Revenue Growth Amid Cost Cuts
Q: How will you grow revenue in 2025 despite expense cuts?
A: We believe that by focusing on investments that drive revenue, like increasing our direct-to-consumer (DTC) spend and leveraging AdaptiveAI technology, we can grow revenue even with reduced expenses. We're confident that our actions will reverse the trial decline and close the gap experienced in Q3, and AdaptiveAI allows us to grow without needing to add a one-to-one ratio of personnel. " "

R&D Spending Reduction
Q: How do you balance cost cuts with future innovation?
A: We are prioritizing projects with clear return on investment and focusing on investments that drive future growth. While R&D spend decreased by about one-third, we are protecting investments that generate ROI and continue to fund meaningful clinical trials. "

Decline in U.S. Trials
Q: Can you elaborate on the 15% decline in U.S. trials?
A: The decline is due to factors like competitive pressure and reduced DTC spending. We turned down DTC earlier in 2024, which impacted trials, but as we increase DTC spend, we're already seeing trial volumes return. Also, replacements are growing, which don't require trials, affecting the trial numbers but not revenue. " "

Impact of DTC Spending Adjustments
Q: What is the effect of adjusting DTC spending?
A: Reducing DTC spend led to a decline in patient leads and trials after several months. Upon increasing DTC spend in mid-third quarter, we're seeing patient flow return, but it takes 4–6 months for patients to move from consultation to trial. We expect improvements by the second half of 2025. " "

Confidence in Cost Cuts
Q: Are you confident you haven't cut too deep into muscle?
A: Yes, we believe we got about 90% of the cost reductions right. The main area we adjusted was DTC spending, which we've corrected. We're investing in areas that drive revenue and profit, and focusing on efficiency, including leveraging AdaptiveAI and our Costa Rica operations. " " "

AdaptiveAI Benefits and Rollout
Q: How will AdaptiveAI impact efficiency and growth?
A: AdaptiveAI personalizes therapy and reduces the need for patient visits and reprogramming. Early results show a 40% reduction in patient visits and 50% reduction in call time compared to previous versions. This allows us to grow without adding proportional costs. " "

Sales Force Expansion
Q: What's the plan for U.S. sales force dynamics?
A: We are promoting associate sales reps who have been in the field for 1.5 years to take on their own territories. These reps are familiar with the physicians and areas, enabling effective expansion without significant added cost. " "

Versa Integration Progress
Q: How is the integration of Versa progressing?
A: We are still in the integration process, building necessary infrastructure and training physicians. The progress is aligning with our expectations, and we anticipate a more meaningful impact as we head into 2025. "

R&D Focus Areas
Q: What areas were affected by R&D cuts?
A: We've focused R&D on projects with clear ROI. Some clinical trials have completed, reducing spend in those areas. We continue to invest in diversifying our product portfolio and developing next-generation devices like AdaptiveAI. "

AdaptiveAI's Impact on Battery Life
Q: How does AdaptiveAI improve patient experience?
A: AdaptiveAI enables us to personalize therapy, reducing energy use of the battery. Patients may now only need to charge their devices six times per year, significantly decreasing the burden of charging. "