Tivic Health Systems, Inc. (NASDAQ:TIVC) Q4 2023 Earnings Call Transcript
Tivic Health Systems, Inc. (NASDAQ:TIVC) Q4 2023 Earnings Call Transcript March 25, 2024
Tivic Health Systems, Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Welcome to the Tivic Health Systems 2023 Year-End Shareholder Update Conference Call. All participants will be in listen-only mode. Please note that the conference is being recorded. Statements made during this conference contain forward-looking statements about Tivic's business. You should not place undue reliance on forward-looking statements as these statements are based upon management's current expectations, forecasts and assumptions, and are subject to significant risks and uncertainties. These statements may be identified by words such as may, will, should, could, expect, intend, plan, anticipate, believe, estimate, predict, potential, forecast, continue, or the negative of these terms or other words or terms of similar meaning.
Risks and uncertainties that could cause Tivic's actual results to differ materially from those set forth in any forward-looking statements include, but are not limited to, the matters listed under Risk Factors in the company's annual report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 25, 2024, as well as the company's subsequent filings with the SEC. Statements and information, including forward-looking statements, speak only to the date that they are provided unless an earlier date is indicated, and Tivic does not undertake any obligation to publicly update any statements or information, including forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Now, let me hand over the call to Jennifer Ernst, Tivic Health's Chief Executive Officer.
Jennifer Ernst: Hello, everyone, and thank you for joining us today. I'm Jennifer Ernst, CEO of Tivic. And I'm joined today not only by our Interim CFO, Kimberly Bambach, but also by our Chief Scientific Officer, Blake Gurfein. So, before Kim goes over the details of the 2023 financial performance, I'd like to go through a few of the business developments for the year, and I'd like to have Blake Gurfein introduce the new area of vagus nerve research that we have been conducting with the Feinstein Institute for Bioelectronic Medicine. So, let's start with looking at 2023. Over the past year, I have to say that our focus has been largely on the idea of stabilization and optimizing efficiency. No secret that 2021 and 2022 were turbulent years, not only for us, but also for the industry as a whole, and a major focus for us has been on the stabilization and optimization.
We started by stabilizing our supply chain after the significant disruptions and price fluctuations that we saw in 2022. We created new supply chain partnerships, and those have resulted in lower materials costs, lower assembly costs and lower fulfillment costs. Those new partnerships are critical component of increasing gross profitability of the business as a whole. In the first quarter of 2023, we also completed a 2,000-person marketing segmentation and pricing study. That study allowed us to take a very hard look at the areas where improvements were possible in the business. So, in Q2, we undertook a price increase. That increase was nearly 50%. And I have to admit that, that change negatively impacted the unit volume, and it did give us a temporary suppression in revenue.
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