nurse practitioner, or RN or whatever their title might be, having to wear lead, it's kind of a big deal. Also this is now allowing for a little bit of pre-case planning, if you may. Getting an X-ray is no big deal, is very easily done. And then, you know, the software will basically give you the coordinates of where the anticipated place to drop your needle and the lead is. This is about moving creating efficiency and moving things along faster and easier and it'll be more comfortable for the patient and a quicker way to be able to get the external trial executed. I think it's flat out as we've stated it, right? I mean, the reason we've acquired this is so we can just make it easier for our customers to do the external trial, which is required by insurance companies or private insurance companies or Medicare to be able to get paid. This is a necessary part of our business. You know, we thought this was a great opportunity for us to be able to facilitate it, particularly now as more APPs, more of the advanced nursing practitioners are starting to do these procedures themselves as opposed to physicians. This is one more example of Axonics being innovative, of looking at ways to be able to make this a much more efficient and effective, not necessarily effective, but more efficient, procedure and therapy for patients and for our customers. We're excited about it. I can tell you that, man, this was a big discussion at AUA. I mean, docs are over the moon about what we've done here, and appreciate that we're continuing to innovate. I mean, there's been more changes, and it's unfortunate that this is seems to have escaped a lot of folks, but we've created more changes in the, in the 3.5 years that we've been in this market than the previous 20 something years. I can tell you that the customers, the physicians themselves really appreciate the fact that Axonics is committed to continually looking at ways to make things faster and easier for them. Thanks, Ray. Yeah. Thank you. One moment for our next question. Our next question comes from the line of Shagun Singh from RBC Capital Markets. Your question, please. Great. Thank you so much for taking the question, and congratulations on a strong quarter. Just a couple of questions from me. You did note that SNM sales were driven by high utilization in existing accounts as well as continued share gains. Can you elaborate or provide any quantification there? Then, you know, as we look at the beeps in the past couple of quarters, it seems like it's more driven by Bulkamid and less by SNM. I'm just wondering if there is anything to, you know, read into that or not. You know, any commentary on competition or PTNS products? Then, you know, I guess, on Medi-Cal, we were just hearing that they're not reimbursing two procedures, the trial and the implant. Is that true? Just any response there would be great. Thank you so much. You asked five or six questions there, so we're gonna have to go one by one. Let's take the last comment that you made. What was the last comment? What we were. She asked about Medi-Cal. Yeah. Medi-Cal What we were hearing is that Medi-Cal may not be reimbursing two procedures, the trial and the implant. You know. Okay. is that correct? You know, how is it being managed? Just any color there would be helpful. Okay. So Medi-Cal, which is the Medicaid, California Medicaid, they don't pay for sacral neuromodulation at all. So we don't have any customers that are using Medicare or Medi-Cal. I don't know where that came from, but there is no reimbursement today. It's a non-issue. Okay. There were few others. Neil, help me. Yep. She asked about share, if we had any additional color on share gains or, and utilization increases at accounts. Look, we have not been that prescriptive, and this is not a really good time for us to start that, I don't believe. What I can say is that, you know, there I think we mentioned the last time, we're up to a little over 1,000 SNM customers now, and they're not all created equal. You know, there's a whole group of legacy folks who dabbled in sacral neuromodulation because the product that came before us was fussy and, you know, was a bit of a hassle, and it had this reputation of being a therapy of last resort. You know, I've said this before, this is actually what was out there when we entered the market. We've slowly but surely now changing that perception. As physicians that we work with find it easier, better results, better support, not to mention VPC and the other things that we're doing to normalize, you know, SNM technology or get people into these therapies, people are doing more procedures. I mean, flat out. So same store sales are increasing. That's happening. At the same time, the docs who've been resistant to us for sacral neuromodulation, we've penetrated a lot of these accounts with Bulkamid. They get to know Axonics. They realize, "Wow, these guys got a great product here. This is fantastic. Look at the quality of their people," and so on and so forth. "You know, why am I resisting? Sure, I'll give you a try on sacral neuromodulation." I can tell you, once they start working with us for SNM, they're never going back. A lot of this has been about rep relationships. "Oh, I really like my rep," and blah, blah. Okay, well, fine. Eventually, their eyes open up and go, "Well, wait a minute. All the other physicians I know have already switched to Axonics, and they're talking about what a great experience that their patients are having, and that they're having working with Axonics." That's what's going on. It's not a mystery, right? This is just flat out execution, blocking and tackling and doing the right things for customers. That's in terms of the dynamics. I'll tell you, I've been saying one more comment. I've been saying all along, our objective is to be the market leader in sacral neuromodulation. That's exactly what's happening. It's just a matter of time before we can statistically point to that and so forth. We're seeing market expansion, where Axonics is causing the matter of market expansion. We're seeing increases in procedure volume from our customers. Dan has a couple of comments he'd like to make. Hi, Segun. I apologize for saying this because you've heard us say it 1,000 times. You know, the market expanded based on, you know, third-party data by, you know, at 14% per year from 2019 through 2022. What you're hearing from us and from Ray is that, you know, look, we are capturing market share, and we're capturing customers, but the same store sales is also increasing. This is playing out like we've projected going back to the time of the IPO, which is we're still forecasting 15% year-over-year market expansion, and then some points of market share capture to hit the numbers, and it's working on both fronts. Thank you. One moment for our next question. Our next question comes from the line of Mike Matson from Needham. Your question, please. Yeah, thanks. I just wanted to ask for an update on the patent trial. Is it still split to happen in August? You know, just wanted to gauge your ability or your comfort level with, kind of, you know, if you were to be found to be infringing any of those patents, your ability to sort of redesign around that, maybe, sell a product that's not infringing. Again, all hypothetical. Hi, Mike, this is Dan. As we've always said, we don't believe we're infringing any of the patent claims that have been asserted against us. The trial is scheduled for mid-August. The second part of your question is correct, which is there are ways to make other designs if somehow we were found to be infringing any of the claims, which we continue to maintain we are not. Okay. Understand. Then, I think Ray, early in the call, mentioned that you were adding reps that were dedicated to Bulkamid. Maybe you talked about in the past. It's the first I recall hearing that. Can you just talk about that decision and, you know, why you're doing that versus having, you know, one sales force focused on SNM and Bulkamid? Mike, it's not different. I mean, let me try to explain. We have a total, around I'm gonna round down to about 150. We've got 150 people that are, you know, not sales managers that are quota carrying, okay? You could imagine we started with sacral neuromodulation, right? Some of the folks have, you know, been all in on sacral neuromodulation since day one. When we brought on Bulkamid, you know, they offered Bulkamid to their existing accounts, okay? Simple as that. But at the time of the acquisition, we also inherited a number of people that were focused on selling Bulkamid. What we've done is we've enhanced that group of individuals, and we facilitate a lot of cross-selling between, you know, the teams. There really is one team of individuals. It's just that some of them lead with Bulkamid, others lead with sacral neuromodulation, and then they cross-collaborate or there's cross-selling involved, right? What's the reason? If I'm an interested customer for Bulkamid and I haven't used Bulkamid before, I need to get trained. We wanna be able to have those individuals go in and do the wet lab training, right? We bring in pig bladders and a setup, and we get them trained. You know, hopefully at the end of an hour or so, we've got some live patients that they've scheduled, which is the optimal way to do this. Then we can move from the, you know, pig bladder to the actual human urethra and observe to make sure that they're, you know, executing on the injections and the appropriate technique. This is technique dependent. You put the material in the right place, you use the proper amount of material, people have phenomenal results, and they get off the table dry. That's why this is such an amazing product. Nothing different in our strategy. It's just that it, you know, we have more products to sell and, you know, a lot more revenue needs to be generated, so we've just got more people. Once again, some people start with a bias towards Bulkamid, do the heavy lifting there. Others, you know, a bias towards sacral neuromodulation. Okay. Got it. Thank you. Thank you. One moment for our next question. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. Our next question comes from the line of Anthony Petrone from Mizuho Securities. Your question please. Thanks for fitting us in. A couple questions here. First one, Ray, would just be on Radian, you know, thinking about the peripheral nerve evaluation sort of lead here. Just maybe what are the synergy expectations in the core SNM U.S. business just after this acquisition? Then I'll have one quick follow-up. Thanks. Anthony, I've read your note, you know, and comments that you've made. I think you're right on the money. I mean, you understand perfectly that this is gonna help us and it further differentiates us from our competition. Anything that does that is a good thing for Axonics and allowing these our customers to do things faster, easier and more accurate, that's the goal. Simple as that. I mean, it. I can tell you, as you'll talk to, you know, docs out there, I mean, even they haven't used it yet, right? It doesn't exist yet for them to be able to use commercially, but they understand perfectly what this is about. The typical reaction is, "Oh, man, this is great. You know, I've been thinking about something like this. I'm really glad to see that you guys have got this technology now. This is gonna really help. Even the most experienced docs say, "Oh, yeah, I've got some cases. I wish I had this for those cases where I had a strange anatomy, or I had a very large, a plus size patient." Because when you have a plus size patient, you know, it does change the angle and it does change the parameters. We're excited about this, and we're anxious to get this, you know, approved and out in the marketplace as soon as we can. I think it's gonna further help us. In the meantime, I gotta tell you, we're getting a lot of credit just for doing it, right? For having it and being committed to making this available. I know that might be a longer wind answer than what you were expecting, but, I appreciate that question. No, no. Perfect. The follow-ups here, one would just be on Radian. Would it slot into the existing lead placement codes that you have in place? Is that the expectation? You know, this was another tuck-in M&A by Axonics. Just maybe the updated views on M&A and how you're thinking about transactions going forward within the space. Thanks. Okay. All right. Thanks for that question. Look, we're less concerned about a separate billing code or, you know what I mean? Like, you know, generating a bunch more money because of this. This is directly related. If we can get more PNEs done, and they can get done more efficiently, and people have a better experience, and it's more accurate, well, then people are gonna respond to the therapy, and we're gonna get more procedures done. This is a game about getting permanent procedures done, right? The external trials, this is not a money maker for the company. This is just a necessary evil that we need to do. We'll be able to get a few more dollars? Sure. Okay. Once again, this is not like a separate product. This is just part of the workflow of doing an external trial, and we're, you know, we're making this easier for folks. I think that's the direct answer to the question. Help me, Neil, was there a second part? No. No. Okay. All right. Thanks, Anthony. Appreciate those questions about this. He did have a second. There was a second. Thoughts on M&A. Thoughts on M&A. Thank you. Thank you. Look, as you might imagine, the word's out that Axonics is inquisitive, okay? We have a lot of folks pitching us on all kinds of very interesting things, but we're gonna be very disciplined. If we're gonna acquire something, Raymond, it has to fit perfectly in our strategy. We've gotten this question many, many times in different forms. We're focused on the incontinence business. I mean, that's where we're focused. There's such an underserved population that we don't wanna go off into adjacent markets and, you know, pick up other products. We're obviously biased, you know, towards women, just as a general sense. Not to say that we're... You know, if men have incontinence, we wanna treat them as well. But, you're gonna see an approach where, you know, we'll tuck some stuff in if it makes sense, and if there's a bigger idea out there, we're not gonna be afraid to pull the trigger. We're being very disciplined about this. We're constantly looking at what's out there, and people are approaching us in the same way. I don't think we're gonna surprise anybody with something, you know, like buying a stereo company or something like that. Very helpful. Thank you. Thank you. Thank you. Our next question comes from the line of Michael Sarcone from Jefferies. Your question please. Hey, good afternoon, Ray, Dan, and Neil. First question, just have one or two on the lead placement technology acquisition. You know, are there any next milestones, you know, before getting to FDA approval? You know, have you already submitted? Is development already complete? We haven't submitted, of course not. We just acquired the technology one week ago. We have to do the validation verification testing and have the product quote-unquote manufacturable. Those are the things that we're now starting to work on, and we're gonna look to get a filing to the FDA as fast as possible. We're anxious to get this done, and we'll do it, you know, in a with our standard velocity and care, right? As you know, we don't wanna, we don't wanna give a specific timeline. I mean, we said certainly by sometime next year, obviously we're gonna work hard to, you know, to go as fast as we can and get it done as quickly as we can, 'cause there's a lot of interest in that product. Understood. Just, you know, one last one. Do you have any color on the economics of the device and, you know, the potential margin impact for Axonics? Well, look, let's just say this, the margin won't go down because of this acquisition. Okay. Thanks, Ray. A little snippy, but I think that's the right answer. Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Raymond Cohen for any further remarks. All right. Well, thank you, operator. We appreciate that. In closing, I'd just like to say that, you know, we remain grateful for the trust the physicians, patients, and shareholders have placed in Axonics. As always, I'd like to thank my colleagues in Irvine and our team in the field for their diligent efforts and dedication to fulfilling the Axonics mission of improving the lives of adults with incontinence. You know, I would just finish by saying, look, we really appreciate continued interest in Axonics. We appreciate everybody's questions for today, and we look forward to having a strong Q2 and speaking with you after the dust settles. Thank you so much. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.