AirSculpt Technologies Inc (AIRS) 2023 Q1 法說會逐字稿

Good morning, and welcome to AirSculpt Technologies First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, today's call is being recorded. (Operator Instructions) At this time, I'd like to turn the conference over to Dennis Dean, Chief Financial Officer at AirSculpt Technologies. Thank you, sir. You may begin.

早上好，歡迎參加 AirSculpt Technologies 2023 年第一季度收益電話會議。 （操作員說明）謹此提醒，今天的通話正在錄音。 （操作員指示） 現在，我想將會議轉交給 AirSculpt Technologies 首席財務官 Dennis Dean。謝謝你，先生。你可以開始了。

Good morning, everyone, and thanks for joining us to discuss AirSculpt Technologies results for the first quarter. Joining me on the call today is the company's Founder and Executive Chairman, Dr. Aaron Rollins; and Chief Executive Officer, Todd Magazine.

大家早上好，感謝您加入我們討論 AirSculpt Technologies 第一季度的業績。今天與我一起參加電話會議的是該公司的創始人兼執行主席 Aaron Rollins 博士；兼托德雜誌首席執行官。

Before we begin, I would like to remind you that this conference call may include forward-looking statements. These statements may include our future expectations regarding financial results and guidance, market opportunities and our growth. Risks and uncertainties that may impact these statements and could cause actual future results to differ materially from currently projected results are described in this morning's press release and the reports we will file with the SEC, all of which can be found on our website at investors.elitebodysculpture.com. We undertake no obligation to revise or update the forward-looking statements or information, except as required by law.

在我們開始之前，我想提醒您，本次電話會議可能包含前瞻性陳述。這些陳述可能包括我們對財務業績和指導、市場機會和我們的增長的未來預期。今天上午的新聞稿和我們將向 SEC 提交的報告中描述了可能影響這些陳述並可能導致未來實際結果與當前預測結果存在重大差異的風險和不確定性，所有這些都可以在我們的投資者網站上找到。精英人體雕塑.com。除法律要求外，我們不承擔修改或更新前瞻性陳述或信息的義務。

During our call today, we will also reference certain non-GAAP financial measures. We use non-GAAP measures in some of our financial discussions as we believe they more accurately represent the true operational performance and underlying results of our business. A reconciliation of these measures can be found in our earnings release as filed this morning and in our most recent 10-Q when filed, which will also be available on our website.

在今天的電話會議中，我們還將參考某些非公認會計準則財務指標。我們在一些財務討論中使用非公認會計準則衡量標準，因為我們相信它們更準確地代表了我們業務的真實運營績效和基本結果。這些措施的調節可以在我們今天早上提交的收益報告和我們最近提交的 10-Q 報告中找到，這些報告也將在我們的網站上提供。

With that, I'll turn the call over to Dr. Rollins. Aaron?

這樣，我會將電話轉給羅林斯博士。亞倫？

Good morning, and thank you for joining us on the call today. I'm very pleased with our first quarter results, which included double-digit revenue in case growth and a sequential increase in average revenue per case. Our new center in Orange County, California is off to a great start, and we are also very excited to announce that yesterday, we received final approval to open our flagship center in London. This timing is consistent with what we had planned. We have a full complement of physicians to staff the center, enabling us to perform training cases starting next week and paid cases starting in June.

早上好，感謝您今天加入我們的電話會議。我對我們第一季度的業績非常滿意，其中包括案件增長兩位數的收入以及每個案件平均收入的連續增長。我們位於加利福尼亞州奧蘭治縣的新中心有了一個良好的開端，我們也非常高興地宣布，昨天我們獲得了在倫敦開設旗艦中心的最終批准。這個時間安排與我們的計劃是一致的。我們的中心配備了齊全的醫生，使我們能夠從下週開始進行培訓病例，並從六月開始進行付費病例。

Our next opening will be in Austin, which like Orange County is positioned for a strong launch. We expect to receive our final occupancy permit shortly, enabling us to open in the month of May.

我們的下一個開業地點將在奧斯汀，就像奧蘭治縣一樣，奧斯汀也將迎來強勁的開業。我們預計很快就會收到最終的入住許可證，以便我們能夠在五月份開業。

Our de novo pipeline continues to remain full, and we are confident in our new location opportunities for 2024 and beyond. We've been an innovative company, and we continue to be committed to our innovation pipeline, which includes new solutions that will lead to incremental patient engagement, which will be available later this year.

我們的 de novo 管道繼續保持滿載狀態，我們對 2024 年及以後的新選址機會充滿信心。我們一直是一家創新型公司，我們將繼續致力於我們的創新渠道，其中包括將增加患者參與度的新解決方案，這些解決方案將於今年晚些時候推出。

Finally, as you will hear from Todd, we are making good progress on our cost management initiatives, which will help us fuel our de novo and innovation growth into the future.

最後，正如您將從托德那裡聽到的那樣，我們在成本管理計劃方面取得了良好進展，這將有助於我們推動未來的從頭和創新增長。

Overall, our team remains focused and enthusiastic about continuing to strengthen the AirSculpt brand and profitability and scale our business, both domestically and internationally.

總體而言，我們的團隊仍然專注並熱衷於繼續加強 AirSculpt 品牌和盈利能力，並擴大我們的國內和國際業務。

Let me turn the call over to Todd to talk more about the quarter and our focus for the rest of the year. Todd?

讓我將電話轉給托德，詳細討論本季度以及我們今年剩餘時間的重點。托德？

Thank you, Aaron, and thank you to everyone on the call for joining us today. I am pleased with the first quarter results as highlighted by revenue growth of approximately 16% year-over-year, which was nicely ahead of our projections. This growth was led by 15% year-over-year case growth and a sequential uptick in our average revenue per case or our procedure rate, which was about $12,600. As we shared previously, our average rate will have some variability on a quarter-to-quarter basis due to procedure mix and promotion activities, but we expect it to be consistently in the $12,000 to $13,000 range.

謝謝你，亞倫，也感謝所有參加電話會議的人今天加入我們。我對第一季度的業績感到滿意，收入同比增長約 16%，遠遠超出了我們的預測。這一增長是由 15% 的同比病例增長以及我們每個病例的平均收入或手術費率連續上升（約為 12,600 美元）帶動的。正如我們之前分享的，由於程序組合和促銷活動，我們的平均費率在每個季度都會有一些變化，但我們預計它會始終在 12,000 美元到 13,000 美元的範圍內。

Importantly, a significant portion of our first quarter growth was led by our de novo centers that came on board over the past 12 months. I am pleased with their performance and continue to feel very good about our de novo pipeline going forward.

重要的是，我們第一季度增長的很大一部分是由過去 12 個月內成立的 de novo 中心帶動的。我對他們的表現感到滿意，並對我們未來的 de novo 管道繼續感到非常滿意。

On our last call, I highlighted the three areas that I will be focused on in 2023. As a reminder, they were strengthening the organization by bringing in additional talent and improving our processes; focusing on revenue growth, which includes ramping up our de novo expansion program; and finally, rightsizing our cost structure and strengthening our capabilities to support a much bigger and more robust fleet of centers.

在我們上次的電話會議上，我強調了 2023 年我將重點關注的三個領域。提醒一下，他們正在通過引進更多人才和改進我們的流程來加強組織；專注於收入增長，其中包括加強我們的從頭擴張計劃；最後，調整我們的成本結構並加強我們的能力，以支持更大、更強大的中心隊伍。

Let me first provide an update on our cost management efforts. As a reminder, we created to cost savings of $2.5 million for 2023 and a run rate of $5 million as we exit 2023. We brought in an external consulting firm to partner with our team and to help guide us in identifying several areas where we can be more efficient on process and cost.

首先讓我介紹一下我們成本管理工作的最新情況。謹此提醒，我們計劃在 2023 年節省 250 萬美元的成本，並在 2023 年結束時實現 500 萬美元的運行率。我們聘請了一家外部諮詢公司與我們的團隊合作，幫助指導我們確定可以在哪些領域開展工作提高流程和成本效率。

While we are still in the early stages of this effort, I am pleased to share that we are firmly on track to meet the targets we set. This will be reflected in our margins in the back half of the year. Importantly, these improvements, processes and cost structure will allow us to continue to reinvest in our de novo openings as well as drive brand awareness activities.

雖然我們仍處於這項工作的早期階段，但我很高興地告訴大家，我們正在堅定地走上實現既定目標的軌道。這將反映在我們今年下半年的利潤率中。重要的是，這些改進、流程和成本結構將使我們能夠繼續對新業務進行再投資，並推動品牌知名度活動。

For perspective, we made a small investment in the first quarter in a social media influencer and the results were extremely positive. Our goal is to continue to find ways to fund initiatives like this in order to help us drive awareness of AirSculpt amongst our target consumer.

從長遠來看，我們在第一季度對社交媒體影響者進行了小額投資，結果非常積極。我們的目標是繼續尋找資助此類舉措的方法，以幫助我們提高目標消費者對 AirSculpt 的認識。

As it relates to strengthening our talent, I'm excited to share that we've added a new human resources leader as well as a new information technology leader to our executive team.

由於這與加強我們的人才有關，我很高興與大家分享，我們在執行團隊中增加了一位新的人力資源領導者和一位新的信息技術領導者。

The final of my three focus areas is our de novo expansion plans. As Dr. Rollins has noted, this is an exciting time for AirSculpt as it (inaudible) to de novos, in particular, given the fact that we will now have a truly international footprint with the opening of our London Center. I have been spending a significant amount of time on our de novo expansion program, where we have added tools and capabilities that will help us continue to identify new and robust sites across the U.S. as well as continue to expand internationally. This work has given me more confidence that the runway of opportunity for new AirSculpt centers remains extremely robust.

我的三個重點領域中的最後一個是我們的從頭擴張計劃。正如 Rollins 博士所指出的，對於 AirSculpt 來說，這是一個激動人心的時刻，因為它（聽不清）是從頭開始的，特別是考慮到隨著倫敦中心的開業，我們現在將擁有真正的國際足跡。我在我們的從頭擴張計劃上花費了大量時間，我們在該計劃中添加了工具和功能，這將幫助我們繼續在美國各地尋找新的、強大的站點，並繼續在國際上擴張。這項工作讓我更有信心，新的 AirSculpt 中心的機會跑道仍然非常強勁。

Overall, I am pleased with the results of the quarter and continue to feel good about our ability to deliver on our financial commitments to our investors in the balance of the year and beyond.

總體而言，我對本季度的業績感到滿意，並繼續對我們在今年餘下及以後履行對投資者的財務承諾的能力感到滿意。

Before I turn the call over to Dennis, I would like to say thank you to the team at AirSculpt. Both our clinical and business professionals are incredibly passionate about our patients and our company and work tirelessly to help deliver experience unlike any other in the world of aesthetics.

在將電話轉給 Dennis 之前，我想對 AirSculpt 的團隊表示感謝。我們的臨床和業務專業人員都對我們的患者和我們的公司充滿熱情，並孜孜不倦地工作，以幫助提供不同於美學世界中任何其他人的體驗。

Now let me turn the call over to Dennis to walk you through our financials and our outlook for the year. Dennis?

現在讓我把電話轉給丹尼斯，向您介紹我們的財務狀況和今年的前景。丹尼斯？

Thank you, Todd. Our revenue for the quarter was $45.8 million, a 15.9% increase over the prior year quarter. Our growth was led by approximately 15% increase in case volumes, which is primarily due to the addition of 4 de novo centers versus the prior year base. As of March 31, 2023, we operated 23 centers versus 19 at the end of the first quarter of 2022. Our average revenue per case for the quarter was approximately $12,600, a 0.4% increase over the prior year's quarter and a $400 increase over the fourth quarter, driven primarily by procedure mix. This was within our target range of $12,000 to $13,000, and we expect to sustain this range for the near term.

謝謝你，托德。我們本季度的收入為 4580 萬美元，比去年同期增長 15.9%。我們的增長得益於病例量約 15% 的增長，這主要是由於與上一年相比增加了 4 個 de novo 中心。截至 2023 年 3 月 31 日，我們運營著 23 個中心，而 2022 年第一季度末為 19 個。本季度每個病例的平均收入約為 12,600 美元，比去年同期增長 0.4%，比上年同期增長 400 美元。第四季度，主要由程序組合推動。這在我們 12,000 美元至 13,000 美元的目標範圍內，我們預計短期內將維持這一範圍。

Our cost of services as a percentage of revenue was 39.3% versus 37.1% in the same period last year. The increase is primarily related to the addition of clinical-related costs to support our growth and our customer acquisition cost for the quarter was $2,360 per case.

我們的服務成本佔收入的百分比為 39.3%，而去年同期為 37.1%。這一增長主要與支持我們增長的臨床相關成本的增加有關，本季度我們的客戶獲取成本為每例 2,360 美元。

For the quarter, our adjusted EBITDA was $10.7 million, and our adjusted EBITDA margin was 23.4%, which was a decline of 140 basis points versus the prior year quarter due to increase in expense growth that we have previously discussed. And on a sequential basis, our adjusted EBITDA margin increased by 130 basis points.

本季度，我們調整後的 EBITDA 為 1070 萬美元，調整後的 EBITDA 利潤率為 23.4%，與去年同期相比下降了 140 個基點，原因是我們之前討論過的費用增長增加。與上一季度相比，我們調整後的 EBITDA 利潤率增加了 130 個基點。

Our liquidity position continues to be very strong. Our cash position as of March 31, 2023, was $11.3 million, and our $5 million revolver remains undrawn. Our gross debt outstanding was $84.5 million, and our leverage ratio at the end of the quarter as calculated under our credit agreement was 1.7x.

我們的流動性狀況仍然非常強勁。截至 2023 年 3 月 31 日，我們的現金頭寸為 1130 萬美元，而我們的 500 萬美元左輪手槍仍未提取。我們的未償債務總額為 8,450 萬美元，根據信貸協議計算，本季度末的槓桿率為 1.7 倍。

Cash flow from operations for the quarter was $6.2 million, which represents an adjusted EBITDA conversion ratio of 58%. And we continue to expect an adjusted EBITDA conversion ratio of approximately 55% for the full year. We invested $3.8 million primarily related to opening new centers, and we had a use of cash from financing activities of approximately $700,000.

本季度運營現金流為 620 萬美元，調整後 EBITDA 轉換率為 58%。我們繼續預計全年調整後的 EBITDA 轉換率約為 55%。我們投資了 380 萬美元，主要用於開設新中心，我們從融資活動中使用了約 70 萬美元的現金。

Additionally, consistent with the fourth quarter earnings release, we provided a non-GAAP measure reflecting adjusted net income per share diluted for the quarter of $0.10. We believe this measure represents useful information to investors by highlighting the impact of earnings per share of selected items used in calculating our adjusted EBITDA.

此外，與第四季度收益發布一致，我們提供了一項非公認會計原則衡量指標，反映了該季度稀釋後的調整後每股淨利潤為 0.10 美元。我們認為，這一指標通過強調計算調整後 EBITDA 時使用的選定項目的每股收益的影響，為投資者提供了有用的信息。

We remain on track for healthy free cash flow generation in 2023. We continue to expect our primary uses of cash flow during the year will be to fund growth investments for the business such as adding de novo centers and driving technology innovations. We also expect to continue to strengthen our balance sheet throughout the rest of the year, positioning us to increase shareholder value.

我們仍有望在 2023 年實現健康的自由現金流生成。我們仍然預計，今年現金流的主要用途將是為業務增長投資提供資金，例如增加 de novo 中心和推動技術創新。我們還預計在今年剩餘時間內繼續加強我們的資產負債表，從而提高股東價值。

This morning, we are confirming our 2023 revenue guidance range of $187 million to $192 million, representing an 11% to 14% increase over 2022. We continue to expect contributions from our de novo centers to drive the magnitude of year-over-year revenue growth.

今天早上，我們確認 2023 年收入指導範圍為 1.87 億美元至 1.92 億美元，比 2022 年增長 11% 至 14%。我們仍然期望 de novo 中心的貢獻將推動同比收入的增長生長。

As previously discussed, we started performing cases this past month at our Orange County location, and we are scheduled to begin performing cases at our Austin Center next week.

如前所述，我們於上個月開始在奧蘭治縣地點執行案例，併計劃下週在奧斯汀中心開始執行案例。

As Dr. Rollins and Todd mentioned, we are pleased to report that our center in London is approved to open, and we will begin scheduling paid cases starting in June. Our remaining two center locations, Raleigh and San Jose are scheduled to open late in the third quarter, which will give us a total of five new centers added for 2023. We are also confirming our 2023 adjusted EBITDA guidance range of $48 million to $50 million, which represents year-over-year growth of 11% to 16% and margins of approximately 26% at the midpoint of both revenue and EBITDA guidance.

正如 Rollins 博士和 Todd 博士提到的，我們很高興地報告，我們在倫敦的中心已獲准開業，我們將從 6 月開始安排付費病例。我們剩餘的兩個中心地點，羅利和聖何塞，計劃於第三季度末開業，這將使我們在 2023 年總共增加五個新中心。我們還確認 2023 年調整後 EBITDA 指導範圍為 4800 萬美元至 5000 萬美元，同比增長 11% 至 16%，利潤率約為 26%（按收入和 EBITDA 指導值的中值計算）。

We expect the second quarter will be our strongest quarter, while we expect the seasonal patterns in the back half of 2023 to be similar to that of the back half of 2022.

我們預計第二季度將是我們表現最強勁的季度，同時我們預計 2023 年下半年的季節性模式將與 2022 年下半年相似。

With that, I'll turn the call over to the operator for some questions. Operator?

這樣，我會將電話轉給接線員詢問一些問題。操作員？

Thank you. (Operator Instructions) Our first question comes from the line of Simeon Gutman with Morgan Stanley.

謝謝。 （操作員說明）我們的第一個問題來自摩根士丹利的西蒙·古特曼（Simeon Gutman）。

My first question is on the same-store case growth or the same-center case growth. Can you talk about how the 0.9%, I think that was the number, or the 0.8% was relative to your expectations? And what should we think about as the kind of sustainable appropriate level of growth for this business?

我的第一個問題是關於同店案例增長或同中心案例增長。您能談談 0.9%（我認為就是這個數字）或 0.8% 與您的預期相比如何嗎？我們應該如何看待這項業務可持續的適當增長水平？

Thanks, Simeon. It's Dennis. Yes, from a same-store perspective, we were fairly in line with kind of what we had expected. And kind of go-forward basis, right now, we're comfortable kind of in this flat to 1% sort of same-store growth. That's kind of what we're forecasting out from that point.

謝謝，西蒙。是丹尼斯。是的，從同店角度來看，我們的表現相當符合我們的預期。從目前的情況來看，我們對同店增長率保持在 1% 感到滿意。這就是我們從那時起的預測。

And then maybe the follow-up, the momentum that you're carrying, is that with regard to new center openings? Or should that same center growth get a little bit better from that level?

然後也許後續行動，你所帶來的動力，是關於新的中心空缺嗎？或者同一個中心的增長是否應該比這個水平好一點？

Well, again, we're comfortable with the relatively flat same-store. I do believe that we're seeing some momentum out there, and there's potentially some opportunity there to expand on that. But a lot of the momentum we're seeing is on new center growth as well as the existing business is holding up really well as we kind of look at our rate per case and those types of things, we're seeing some positive momentum there.

好吧，我們再次對相對平坦的同店感到滿意。我確實相信我們看到了一些勢頭，並且可能有一些機會來擴大這一勢頭。但我們看到的很多動力來自於新中心的增長，以及現有業務的保持非常好，因為我們查看了每個案例的費率和這些類型的事情，我們在那裡看到了一些積極的勢頭。

Our next question comes from the line of Josh Raskin with Nephron Research.

我們的下一個問題來自 Nephron Research 的 Josh Raskin。

Cost of service line as a percentage of revenues remains a little more elevated than we've seen in the past. So -- and I know you've talked -- is that mostly just the investments in quality and the other areas you've spoken out? I'm just curious if there's any inflationary items that are in there or anything new to point out.

服務成本佔收入的百分比仍然比我們過去看到的要高一些。那麼——我知道你已經說過——這主要是對質量和你所說的其他領域的投資嗎？我只是好奇其中是否有任何通貨膨脹的物品或任何新的東西需要指出。

Josh, there's nothing really significant there, Josh. It has -- it's a little above where we were last year at this time. And we've talked a lot about the clinical investments and quality investments we've been making. It's definitely a focus for us to kind of work on that as well to kind of expand our margins, but that impacted us or continue to impact us a bit.

喬什，那裡沒有什麼真正重要的東西，喬什。它比去年這個時候的水平略高一些。我們已經談論了很多關於我們一直在進行的臨床投資和質量投資。這絕對是我們努力的一個重點，也是為了擴大我們的利潤，但這對我們產生了影響，或者繼續對我們產生一些影響。

We've also got a number of de novos that are coming online. As you know, early on, on those. You don't have as much margin expansion. But as those begin to mature, we'll see improvement there just as they ramp up. But we feel good about where we are. We think there's opportunities to expand from there.

我們還有一些即將上線的 de novo。如您所知，很早就在這些方面。你沒有那麼多的利潤擴張。但隨著這些技術開始成熟，我們會看到它們的進步。但我們對自己所處的位置感覺良好。我們認為有機會從那裡擴展。

Got you. And then I know it's always a concern, just economic pressures. I'm just curious, what are the best metrics to monitor? Is it just simply case growth? Is it more on the rate side? Are there metrics that you guys are measuring, financing, things like that, that we don't sort of necessarily see that give you insights into how the economy is impacting the business?

明白你了。然後我知道這始終是一個令人擔憂的問題，只是經濟壓力。我只是好奇，要監控的最佳指標是什麼？僅僅是病例增長嗎？是不是更多的是在利率方面？你們正在衡量的指標、融資等是否有我們不一定看到的指標，可以讓您深入了解經濟如何影響業務？

Josh, this is Todd. I would say, really, the two things that we look at is obviously demand and then our procedure rate. And obviously, what we saw in Q1 and what we're carrying into Q2, we're seeing very strong demand, and we're seeing a procedure rate essentially right in the middle of the range that we expected.

喬什，這是托德。我想說，實際上，我們關注的兩件事顯然是需求，然後是我們的手術速度。顯然，我們在第一季度看到的以及我們在第二季度所看到的，我們看到了非常強勁的需求，而且我們看到手術率基本上處於我們預期範圍的中間。

So from our perspective, we're really not seeing any broader economic issues in our business. Demand continues to be strong. And there's clearly a demand for our product and people are willing to pay the rates that ultimately we believe are appropriate for this business.

因此，從我們的角度來看，我們的業務中確實沒有看到任何更廣泛的經濟問題。需求持續強勁。顯然對我們的產品有需求，人們願意支付我們最終認為適合這項業務的價格。

So us, we feel really good about that. And we haven't really seen a change financing in terms of percent of people that are relying on financing. That hasn't really changed at all for us this quarter.

所以我們對此感覺非常好。從依賴融資的人的百分比來看，我們還沒有真正看到融資方式發生變化。本季度我們的情況並沒有真正改變。

So really, there's no indication at this point that there's any headwinds that are coming at us from the broader economic market, which is really encouraging for us.

事實上，目前沒有跡象表明更廣泛的經濟市場對我們產生任​​何阻力，這對我們來說確實令人鼓舞。

Yes. I'll just sneak one more quick one in. Just 2Q guidance. I heard strongest quarter, which is seasonally consistent. But any reason not more specific sort of what you did last quarter?

是的。我會再偷偷溜進去一個。只是 2Q 指導。我聽到了最強勁的季度，這與季節性一致。但有什麼理由不更具體地說明您上個季度所做的事情嗎？

Josh, as you know, the timing of producing numbers last quarter, we didn't report until first part of March. So we almost had the entire quarter complete. So we had a much level -- much heavier confidence level. And so that was the reason we gave that.

喬什，如你所知，上個季度產生數據的時間，我們直到三月上旬才報告。所以我們幾乎完成了整個季度。所以我們的信心水平要高得多。這就是我們這樣做的原因。

We're reiterating full year. We have confidence in the numbers. As you said, Q2 is our strongest quarter and so -- and that's kind of where we are from that standpoint. It's very early in to the second quarter.

我們重申全年。我們對數字充滿信心。正如您所說，第二季度是我們表現最強勁的季度，從這個角度來看，這就是我們所處的位置。現在距離第二季度還很早。

Things are going well. Momentum is again, like we said, has been very, very strong and positive. But that was the reason why there was a guidance assistance after the year-end call for the first quarter.

事情進展順利。正如我們所說，勢頭再次非常非常強勁和積極。但這就是為什麼在第一季度年終電話會議後出現指導性援助的原因。

Our next question comes from the line of Korinne Wolfmeyer with Piper Sandler.

我們的下一個問題來自 Korinne Wolfmeyer 和 Piper Sandler。

And congrats on the quarter. So kind of piggybacking off some of those previous questions, can you just talk about what kind of like the promotional environment this past quarter looks like? And I mean, if I recall, I think you had some heavier promotional activity in Q4. Did that have to continue at all into Q1?

祝賀本季度。那麼，借用之前的一些問題，您能談談上個季度的促銷環境是什麼樣的嗎？我的意思是，如果我沒記錯的話，我認為你們在第四季度進行了一些更大規模的促銷活動。這種情況是否必須持續到第一季度？

And then as we think about outlook for the rest of the year, how are you baking in promotional need into expectations, especially with the still volatile macro backdrop?

然後，當我們考慮今年剩餘時間的前景時，您如何將促銷需求納入預期，特別是在宏觀背景仍然不穩定的情況下？

Thanks, Korinne. Thanks for the question. It's Todd. So I would say that Q1 promotionally was very consistent with what we've done historically. And I think as we mentioned on the last call, part of what our promotion plan was to not necessarily discount, but to actually do bundling to try to drive value and get people to add more body parts and provide value by giving people kind of a bulk discount if you will. And so we used that promotional strategy throughout the quarter very consistently with what we've done historically. And that's one of the reasons that our rate ended up in the 12.6% range.

謝謝，科琳。謝謝你的提問。是托德。所以我想說，第一季度的促銷活動與我們歷史上所做的非常一致。我認為正如我們在上次電話會議中提到的，我們的促銷計劃的一部分不一定是折扣，而是實際上進行捆綁銷售，以嘗試推動價值並讓人們添加更多的身體部位並通過為人們提供一種如果願意的話可以批量折扣。因此，我們整個季度都採用了與我們歷史上所做的非常一致的促銷策略。這就是我們的利率最終落在 12.6% 範圍內的原因之一。

So really nothing unique about what we did in the quarter. It was very -- promotion is one of the tools that we use to obviously drive the business, and we feel very good about that. And I don't see that really changing throughout the year. I think promotions, like other levers are just kind of one of the items that we use to help drive the business. But we're not seeing any major changes there.

因此，我們本季度所做的事情確實沒有什麼獨特之處。促銷是我們用來明顯推動業務的工具之一，我們對此感覺非常好。我認為這一情況全年都不會發生真正的變化。我認為促銷，就像其他槓桿一樣，只是我們用來幫助推動業務的項目之一。但我們沒有看到任何重大變化。

And again, our goal is to not discount necessarily, but to create value and give people an opportunity to really get the AirSculpt experience through adding other body parts, and that's really worked effectively for us. So that's our approach, and we feel really good about it for the balance of the year.

再說一次，我們的目標不一定是打折，而是創造價值，讓人們有機會通過添加其他身體部位來真正獲得 AirSculpt 體驗，這對我們來說確實有效。這就是我們的方法，我們對今年餘下的時間感到非常滿意。

Very helpful. And then just on some of the margin trajectory. Can you talk about a little bit on what specific levers you're pulling on to improve that margin, both as we progress throughout this year and then into '24 and '25? And if the gross margin isn't going to change that measure, maybe we'll get a little bit of improvement, but then is it really going to come from that like marketing and ad spend? Or can you just provide a little bit more detail there? .

很有幫助。然後只是在一些邊緣軌跡上。您能否談談在我們今年以及進入 24 和 25 年期間，您正在利用哪些具體手段來提高利潤率？如果毛利率不會改變這一衡量標準，也許我們會得到一點改善，但它真的會來自營銷和廣告支出等嗎？或者您可以在那裡提供更多細節嗎？ 。

Yes, Korinne, it's Todd again. So one of the, as I mentioned, there areas of focus for me. One of them obviously is really on the cost management side of things. And we're really looking up and down the P&L and trying to find ways to be more efficient. We're in the early ages of this, as I said in my remarks, and we're working with an external party to help us do that. And I feel very confident that there are areas of opportunity, particularly about becoming more efficient, not necessarily cutting, but we feel good that we're going to be able to get to the $2.5 million that we committed for this year. And that will have a margin improvement as we kind of go into the back half of the year.

是的，科琳，又是托德。正如我所提到的，這是我關注的領域之一。其中之一顯然是在成本管理方面。我們確實在仔細查看損益表，並試圖找到提高效率的方法。正如我在發言中所說，我們正處於這方面的早期階段，我們正在與外部機構合作來幫助我們做到這一點。我非常有信心，存在一些機會領域，特別是在提高效率方面，不一定是削減，但我們感覺很好，我們將能夠達到我們今年承諾的 250 萬美元。當我們進入今年下半年時，利潤率將會有所改善。

And the run rate, as we also said, is in the $5 million range. So all of that will have -- help on margin as we continue through the year. And as I said, we're looking up and down the P&L. And I think we feel very good about the early work we've done and the opportunities, and we're reiterating that we believe we're going to get to that $2.5 million this year and the $5 million as we exit the year.

正如我們所說，運行費用在 500 萬美元範圍內。因此，隨著我們今年的繼續，所有這些都將有助於提高利潤率。正如我所說，我們正在上下查看損益表。我認為我們對我們所做的早期工作和機遇感到非常滿意，我們重申，我們相信今年我們將達到 250 萬美元，並在今年結束時達到 500 萬美元。

And Korinne, we are heavily focused on getting that margin number above 30%. We don't expect to necessarily be there this year, but that is our target. And we have a pretty high level of confidence that we should be able to get there as we work into 2024.

Korinne 表示，我們非常注重將利潤率提高到 30% 以上。我們預計今年不一定會出現，但這是我們的目標。我們非常有信心在 2024 年之前能夠實現這一目標。

And then as you could imagine, I mean, we did invest quite a bit in our corporate structure this past year. A lot of that's now fixed into the cost structure, similar like public company costs. So as we continue to drive top line, we'll start to achieve additional margin expansion there due to those fixed costs.

正如你可以想像的那樣，我的意思是，去年我們確實在公司結構上投入了大量資金。其中很多現在已經固定在成本結構中，類似於上市公司的成本。因此，當我們繼續推動營收增長時，由於這些固定成本，我們將開始實現額外的利潤擴張。

(Operator Instructions) Our next question comes from the line of Parker Snure with Raymond James.

（操作員說明）我們的下一個問題來自 Parker Snure 和 Raymond James 的線路。

This is Parker on for John Ransom. Maybe talk about London and just your expectations there. Obviously, since it's a much different market than the kind of North American market, are there different dynamics that play there that you would expect? I mean, maybe different pricing, different economics with the surgeons.

這是帕克為約翰·蘭塞姆發言。也許可以談談倫敦以及您對那裡的期望。顯然，由於這是一個與北美市場截然不同的市場，因此那裡的動態是否與您期望的不同？我的意思是，也許外科醫生的定價和經濟學不同。

And then just broadly, is plastic surgery popular over in the U.K.? I mean, is there a certain level of patient education that you're going to have to do to kind of get people to notice it over there? And just maybe just talk about your expectations in the London market.

那麼，從廣義上來說，整形手術在英國流行嗎？我的意思是，你是否需要進行一定程度的患者教育才能讓人們注意到那裡的情況？也許只是談談您對倫敦市場的期望。

This is Aaron Rollins. Thank you very much for the question. So very, very bullish on the London office. In fact, I fly there next week for -- to start our actual live training cases in London. And I can tell you that I've been there multiple times now for press interviews and plastic surgery is wildly popular in London.

這是亞倫·羅林斯。非常感謝你的提問。非常非常看好倫敦辦事處。事實上，我下週飛往那裡，以便在倫敦開始我們的實際現場培訓案例。我可以告訴你，我已經多次去那裡接受媒體採訪，整容手術在倫敦非常流行。

And what's really interesting is that it's the first market we've gone into where we have really no competitor. In fact, finding out that -- even the doctor is finding out that you can do what we do while patients lie awake was like science fiction to them. So our market research there has shown that we very well might get a higher ASP. We can't -- we won't know that until we start actually booking cases.

真正有趣的是，這是我們進入的第一個沒有競爭對手的市場。事實上，發現這一點——就連醫生也發現，當病人醒著的時候你可以做我們所做的事情，對他們來說就像科幻小說一樣。因此，我們的市場研究表明，我們很可能會獲得更高的平均售價。在我們開始實際預訂之前，我們不會知道這一點。

But due to the pound conversion and the market in general, I mean we have such a captive market, and we don't have the same competitive environment for leads and ads. So I couldn't be more excited about the London office.

但由於英鎊兌換和總體市場，我的意思是我們有一個這樣的專屬市場，並且我們沒有相同的潛在客戶和廣告競爭環境。所以我對倫敦辦事處感到非常興奮。

And also to answer your question, there is one thing that's different there, and that's that -- well, first of all, we're paying the doctors exactly the same as we do now, that's 20%, and there's no change there. But the only change is in the U.K., there's something called a cool-off period. So from the time someone books until they get their surgery, it has to be a minimum of 2 weeks. So we will be seeing consultations shortly, and then it will be 2 weeks before our first paid cases can start.

還要回答你的問題，有一點不同，那就是——首先，我們付給醫生的錢和現在完全一樣，是 20%，沒有任何變化。但唯一的變化是在英國，有一個叫做冷靜期的東西。因此，從患者預約到接受手術，至少需要兩週的時間。因此，我們很快就會看到諮詢，然後兩週後我們的第一個付費案例才能開始。

Okay. That's very helpful. And then I believe in the prepared remarks, Aaron, you hinted at some new solutions coming on in the back half of the year. Is this stuff that we've heard before? Or are these kind of new things? Just maybe just touch on that comment a little bit.

好的。這非常有幫助。然後我相信亞倫準備好的講話，你暗示了今年下半年將出現的一些新解決方案。這是我們以前聽過的東西嗎？或者這些都是新事物？也許只是稍微觸及一下該評論。

I'm glad you asked. So we are going to be -- we're working on rolling out a new procedure, and that's all we're going to say for right now until we have more data, et cetera. We always want to underpromise and overdeliver. So I look forward to speaking with all of you more about that.

我很高興你問了。因此，我們正在努力推出一個新程序，這就是我們現在要說的，直到我們獲得更多數據等等。我們總是希望承諾不足，交付過多。因此，我期待與大家進一步討論這一問題。

Okay. And then if I can just squeeze in one last one. Maybe just give us an update on the metabolic study and how that's tracking? And any updated thoughts on when that will be out and you'll have some data on that?

好的。然後如果我能擠進最後一張的話。也許只是給我們介紹一下代謝研究的最新情況以及它的跟踪情況？關於何時發布以及您將獲得一些數據有什麼更新的想法嗎？

Great question. Well, in the interest of creating shareholder value and improving our margin, the study, we found to be very expensive. And so for now, we've put the study on pause. And instead, we're pursuing scholarly articles. However, I do see a time when -- we have another study that we're interested in doing that might actually create much more shareholder value. And depending on what that would cost, we might pursue that instead.

很好的問題。嗯，為了創造股東價值和提高我們的利潤率，我們發現這項研究非常昂貴。所以現在我們暫停了這項研究。相反，我們正在追求學術文章。然而，我確實看到了這樣一個時刻——我們有興趣進行另一項研究，這實際上可能會創造更多的股東價值。根據這會花費多少，我們可能會繼續這樣做。

But we didn't feel -- we already know that -- and has already been proven, that liposuction creates a very significant drop in Triglycerides . So that's already out there. And I didn't see any reason to replicate a well-proven study. So I'd rather create something new and show that AirSculpt can do things that other people can't.

但我們並沒有感覺到——我們已經知道了——而且已經被證明，吸脂術會導致甘油三酯顯著下降。所以這已經存在了。我認為沒有任何理由重複一項經過充分驗證的研究。所以我寧願創造一些新的東西來證明 AirSculpt 可以做其他人做不到的事情。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Magazine for any final comments.

女士們先生們，我們的問答環節到此結束。我將把最後的意見轉回給雜誌先生。

Well, that's it. We really appreciate everybody for joining us today. Have a great weekend, and we will talk to you soon.

嗯，就是這樣。我們非常感謝大家今天加入我們。祝您週末愉快，我們很快就會與您聯繫。

Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。