TransMedics Group (TMDX) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Mission and market overview

• Focused on increasing organ transplants and improving outcomes, addressing the underutilization of available donor organs in the U.S.

• Only a fraction of available organs are transplanted due to limitations of cold storage; new technology enables better preservation and assessment.

• Organ Care System (OCS) keeps organs alive outside the body, removing time and distance barriers and allowing for real-time assessment.

Strategic initiatives and operational model

• Shifted from device sales to a service model with the National OCS Program (NOP), providing clinical teams and logistics for organ procurement and delivery.

• Acquired an aviation company, now operating a fleet of 17 jets to control organ transport logistics and improve efficiency.

• NOP and aviation integration have driven rapid transplant growth, with over 2,300 transplants in 2023 and continued momentum.

Financial performance and guidance

• Revenue has grown from $30M to $240M, with 2024 guidance of $425M–$445M.

• Growth driven by heart and liver transplants; international and lung segments face some headwinds.

• Gross margin impacted by upfront investments in aviation and staffing, with expectations for service margin to reach high 30s and overall gross margin mid-60s by 2025.

• Operating leverage achieved by limiting traditional salesforce growth and focusing on clinical outcomes to drive adoption.