The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst
: Great. Can you guys hear me okay?
Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst
: Okay. Take two. First off, congrats on a great quarter. Second, I was hoping you could touch on -- and sorry if I missed this, I had to come off and
on again. But there was the recall from Respironics in June. We saw ResMed have a benefit from -- in this quarter, and obviously, they're much
earlier in seeing any potential benefits, but they're running into supply issues. So I'm wondering, are you starting to see any benefits? I realize it's
probably more word of mouth and referrals and implants at this point, and just how you're thinking about that over the next 6, 12, 24 months.
Question: Robert Justin Marcus - JPMorgan Chase & Co, Research Division - Analyst
: Great. And then just a follow-up. Your business really diverged from what we've seen from a lot of other companies where third quarter was more
materially impacted and seeing lagging volume growth into fourth quarter. So you touched on this in the prepared remarks, but I'd love to just
hear what's driving this, how you were able to manage so much better than a lot of other peers even those that are outpatient focused. It seems
like you've been able to weather the storm a lot better. Would just love any thoughts or insight into that.
Question: Ravi Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: So I'll just ask both my questions upfront. I guess, well, first, congratulations to all the sales force members that were promoted. Just kind of on the
sales territory expansion, can you talk to us -- you've been kind of tracking above your guidance for the last several quarters, at least, I think, since
IPO, actually. How should we think about that kind of on an ongoing basis? When do we kind of bring that down? Is this kind of the new level for
the next kind of 4 or 5 quarters?
I guess the second related to that is, how do we think about utilization as it goes between the ASC and the hospital and kind of how you see that
trending going forward? And maybe one last one. It's a really good kind of free cash flow and profitability quarter against very strong growth. So
is this the kind of new spend normal that we should expect, Rick?
Question: Ravi Misra - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And then just that last one, on the ASC utilization versus hospitals, can you just help us think about how you expect that to track? I know
there was kind of shifting of cases from -- towards the ASC this quarter. But in general, where do we...
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