TransMedics Group (TMDX) Piper Sandler 36th Annual Healthcare Conference summary

Leadership transition and strategic focus

• CFO transition aligns with the end of the first growth wave and preparation for a larger second wave, emphasizing efficiency and profitability.

• Incoming CFO Gerardo brings experience from complex, fast-growing businesses; outgoing CFO Stephen will remain through March and then shift to a strategic consultant role.

• Leadership will focus on national stakeholder outreach and regulatory education, particularly in Washington, DC, for 2025 and beyond.

Growth trajectory and clinical program impact

• Growth is expected to accelerate in the second half of 2025, with a long-term goal of reaching 10,000 transplants by 2028 and plans to double that target.

• Near-term growth will be stepwise, driven by clinical unlocks, especially in heart and lung transplants.

• Clinical programs in 2024 will focus on unlocking dormant lung transplants and expanding heart transplant capabilities.

• Liver transplant penetration is at 55% for DCD, with significant room for growth in DBD, targeting 70%+ penetration across all organs.

• Upcoming publications on outcomes are expected to further catalyze adoption, especially for DBD liver.

Financial guidance and operational efficiency

• Q4 revenue guidance is flat to slightly up versus Q3, reflecting a conservative approach to avoid large swings.

• Margin improvement is anticipated as more cases use in-house aviation, reducing reliance on third-party planes.

• The company aims to operate 80% of NOP air charter volume on its own jets, with a target fleet of 22-23 planes.

• 70% of NOP cases currently use air transport, with the remainder on ground.

• Price discipline is maintained due to significant value delivered and cost savings shared with transplant programs.