Outset Medical, Inc. · NASDAQ:OM
Outset Medical — Investor Presentation (January 2024)
29 slides from Outset Medical's investor presentation, Jan 8, 2024
Slide 1: Outset Medical Investor Presentation January 2024
Outset Medical Investor Presentation January 2024
Slide 2: Forward-looking statements and non-GAAP information
Forward-looking statements and non-GAAP information This presentation and the accompanying oral statements contain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are forward-looking statements. In some cases, you
Slide 3: From the Hospital to the Home
FROM THE HOSPITAL TO THE HOME utset
Slide 4: Reducing the cost and complexity of dialysis
Reducing the cost and complexity of dialysis SUMMARY Scale in the $2.5B1 U.S. Acute Care market SCALE IN ACUTE Business model driving high recurring revenue of ~50% RECURRING REVENUE One-of-its-kind product & service ecosystem creates strong customer retention HIGHLY DIFFERENTIATED Growing footprint
Slide 5: Dialysis is one of the largest, most expensive, least-changed sectors of healthcare
7%2 for 1%2 CURRENT STATE Dialysis is one of the largest, most expensive, least-changed sectors of healthcare $73B1 Annual spending on U.S. ESRD patients $41B1 Paid by Medicare 600,0003 Dialysis patients 90M3 Annual dialysis treatments 2022 2030 30% 1. Company estimates based on data contained in US
Slide 6: Dialysis care pathways: 135,000 new ESRD patients annually
135,000 New ESRD patients annually in the U.S. Acute USRDS 2021 and 2022 Quarterly and Annual Data Reports CURRENT STATE Dialysis care pathways
Slide 7: Dialysis care pathways
60% crash into dialysis 40% managed into dialysis Clinic 13% 87% Acute Home USRDS 2022 Annual Data Report CURRENT STATE Dialysis care pathways
Slide 8: This is an expensive care delivery model
CURRENT STATE This is an expensive care delivery model… 60% crash into dialysis 40% managed into dialysis Acute Clinic $5,000–$25,000 Average loss by hospital for each inpatient stay for renal failure with dialysis1 $30 billion Annual cost of in-center dialysis treatment in clinics 34%1 30-day hospi
Slide 9: Dialysis is in need of new solutions
Dialysis is in need of new solutions CURRENT STATE Hospitals lose money on every treatment Staffing challenges constrain optimal patient care and drive up cost Complicated technologies made home hemodialysis impractical for most patients
Slide 10: We see a technology-driven way forward
We see a technology-driven way forward
Slide 11: Tablo is a first-of-its-kind technology to reduce cost and complexity of dialysis
Tablo® is a first-of-its- kind technology designed to reduce the cost and complexity of dialysis Connected and intelligent Small and mobile Single device from ICU to home
Slide 12: An all-in-one solution replacing multiple machines and a water treatment room
An all-in-one solution that replaces multiple machines and a water treatment room with a single device
Slide 13: One device, multiple markets
One device, multiple markets $2.5B Acute market Hospital & sub-acute based dialysis $8.9B Home market Home hemodialysis & transitional care $11.4B U.S. TAM Company estimates based on data contained in USRDS 2021 Annual Data Report
Slide 14: One device, multiple markets: $11.4B U.S. TAM
One device, multiple markets $11.4B U.S. TAM $2.5B Acute market Hospital & sub-acute based dialysis $8.9B Home market Home hemodialysis & transitional care Company estimates based on data contained in USRDS 2021 Annual Data Report
Slide 15: Scale of Tablo in the Acute Care setting
ACUTE CARE Scale of Tablo in the Acute Care setting >1 million treatments expected annually ~10,000 nurses trained 10 of 10 LARGEST SUBACUTE PROVIDERS 650+ UNIQUE ACUTE SITES 8 of 8 TOP NATIONAL HEALTH SYSTEMS Extensive clinical evidence: 70+ abstracts 15+ manuscripts
Slide 16: Tablo reduces the cost and complexity of acute dialysis
ACUTE CARE Tablo reduces the cost and complexity of acute dialysis TOTAL POTENTIAL COST SAVINGS 50%–80%1 Potential payback period <1 year 1. Company estimates based on data provided by third party health systems Supplies cost reduction Before Tablo With Tablo Existing ICU machines require numerous d
Slide 17: Tablo can deliver significant savings in the ICU
ACUTE CARE Tablo can deliver significant savings in the ICU Before Tablo With Tablo ICU mean length of stay 13.2 8.4 Total ICU dialysis Tx costs $1.33M $239K ICU dialysis cost per Tx hour $97.15 $46.93 Converting from an outsourced program to in-house long-duration dialysis, a medium-size ICU reduce
Slide 18: One device, multiple markets
One device, multiple markets $2.5B Acute market Hospital & sub-acute based dialysis $8.9B Home market Home hemodialysis & transitional care $11.4B U.S. TAM Company estimates based on data contained in USRDS 2021 Annual Data Report
Slide 19: The Home market is significantly underpenetrated
The Home market is significantly underpenetrated HOME CARE REIMBURSEMENT Medicare reimbursement misaligned with treatment frequency Historical barriers INCENTIVES Inadequate provider payment incentives TECHNOLOGY Cumbersome technology and training
Slide 20: The Home market is poised for change
HOME CARE CMS financial incentives Medicare Advantage eligibility Clinic staffing shortages Patient preferences The Home market is poised for change. Outset’s commercial strategy is designed to capitalize on it
Slide 21: Tablo addresses key barriers to home dialysis adoption and retention
Tablo addresses key barriers to home dialysis adoption and retention HOME CARE 5–6 Treatments per week 100 hours Training per patient 16–24 hours Dialysate prep time per week Historical device 3 Treatments per week <25 hours Training per patient 0 hours Dialysate prep time
Slide 22: Tablo changes the Home benefit-burden ratio
HOME CARE Tablo changes the Home benefit-burden ratio Patients report fewer symptoms on Tablo2 Patient-reported outcomes survey comparing in-clinic treatments on Tablo vs their previous dialysis machine Felt more energized after dialysis 34% Reported less cramping during treatment 61% Felt more rela
Slide 23: Home growth strategy
MDOs Mid-Sized Dialysis Organizations Home Home growth strategy 180K patients $8.9B TAM
Slide 24: Home growth strategy
Home growth strategy NEW HOME DIALYSIS MARKET ENTRANTS 30% of the market1 NEAR TERM LONGER TERM MDOs Adjacent healthcare providers Post-Acute providers Health systems 1. Outset estimates the $8.9 billion total addressable market for Tablo’s use in the home represents revenue from 30% of U.S. chronic
Slide 25: Recurring revenue of >50% in 2023
FUTURE Software EMR interoperability TODAY Consumables Service contracts Powerful recurring revenue of >50% in 2023 and expected to grow over time ACUTE $20,000 per console per year HOME $15,000 per console per year Growth potential
Slide 26: Strong financial position exiting 2023
Strong financial position exiting 2023 Revenue 70% CAGR 2019–2023e $130M $270M* Estimated Cash position 5,350 Consoles deployed (cumulative installed base at period end) 4,050 with acute/ sub-acute providers, 1,300 with home providers >50% Recurring revenue Driven by strong utilization in the acute
Slide 27: Financial guidance
Financial guidance 2024 Non-GAAP gross margin Low-30% range Full year Mid-30% range Exiting Q4 Long-term guidance High-teens annual revenue growth 2025-2027 ~50% non-GAAP gross margin as revenues reach ~$250M, exiting 2027 2024 Revenue guidance $145M-$153M 12% to 18% year-over-year growth
Slide 28: When Sara discovered she was in kidney failure last year, her 8mo ©
When Sara discovered she was in kidney failure last year, her 8mo © were to finda trustworthy nephrlogist, and tolive as normal We're proud to share the results of our new case study at the National Kidney Bossibi on dialysis. Fastforward twee months: done ané\d¢ Foundation’s Spring Clinical Meeting
Slide 29: Outset Medical contact details
Outset Medical 3052 Orchard Drive San Jose, CA 95134 outsetmedical.com
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