Cutera Inc (CUTR) 2022 Q4 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Cutera, Inc. Fourth Quarter 2022 Results Conference Call. (Operator Instructions) and the conference is being recorded. (Operator Instructions)

謝謝你的支持。這是會議接線員。歡迎來到 Cutera, Inc. 2022 年第四季度業績電話會議。 （操作員說明）並且正在錄製會議。 （操作員說明）

The discussion today includes forward-looking statements. These forward-looking statements reflect management's current forecast or expectation of current aspects of the company's future business, including, but not limited to, any financial guidance provided for modeling purposes.

今天的討論包括前瞻性陳述。這些前瞻性陳述反映了管理層當前對公司未來業務當前方面的預測或期望，包括但不限於為建模目的提供的任何財務指導。

Forward-looking statements are based on current information that is, by its nature, dynamic and subject to change. Forward-looking statements include, among others, statements regarding financial guidance, regulatory approvals, productivity improvements and plans to introduce new products and expand into additional geographies. For words that identify forward-looking statements we encourage you to refer to the safe harbor statement in our press release earlier today.

前瞻性陳述基於當前信息，就其性質而言，這些信息是動態的並且可能會發生變化。前瞻性陳述除其他外，包括有關財務指導、監管批准、生產力改進以及推出新產品和擴展到其他地區的計劃的陳述。對於識別前瞻性陳述的詞語，我們鼓勵您參考今天早些時候我們新聞稿中的安全港聲明。

All forward-looking statements are subject to risks and uncertainties, including those risk factors described in the section entitled Risk Factors in our Form 10-K as filed with the Securities and Exchange Commission and updated in our Form 10-Q subsequently filed. Cutera also cautions you not to place undue reliance on forward-looking statements, which speak only as of the date they are made. Cutera undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances or to reflect the occurrence of a unanticipated events.

所有前瞻性陳述均受風險和不確定因素的影響，包括我們向美國證券交易委員會提交的 10-K 表格中標題為風險因素的部分中描述的風險因素，並在隨後提交的 10-Q 表格中進行了更新。 Cutera 還提醒您不要過分依賴前瞻性陳述，這些陳述僅代表截至發表之日的情況。 Cutera 不承擔公開更新任何前瞻性陳述以反映新信息、事件或情況或反映意外事件發生的義務。

Future results may differ materially from management's current expectations. In addition, -- we will discuss non-GAAP financial measures, including results on an adjusted basis. We believe these financial measures can facilitate a more complete analysis and greater transparency into Cutera's ongoing results of operations, particularly when comparing underlying results from period to period. Please refer to the reconciliation of GAAP to non-GAAP measures in our earnings release.

未來的結果可能與管理層當前的預期存在重大差異。此外，——我們將討論非 GAAP 財務指標，包括調整後的結果。我們相信，這些財務措施可以促進對 Cutera 的持續運營結果進行更完整的分析和更高的透明度，尤其是在比較不同時期的基本結果時。請參閱我們的收益發布中 GAAP 與非 GAAP 措施的調節。

These non-GAAP financial measures should be considered along with but not as alternatives to the operating performance measures prescribed by GAAP.

這些非 GAAP 財務指標應與 GAAP 規定的經營業績指標一起考慮，但不能替代。

With that, I would like to turn the conference over to Dave Mowry, CEO of Cutera. Please go ahead.

有了這個，我想把會議轉交給 Cutera 的首席執行官 Dave Mowry。請繼續。

Thank you, operator. Good afternoon, and welcome to Cutera's Fourth Quarter and Full Year 2022 Earnings Call. We are glad that you can join us for this update. Rohan Seth, our Chief Financial Officer, is joining me on today's call. During the initial segment of the call, I will provide you with our view on the fourth quarter 2022 performance as well as the underlying market fundamentals and other leading indicators of the health of our business.

謝謝你，運營商。下午好，歡迎來到 Cutera 的第四季度和 2022 年全年收益電話會議。我們很高興您能加入我們的這次更新。我們的首席財務官 Rohan Seth 將與我一起參加今天的電話會議。在電話會議的最初部分，我將向您提供我們對 2022 年第四季度業績的看法，以及潛在的市場基本面和我們業務健康狀況的其他領先指標。

I will then pass the call to Rohan who will provide you with greater detail on our financial results for both fourth quarter 2022 and full year 2022 periods. As well as share our initial full year 2023 financial guidance.

然後我會將電話轉給 Rohan，他將向您提供我們 2022 年第四季度和 2022 年全年財務業績的更多詳細信息。以及分享我們最初的 2023 年全年財務指南。

Following Rohan's remarks, I will share our thoughts on the year ahead, the financial contributions of the AviClear product and the associated business transformation we anticipate delivering over the course of 2023. Following our prepared remarks, we will turn the call over to the operator, who will then open the call to your questions.

在 Rohan 的發言之後，我將分享我們對未來一年的看法、AviClear 產品的財務貢獻以及我們預計在 2023 年實現的相關業務轉型。在我們準備好的發言之後，我們將把電話轉給運營商，然後誰將打開您的問題的電話。

With that being said, let's dive right in. As a starting point for the call, I'd like to put our full year 2022 performance into perspective. During 2022, our team delivered strong top line results with a mid-teens full year constant currency growth across the business with contributions coming from each geography in almost every product category. This performance came in the face of macroeconomic pressures, wavering consumer confidence and material foreign exchange headwinds. Additionally, we successfully brought to market and scaled an innovative first-mover energy-based laser for the treatment of acne, which we believe increases our total addressable market by nearly 2.5-fold.

話雖如此，讓我們開始吧。作為電話會議的起點，我想對我們 2022 年的全年業績進行透視。在 2022 年期間，我們的團隊取得了強勁的收入業績，整個業務的全年貨幣增長率保持在十幾歲左右，幾乎每個產品類別的每個地區都做出了貢獻。這一業績是在宏觀經濟壓力、消費者信心動搖和重大外匯逆風的情況下取得的。此外，我們成功地將用於治療痤瘡的創新先行者能量激光推向市場並擴大規模，我們相信這將使我們的總潛在市場增加近 2.5 倍。

The AviClear device is and will always be the first FDA-approved device for the treatment of mild, moderate and severe acne across all skin types. Most critically the clinical outcomes in patient safety profile from the signature procedure are unmatched. We remain convinced that this device will indeed change the way that dermatologists see and treat acne.

AviClear 設備現在是並將永遠是第一個獲得 FDA 批准的設備，用於治療所有皮膚類型的輕度、中度和重度痤瘡。最關鍵的是，簽名程序在患者安全方面的臨床結果是無與倫比的。我們仍然相信，該設備確實會改變皮膚科醫生看待和治療痤瘡的方式。

Finally, we were able to see the green shoots of the financial transformation we intend to deliver through the novel AviClear business model. By approaching the acne market with a unique placement-based approach to AviClear, we have established a true collaboration that tightly aligns our interests with those of the clinicians and practice owners.

最後，我們能夠看到我們打算通過新穎的 AviClear 商業模式實現的財務轉型的萌芽。通過採用獨特的基於放置的 AviClear 方法進入痤瘡市場，我們建立了真正的合作關係，使我們的利益與臨床醫生和執業所有者的利益緊密結合。

In addition to the transformation of our customer relationships, we also expect AviClear to energize top line migration to recurring revenues, expansion of gross margins, increased positive impact on EBITDA, greater linearity in our business, and a significant change in the trajectory of cash generation for Cutera. I will provide additional commentary on the AviClear program later in this discussion.

除了我們的客戶關係轉變之外，我們還期望 AviClear 能夠推動頂線遷移到經常性收入、擴大毛利率、增加對 EBITDA 的積極影響、提高我們業務的線性度以及現金生成軌蹟的重大變化對於 Cutera。我將在本次討論的稍後部分提供有關 AviClear 程序的其他評論。

Turning now to fourth quarter 2022 performance. While revenue was lower than expected, we overachieved our AviClear placement expectations following its full North American launch announced in November of 2022.

現在轉向 2022 年第四季度的業績。雖然收入低於預期，但在 2022 年 11 月宣佈在北美全面推出後，我們超額實現了 AviClear 的安置預期。

Top line shortfall in the period was driven by a miss on the North American core capital equipment sales and, to a lesser extent, North American core consumable product sales. Both of which were directly impacted by the extend in volume of AviClear activity in the period as key account managers focused on promoting, placing and supporting the increased customer demand for AviClear. As previously disclosed, we are utilizing the same sales force to place AviClear and sell our core capital equipment.

這一時期的收入短缺是由於北美核心資本設備銷售失誤以及在較小程度上北美核心消耗品銷售失誤造成的。由於主要客戶經理專注於推廣、安置和支持客戶對 AviClear 不斷增長的需求，因此這兩者都直接受到該期間 AviClear 活動量增加的影響。如前所述，我們正在利用相同的銷售人員來安置 AviClear 並出售我們的核心資本設備。

In fourth quarter 2022 the North American capital team focused its efforts on driving AviClear bookings and perhaps over-index some of their efforts. Following the full North American AviClear launch, strong underlying interest in AviClear quickly converted into customer demand that occupied our sales team throughout November and most of December. The higher-than-anticipated volume of deals diverted much attention away for routine processing of core capital deals and left a significantly shortened time frame to close deals when sales reps finally pivoted back to their core capital pipeline.

2022 年第四季度，北美資本團隊將精力集中在推動 AviClear 預訂量上，並可能超出了他們的一些努力。在北美 AviClear 全面推出後，對 AviClear 的強烈潛在興趣迅速轉化為客戶需求，這在整個 11 月和 12 月的大部分時間裡佔據了我們的銷售團隊。高於預期的交易量轉移了對核心資本交易日常處理的注意力，並在銷售代表最終轉向核心資本渠道時大大縮短了完成交易的時間。

Based upon our experience thus far with the AviClear launch, we believe that these efforts spent prospecting and closing AviClear deals would have translated into advancing approximately 100 to 120 million core capital deals, which we estimate to have resulted in roughly $4 million to $5 million of core capital revenue, some of which may still be recovered over the course of 2023.

根據我們迄今為止在 AviClear 推出方面的經驗，我們認為，這些用於勘探和完成 AviClear 交易的努力將轉化為推進大約 100 至 1.2 億筆核心資本交易，我們估計這些交易產生了大約 400 萬至 500 萬美元的核心資本收入，其中一些收入可能仍會在 2023 年收回。

We have already taken action to address the root cause of our capital revenue shortfall in fourth quarter 2022. The underlying issues requiring attention are: Number one, sales rep activity and monitoring; and number two, sales commission and incentive structures. Following end-of-year close activities, we went to work with the North American sales leadership team to understand these issues.

我們已經採取行動解決 2022 年第四季度資本收入短缺的根本原因。需要注意的根本問題是： 第一，銷售代表活動和監控；第二，銷售佣金和激勵結構。在年終總結活動之後，我們與北美銷售領導團隊合作以了解這些問題。

And this has, in turn, resulted in the construction and implementation of an uncapped compensation program that rewards sales performance when it achieves goals in both the core and AviClear segments.

而這反過來又導致了一個無上限的薪酬計劃的構建和實施，該計劃在核心和 AviClear 細分市場實現目標時獎勵銷售業績。

Additionally, we have implemented activity tracking utilizing Salesforce.com application to help sales managers ensure that adequate time and attention are being applied by each rep across both segments. While these repairs may seem obvious, these are management oversights, and they do not reflect upon the skills or capabilities of our North American sales force.

此外，我們還利用 Salesforce.com 應用程序實施了活動跟踪，以幫助銷售經理確保兩個部門的每個代表都投入了足夠的時間和注意力。雖然這些維修看起來很明顯，但這些都是管理疏忽，它們並沒有反映我們北美銷售人員的技能或能力。

As you will hear later in the discussion, the level of AviClear placements in the period confirms the quality and capabilities of this exceptional sales team. Now with data in hand, we are actively reviewing the sales activity at senior levels within the organization with the goal of leveraging this information to improve our sales processes. Meanwhile, our sales managers are delivering a strong accountability message that efforts must be applied across both segments. Additionally, our internal staff is scaling its support to ensure that the capital sales team can remain tightly focused on processing deals with their customers.

正如您將在稍後的討論中聽到的那樣，這段時間內 AviClear 的安置水平證實了這個傑出銷售團隊的素質和能力。現在有了數據，我們正在積極審查組織內高層的銷售活動，目的是利用這些信息改進我們的銷售流程。與此同時，我們的銷售經理正在傳達一個強烈的問責信息，即必須在兩個部門都做出努力。此外，我們的內部員工正在擴大其支持範圍，以確保資本銷售團隊能夠繼續專注於處理與客戶的交易。

Before turning the call over to Rohan, I would like to share our view of the markets as we look ahead to 2023. We believe that some macroeconomic headwinds are indeed present and that these will have an impact on our 2023 results. Nevertheless, we believe that these changes will not be long lasting as underlying market feedback continues to highlight steady patient traffic. Additionally, our routine assessment of activity levels indicates well-booked practice schedules. Reinforcing our confidence in the continued resiliency that we have seen over the past 6 quarters.

在將電話轉給 Rohan 之前，我想分享我們對 2023 年市場的看法。我們認為確實存在一些宏觀經濟逆風，這些逆風將對我們 2023 年的業績產生影響。儘管如此，我們認為這些變化不會持續很長時間，因為潛在的市場反饋繼續強調穩定的患者流量。此外，我們對活動水平的例行評估表明練習計劃安排得很好。增強了我們對過去 6 個季度所看到的持續彈性的信心。

With AviClear now in full launch, we can leverage what we believe to be a more recession-resistant process and procedure to place products into areas that may be more impacted by macroeconomic factors. In the end, we expect to be able to leverage our core products, bolstered by some new product introductions in combination with AviClear to deliver above-market performance for the business.

隨著 AviClear 現在全面推出，我們可以利用我們認為更能抵抗衰退的過程和程序，將產品投放到可能受宏觀經濟因素影響更大的領域。最後，我們希望能夠利用我們的核心產品，結合 AviClear 推出一些新產品，為企業提供高於市場的業績。

With that, let me turn the call over to Rohan to provide some additional color on our financial performance and our fiscal year 2023 outlook. Rohan?

有了這個，讓我把電話轉給羅漢，為我們的財務業績和 2023 財年展望提供一些額外的色彩。羅漢？

Thank you, Dave. As I review my prepared remarks, I want to note that I will be discussing some non-GAAP results. A complete reconciliation of GAAP to non-GAAP is included in our earnings release. We encourage listeners and readers to review our non-GAAP metrics in conjunction with the GAAP results as contained in this earnings release.

謝謝你，戴夫。當我回顧我準備好的評論時，我想指出我將討論一些非 GAAP 結果。我們的收益發布中包含 GAAP 與非 GAAP 的完整調節。我們鼓勵聽眾和讀者結合本收益發布中包含的 GAAP 結果來審查我們的非 GAAP 指標。

Total revenue for the fourth quarter was $67.4 million compared to $65.6 million for the same period in 2021, representing an increase of approximately 3% on an as-reported basis.

第四季度的總收入為 6740 萬美元，而 2021 年同期為 6560 萬美元，較報告增長約 3%。

During the quarter, we continued to face meaningful foreign currency headwinds and our constant currency revenue growth was approximately 10%. Fourth quarter North American capital equipment revenue of $25 million decreased by 13% in over the prior year. International capital equipment revenue for the fourth quarter was $17.4 million, up 18% as reported and 27% in constant currency from the fourth quarter of 2021.

本季度，我們繼續面臨重大的外匯逆風，我們的貨幣收入持續增長約 10%。第四季度北美資本設備收入為 2500 萬美元，比上年同期下降 13%。第四季度國際資本設備收入為 1740 萬美元，較 2021 年第四季度報告增長 18%，按固定匯率計算增長 27%。

We recurring revenue defined as our Consumables, Global Service, Skincare and AviClear product lines was $24.9 million in the fourth quarter, up 13% as reported and 29% in constant currency. The increase over the prior year was largely driven by Skincare revenue of $11.8 million, up 10% as reported and 37% in constant currency and the continued ramp of AviClear generating $3.2 million in revenue for the fourth quarter.

我們的經常性收入定義為我們的消耗品、全球服務、護膚品和 AviClear 產品線在第四季度為 2490 萬美元，報告增長 13%，按固定匯率計算增長 29%。與上一年相比的增長主要是受護膚品收入 1180 萬美元的推動，據報導增長 10%，按固定匯率計算增長 37%，以及 AviClear 的持續增長在第四季度產生了 320 萬美元的收入。

This growth was partially offset by a decline in Consumable revenue, which came in at $4.2 million down 22% as reported and 18% on a constant currency basis, driven by our clear account onboarding activities, diverting the attention of our sales team away from core promotional events. Our service revenue grew slightly at 2% on a constant currency basis. Non-GAAP gross profit for the fourth quarter of fiscal 2022 was $40 million. with a gross margin of 59.4%, representing an increase of 30 basis points compared to the same period last year.

這一增長被消耗品收入的下降部分抵消，據報告，消耗品收入為 420 萬美元，按固定匯率計算下降 22%，按固定匯率計算下降 18%，這是由於我們清晰的賬戶入職活動，將我們的銷售團隊的注意力從核心轉移開促銷活動。按固定匯率計算，我們的服務收入小幅增長 2%。 2022 財年第四季度的非美國通用會計準則毛利潤為 4000 萬美元。毛利率59.4%，同比上升30個基點。

Excluding a more than 210 basis point impact from foreign exchange headwinds the non-GAAP gross margin in the fourth quarter would have been 61.5%, an approximately 240 basis point improvement over the prior year. This was particularly impressive given the shortfall in North American capital revenue and highlights the transformation that AviClear is bringing to our business.

排除外匯逆風帶來的超過 210 個基點的影響，第四季度的非 GAAP 毛利率為 61.5%，比去年同期提高約 240 個基點。考慮到北美資本收入的不足，這尤其令人印象深刻，並凸顯了 AviClear 為我們的業務帶來的轉變。

Total non-GAAP operating expenses for the fourth quarter of 2022 were $39.7 million compared to $34.5 million for the same period last year. Included within this number are $6.7 million in expenses related to AviClear.

2022 年第四季度的非美國通用會計準則運營費用總額為 3970 萬美元，而去年同期為 3450 萬美元。此數字中包括與 AviClear 相關的 670 萬美元費用。

Non-GAAP sales and marketing expenses for the fourth quarter of 2022 were $26 million compared to $22.3 million for the same period last year, driven by continued expansion in our sales force. higher commissions and increased travel. Non-GAAP R&D expenses for the fourth quarter of 2022 were $5.5 million compared to $5.6 million for the same period last year.

2022 年第四季度的非美國通用會計準則銷售和營銷費用為 2600 萬美元，而去年同期為 2230 萬美元，這是由於我們的銷售隊伍持續擴張。更高的佣金和更多的旅行。 2022 年第四季度的非美國通用會計準則研發費用為 550 萬美元，而去年同期為 560 萬美元。

Non-GAAP G&A expenses for the fourth quarter of 2022 were $8.3 million compared to $6.6 million in the same period last year, driven by expansion in our head count and an increase in our bad debt reserve due to an increase in [aids] receivables. This was driven mainly by the same sales force distraction that impacted core capital equipment sales. We expect this to largely be addressed over the next couple of quarters.

2022 年第四季度的非 GAAP G&A 費用為 830 萬美元，而去年同期為 660 萬美元，這是由於我們的員工人數增加以及由於 [援助] 應收賬款增加而導致我們的壞賬準備金增加。這主要是由於影響核心資本設備銷售的相同銷售人員分心所致。我們預計這個問題將在接下來的幾個季度內得到解決。

For the fourth quarter of 2022, our non-GAAP operating income, which we refer to as adjusted EBITDA was $0.2 million compared to $4.3 million in the prior year period, largely driven by FX headwinds of more than $3.4 million and costs associated with the full North American launch of AviClear.

2022 年第四季度，我們的非美國通用會計準則營業收入（我們稱之為調整後的 EBITDA）為 20 萬美元，而去年同期為 430 萬美元，這主要是由於超過 340 萬美元的外匯逆風以及與全部相關的成本在北美推出 AviClear。

Finally, there were no material or significant changes to our tax position. Turning now to our balance sheet. We ended the quarter with $217.3 million of cash and marketable securities compared to $250.8 million at the end of the third quarter. driving the $66.5 million sequential increase or $91.4 million of net proceeds from our December convertible debt rate, partially offset by $24.9 million of cash utilization primarily driven by increased over deployment.

最後，我們的稅務狀況沒有重大或重大變化。現在轉向我們的資產負債表。本季度末，我們擁有 2.173 億美元的現金和有價證券，而第三季度末為 2.508 億美元。推動 6650 萬美元的環比增長或 9140 萬美元的淨收益來自我們 12 月的可轉換債券利率，部分被 2490 萬美元的現金使用所抵消，這主要是由於過度部署的增加。

Before I turn the call back over to Dave, I would like to provide you with our outlook for the full year of 2023. We are issuing constant currency revenue guidance of $277 million to $292 million, implying 10% to 16% constant currency growth over the prior year. At current foreign exchange rates, we expect to eclipse these headwinds exiting Q2 '23. We also expect adjusted EBITDA to be in the low single-digit millions with consistent sequential improvement as we progress through 2023. And we expect to continue to consume cash, primarily in the first half of 2023 as we continue to expand our AviClear footprint in the North American market with a projected cash consumption of $55 million to $65 million, greater than half of which will happen in Q1. By Q4 2023, we expect to achieve cash flow breakeven. As a reminder, our core business historically has consumed cash in Q1 and Q2 of the year. With that, I will now pass the call back over to Dave.

在我將電話轉回給 Dave 之前，我想向您提供我們對 2023 年全年的展望。我們發布了 2.77 億美元至 2.92 億美元的固定貨幣收入指引，這意味著 10% 至 16% 的固定貨幣增長前一年。按照目前的匯率，我們預計這些不利因素將在 23 年第二季度結束時消失。我們還預計，隨著我們到 2023 年的進展，調整後的 EBITDA 將保持在較低的個位數百萬，並持續持續改善。我們預計將繼續消耗現金，主要是在 2023 年上半年，因為我們將繼續擴大我們在美國的 AviClear 足跡北美市場預計現金消耗為 5500 萬至 6500 萬美元，其中一半以上發生在第一季度。到 2023 年第四季度，我們預計將實現現金流盈虧平衡。提醒一下，我們的核心業務歷來在今年第一季度和第二季度消耗現金。有了這個，我現在將把電話轉回給戴夫。

Thank you, Rohan. As noted in our earnings release earlier today, I was especially pleased in the period to see broad product acceptance of the AviClear device as well as the corresponding customer demand, enabling us to accelerate AviClear placements, which exceeded 600 units for 2022. Our team's relentless focus on leading with clinical results, providing increased support for practice adoption and ensuring the delivery of improved patient outcomes in less time with a reduced patient risk profile is indeed resonating within the dermatology markets as well as with patients.

謝謝你，羅漢。正如我們在今天早些時候發布的收益報告中指出的那樣，我特別高興在此期間看到 AviClear 設備的產品得到廣泛接受以及相應的客戶需求，這使我們能夠加快 AviClear 的投放速度，到 2022 年投放量超過 600 台。我們團隊的不懈努力專注於以臨床結果為主導，為實踐採用提供更多支持，並確保在更短的時間內提供改善的患者結果並降低患者風險，這確實在皮膚病學市場和患者中引起了共鳴。

We expect to sustain a placement rate of 200 to 300 AviClear devices per quarter and exit 2023 and with greater than 1,500 AviClear devices in our active installed base. As part of our 2023 AviClear plans, we intend to increase our efforts in driving utilization with each practice. To date, we have been prioritizing our efforts on placements to fully leverage the first-mover advantage we created through the execution of our product development, clinical and regulatory functions. We also recognize that any incremental improvement in utilization applied across our growing installed base, will deliver a profound revenue and profitability impact in the long-term, and we have initiated a coordinated effort to drive patient traffic. These efforts will build over the course of 2023 and 2024 and include indication expansion, continued procedure optimization and an expanded patient outreach and awareness campaign.

我們預計每季度將保持 200 至 300 台 AviClear 設備的放置率，並在 2023 年退出，並在我們的活躍安裝基礎上擁有超過 1,500 台 AviClear 設備。作為我們 2023 年 AviClear 計劃的一部分，我們打算加大力度推動每次實踐的利用率。迄今為止，我們一直將我們的努力放在優先位置，以充分利用我們通過執行產品開發、臨床和監管職能創造的先發優勢。我們還認識到，在我們不斷增長的安裝基礎上應用的利用率的任何增量改進都將在長期內帶來深遠的收入和盈利能力影響，我們已經開始協調努力來推動患者流量。這些努力將在 2023 年和 2024 年期間展開，包括擴大適應症、持續優化程序以及擴大患者外展和宣傳活動。

The results of AviClear placements and utilization ramp will ultimately lead to higher quality financial contributions. The nature of these contributions will sustain improvements across key metrics such as an increased mix of recurring revenue, expanded gross margins increased adjusted EBITDA, greater linearity and visibility in our business; and finally, sustainable positive cash flow exiting 2023.

AviClear 安置和利用率提升的結果最終將帶來更高質量的財務貢獻。這些貢獻的性質將維持關鍵指標的改進，例如經常性收入組合的增加、毛利率的擴大、調整後 EBITDA 的增加、我們業務的線性度和可見度的提高；最後，可持續的正現金流將在 2023 年結束。

These desired state performance contributions and financial profile transformations are just around the corner as we continue to accelerate our AviClear program. Now we will open the call to your questions. Operator?

隨著我們繼續加速我們的 AviClear 計劃，這些理想的州績效貢獻和財務狀況轉變指日可待。現在我們將打開您的問題的電話。操作員？

We'll now begin the question-and-answer session. (Operator Instructions) Our first question is from Jon Block with Stifel.

我們現在開始問答環節。 （操作員說明）我們的第一個問題來自 Stifel 的 Jon Block。

Great guys. I'll start with North American capital 4Q '22 David, as you said, it was difficult, you're making changes, right? You're augmenting the sales force, you're changing incentives. I think you have some new capital products, but those are arguably later in the year. So I get that you don't like to give specific quarterly guidance, but considering those changes and again, the new products that I don't think are 1Q events, can you just help us out a little bit directionally on the thoughts of the waiting specific to capital, if you would, for 2023 as much -- as many details you want to provide. And then I'll ask my follow-up.

偉大的傢伙。我將從北美資本 4Q '22 David 開始，正如你所說，這很困難，你正在做出改變，對吧？您正在擴大銷售隊伍，正在改變激勵措施。我認為你有一些新的資本產品，但可以說是在今年晚些時候。所以我知道你不喜歡給出具體的季度指導，但考慮到這些變化，我認為新產品不是第一季度的事件，你能幫我們從等待具體到資本，如果你願意的話，等待 2023 年——盡可能多的細節。然後我會問我的後續行動。

Yes. Thanks, Jon. And thank you for the question. Listen, I think the way to be thinking about capital in the first quarter of 2023 is just like every other year, this is generally the seasonally low quarter for capital placement and sales. And I think we would expect to see that again this quarter. I think that some of the deals that we maybe had in the pipeline may still continue to push through and we may see some artifact of those in the first quarter. But I'm actually thinking those will probably bleed out mostly over the first half and not just the first quarter. I do think that there is some degree of I'll say, macroeconomic perceptions out there that have people hesitant slightly hesitant. But I don't see any telltale signs that we think that patient spending will significantly be off or down.

是的。謝謝，喬恩。謝謝你的問題。聽著，我認為 2023 年第一季度考慮資本的方式與其他年份一樣，這通常是資本配售和銷售的季節性低谷。我認為我們希望在本季度再次看到這種情況。我認為我們可能正在進行的一些交易可能仍會繼續推進，我們可能會在第一季度看到這些交易的一些人工產物。但我實際上認為這些可能會在上半年而不只是第一季度流血。我確實認為，我會說，在某種程度上，人們對宏觀經濟的看法有些猶豫。但我沒有看到任何跡象表明我們認為患者支出將顯著減少或下降。

In fact, our information continues to show good steady patient traffic at the majority of our customers. And we're not seeing anything that suggests that these things are long lasting, but other than maybe just a near-term perception and concern of the customer.

事實上，我們的信息繼續顯示我們大多數客戶的穩定患者流量。而且我們沒有看到任何跡象表明這些東西是持久的，但除了可能只是客戶的近期感知和關注之外。

So while I think they may create a little bit of a shadow in the first quarter, I think we'll outrun that quickly, in terms of those concerns. And I think over the long-term, we would expect the capital in 2023 would follow a very similar seasonality than we've seen historically.

因此，雖然我認為他們可能會在第一季度造成一點陰影，但我認為就這些擔憂而言，我們會很快擺脫陰影。而且我認為從長遠來看，我們預計 2023 年的首都將遵循與歷史上所見非常相似的季節性。

Okay. Got it. Very helpful. And maybe just to pivot my second question for AviClear. The system, you said 200 to 300 per quarter is helpful. But not sure if you want to comment on a $30 million-ish revenue number for AviClear for 2023. And any thoughts just on cohort data do? I mean I know these things take a little while at around, but approved in March. And maybe if you look at the 160 systems or so that were placed as of the end of September, how are those ramping from a utilization perspective? How long does it take to really get these things up and running? So really those 2 items, the revenue number and anything from a cohort perspective that you're willing to comment on?

好的。知道了。很有幫助。也許只是為了解決我對 AviClear 的第二個問題。系統，你說每季度200到300是有幫助的。但不確定你是否想對 AviClear 2023 年 3000 萬美元的收入數字發表評論。關於同期群數據的任何想法都可以嗎？我的意思是我知道這些事情需要一段時間，但在 3 月份獲得批准。也許如果你看看截至 9 月底放置的 160 個左右的系統，從利用率的角度來看，這些系統的增長情況如何？真正啟動並運行這些東西需要多長時間？那麼真的是這 2 項，收入數字以及您願意從同類群組角度發表評論的任何內容嗎？

Yes. Thanks, John. I think, first of all, it's most important that listeners are aware that depending on where the device placed, it's placed in which type of practice does have some impact on the speed of uptake, number one.

是的。謝謝，約翰。我認為，首先，最重要的是讓聽眾意識到，根據設備放置的位置，它被放置在哪種類型的練習中確實會對吸收速度產生一些影響，第一。

But then secondarily on the sustainability of that volume. What we have seen with med derms, in particular, is a much slower uptake upfront because of practice behaviors and it's tough to kind of reengineer and rewire the practice for something that doesn't take 7 minutes as I move from room to room in diagnosis. So being able to accept that into the practice takes a little bit more work. That being said, they're also very clinically driven, and they want to see some results before they broadly adopt across their practice.

但其次是該數量的可持續性。特別是我們在 med derms 上看到的是，由於練習行為，前期吸收要慢得多，而且很難重新設計和重新連接練習，因為我從一個房間到另一個房間進行診斷時不需要 7 分鐘.因此，能夠將其接受到實踐中需要更多的工作。話雖這麼說，他們也非常注重臨床，他們希望在廣泛採用之前看到一些結果。

So we see them slow to adopt further change but they have a lot of patients, and they have the ability that once they get convinced to move to a more greater utilization in the longer term. contrast that with, we'll say, in aesthetic derm, they may have a couple of patients right now and is willing to maybe be a little bit more aggressive in the placement and use of the device. But they're not actively recruiting or sourcing patients for acne at quite the same rate that the med derm is.

因此，我們看到他們採取進一步變革的速度很慢，但他們有很多患者，而且一旦他們被說服，他們就有能力在長期內轉向更高的利用率。相比之下，我們會說，在美容皮膚方面，他們現在可能有幾個病人，並且願意在設備的放置和使用方面更加積極一些。但他們並沒有以與 med derm 完全相同的速度積極招募或採購痤瘡患者。

So we see them burning through some patients and then having low periods. So I think each are very different. But to answer your question, we certainly see that the aging of med derms, in particular, leads to higher utilization over an extended period of time of a couple of quarters. And we see that the aesthetic derms, once they get into the habit of recruiting and refilling, if you will, their patient pool, they get to an established run rate as well. And those are both increasing over time.

所以我們看到他們在一些病人身上燃燒，然後出現低潮。所以我認為每個都是非常不同的。但要回答你的問題，我們肯定會看到，尤其是 med derms 的老化會導致在幾個季度的較長時間內出現更高的利用率。我們看到，美容真皮一旦養成了招募和補充患者的習慣，如果你願意的話，他們也會達到既定的運行率。隨著時間的推移，這些都在增加。

I'm sorry. And just the $30 million number that I threw out for AviClear, just any thoughts around that?

對不起。只是我為 AviClear 投入的 3000 萬美元，對此有什麼想法嗎？

I was conveniently avoiding that because we aren't giving AviClear financial guidance. But look, I think there's a number out in the street. And I think we understand what that number is, and I don't think it is overwhelmingly scary to us. However, we know that we have our work cut out for us.

我很方便地避免了這種情況，因為我們沒有提供 AviClear 財務指導。但是你看，我想街上有一個數字。而且我認為我們了解這個數字是多少，我認為這對我們來說並不可怕。但是，我們知道我們有很多工作要做。

The next question is from Margaret Kaczor with William Blair.

下一個問題來自 Margaret Kaczor 和 William Blair。

I wanted to follow up maybe on the series of adjustments that you guys talked to, both on kind of the capital side as well as on the KAM side, improving quality, lead submission structure, et cetera. So when did those changes get implemented? Can you give us any sense or metrics now that maybe you're a few weeks into these changes, whether you think it's having traction, or is it just going to take a little bit more time given kind of the weight of capital sales to the last month of the quarter?

我想跟進你們談到的一系列調整，無論是在資本方面還是在 KAM 方面，提高質量，領先提交結構等等。那麼這些變化是什麼時候實施的呢？你能給我們任何意義或指標嗎，也許你已經進行了幾週的這些變化，無論你認為它有牽引力，還是考慮到資本出售對本季度的最後一個月？

Great. By the way, Margaret, thank you very much for the question. I would start by just saying that there's 2 different elements that we have put in place. The first is an uncapped commission structure that significantly weighted towards performing well in both the avi segment as well as the core segment. And I think that's generally going to have an immediate impact and a more dramatic effect on people's use of their time and how they apply themselves over the period.

偉大的。順便說一下，瑪格麗特，非常感謝你提出這個問題。我首先要說的是，我們已經實施了兩個不同的要素。第一個是不封頂的佣金結構，它顯著偏向於在 avi 部分和核心部分都表現良好。而且我認為這通常會對人們的時間使用以及他們在此期間如何應用自己產生直接影響和更顯著的影響。

So I think that's probably a little bit more of an immediate change and probably get rolled out much more effectively in February as we had our national sales meeting. So I think that, that will have the desired effect on time and sharing time.

所以我認為這可能是一個更直接的改變，並且可能會在 2 月份我們召開全國銷售會議時更有效地推出。所以我認為，這將對時間和分享時間產生預期的影響。

The other element is actually monitoring time and attention of our sales reps so that we can actually see what's the outcome and output of different processes how many calls they're taking, how many meetings they're setting up, et cetera, et cetera. And the intent is not to micromanage reps, but rather notice and identify patterns and coach to best practice, if you will, with that data.

另一個要素實際上是監控我們的銷售代表的時間和注意力，這樣我們就可以真正看到不同流程的結果和輸出是什麼，他們接了多少電話，他們安排了多少次會議，等等。目的不是對銷售代表進行微觀管理，而是注意和識別模式並指導最佳實踐，如果你願意的話，使用這些數據。

And I think that's going to probably take a little bit more time to coalesce into process improvements and process changes. However, I think what we will see early is just kind of from the halt on effect of a manager looking at what's happening with their rep they'll get probably a little bit more activity on certain areas that they want to have focus.

而且我認為這可能需要更多時間才能合併到流程改進和流程變更中。但是，我認為我們將在早期看到的只是一種停頓效應，即經理查看他們的代表正在發生的事情，他們可能會在他們希望關注的某些領域獲得更多的活動。

So while I don't think we're going to see process improvements probably until really towards the end of this quarter, early next quarter, I do think we may see some increased focus and attention being spent nonetheless.

因此，雖然我認為我們可能要到本季度末、下個季度初才能看到流程改進，但我確實認為我們可能會看到更多的關注和關注。

Okay. That's helpful. And I guess just to follow up even further on that point. Obviously, we've seen a big increase in all the accounts that's still increasing a lot this year. So how do you think about the number of sales reps and/or KAMs to make sure that these new avi accounts and frankly, new Cutera accounts have a good experience. And I don't know if you can give it either in rep numbers or the number of touch points that some of these accounts end up having, anything like that would be useful.

好的。這很有幫助。我想只是進一步跟進這一點。顯然，我們已經看到今年仍在大幅增長的所有賬戶都有大幅增長。那麼，您如何考慮銷售代表和/或 KAM 的數量，以確保這些新的 avi 帳戶以及坦率地說，新的 Cutera 帳戶擁有良好的體驗。而且我不知道你是否可以用代表數量或其中一些帳戶最終擁有的接觸點數量來提供它，任何類似的東西都會有用。

Yes. I think this is really interesting to talk about this. Fundamentally, we kind of outpaced ourselves in a little bit in the fourth quarter and early part of first quarter. But you'll notice that we're kind of laying in into -- in line a sustained rate of future placements. So this is not going to require us to add a significant amount of capital reps, although we'll always have a churn, if you will, for higher performers and better outcomes.

是的。我認為談論這個真的很有趣。從根本上說，我們在第四季度和第一季度初期有點超過了自己。但你會注意到，我們有點陷入 - 符合未來安置的持續速度。因此，這並不需要我們增加大量的資本代表，儘管如果你願意的話，我們總會有流失，以獲得更高的績效和更好的結果。

I think what you're going to see is it will require some investment in some of the back-office operations and support for the field such as our field service engineers that do installations, I think we will have to continue to scale our key account managers as we add new accounts and expand their roles. But I think that's where you're going to see the investments. I don't think you're going to see a significant amount of capital reps being added.

我想你會看到的是，這將需要對一些後台運營和現場支持進行一些投資，例如我們進行安裝的現場服務工程師，我認為我們將不得不繼續擴大我們的關鍵客戶經理，因為我們添加了新客戶並擴展了他們的角色。但我認為這就是你要看到投資的地方。我不認為你會看到大量的資本代表被添加。

But I think you'll see a few added, right? And we'll continue to expand with market growth but I do think there's going to be an opportunity to continue to add great people to the team. And our intent will be to continue to upgrade the team and put the best players on the field.

但我想你會看到一些添加的，對吧？我們將隨著市場的增長而繼續擴張，但我確實認為會有機會繼續為團隊增加優秀人才。我們的意圖是繼續升級球隊，讓最好的球員上場。

Our next question is from Matt O'Brien with Piper Sandler.

我們的下一個問題來自 Matt O'Brien 和 Piper Sandler。

This is [Sim] on for Matt. We were just hoping you could help us with a little bit of the guidance for the year. So there's growth of roughly 13% for 2023. Can you think to how much of that you anticipate would be from AviClear.

這是馬特的 [Sim]。我們只是希望您能為我們提供一些今年的指導。因此，2023 年的增長率約為 13%。您能想一想您預計其中有多少來自 AviClear。

By the way, thanks for the question. I would say for the most part, we're not breaking that out right now. We will be reporting by segment over the course of the year. So this will become more obvious as we kind of put more and more data out. It would be a little bit premature for us to get too far in front of this in the quarter. as we are kind of coming out of the fourth quarter where we over-indexed a little bit to AviClear.

順便說一下，謝謝你的提問。我會說，在大多數情況下，我們現在不會打破它。我們將在一年中按部門報告。因此，隨著我們輸出越來越多的數據，這將變得更加明顯。我們在本季度領先於此還為時過早。因為我們即將走出第四季度，我們對 AviClear 的指數有點高。

And some of the hangover from that probably will have some early effect on this quarter. So we're shifting as we go, and we really don't want to specifically lay out AviClear guidance as a stand-alone until we see the speed at which we can onboard these accounts and get them to a productive nature.

一些後遺症可能會對本季度產生一些早期影響。因此，我們正在不斷轉變，我們真的不想專門將 AviClear 指南作為一個獨立的指南，直到我們看到我們可以以何種速度加入這些賬戶並使它們具有生產性。

So I think we're going to hold back on that for the time being. I do think that there's a lot of people that have put out notes regarding a little bit of delays or overhang in the markets regarding capital purchases due to interest rates and other things.

因此，我認為我們暫時會對此有所保留。我確實認為有很多人已經就由於利率和其他因素導致的資本購買在市場上的一些延遲或過剩發表了評論。

And I don't think we're going to be inoculated from those items. But I do think our salespeople have a good pipeline and a line of sight to achieve their numbers. And they have certainly been able to deliver for us very, very successfully throughout 2022, and we anticipate that they'll be able to get back to that rate. So without breaking apart, I do think that we'll see good performance from our team, and I think we'll see continued growth of AviClear as the installed base grows.

而且我認為我們不會從這些物品中接種疫苗。但我確實認為我們的銷售人員有很好的管道和視線來實現他們的數字。他們當然能夠在整個 2022 年為我們提供非常非常成功的服務，我們預計他們將能夠恢復到這個速度。因此，在不分裂的情況下，我確實認為我們會看到我們團隊的良好表現，而且我認為隨著安裝基數的增長，我們會看到 AviClear 的持續增長。

Next question is from Greg Sellers (sic) [George Sellers] with Stephens Inc.

下一個問題來自 Greg Sellers (sic) [George Sellers] with Stephens Inc.

This is George. I just wanted to maybe start with gross margins. That outperformed our expectations in the quarter. So just curious what the puts and takes there were? And maybe if this is a good starting point for us to model as we think about the next few quarters and years?

這是喬治。我只是想從毛利率開始。這超出了我們在本季度的預期。所以只是好奇那裡的 puts 和 takes 是什麼？也許這是我們在考慮未來幾個季度和幾年時建模的一個很好的起點？

George, I knew it was George, by the way. Listen, I think it starts by just -- we try to kind of hint towards this, that we're seeing green shoots of the impact that we think will likely come from a continued growth and acceleration of the AviClear product. And I think you see that as you look at our non-GAAP constant currency growth that got to 61.5% gross margins. And I think there's probably a lot of people that probably remember us a year ago saying that we thought we could get up into the 60s. And I think this kind of shows that viability. But maybe I can let Rohan speak specifically to the puts and takes that got us to those numbers.

喬治，順便說一句，我知道那是喬治。聽著，我認為這只是開始——我們試圖暗示這一點，我們正在看到我們認為可能來自 AviClear 產品的持續增長和加速的影響的萌芽。我認為，當您查看我們的非 GAAP 持續貨幣增長達到 61.5% 的毛利率時，您就會看到這一點。而且我認為可能有很多人可能還記得我們一年前說過我們認為我們可以進入 60 年代。我認為這種方式表明了這種可行性。但也許我可以讓羅漢專門談談讓我們得到這些數字的推桿和推桿。

Yes. Thanks, Dave. So I'd say in addition to the year-end, seasonal mix of high capital. The biggest put here simply was AviClear being over $3 million. We've been carrying some of those costs in the past couple of quarters. And now we're getting to the revenue lift off that we've been planning for a little bit. And I think as AviClear continues to scale, so well, our P&L and margins and cash and the overall financial health of this company.

是的。謝謝，戴夫。所以我想說除了年底，高資本的季節性組合。放在這裡最大的只是 AviClear 超過 300 萬美元。在過去的幾個季度中，我們一直在承擔其中的一些成本。現在我們正在實現我們一直在計劃的收入增長。而且我認為，隨著 AviClear 繼續擴大規模，我們的損益表、利潤率和現金以及這家公司的整體財務狀況也會很好。

Okay. That's really helpful. And maybe switching gears here a little bit. The international systems revenue line put up another really strong quarter. So could you just give us some color on what some of the drivers there are and your expectations for next year?

好的。這真的很有幫助。也許在這裡稍微切換一下。國際系統收入線又是一個非常強勁的季度。那麼，您能否給我們一些關於其中一些驅動因素以及您對明年的期望的顏色？

I think before we get to that, Dave, just reminded me, the biggest take over there, obviously, was FX -- and that's why there's a spread of almost 200 basis points between our non-GAAP margin and our constant currency margin, which crested 61%, which was particularly awesome.

我想在我們開始之前，戴夫，剛剛提醒我，那裡最大的接管顯然是外匯——這就是為什麼我們的非 GAAP 保證金和我們的固定貨幣保證金之間存在近 200 個基點的價差，這達到了61%，特別棒。

Yes. Thanks, Rohan. Internationally, and I think this speaks a little bit to the fact that we don't believe there to be significant macroeconomic pressures. We think that there are some present, we think some of these are probably more perceived than real. And we do think that interest rates may be somewhat problematic in the U.S. temporarily. Those things being said, we saw a fairly decent performance in both Japan and in our intercontinental distribution markets. Australia kind of held their own. And Europe had kind of year-over-year growth as well, although it was somewhat stymied at the end of the year.

是的。謝謝，羅漢。在國際上，我認為這在一定程度上說明了我們不認為存在重大宏觀經濟壓力的事實。我們認為有一些存在，我們認為其中一些可能更像是被感知而不是真實存在。我們確實認為美國的利率暫時可能會有些問題。話雖如此，我們在日本和我們的洲際分銷市場都看到了相當不錯的表現。澳大利亞有點像自己的。歐洲也出現了同比增長，儘管在年底時有所受阻。

And we expect more from Europe over the longer term. But it was quite actually compelling to see the performance in Japan, in particular, knowing some of the challenges that they have gone through in terms of pricing and local economic environment. So I'd say capital was strong really in Japan and InterContinental and probably at or above expectations in Australia and Europe.

從長遠來看，我們對歐洲的期望更高。但看到日本的表現實際上非常引人注目，尤其是了解他們在定價和當地經濟環境方面所經歷的一些挑戰。所以我想說日本和洲際的資本確實很強勁，並且可能達到或超過澳大利亞和歐洲的預期。

The next question is from Anthony Vendetti with Maxim Group.

下一個問題來自 Maxim Group 的 Anthony Vendetti。

So just a couple of more follow-up questions on AviClear. So 600 total in 2022 that were placed, did you provide the number for the fourth quarter specifically?

所以只是關於 AviClear 的幾個後續問題。那麼2022年總共放了600個，你有沒有具體提供第四季度的數量？

I did not, Anthony. I didn't want to mix apples and oranges, frankly. We had talked about what the installed and active units were at the end of Q3 at 166. But what I wanted to do is get to a number that we can probably more regularly report on with accuracy being kind of the placements, which are indeed just shipments.

我沒有，安東尼。坦率地說，我不想把蘋果和橘子混在一起。我們已經討論了第三季度末已安裝和活躍的單位是 166。但我想做的是得到一個我們可以更定期地報告的數字，準確度是一種安置，這確實只是出貨量。

I will tell you this that we saw a little bit over 600 total placements in the year. But I think that, that probably doesn't fully disclosed the amount of demand and the customer interest that we continue to see, which gave us great confidence in giving you the 200 to 300 per quarter coming through this year. So I would tell you that it's been overwhelming and very, very gratified to see that kind of demand from our customer base.

我會告訴你這一點，我們在這一年看到了 600 多個展示位置。但我認為，這可能沒有完全揭示我們繼續看到的需求量和客戶興趣，這讓我們很有信心在今年為您提供每季度 200 到 300 的訂單。所以我會告訴你，看到我們的客戶群提出這種需求，我們感到非常非常高興。

Okay. And then the revenue generated from have AviClear consisting of the treatment revenue and the device license fees was $3.2 million in the fourth quarter. And during that quarter, there was $7.6 million in AviClear spending. Is that correct?

好的。然後，第四季度由 AviClear 產生的收入包括治療收入和設備許可費為 320 萬美元。在該季度，AviClear 支出為 760 萬美元。那是對的嗎？

Yes. I think we're kind of moving through a point where the installed base is still small enough that it's not over-earning, if you will, the amount of cost to place devices. I think we expect that to cross over during 2023. And we've talked about being cash accretive exiting $23 million.

是的。我認為我們正在經歷一個點，即安裝基數仍然足夠小，以至於它不會超額收入，如果你願意的話，放置設備的成本。我認為我們預計這將在 2023 年跨越。我們已經討論過現金增值退出 2300 萬美元。

Cash flow breakeven, I think Rohan said it in 3Q '23. Is that the same thing for AviClear or is that AviClear is maybe a little bit later than that in '23.

現金流盈虧平衡，我認為 Rohan 在 23 年第三季度說過。這對 AviClear 來說是一樣的，還是 AviClear 可能比 23 年的那個晚一點。

What I said was cash flow breakeven towards the end of '23, and I can go back and look at my script specifically, but that guidance is not specific to...

我所說的是 23 年底的現金流盈虧平衡，我可以回去具體看看我的腳本，但該指導並不特定於……

Yes, that was for the consolidated, right?

是的，那是為了合併，對吧？

For the entire company.

對於整個公司。

I think what we've said historically, Anthony, is that the core business has historically been a cash generator from us for us since we made some changes back in 2021. And we expect that, that will continue. And it has indeed partially funded some of the AviClear expenses.

安東尼，我認為我們歷史上所說的是，自從我們在 2021 年做出一些改變以來，核心業務一直是我們為我們創造現金的來源。我們預計，這將繼續下去。它確實部分資助了 AviClear 的一些費用。

That being said, we think that as AviClear a crosses over you'll see kind of an accretive nature of cash being generated even before, AviClear totally crosses over. But when it does cross over, then it will accelerate even faster through the course of the end of fourth quarter into 2024.

話雖這麼說，我們認為，隨著 AviClear 的交叉，你會看到甚至在 AviClear 完全交叉之前就產生了一種現金增長的性質。但當它確實跨越時，它將在第四季度末到 2024 年期間加速得更快。

Yes, exactly. Just to clarify in my script, I said by Q4 '23, Anthony.

對，就是這樣。只是為了在我的劇本中澄清，我在 23 年第 4 季度說，安東尼。

Okay. Yes, I wasn't sure if I got that right. So Q4 Okay. And then remind us what's in consumable product revenues? I know it's some of the AviClear stuff, but there's other things in there. And that fell off 18% in constant currency was that from the prior year? If so, what are you -- what was the major reason for that.

好的。是的，我不確定我是否做對了。所以 Q4 好的。然後提醒我們消費品收入是多少？我知道這是一些 AviClear 的東西，但裡面還有其他東西。以固定匯率計算，與去年相比下降了 18%？如果是這樣，你是什麼 - 這樣做的主要原因是什麼。

Yes. First of all, I want to be very clear. There's no AviClear revenue in our consumable product sales for core. What's in that product is the consumable products associated with our truBody line of products, including truSculpt flex and truSculpt iD as well as the tips that we sell associated with the Secret Pro and the Secret RF. And finally, there are some consumable hand pieces that we distribute. So just to be clear, that's what's in there.

是的。首先，我想非常清楚。我們的核心消耗品銷售中沒有 AviClear 收入。該產品中包含與我們的 truBody 系列產品相關的消耗品，包括 truSculpt flex 和 truSculpt iD，以及我們銷售的與 Secret Pro 和 Secret RF 相關的吸頭。最後，我們分發了一些消耗性手機。所以要明確一點，這就是裡面的內容。

The lion's share of miss came in North America, though. And like I said in my script, that came as a result of kind of the number, the vast number of accounts that we were trying to engage and onboard that we're receiving their AviClear product. With that many obviously, placements or shipments, you had a lot of customers getting product. And we wanted to make sure that we were there to help them receive the product and do the training. So the net result of that was we did fewer promotional events, VIP nights or open houses at practices showing and demonstrating the truSculpt flex or iD or Secret product, to the practices customer base.

不過，絕大部分失誤來自北美。就像我在我的腳本中所說的那樣，這是由於數量的原因，我們試圖參與的大量賬戶以及我們正在接收他們的 AviClear 產品。顯然，有這麼多的安置或發貨，你有很多客戶獲得產品。我們想確保我們在那裡幫助他們接收產品並進行培訓。因此，最終結果是我們在實踐中向實踐客戶群展示和演示 truSculpt flex 或 iD 或 Secret 產品時，舉辦的促銷活動、VIP 之夜或開放日減少了。

And the net result of not doing as many promotions as we didn't sell as many consumables. So that's a staffing issue and a capacity issue that we've addressed, and we're expecting that we'll get back on that horse here in the first quarter.

沒有做那麼多的促銷活動的最終結果是我們沒有銷售那麼多的消耗品。所以這是我們已經解決的人員配置問題和產能問題，我們預計我們會在第一季度回到這匹馬。

Okay. Great. And then lastly, on, I guess, on AviClear, there's now another FDA-approved product there out there. How do you look at how the difference between AviClear and that product? And do you feel like you -- if the goal is 200 to 300 placements per quarter? you have the sales force and the key account managers and the clinical support you need right now? Or do you have to incrementally add to that or significantly add to that before the end of '23.

好的。偉大的。最後，我想，在 AviClear 上，現在有另一種 FDA 批准的產品在那裡。您如何看待 AviClear 與該產品之間的區別？如果目標是每季度 200 到 300 個安置，您是否感覺像您一樣？您是否擁有您現在需要的銷售人員和大客戶經理以及臨床支持？或者您是否必須在 23 年底之前逐步添加或顯著添加。

(inaudible) Take those in the order you offer them. First of all, there is another product that's come to market that uses 17, 26-nanometer wavelength laser. And in some ways, that it serves as a validation of the technology we have. However, they don't come close to duplicating the rest of our procedure. And I really rather not get into all the details there, but we're able to do this without anesthesia without any adjunctive pain therapy on a very routine basis. And while there are always a subset, a handful of people that may complaint or be discomforted that is less than a handful of those folks.

（聽不清）按照你提供的順序拿走那些。首先，還有一種產品上市，使用17、26納米波長的激光。在某些方面，它可以作為對我們擁有的技術的驗證。然而，他們並沒有接近於復制我們程序的其餘部分。我真的不想深入了解那裡的所有細節，但我們能夠在沒有麻醉的情況下做到這一點，而無需在非常常規的基礎上進行任何輔助疼痛治療。雖然總是有一小部分人，但少數人可能會抱怨或感到不適，而這些人中的一小部分人卻很少。

So there's a very different risk profile, safety profile and even discomfort associated with this product that we have versus the competitive product. So while we see it to be a validation, I don't know if I necessarily see it as a competitive device, number one.

因此，與競爭產品相比，我們擁有的該產品具有非常不同的風險狀況、安全狀況甚至不適。因此，雖然我們認為這是一種驗證，但我不知道我是否一定會將其視為具有競爭力的設備，第一。

And number two, I certainly think that the ancillary programs and things that we've developed around patient financing around the AviClear model that allows a no down very low capital outlay of expense for the med derm in particular, an opportunity to give them a key account manager and support them. And then now the loyalty program that allows them a cooperative marketing investment in their practice to promote not only their practice, but also the device. So I think we've got a very broad moat of opportunities and support functions that our competitors can't offer.

第二，我當然認為我們圍繞 AviClear 模型的患者融資開發的輔助程序和東西，特別是 med derm 的資本支出非常低，這是一個給他們關鍵的機會客戶經理並支持他們。然後現在是忠誠度計劃，允許他們在他們的實踐中進行合作營銷投資，不僅可以促進他們的實踐，還可以促進設備。所以我認為我們有一個非常廣泛的機會和支持功能的護城河，這是我們的競爭對手無法提供的。

Finally, I guess, I would say from a staffing perspective, as I said earlier, -- we have probably a need to continue to add our key account managers as we scale and add new accounts and broader customers. But we do not necessarily need to add reps to our capital sales team to place these devices since we've settled in on a number and a flat number, if you will, of how many we expect to place. So I think we're in good shape all the way around from our staffing. I think you'll see additional service and support investments over the course of the year as our installed base grows, but I don't think it will be necessarily in capital sales team.

最後，我想，正如我之前所說，從人員配置的角度來看，我們可能需要繼續增加我們的主要客戶經理，因為我們要擴大規模並增加新客戶和更廣泛的客戶。但我們不一定需要向我們的資本銷售團隊增加代表來放置這些設備，因為我們已經確定了一個數字和一個固定數字，如果你願意的話，我們希望放置多少。所以我認為我們的人員配置一直處於良好狀態。我認為隨著我們安裝基礎的增長，您會在這一年中看到額外的服務和支持投資，但我認為這不一定會出現在資本銷售團隊中。

Great. This concludes the question-and-answer session. I would like to turn the conference back over to Mr. Mowry for any closing remarks.

偉大的。問答環節到此結束。我想將會議轉回 Mowry 先生的閉幕詞。

Thank you, operator, and thanks again for dialing in for our update. We are very bullish for 2023 with our focus evenly split between core business performance and AviClear acceleration. Our next update will come early May with our first quarter 2023 results, and we look forward to updating you then.

謝謝接線員，再次感謝您撥入我們的更新。我們非常看好 2023 年，我們的重點在核心業務績效和 AviClear 加速之間平均分配。我們的下一次更新將在 5 月初發布 2023 年第一季度的結果，我們期待屆時為您更新。

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您度過愉快的一天。