Biotricity Inc (BTCY) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to Biotricity's First Quarter Fiscal 2024 Financial Results and Business Update Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Debra Chen, Investor Relations. Please go ahead, ma'am.

下午好，歡迎參加 Biotricity 2024 財年第一季財務業績和業務更新電話會議。今天的會議正在錄製中。現在，我想將會議交給投資者關係部的 Debra Chen。請繼續，女士。

Good afternoon, everyone, and welcome to Biotricity's First Quarter Fiscal 2024 Earnings Call. As a reminder, Biotricity's first quarter fiscal 2024 ended on June 30, 2023, so all figures presented for this period will reflect that end date. Earlier, the company issued its earnings press release, which highlighted financial and operational results. A copy of the press release is available on the Investor Relations section of Biotricity's website, and the full financials have been filed with the SEC on Form 10-Q and posted on EDGAR at www.sec.gov.

大家下午好，歡迎參加 Biotricity 2024 財年第一季財報電話會議。提醒一下，Biotricity 的 2024 財年第一季於 2023 年 6 月 30 日結束，因此該期間提供的所有數據都將反映該結束日期。早些時候，該公司發布了收益新聞稿，重點介紹了財務和營運績效。新聞稿的副本可在 Biotricity 網站的投資者關係部分獲取，完整的財務數據已透過 10-Q 表提交給 SEC，並發佈在 EDGAR 網站 www.sec.gov 上。

Before beginning the company's formal remarks, I'd like to remind listeners that today's discussion may contain forward-looking statements that reflect management's current views with respect to future events. Any such statements are subject to risks and uncertainties that can cause actual results to differ materially from those projected in these forward-looking statements. Biotricity does not undertake to update any forward-looking statements except as required.

在開始公司正式發言之前，我想提醒聽眾，今天的討論可能包含前瞻性陳述，反映了管理層對未來事件的當前看法。任何此類陳述都面臨風險和不確定性，可能導致實際結果與這些前瞻性陳述中預測的結果有重大差異。除必要外，Biotricity 不承諾更新任何前瞻性聲明。

At this point, I'm pleased to turn the call over to Biotricity's Founder and CEO, Dr. Waqaas Al-Siddiq. Please go ahead.

現在，我很高興將電話轉給 Biotricity 的創始人兼執行長 Waqaas Al-Siddiq 博士。請繼續。

Thank you, Debra, and thank you, everybody, for joining us today. I welcome you to our first quarter fiscal 2024 teleconference. As reported in our earnings press release, we experienced a very solid quarter with a year-over-year revenue growth and improvements in key operating metrics. Specifically, our recurring technology fees, device sales and gross margins all demonstrated positive growth while maintaining a firm grasp on cost reduction and expense management. I can confidently assert that we are making strides towards positive cash flow given the consistent results we observe from quarter-to-quarter.

謝謝黛布拉，也謝謝大家今天加入我們。歡迎您參加我們的 2024 財年第一季電話會議。正如我們的收益新聞稿中所報導的，我們經歷了一個非常穩健的季度，營收年增，關鍵營運指標有所改善。具體來說，我們的經常性技術費用、設備銷售和毛利率均呈現正成長，同時牢牢掌握成本降低和費用管理。我可以自信地斷言，鑑於我們每季觀察到的一致結果，我們正在朝著正現金流邁進。

From a market perspective, the increasing interest and demand continued to drive the adoption of our suite of products focused on chronic cardiac disease prevention and management. Our efforts in commercialization and development have yielded tremendous progress in remote monitoring solutions for diagnostic and post-diagnostic products.

從市場角度來看，不斷增長的興趣和需求繼續推動我們專注於慢性心臟病預防和管理的產品套件的採用。我們在商業化和開發方面的努力在診斷和診斷後產品的遠端監控解決方案方面取得了巨大進展。

The expansion of our sales force has expanded our geographic reach, and I'm pleased to announce that as of June 30, 2023, our sales have launched in over 35 states in the U.S., contributing to a remarkable 46.9% year-over-year revenue growth. Notably, our gross margins have also seen significant improvement, rising from 59.6% during the same period last year to an impressive 63.5%.

我們銷售團隊的擴大擴大了我們的地理覆蓋範圍，我很高興地宣布，截至 2023 年 6 月 30 日，我們的銷售已在美國超過 35 個州開展，同比增長 46.9%收入增長。值得注意的是，我們的毛利率也有了顯著改善，從去年同期的59.6%上升至令人印象深刻的63.5%。

We accomplished all of this while also announcing that we reduced our SG&A by 22% to $3.5 million. Through diligent cost structure management, automation and utilization of our proprietary AI technology and strong growth across the board, we achieved a reduction of our net loss by 33% year-over-year to $3.6 million or $6.9 per share from a net loss of $5 million or $9.8 per share.

我們實現了這一切，同時也宣布將 SG&A 減少 22% 至 350 萬美元。透過勤奮的成本結構管理、自動化和利用我們專有的人工智慧技術以及全面的強勁成長，我們的淨虧損年減了 33% 至 360 萬美元，即每股 6.9 美元，淨虧損為 5 美元百萬美元或每股9.8 美元。

At Biotricity, our responsibility as a management team and my role as CEO and is to innovate and create transformative health care products while ensuring financial discipline, driving margin and revenue growth to deliver value creation for our investors. This approach has been consistently demonstrated on a quarter-by-quarter basis. The results we've achieved this quarter serve as a testament to the successful execution, hard work and dedication of our exceptional team.

在 Biotricity，我們作為管理團隊和執行長的職責是創新和創造變革性的醫療保健產品，同時確保財務紀律，推動利潤和收入成長，為我們的投資者創造價值。這種方法已在逐季度的基礎上得到了一致的證明。我們本季的成果證明了我們卓越團隊的成功執行、辛勤工作和奉獻精神。

Turning to our Biosphere platform model and complementary products. We're thrilled to observe continued growth. Our Biocare app has garnered thousands of downloads, and Biotres continues to attract industry-wide interest among both new and existing customers. Earlier in the quarter, we announced a significant milestone between Bioflux and Biotres products. Biotricity has monitored over 2 billion heartbeats for atrial fibrillation, a leading cost of stroke. Over the past 2 years, our efforts have benefited over 14,000 patients diagnosed with AFib, providing early intervention and resulting in cost savings exceeding $330 million. By preventing late diagnosis and subsequent strokes, Biotricity has also facilitated savings exceeding $1.3 billion.

轉向我們的生物圈平台模型和補充產品。我們很高興看到持續增長。我們的 Biocare 應用程式已獲得數千次下載，Biotres 繼續吸引新舊客戶的全行業興趣。本季度早些時候，我們宣布了 Bioflux 和 Biotres 產品之間的一個重要里程碑。 Biotricity 已經監測了超過 20 億次心跳，以了解心房顫動（中風的主要費用）。在過去的兩年裡，我們的努力使超過 14,000 名被診斷為 AFib 的患者受益，提供了早期幹預，並節省了超過 3.3 億美元的成本。透過預防晚期診斷和隨後的中風，Biotricity 還節省了超過 13 億美元。

Our commitment to innovation remains unwavering as we harness data intelligently to explore novel avenues for enhancing health care outcomes. Through cutting-edge research and development, we're not only redefining medical diagnostics and patient care but also pushing the boundaries of what AI-driven solutions can achieve.

我們對創新的承諾始終堅定不移，我們智慧地利用數據來探索提高醫療保健成果的新途徑。透過尖端的研究和開發，我們不僅重新定義了醫療診斷和患者護理，而且還突破了人工智慧驅動的解決方案所能實現的界限。

Just last month, we announced that we are expanding our AI technology development in remote cardiac care. We are leveraging our proprietary AI technology to provide a suite of predictive monitoring tools to enhance new disease profiling, improve patient management and revolutionize the health care industry for disease prevention. This comes at the heels of us also announcing that we strengthened relationships with both Amazon and Google.

就在上個月，我們宣布正在擴大遠距心臟護理領域的人工智慧技術開發。我們正在利用我們專有的人工智慧技術提供一套預測監測工具，以增強新疾病分析、改善患者管理並徹底改變醫療保健產業的疾病預防。在此之前，我們也宣布要加強與亞馬遜和谷歌的關係。

The health care AI market opportunity is projected to grow to $208.2 billion by 2030, according to Grand View Research. Our company has already established a strong foothold, having already built a powerful proprietary cardiac AI model that combines Google's TensorFlow, AWS infrastructure, big data and a continuous learning engine. This combination allows us to rapidly improve our cardiac technology. In the near future, we believe the capabilities of our cardiac AI model will allow us to support health care professionals in handling exponentially more patients while identifying the most critical data. This will enable health care workers to elevate the quality of care while serving a larger number of patients.

Grand View Research 預計，到 2030 年，醫療保健人工智慧市場機會將成長至 2,082 億美元。我們公司已經站穩了腳跟，建立了強大的專有心臟人工智慧模型，結合了Google的 TensorFlow、AWS 基礎設施、大數據和持續學習引擎。這種組合使我們能夠快速改進我們的心臟技術。在不久的將來，我們相信心臟人工智慧模型的功能將使我們能夠支援醫療保健專業人員處理數量呈指數級增長的患者，同時識別最關鍵的數據。這將使醫護人員能夠提高護理質量，同時為更多患者提供服務。

As growing patient numbers further stress the shortage of health care professionals, our technology could help alleviate this pressing issue. We have engineered our technology to not only improve patient care and outcomes, but to do so in a manner that supports more patients. This has led to increasing sales of our remote cardiac monitoring devices and the ramp-up of our subscription-based service, increasing our recurring revenue over the past few quarters and charting a clear path to profitability.

隨著患者數量的增加進一步加劇了醫療保健專業人員短缺的壓力，我們的技術可以幫助緩解這一緊迫問題。我們設計的技術不僅可以改善患者護理和治療結果，而且可以支持更多患者。這導致我們的遠端心臟監測設備的銷量增加以及我們基於訂閱的服務的增加，增加了我們過去幾個季度的經常性收入，並製定了清晰的盈利之路。

With that, I'll turn the call over to our CFO, John Ayanoglou.

接下來，我會將電話轉給我們的財務長 John Ayanoglou。

Thank you, Waqaas. Given the insight that you provided in your discussion of key operational matters, I am going to review the first quarter fiscal 2024 highlights, which are unaudited. Our Technology-as-a-Service subscription-based recurring revenue from our Biotres and Bioflux devices continue to grow at a healthy pace. Revenue for the first quarter ended June 30, 2023, increased 46.9% year-over-year to $3 million. Our gross profit percentage was 63.5% for the quarter ended June 30, 2023, as compared to 59.6% in the corresponding prior year quarter. This increase in gross margin was largely attributed to an increase in margin related to our technology fees and reductions we were able to achieve in processing costs from providing these services, some of which relate to efficiencies gained through the use of AI.

謝謝你，瓦卡斯。鑑於您在討論關鍵營運問題時提供的見解，我將回顧 2024 財年第一季的亮點，這些亮點未經審計。我們來自 Biotres 和 Bioflux 設備的基於技術即服務訂閱的經常性收入繼續以健康的速度成長。截至2023年6月30日的第一季營收年增46.9%至300萬美元。截至 2023 年 6 月 30 日的季度，我們的毛利潤率為 63.5%，而去年同期為 59.6%。毛利率的成長主要歸因於與我們的技術費用相關的利潤增加以及我們透過提供這些服務所能實現的處理成本的降低，其中一些與透過使用人工智慧獲得的效率有關。

Given consistent gross margin on technology fees of approximately 70% or better and an evolving revenue mix where technology fees are expected to comprise an increasing proportion of revenue, we anticipate continued improvement in overall blended gross margin over time. Technology fees comprised 92% of the quarter's total revenue. Gross profit totaled $1.9 million, up 56% from $1.2 million a year ago. Net loss attributed to common stockholders for the 3 months ended June 30, 2023, was $3.6 million compared to a net loss of $5 million during the comparable quarter in the prior year.

鑑於技術費用的毛利率持續保持在約70% 或更高，以及不斷變化的收入結構（預計技術費用佔收入的比例將不斷增加），我們預計隨著時間的推移，總體混合毛利率將持續改善。技術費用佔該季度總收入的 92%。毛利總計 190 萬美元，比一年前的 120 萬美元成長 56%。截至 2023 年 6 月 30 日的三個月，普通股股東的淨虧損為 360 萬美元，而去年同期的淨虧損為 500 萬美元。

As we've mentioned in our call in June, our revenues come from 2 sources or segments: first, our technology fees, which are recurring subscription service fees generated by our monitoring, diagnostics and Biosphere services. For the first quarter fiscal 2024, our technology fees rose 47% to $2.77 million. In part, its strong growth reflects our extraordinary customer retention rate of approximately 98%, which in 1 simple single number speaks volumes about our excellent customer and cardiologist-friendly support services, superior device hardware and tech services, ease of use and superior diagnostics.

正如我們在 6 月的電話會議中提到的，我們的收入來自兩個來源或部分：首先，我們的技術費，這是由我們的監測、診斷和生物圈服務產生的經常性訂閱服務費。 2024 財年第一季度，我們的技術費用上漲 47% 至 277 萬美元。在某種程度上，其強勁成長反映了我們約98% 的非凡客戶保留率，這用一個簡單的數字就足以說明我們卓越的客戶和心臟病專家友好的支援服務、卓越的設備硬體和技術服務、易用性和卓越的診斷。

Our second revenue segment is device sales, which are the sales of our proprietary hardware, which, like our software, is all designed in-house. In first quarter fiscal 2024, device sales comprised 8.3% of our total revenue and were reported at $252,000. We are continuing to work hard towards achieving positive cash flow and just like we discussed in our fourth quarter year-end call, are starting to notice things taking a turn for the better in our financial growth. Indeed, all of our fundamentals are pointing upwards.

我們的第二個收入部分是設備銷售，即我們專有硬體的銷售，就像我們的軟體一樣，這些硬體都是內部設計的。 2024 財年第一季度，設備銷售額占我們總收入的 8.3%，報告金額為 252,000 美元。我們正在繼續努力實現正現金流，就像我們在第四季度年終電話會議中討論的那樣，我們開始注意到我們的財務成長正在好轉。事實上，我們所有的基本面都在向上。

I will now turn the call back to Waqaas for his closing comments.

我現在將把電話轉回給瓦卡斯，聽取他的結束語。

Thank you, John, for that report. In summary, there's a lot to be excited for as we look into the future of Biotricity and the addressable markets that we are involved in. Our AI segment has begun to accelerate. We've strengthened relationships with Amazon and Google, validating our position, leadership and commitment to AI development into remote cardiac care. In the future, we envision our cardiac AI models' capacities will empower us to assist health care experts in efficiently managing a significantly higher patient load while discerning the most vital data points so that we can enhance disease profiling, improve patient management and revolutionize the health care industry by centralizing these data points for disease prevention.

謝謝約翰的報告。總而言之，當我們展望 Biotricity 的未來以及我們所涉足的潛在市場時，有很多值得興奮的事情。我們的人工智慧領域已經開始加速發展。我們加強了與亞馬遜和谷歌的關係，驗證了我們對人工智慧開發到遠距心臟護理的地位、領導力和承諾。未來，我們設想心臟人工智慧模型的能力將使我們能夠協助醫療保健專家有效管理顯著增加的患者負荷，同時辨別最重要的數據點，以便我們能夠增強疾病分析、改善患者管理並徹底改變健康狀況護理行業透過集中這些數據點來預防疾病。

Looking towards the rest of calendar year 2023, our focus remains threefold: to increase sales of our remote cardiac monitoring devices and suite of products; ramp up our subscription-based service; and accelerate our recurring revenue and as such, draw a clear path to profitability.

展望 2023 年剩餘時間，我們的重點仍有三：增加遠端心臟監測設備和產品套件的銷售；加強我們的訂閱服務；並加速我們的經常性收入，以製定清晰的獲利之路。

That concludes our opening remarks. I will now turn the call over to the operator for questions.

我們的開場白就到此結束。我現在將把電話轉給接線員詢問問題。

(Operator Instructions) Our first question comes from Kevin Dede with H.C. Wainwright.

（操作員說明）我們的第一個問題來自 Kevin Dede 和 H.C.溫賴特。

Nice to see the sales ramp up. I was wondering if we could dig into the top line a little bit. Commentary that you and John offered and some digging suggest that device sales and fee revenue pretty consistent measure of the mix. But what isn't clear are the types of devices that are dominating the device sale mix and the relative service fees that you're seeing on those specific devices.

很高興看到銷量上升。我想知道我們是否可以深入研究一下頂線。您和約翰提供的評論和一些挖掘表明，設備銷售和費用收入對組合的衡量相當一致。但尚不清楚的是主導設備銷售組合的設備類型以及您在這些特定設備上看到的相對服務費用。

Yes. Great question, Kevin. I mean we aren't really breaking that down yet. We will, I think, in future quarters. What I can tell you is that the bulk of the revenue is still Bioflux. We have Biotres coming up, and I will refer you back to, I think, a press release that we did back a couple of months ago where we broke out how much of that revenue in terms of SaaS revenue was related to Bioflux and Biotres, but that mix is still about the same.

是的。好問題，凱文。我的意思是我們還沒有真正分解它。我認為，我們會在未來幾季。我可以告訴你的是，大部分收入仍然來自 Bioflux。我們即將推出 Biotres，我想我會向您推薦我們幾個月前發布的新聞稿，其中我們披露了 SaaS 收入中有多少收入與 Bioflux 和 Biotres 有關，但這種混合仍然大致相同。

And of course, Biotres is a new product. It's only been around for a year. Bioflux has been around for 4 years, so it's still going to make up the bulk of that revenue. But it is going to -- as the other products pick up rates and they become more available in the market as time goes on, they will become a better mix. And that's when we will start like breaking that information out and making it clear because it's still early days for some of these products, and we want to make sure that we have a handle on it internally before we start talking about exactly which one relates to what.

當然，Biotres 是一個新產品。它只存在了一年。 Bioflux 已經存在 4 年了，因此它仍將佔收入的大部分。但隨著時間的推移，隨著其他產品的價格上漲，並且它們在市場上變得越來越容易獲得，它們將成為更好的組合。那時我們將開始分解這些資訊並明確說明，因為其中一些產品還處於早期階段，我們希望確保在我們開始確切地討論哪一個與相關產品之前我們已經在內部掌握了它什麼。

Okay. Fair enough. Appreciate that. The past couple of calls, Waqaas, you've really sort of centered in on the ability to deliver AI-enhanced solutions. And I'm wondering, in the -- in this era of cost containment, how you're emphasizing your R&D expenditures vis-a-vis what had been a strategic imperative of expanding your product portfolio to address ancillary cardiac issues, such as nephrotology. So I was just wondering if you could just sort of help us think about where you're putting your development emphasis.

好的。很公平。感謝。 Waqaas，在過去的幾次電話會議中，您確實關注的是提供人工智慧增強型解決方案的能力。我想知道，在這個成本控制的時代，您如何強調研發支出，而不是擴大產品組合以解決輔助心臟問題（例如腎臟科）的策略要務。所以我只是想知道您是否可以幫助我們考慮您將開發重點放在哪裡。

Yes, absolutely. So what we've done is, as you know, we've launched a bunch of products in the last 6 to 9 months, right, grown our TAM and really focusing -- that development effort has already been sunk in, and we've already invested those dollars. So now we want to see the fruits of that, right? As those products become commercialized for a longer period of time, we're going to see more of that revenue, I mean, right?

是的，一點沒錯。所以，正如你所知，我們所做的是，我們在過去 6 到 9 個月內推出了一系列產品，發展了我們的 TAM，並真正專注於開發工作已經投入，我們'我已經投資了這些美元。所以現在我們想看看它的成果，對吧？隨著這些產品商業化的時間更長，我們將看到更多的收入，我的意思是，對吧？

In the meantime, we are focusing on 2 things in terms of our R&D dollars, right? One is, in the automation perspective and in terms of cost management like you identified, we're focusing on stuff that is enhancing ultimately the product, right? So we can expand the product and go faster. So there's still product related, right? So when we take a look at what can we automate from a workflow perspective and where can we apply AI, some of the improvements that we're seeing on the margin side, some of the stuff that we're seeing on the expense reduction side is directly related to efficiency that we are applying within the existing product portfolio, right, and so taking AI, taking automation, applying it to enhance the workflows and provide better support and better data into our existing products so that they are effectively operating at a more efficient level, right?

同時，我們在研發資金方面重點關注兩件事，對嗎？一是，從自動化的角度和成本管理的角度來看，就像您所指出的那樣，我們專注於最終增強產品的東西，對吧？這樣我們就可以擴展產品並走得更快。所以還是有產品相關，對吧？因此，當我們從工作流程的角度來看我們可以自動化什麼以及我們可以在哪裡應用人工智慧時，我們在利潤方面看到的一些改進，我們在費用減少方面看到的一些東西與我們在現有產品組合中應用的效率直接相關，對吧，因此採用人工智慧，採用自動化，應用它來增強工作流程，並為我們現有的產品提供更好的支援和更好的數據，以便它們有效地運行更有效率的水平，對吧？

One area that we're investing R&D dollars into. And why we do that is because it's a direct drive, right? We know if we spend X number of dollars. There's a measurable result that we will get, meaning our cost reduction will go down, right? So when we're thinking about an initiative that we have, we're saying, hey, if we do X, right, if we implement this automation, and this is a practical example, we know that our COGS will come down by 3%, right? So that's something that is a direct driver when we know what that 3% means, and we know what that cost is. Okay?

我們正在投資研發資金的一個領域。我們為什麼這樣做是因為它是直接驅動，對吧？我們知道我們是否花了 X 美元。我們將得到一個可衡量的結果，這意味著我們的成本降低將會下降，對嗎？因此，當我們考慮我們擁有的一項計劃時，我們會說，嘿，如果我們做 X，對吧，如果我們實施此自動化，這是一個實際的例子，我們知道我們的 COGS 將下降 3 ％，正確的？因此，當我們知道 3% 意味著什麼並且我們知道成本是多少時，這就是一個直接驅動因素。好的？

Then the other area that we're looking at for R&D is we are continuing to invest in areas. And of course, we're looking for -- last call, I talked about our NIH grant, right? So when we talk about nephrology and some of these other areas, we're looking at areas that, again, how can we collect low-hanging fruit revenue and where we can take our technology, enhance it and then apply it in another market, right? And where we can, we will go in and try to find grants or R&D projects or work with universities and see where we can, of course, further reduce that cost.

然後，我們正在尋找研發的另一個領域是我們正在繼續投資的領域。當然，我們正在尋找——上次通話，我談到了我們的 NIH 撥款，對嗎？因此，當我們談論腎臟病學和其他一些領域時，我們正在考慮的是，我們如何才能獲得唾手可得的收入，以及我們可以在哪裡採用我們的技術，增強它，然後將其應用到另一個市場，正確的？在可能的情況下，我們將嘗試尋找資助或研發項目，或與大學合作，看看我們可以在哪裡進一步降低成本。

But it's very -- the investment on the R&D is very much driven directly by, okay, how can we commercialize or how can we (inaudible) or how can we apply the product in a market where we know that we can get direct drive revenue from. So it's a very focused approach in our R&D because now that we've built the platform, before we had a -- and that division was building the platform. We invested dollars for 2 years to build that platform. That platform is now built. Now it's about enhancing and applying it in areas where we know we can get revenue back from.

但這是非常 - 研發投資很大程度上直接由我們如何商業化或我們如何（聽不清楚）或我們如何將產品應用到我們知道我們可以獲得直接驅動收入的市場中直接驅動從。因此，這是我們研發中非常集中的方法，因為現在我們已經建立了平台，而該部門正在建立平台。我們投資了兩年的時間來建立這個平台。該平台現已建成。現在的重點是在我們知道可以從中收回收入的領域中增強和應用它。

Appreciate the color on that. A little on the business development. I always go back to this topic. You mentioned coverage of 35 states. I'm wondering if you're comfortable sharing what your targets are for the balance of the fiscal year, just so we can sort of keep an eye on that or if you're more comfortable maybe offering the number of physicians you hope to address or the number of clinics, some sort of quantifiable measure that we can monitor.

欣賞它的顏色。稍微談一下業務發展。我總是回到這個主題。您提到涵蓋 35 個州。我想知道您是否願意分享本財年剩餘時間的目標，以便我們可以密切關注，或者如果您更願意提供您希望解決的醫生數量或診所的數量，這是我們可以監控的某種量化指標。

We're not usually providing the guidance on that stuff. What I can say is -- what we are saying is we're announcing as we grow that network and as we optimize that network. I mean, obviously, our goal is to have 50-state exposure. And I would say, in some parts, because we've added distribution relationships, that we do have that presence. But what we've been really focusing now on is, of course, building out our sales force, making sure that the key markets, we've addressed the key markets. And I think what's going to happen, and we will certainly announce this when we have a better (inaudible), which is, to say, okay, as we build out these distribution relationships, we will put a concerted effort in trying to march towards 50 states.

我們通常不會提供有關這些內容的指導。我能說的是——我們所說的是，我們在發展該網絡和優化該網絡時宣布這一消息。我的意思是，顯然，我們的目標是在 50 個州開展業務。我想說，在某些方面，因為我們增加了分銷關係，所以我們確實擁有這種存在。當然，我們現在真正關注的是建立我們的銷售隊伍，確保我們已經解決了關鍵市場的問題。我認為將會發生什麼，當我們有更好的（聽不清楚）時，我們肯定會宣布這一點，也就是說，好的，當我們建立這些分銷關係時，我們將齊心協力，努力邁向50 州。

So distribution partners have people in -- they essentially have 50-state coverage. But when you do a distribution partner of size, you have to work with different groups within that division and different reps. And for us, we focus on areas where we're not covered. So I think what we will -- what we can see and how I can answer it is that look for us over the next couple of quarters that as we work with some of the relationships that we've made, how we are going to expand that state coverage. And we will announce that and notify everybody. And our goal, of course, is to get to 50 states as quickly as possible and focusing our primary, like our direct sales efforts in the areas that we have the most opportunity.

因此，分銷合作夥伴的人員覆蓋範圍基本上涵蓋了 50 個州。但是，當您建立規模較大的經銷合作夥伴時，您必須與該部門內的不同團隊和不同代表合作。對我們來說，我們專注於我們沒有涵蓋的領域。因此，我認為我們將 - 我們可以看到什麼以及我如何回答它是，在接下來的幾個季度中尋找我們，當我們與我們已經建立的一些關係合作時，我們將如何擴展該州的覆蓋範圍。我們將宣布這一點並通知所有人。當然，我們的目標是盡快涵蓋 50 個州，並將我們的主要工作重點放在我們最有機會的地區，例如我們的直銷工作。

Okay. A couple of financial questions. Maybe John will chime in too. The gross margin, absolutely great sequential progress on that. I'm wondering how you think we should see it from a sustainable perspective. I know John mentioned approaching, I think, the -- like the 70% margin. I think I understood that. I'm just wondering what sort of time frame we might expect that to happen.

好的。幾個財務問題。也許約翰也會插話。毛利率絕對是連續的巨大進步。我想知道您認為我們應該如何從可持續的角度看待它。我知道約翰提到接近 70% 的利潤率。我想我明白了。我只是想知道我們預計會在什麼樣的時間範圍內發生。

So I think the piece that is happening is that, before, we weren't even identifying this stuff. So as you see that we get a handle on these things, we're going to provide more and more color. The thing is, as we've announced in the last few press release, our revenue mix of SaaS versus device sales, device sales have a different margin and SaaS has had consistent margin, right, of between 70-ish percent.

所以我認為正在發生的事情是，之前我們甚至沒有識別出這些東西。因此，當您看到我們已經掌握了這些事情時，我們將提供越來越多的顏色。事實是，正如我們在最近幾篇新聞稿中宣布的那樣，我們的 SaaS 與設備銷售的收入組合，設備銷售的利潤率不同，而 SaaS 的利潤率始終一致，對吧，在 70% 左右。

So we will start announcing that. And in terms of how long will it be, I would say that, eventually, I think once you are 99% of your revenue being SaaS related and 1% being device, essentially, your margin steady state rate is going to be your SaaS rate. We still have about 9% or something around that revenue that we have to build up towards on the SaaS side to get to that steady state. And can we predict and tell you when we expect to do that? I would say no, but I think that going from now forward, every quarter, we will announce that mix, and you will see that margin creep closer to that as a steady-state margin.

所以我們將開始宣布這一點。至於這會持續多久，我想說，最終，我認為一旦你的收入的 99% 與 SaaS 相關，1% 與設備相關，基本上，你的利潤率穩態率將是你的 SaaS 率。我們仍然有大約 9% 左右的收入，我們必須在 SaaS 方面累積這些收入才能達到穩定狀態。我們可以預測並告訴您我們預計何時這樣做嗎？我會說不，但我認為從現在開始，每個季度我們都會宣布這種組合，你會看到利潤率逐漸接近穩態利潤率。

Okay. On the -- just on the OpEx side, cost controls and you eliminated almost $1 million of OpEx from the March quarter. I'm wondering if you think this reduced expense level is sustainable.

好的。僅在營運支出方面，透過成本控制，您從 3 月所在季度消除了近 100 萬美元的營運支出。我想知道您是否認為這種費用水平的降低是可持續的。

So what we've done -- and I think that this is a fantastic quarter, and I think it's going to be indicative of what we are doing going forward. So cost cutting, I wouldn't call it about cost cutting. What we have done is we have optimized our operations to focus on a commercial team, which is focusing purely on sales. And a corporate team, which is focusing on account management and operations and delivering services at a certain efficiency level. We grew to a size and everybody -- there's these -- always these milestones for companies, and they're, I think, milestones for reasons. And we achieved a milestone, which we were at a $10 million revenue run rate and it allowed us to basically look at the organization and apply more processes and procedures.

所以我們所做的——我認為這是一個非常棒的季度，我認為這將表明我們未來正在做什麼。所以成本削減，我不會稱之為成本削減。我們所做的是優化我們的運營，專注於商業團隊，該團隊純粹專注於銷售。還有一個企業團隊，專注於客戶管理和運營，並以一定的效率水平提供服務。我們發展到一定規模，每個人——有這些——總是這些公司的里程碑，我認為，它們是里程碑是有原因的。我們實現了一個里程碑，我們的收入運作率為 1000 萬美元，這使我們能夠從根本上審視組織並應用更多流程和程序。

So moving forward, the ratios that we are seeing that are in this past quarter, we expect to be able to continue those. But if we're growing, our costs and our expenses are going to grow, but the ratios, we expect to be maintained.

因此，展望未來，我們在上個季度看到的比率，我們預計能夠繼續下去。但如果我們正在成長，我們的成本和開支就會增加，但我們預期比率會保持不變。

There are no further questions at this time. Gentlemen, we'll turn the conference back over to you for any additional or closing remarks.

目前沒有其他問題。先生們，我們將把會議轉回給你們，讓你們發表任何補充或結束語。

Thank you, everybody, for joining our conference call. If there are any other questions that pop up or if you guys have any other information that you are looking for, please feel free to reach out to us. We are always available. You can reach us via our website or through e-mail or through LinkedIn or any of our social channels. Thank you again, and we're very excited about the rest of the year.

感謝大家參加我們的電話會議。如果出現任何其他問題，或您需要任何其他資訊，請隨時與我們聯繫。我們隨時為您服務。您可以透過我們的網站、電子郵件、LinkedIn 或我們的任何社交管道與我們聯繫。再次感謝您，我們對今年剩下的時間感到非常興奮。

Thank you so much.

太感謝了。

Thank you. That does conclude today's conference. We thank you for your participation. You may now disconnect.

謝謝。今天的會議到此結束。我們感謝您的參與。您現在可以斷開連線。