Cutera Inc (CUTR) 2024 Q1 法說會逐字稿

Thank you for standing by, this is the conference operator. Welcome to the Cutera Inc first quarter 2024 results conference call. (Operator Instructions)

感謝您的等候，我是會議接線生。歡迎參加 Cutera Inc 2024 年第一季業績電話會議。（操作員說明）

I would now like to turn the conference over to Greg Barker, Vice President of Finance and Investor Relations. Please go ahead.

我現在想將會議交給財務和投資者關係副總裁 Greg Barker。請繼續。

Thank you, operator, and thank you, everyone, for joining us. With me today is Taylor Harris, Cutera's Chief Executive Officer; and Stuart Drummond, Interim CFO. Following our prepared remarks, we'll take your questions.

謝謝運營商，也謝謝大家加入我們。今天與我在一起的是 Cutera 執行長泰勒哈里斯 (Taylor Harris)；和臨時首席財務官 Stuart Drummond。在我們準備好的發言之後，我們將回答您的問題。

Before we get started, I'll note that the discussion today includes forward looking statements. These forward-looking statements reflecting management's current forecast or expectation of certain aspects of the Company's future business, including but not limited to any financial guidance provided for modelling purposes.

在我們開始之前，我要指出，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對公司未來業務某些方面的當前預測或預期，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 information available to us at the time those statements are made, which by its nature is dynamic and subject to change or management's good faith belief as of that time with respect to future events. 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 or words that may identify forward-looking statements, we encourage you to refer to the Safe Harbor statement in our press release earlier today.

前瞻性陳述是基於做出這些陳述時我們可獲得的信息，這些信息本質上是動態的，並且可能會發生變化或管理層當時對未來事件的善意信念。前瞻性陳述包括有關財務指導、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，或者可能識別前瞻性陳述的詞語，我們鼓勵您參考我們的安全港聲明。發布的新聞稿。

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 that 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 unanticipated events.

所有前瞻性陳述均受到風險和不確定性的影響，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，以及隨後提交的10-Q 表格中更新的風險因素。Cutera 也提醒您不要過度依賴前瞻性陳述，這些陳述只代表發布當日的情況。Cutera 不承擔公開更新任何前瞻性聲明以反映新資訊、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.

未來的結果可能與管理層目前的預期有重大差異。此外，我們還將討論非公認會計原則財務指標，包括調整後的結果。我們相信這些財務措施可以促進對 Cutera 持續經營績效進行更完整的分析並提高透明度，特別是在比較不同期間的基本績效時。

Please refer to the reconciliation from GAAP to non-GAAP measures in our earnings release. These non-GAAP financial measures should be considered along with, but not as alternatives to the operating performance measures prescribed by GAAP.

請參閱我們的收益報告中的 GAAP 與非 GAAP 指標的調整表。這些非公認會計原則財務指標應與公認會計原則規定的營運績效指標一起考慮，但不能作為其替代方案。

With that, it is my pleasure to turn the call over to our CEO, Taylor Harris.

至此，我很高興將電話轉給我們的執行長泰勒哈里斯 (Taylor Harris)。

Thank you, Greg. Good afternoon, everyone and welcome to Cutera's first quarter 2024 earnings call. So far this year, we're stabilizing tracking, with our expectations and making progress on our key strategic priorities despite a challenging macroeconomic environment. I just returned from attending our Cutera University clinical forum in Australia, where we launched AviClear into the dermatology community. It was an inspiring event, and the enthusiasm for this new technology is encouraging.

謝謝你，格雷格。大家下午好，歡迎參加 Cutera 的 2024 年第一季財報電話會議。今年到目前為止，儘管宏觀經濟環境充滿挑戰，但我們正在穩定追蹤我們的預期，並在關鍵戰略重點方面取得進展。我剛參加完澳洲 Cutera 大學臨床論壇回來，我們在會中向皮膚病學界推出了 AviClear。這是一場鼓舞人心的活動，人們對這項新技術的熱情令人鼓舞。

A handful of dermatologists in Australia have had AviClear for several months as part of our limited commercial release, and they've each treated a good number of patients. These physicians serve to some of our speakers and panelists for the event, and they were able to share their first-hand experience with the other attendees, it's clear that as we launch in international markets, the learnings from the last 18 to 24 months in North America are proving quite valuable.

作為我們有限商業發布的一部分，澳洲的一些皮膚科醫生已經使用 AviClear 幾個月了，他們每個人都治療了大量的患者。這些醫生為我們的一些演講者和小組成員提供服務，他們能夠與其他與會者分享他們的第一手經驗，很明顯，當我們在國際市場上推出時，過去 18 到 24 個月的經驗教訓事實證明，北美非常有價值。

The physicians with early access are already incorporating the clinical best practices identified in our white paper related to expectation setting, pain management, use of concomitant therapy in managing acne flares. And overall, while it's still early, I would characterize the reception of AviClear in Australia is very encouraging and we're hearing similar feedback out of the Europe.

具有早期訪問權的醫生已經將我們白皮書中確定的臨床最佳實踐納入其中，涉及期望設定、疼痛管理、使用伴隨療法來管理痤瘡發作。總的來說，雖然現在還為時過早，但我認為 AviClear 在澳洲的反應非常令人鼓舞，我們也從歐洲聽到了類似的回饋。

Physicians involved in our international limited commercial release phase are excited to be offering a truly new non pharmacologic therapeutic option to their patients for the treatment of acne. And they're also already considering potential new applications of AviClear to treat other conditions of the sebaceous gland.

參與我們國際有限商業發布階段的醫生很高興能為患者提供一種真正新的非藥物治療選擇來治療痤瘡。他們也已經在考慮 AviClear 治療其他皮脂腺疾病的潛在新應用。

More broadly, we've had a busy first four months of the year. We kicked it off with the first global sales meeting in the history of Cutera where field teams from around the world were able to come together to learn and prepare for the year. This GSM provided the perfect opportunity for us to launch our new vision, mission and values company-wide and to start building new energy around leadership as a mission driven values-based organization.

更廣泛地說，今年的前四個月我們非常忙碌。我們以 Cutera 史上首次全球銷售會議拉開了帷幕，來自世界各地的現場團隊能夠齊聚一堂，學習並為這一年做好準備。這次GSM 為我們提供了絕佳的機會，讓我們能夠在全公司範圍內推出新的願景、使命和價值觀，並開始圍繞領導力構建新的活力，成為一個以使命驅動、以價值觀為基礎的組織。

Following GSM, we introduced a new business model for AviClear in North America and in international markets, we began our limited commercial release phase for Avi at the IMCAS meeting in Paris in February. We also introduced our enhanced cooperative marketing program, supported the publication of a white paper on clinical best practices without AviClear and finalized preparation for our first Cutera Academy, which was held last week in Atlanta.

繼 GSM 之後，我們在北美和國際市場推出了 AviClear 的新商業模式，並於 2 月在巴黎舉行的 IMCAS 會議上開始了 Avi 的有限商業發布階段。我們還推出了增強型合作行銷計劃，支持在沒有 AviClear 的情況下出版有關臨床最佳實踐的白皮書，並完成了上週在亞特蘭大舉行的第一屆 Cutera 學院的準備工作。

Meanwhile, we introduced our R&D organization's latest new product Xeo+ to the North American market in early April at the ASLMS meeting. Xeo+ builds on the legacy of the original Xeo platform, one of Cutera's most successful products, which was introduced over 20 years ago and pioneered both Nd:YAG laser technology and contact cooling as well as cutaneous signature laser Genesis procedure for skin revitalization.

同時，我們在4月初的ASLMS會議上向北美市場推出了我們研發機構的最新產品Xeo+。Xeo+ 建立在原始 Xeo 平台的基礎上，該平台是 Cutera 最成功的產品之一，於 20 多年前推出，開創了 Nd:YAG 激光技術和接觸冷卻以及用於皮膚再生的皮膚特徵激光 Genesis 程序。

Zeo+ offers tremendous flexibility and customization with over 25 applications from skin revitalization to hair removal and pigment reduction and more, with a larger spot size, enhanced contact cooling and redesigned handpieces. Zeo+ provides faster and more comfortable treatments. We're excited to launch the Xeo+ both to new customers and as an upgrade option to the installed base of over 2,500 original Xeo accounts.

Zeo+ 具有巨大的靈活性和客製化，具有超過 25 種應用，從皮膚再生到除毛和色素減少等，具有更大的光斑尺寸、增強的接觸冷卻和重新設計的手機。Zeo+ 提供更快、更舒適的療程。我們很高興向新客戶推出 Xeo+，並作為超過 2,500 個原始 Xeo 帳戶的安裝基礎的升級選項。

I'll now provide some summary comments regarding our first quarter financial results and then highlight a few of our areas of focus for the year. Similar to the fourth quarter of last year, first quarter financial results reflected an ongoing stabilization in the business. While revenue declined sequentially, reflecting typical seasonality in our industry, our AviClear revenue increased and hit a quarterly high watermark due to the change of business model in North America and the limited commercial release in international markets.

現在，我將提供一些有關我們第一季財務業績的摘要評論，然後重點介紹我們今年的一些重點領域。與去年第四季類似，第一季財務表現反映出業務持續穩定。雖然收入環比下降，反映了我們行業的典型季節性，但由於北美業務模式的變化以及國際市場的商業發布有限，我們的 AviClear 收入有所增加並達到季度高點。

Yeah, it's clear that we're operating in a challenging macro environment with pressure on the body contouring market in particular. And given that backdrop, we're fortunate to have the opportunity to launch a new first-in-class device like AviClear. Avi system's revenue increased from conversions to the new business model as well as new sales more than offsetting the continued contraction in procedures performed on the legacy installed base of leased systems, which is due largely to the reduction we've seen in the number of active accounts.

是的，很明顯，我們正處於充滿挑戰的宏觀環境中，尤其是塑身市場面臨壓力。在此背景下，我們很幸運有機會推出像 AviClear 這樣的全新一流設備。Avi 系統的收入因向新業務模式的轉換以及新銷售而增加，這足以抵消在租賃系統的遺留安裝基礎上執行的程序的持續收縮，這主要是由於我們看到活躍數量的減少帳戶。

As we've mentioned before, there are a number of AviClear devices under our former lease model that have gone dormant and which we expect to be returned. However, and of critical importance were also identifying the success factors for building a healthy AviClear franchise. On average utilization rates at dermatology practices are close to 50% higher than those of other specialties and a disproportionate percentage of our most successful accounts are dermatologists.

正如我們之前提到的，在我們先前的租賃模式下，有許多 AviClear 設備已處於休眠狀態，我們希望將其歸還。然而，至關重要的是確定建立健康的 AviClear 特許經營權的成功因素。皮膚科診所的平均使用率比其他專業高出近 50%，而且我們最成功的客戶中皮膚科醫生所佔的比例不成比例。

Beyond practice type though key determinants for success, include having a physician on-site at a practice, training the entire office staff, communicating and setting appropriate expectations with patients and a willingness to invest in building awareness. All of these best practices, coupled with our new business model, are at the center of our efforts in 2024.

除了診所類型之外，成功的關鍵決定因素還包括在診所配備一名醫生、培訓整個辦公室工作人員、與患者溝通並設定適當的期望以及投資於建立意識的意願。所有這些最佳實踐，加上我們的新業務模式，都是我們在 2024 年努力的核心。

We also began to see progress with our cost structure in the first quarter. Throughout 2023, our gross margin was depressed due to reduced volume, the array of company-specific operational issues that we have highlighted previously and a high level of inventory reserves. Non-GAAP gross margin remained below the historical trend line in Q1.

第一季我們的成本結構也開始取得進展。在整個 2023 年，由於銷量減少、我們之前強調的一系列公司特定營運問題以及高水準的庫存儲備，我們的毛利率受到抑制。第一季非公認會計準則毛利率仍低於歷史趨勢線。

However, on a normalized basis, excluding inventory reserves, it did improve to 40% and that's compared to 37% in the fourth quarter and 30% in the third quarter despite having a lower revenue base in Q1 relative to either of those previous quarters. Additionally, our operating expenses were down both sequentially and year over year, reflecting the restructuring and other cost containment initiatives that we've enacted.

然而，在正常化的基礎上，不包括庫存儲備，它確實提高了 40%，而第四季度為 37%，第三季度為 30%，儘管第一季的收入基礎低於前兩個季度。此外，我們的營運支出較上季和年比均有所下降，這反映了我們實施的重組和其他成本控制措施。

We continue to focus on efficiency initiatives that should support ongoing improvements in our cost position and our gross margin profile over time. I'll now provide an update on a couple of our critical priorities that we've discussed on previous quarterly calls; returning to operational excellence and building a global AviClear franchise.

我們繼續關注效率舉措，這些舉措應支持我們的成本狀況和毛利率狀況隨著時間的推移而不斷改善。現在，我將提供我們在之前的季度電話會議中討論過的幾個關鍵優先事項的最新情況；回歸卓越營運並建立全球 AviClear 特許經營權。

First, operational excellence. We continue to make progress in the five key areas that we identified last year, product reliability, field service, inventory control, supply-demand planning and cost of operations. In the first quarter, our cross-functional product reliability team, consisting of representatives from R&D, field service, quality and operations, delivered another improvement in product reliability rates, both in terms of initial performance following new shipments as well as ongoing reliability thereafter.

第一，卓越營運。我們繼續在去年確定的五個關鍵領域取得進展，即產品可靠性、現場服務、庫存控制、供需規劃和營運成本。在第一季度，我們的跨職能產品可靠性團隊由研發、現場服務、品質和營運代表組成，在新出貨後的初始效能以及此後的持續可靠性方面，產品可靠性再次得到提高。

In fact, our Q1 performance met or exceeded our annual objectives across all of our product categories. In the area of field service, we saw a dramatic improvement in our North American service levels in the back half of last year, addressing most of the backlog of open cases as well as reducing response times for new service calls. In the first quarter, we maintain that performance and backlog in North America, and we are beginning to see an improvement in our average response time as well.

事實上，我們第一季的業績達到或超過了我們所有產品類別的年度目標。在現場服務領域，我們看到去年下半年北美服務水準有了顯著提高，解決了大部分積壓的待處理案件，並縮短了新服務呼叫的回應時間。在第一季度，我們在北美保持了這種績效和積壓，我們也開始看到平均回應時間有所改善。

We're also rolling out best practices across our international regions so that we can achieve the same level of service quality across the globe. And we still have work to do on this front. For years, our international regions were managed separately with the service teams having a little support from the corporate office. We're starting to change that, though, with regular interactions such as trainings and reviews of service part demand and with in-person support as well.

我們也在國際地區推廣最佳實踐，以便我們能夠在全球範圍內實現相同水準的服務品質。在這方面我們還有很多工作要做。多年來，我們的國際區域都是單獨管理的，服務團隊只得到公司辦公室的少量支援。不過，我們開始改變這種狀況，透過定期互動（例如培訓和服務零件需求審查）以及親自支援。

For example, as I was leaving Australia, one of our top field engineers from North America was arriving to spend a month with the team helping to reduce backlog while other leaders were on their way to help with training and the implementation of new processes. I won't spend as much time on our other focus areas of inventory management, demand planning and cost control, except to make a few points.

例如，當我離開澳洲時，我們的一位來自北美的頂級現場工程師即將抵達，與團隊一起度過一個月，幫助減少積壓，而其他領導者則在路上幫助培訓和實施新流程。除了提出幾點之外，我不會在庫存管理、需求計劃和成本控制等其他重點領域花費太多時間。

We performed another physical inventory count at the end of Q1 and we had a net variance below 1% and that exceeded our target for the year, it was better than our target for the year. We have now filled our new 50,000 square foot warehouse. As we have just over $130 million of gross value of inventory on hand. Our supply-demand planning process continues to mature, and we believe that by midyear, we will be done with the inventory build that has resulted both from previous purchase commitments as well as the need to remediate shortages of certain key components. and we continue to believe that we are positioned to begin working down inventory in the second half of the year, creating a cash tailwind for the company.

我們在第一季末進行了另一次實體庫存盤點，淨差異低於 1%，超出了我們今年的目標，好於我們今年的目標。我們新的 50,000 平方英尺倉庫現已裝滿。因為我們手頭上的庫存總價值剛剛超過 1.3 億美元。我們的供需規劃流程不斷成熟，我們相信到年中，我們將完成因先前的採購承諾以及糾正某些關鍵零件短缺的需要而產生的庫存建設。我們仍然相信，我們有能力在今年下半年開始減少庫存，為公司創造現金順風。

And now turning to AviClear, in international markets we commenced a limited commercial release phase at the IMCAS meeting in February and in North America during the first quarter, we broaden the availability of our enhanced IMCAS offering, which provides greater flexibility and simplicity. The new business model offers the option to purchase the device upfront with a corresponding reduction in ongoing treatment costs to the practitioner. Along with greater business model flexibility, we are offering a hardware and software upgrade that simplifies the user experience, improves product reliability and moves billing from a per patient model to payment for individual treatment cycles.

現在轉向AviClear，在國際市場上，我們在2 月的IMCAS 會議上開始了有限的商業發布階段，在第一季在北美，我們擴大了增強型IMCAS 產品的可用性，這提供了更大的靈活性和簡單性。新的商業模式提供了預先購買設備的選擇，從而相應降低了醫生的持續治療成本。除了更大的業務模式靈活性之外，我們還提供硬體和軟體升級，以簡化用戶體驗，提高產品可靠性，並將計費從按患者計費模式轉變為按個人治療週期付費。

Our primary focus with AviClear in all geographies is on partnering with our customers to build franchises with healthy utilization. In North America we're first working to identify a more focused list of customers who will move forward with AviClear. As a reminder, during 2022 and '23, the company placed over 1,200 AviClear systems into the field under the original business model. But as we've described, most of those accounts, we're no longer doing AviClear procedures as of the second half of 2023.

我們與 AviClear 在所有地區的主要重點是與我們的客戶合作，建立健康利用的特許經營權。在北美，我們首先致力於確定將繼續使用 AviClear 的更集中的客戶名單。需要提醒的是，在 2022 年和 23 年期間，該公司在原始業務模式下將 1,200 多個 AviClear 系統投入使用。但正如我們所描述的，從 2023 年下半年開始，我們將不再對其中大部分帳戶執行 AviClear 程序。

At the end of the first quarter, our installed base of leased systems in North America had declined to approximately 1,050 with a list of an additional 275 set to be returned in the coming months. We've also began reaching out to customers with upcoming lease renewals, and we continue to expect that more than half of the original systems will be returned. This process requires a significant amount of attention, both from our field team and our internal customer support and operations teams. This is critical work to allow us to start the rebuilding process.

截至第一季末，我們在北美的租賃系統安裝基數已下降至約 1,050 個，另外 275 個系統將在未來幾個月內歸還。我們也開始與即將續租的客戶聯繫，我們仍然預計一半以上的原始系統將被歸還。此過程需要我們的現場團隊以及內部客戶支援和營運團隊的大量關注。這是讓我們能夠開始重建進程的關鍵工作。

At the same time though, we've dedicated a group of individuals in the Company to our key practice development initiatives and perhaps most important among these is Cutera Academy, a two-day University style training program that launched at the end of April. Our first Academy session was received with rave reviews both from our internal team as well as the customers who attended, when asked if Academy had a significant impact on their confidence with AviClear, 100% of attendees said, yes. When asked what we should do differently with future academies, 100% said nothing.

同時，我們在公司專門安排了一組人員來開展我們的關鍵實踐發展計劃，其中最重要的可能是 Cutera 學院，這是一個於 4 月底推出的為期兩天的大學風格培訓計劃。我們的第一屆學院課程受到了我們內部團隊以及參加的客戶的好評，當被問及學院是否對他們對 AviClear 的信心產生重大影響時，100% 的與會者說是的。當被問到我們應該對未來的學院採取哪些不同的做法時，100% 的人甚麼也沒說。

So we're excited about what Academy can do for our AviClear franchise and also for the broader business as one attendee commented, this made me have a different perspective on Cutera as a whole, in a very positive way. It shows that Cutera truly cares about their practice partners and wants us to succeed. Our CAM team has now been fully trained on the Cutera Academy curriculum, and we are developing a video content library so that they can apply the Academy experience at a local individualized level.

因此，我們對Academy 能為我們的AviClear 特許經營權以及更廣泛的業務所做的事情感到興奮，正如一位與會者評論的那樣，這讓我以非常積極的方式對整個Cutera 有了不同的看法。這表明 Cutera 真正關心他們的實踐合作夥伴並希望我們取得成功。我們的 CAM 團隊現已接受過 Cutera Academy 課程的全面培訓，我們正在開發一個視訊內容庫，以便他們能夠在本地個人化水平上應用 Academy 經驗。

In summary, we're tracking along with our plans for the year, and we're making progress on our key initiatives, setting the foundation for the future.

總之，我們正在追蹤今年的計劃，我們正在關鍵舉措上取得進展，為未來奠定基礎。

So with that, I'll turn it over to Stuart for a review of our Q1 financial results.

因此，我將把它交給斯圖爾特，以審查我們第一季的財務業績。

Thank you, Taylor. This afternoon, I will discuss our Q1 GAAP results as well as some non-GAAP results. A reconciliation of GAAP to non-GAAP gross margin and loss from operations is included in our earnings release.

謝謝你，泰勒。今天下午，我將討論我們第一季的 GAAP 業績以及一些非 GAAP 業績。我們的收益報告中包含了 GAAP 與非 GAAP 毛利率和營運虧損的調整表。

Total revenue for the first quarter was $38.8 million compared to $54.5 million for the same period in 2023 and compared to $49.5 million in Q4 of 2023. Our Q1 revenue decreased by $10.7 million compared to Q4 2023, mainly reflecting Q4 being typically our strongest quarter of our fiscal year as well as the early termination of our skin care distribution agreement in Japan. The $15.7 million or 29% decrease from the first quarter of 2023 was due mainly to a $10.3 million decline in capital equipment revenue and a $3.9 million in skin care revenue.

第一季的總營收為 3,880 萬美元，而 2023 年同期為 5,450 萬美元，2023 年第四季為 4,950 萬美元。與 2023 年第四季相比，我們第一季的營收減少了 1,070 萬美元，主要反映第四季通常是我們財年中最強勁的季度，以及我們在日本的護膚品分銷協議的提前終止。較 2023 年第一季減少 1,570 萬美元，或 29%，主要是由於資本設備收入減少 1,030 萬美元，皮膚護理收入減少 390 萬美元。

This decrease in capital equipment revenue resulted from continued macroeconomic pressures and a challenging financing environment, particularly for our North American customers. The decrease in capital equipment revenue was partially offset by an increase in systems revenue related to AviClear as we began capital sales of this device.

資本設備收入的下降是由於持續的宏觀經濟壓力和充滿挑戰的融資環境，特別是對於我們的北美客戶。隨著我們開始對該設備進行資本銷售，與 AviClear 相關的系統收入的增加部分抵消了資本設備收入的下降。

Non-gaap gross profit for the first quarter of 2024 was $14.8 million with a gross margin rate of 38.2% compared to a gross margin rate of 43.5% for the first quarter of 2023. 5.3 percentage point decrease was driven by lower manufacturing and sales volume and a $0.7 million non-cash charge in Q1 of 2024 for excess inventory.

2024 年第一季的非公認會計原則毛利為 1,480 萬美元，毛利率為 38.2%，而 2023 年第一季的毛利率為 43.5%。年第一季因庫存過剩而收取70 萬美元的非現金費用。

Non-gaap operating expenses for the first quarter of 2024 with $35.2 million compared to $41.3 million for the same period last year. The $6.1 million decrease mainly reflects personnel savings resulting from the restructuring announced in November 2023 and lower sales commissions. We have recorded a $9.7 million gain on the early termination of our Japanese skincare distribution agreement, and this is recorded as a separate line on our GAAP income statement.

2024 年第一季的非公認會計準則營運費用為 3,520 萬美元，而去年同期為 4,130 萬美元。減少 610 萬美元主要反映了 2023 年 11 月宣布的重組帶來的人員節省以及銷售佣金的降低。由於提前終止日本護膚品分銷協議，我們獲得了 970 萬美元的收益，這在我們的 GAAP 損益表中單獨記錄。

This agreement was originally scheduled to end in June 2024, and we agreed to an early termination and received what were effectively payments for the gross margin we relinquished. For the first quarter of 2024, we incurred a non-GAAP loss from operations of $20.4 million compared to a loss from operations of $17.6 million in the prior year period.

該協議原定於 2024 年 6 月終止，我們同意提前終止，並收到了我們放棄的毛利率的有效付款。2024 年第一季度，我們的非 GAAP 營運虧損為 2,040 萬美元，而去年同期營運虧損為 1,760 萬美元。

Turning to our balance sheet, we ended the quarter with $105.4 million of cash and cash equivalents compared to $143.6 million at December 31, 2023. The $38.2 million quarterly sequential decrease in cash and cash equivalents was driven by a $20 million net cash loss for the quarter, a $17.5 million net payment to Jabil for the nonrenewal of their manufacturing service agreement and a $6.5 million reduction in accounts payable. These items were partially offset by $5.8 million that we received as partial payment related to the early termination of the skin care distribution agreement.

談到我們的資產負債表，本季末我們的現金和現金等價物為 1.054 億美元，而 2023 年 12 月 31 日為 1.436 億美元。現金和現金等價物季度環比減少 3,820 萬美元，原因是該季度淨現金損失 2,000 萬美元、因不續簽製造服務協議而向捷普支付的 1,750 萬美元淨付款以及應付賬款減少 650 萬美元。這些項目被我們收到的 580 萬美元部分抵消，這是與提前終止護膚品分銷協議相關的部分付款。

Now turning to our guidance, we are reiterating our previous revenue guidance of $160 million to $170 million, which includes the $4 million of skin care revenue earned through the transition in the first quarter. We are also reiterating our expected cash and cash equivalents balance at December 31, 2024, to be in the range of $55 million to $60 million.

現在轉向我們的指導，我們重申先前 1.6 億至 1.7 億美元的收入指導，其中包括透過第一季過渡獲得的 400 萬美元的護膚收入。我們也重申，截至 2024 年 12 月 31 日，我們預計現金和現金等價物餘額將在 5,500 萬美元至 6,000 萬美元之間。

Before I turn the call back to the operator, I'd like to mention some changes to our Q4 2023 income statement since our Q4 earnings release on March 21 of this year. We have revised our estimate of the inventory provision related to AviClear materials resulting in an additional $12 million being charged to cost of revenue.

在我將電話轉回運營商之前，我想提一下自今年 3 月 21 日發布第四季度收益以來我們 2023 年第四季度損益表的一些變化。我們修改了 AviClear 材料相關庫存撥備的估計，導致收入成本額外增加 1,200 萬美元。

In addition, we reclassified two charges related to the nonrenewal of the manufacturing services agreement with Jabil, an expense of approximately $6 million was reclassified from general and administrative expense to cost of revenue and an expense of approximately $1 million recorded as other expense in Q3 was reclassified to cost of revenue in Q4.

此外，我們重新分類了與不續簽與捷普的製造服務協議相關的兩項費用，其中約600 萬美元的費用從一般和管理費用重新分類為收入成本，以及在第三季度記錄為其他費用的約100 萬美元的費用第四季重新分類為收入成本。

Operator, we're now ready to begin the question-and-answer session.

接線員，我們現在準備開始問答環節。

(Operator Instructions)

（操作員說明）

George Sellers, Stephens.

喬治·塞勒斯、史蒂芬斯。

Hey, good afternoon and thanks for taking the question.

嘿，下午好，感謝您提出問題。

Yes.

是的。

On guidance, you obviously reiterated the cash that you expect to have at the end of the year target. I'm just curious if you could give us some additional color on the cadence for cash burn through the remainder of the year. It was obviously a little bit elevated in the first quarter and I think probably in line with what we were expecting. How should that trend sequentially in the second quarter? And then what's sort of the exit rate that you expect to end the year?

在指導方面，您顯然重申了您預計在年底獲得的現金目標。我只是好奇您能否給我們一些關於今年剩餘時間現金消耗節奏的額外資訊。第一季的情況顯然有所上升，我認為可能符合我們的預期。第二季的走勢應該如何？那麼您預計今年底的退出率是多少？

Sure. Thanks, George. Yeah, you're right. We're trending along with what we expected as part of our overall cash guidance for the year. And as we look forward, the second quarter will be down relative to the first, but it'll still be elevated relative to the back half of the year. In fact, whereas, on our earlier call, we had indicated that we thought about 70% of our burn would happen in the first half of the year.

當然。謝謝，喬治。是啊，你說得對。我們的趨勢與我們今年整體現金指引的預期一致。展望未來，第二季相對第一季將有所下降，但相對下半年仍將有所上升。事實上，在我們之前的電話會議上，我們曾表示我們認為 70% 的燒錢將發生在今年上半年。

We now think that we'll be a little closer to 75% in the first half of the year. And the reason for that is we've got a few more million, call it, $3 million of extra one-time nonrecurring expenses that we're expecting in the first half of the year. But we're offsetting that with some operating expense reductions that will primarily occur through the second half of the year. So what that means is that overall we're on track, but the exit rate in the second half of the year is actually a little improved now relative to what we had expected earlier in the year.

我們現在認為今年上半年會接近 75%。原因是我們預計今年上半年會有幾百萬美元，即 300 萬美元的額外一次性非經常性支出。但我們將透過主要在今年下半年實現的一些營運費用削減來抵消這一影響。因此，這意味著總體上我們正在步入正軌，但相對於我們今年稍早的預期，今年下半年的退出率實際上有所改善。

Okay. That's really helpful. And then on AviClear, I'm just curious, you talked about the increase really being driven from the shift in the commercial strategy and some capital sales. But how did procedure volume trend with the doctors who are actually using the device? So if we exclude the dormant accounts and just focus on the derms on what you talked about that are seeing success, what's procedure volume look like with those accounts.

好的。這真的很有幫助。然後在 AviClear 上，我只是很好奇，您談到成長實際上是由商業策略的轉變和一些資本銷售推動的。但實際使用該設備的醫師的手術量趨勢如何？因此，如果我們排除休眠帳戶，而只專注於您所說的正在取得成功的皮膚科，那麼這些帳戶的手術量是多少。

Yeah, so I'd say there are a few different types of accounts in there. The first comment I would make is that as we're launching at new accounts and I frame this primarily internationally, where that's obviously been the focus. We are seeing some good initial adoption. And so that's really encouraging. I would say that it's early, so we don't want to get ahead of ourselves there. But we're certainly encouraged by what we're seeing with new accounts and in particular International.

是的，所以我想說那裡有幾種不同類型的帳戶。我要發表的第一條評論是，當我們推出新帳戶時，我主要在國際範圍內進行設計，這顯然是焦點。我們看到一些良好的初步採用。這確實令人鼓舞。我想說現在還為時過早，所以我們不想在這方面超前。但我們確實對新帳戶（尤其是國際帳戶）所看到的情況感到鼓舞。

There's also a core group of physicians in the US or in North America I should say, where we've had fairly stable utilization over the last several quarters and that I think, reflects alright. They've adopted, they've incorporated AviClear into their practice. There is a subset of accounts that are still doing procedures, but where there's been softness sequentially for a few quarters in a row, and we did see some of that in the first quarter.

我應該說，美國或北美還有一個核心醫生群體，過去幾季我們的使用率相當穩定，我認為這反映得很好。他們已經採用並將 AviClear 融入他們的實踐中。有一部分帳戶仍在執行程序，但連續幾個季度出現疲軟，我們在第一季確實看到了其中的一些情況。

And what that really speaks to is the need for all of these initiatives that we've talked about to really help support practice development and practice growth. That is our focus and as we're out talking to these accounts, and that's a big part of the conversation. And it's I think, important before they make decisions on whether they're going to return the device, whether they're going to stay on the lease model or whether they're going to convert.

這真正說明的是我們所討論的所有這些舉措都需要真正幫助支持實踐發展和實踐成長。這是我們的重點，當我們與這些客戶交談時，這是談話的一個重要部分。我認為，在他們決定是否要歸還設備、是否要保留租賃模式或是否要轉換之前，這一點很重要。

And so that's squarely where we're aiming when we talk about programs like Cutera Academy, like our cooperative marketing program, like some of these roundtables where we're discussing best practices. It's really focused at that group of account, George where we've seen softness in procedure volume, but we also think there's an opportunity for growth over time.

因此，當我們談論像 Cutera Academy 這樣的項目時，就像我們的合作行銷項目，就像我們討論最佳實踐的一些圓桌會議一樣，這正是我們的目標。它確實集中在喬治那群客戶上，我們已經看到手術量的疲軟，但我們也認為隨著時間的推移有增長的機會。

Okay. That's really helpful. Maybe to just squeeze one more in. Obviously, you're pulling down your OpEx expense, but we've also heard that there's been some sales rep hiring at the same time. And I'm just curious if you could give some colour on maybe where you're adding sales reps, what parts of the business you think they'll be effective? And any background on maybe experience level of these reps and revenue that you'd expect them to be able to drive?

好的。這真的很有幫助。也許只是再擠一個進去。顯然，您正在降低營運支出，但我們也聽說同時招募了一些銷售代表。我只是很好奇您是否可以說明您可能在哪裡添加銷售代表，您認為他們對業務的哪些部分會有效？您希望他們能夠推動這些代表的經驗水平和收入，有什麼背景嗎？

George, good to hear, you're doing your channel checks. You've heard correctly. Just to add some colour, though, we are right now in North America at a pretty similar level in terms of overall headcount in our field force as where we started the year. We had some turnover during the first quarter but more recently, we've had some real traction with our hiring initiatives.

喬治，很高興聽到你的消息，你正在檢查頻道。你沒聽錯。不過，為了增加一些色彩，我們目前在北美的現場人員總數與年初的水平非常相似。我們在第一季出現了一些人員流動，但最近，我們的招募計畫有了一些真正的吸引力。

Our plan has been to build and we still plan on this and through the year so that we're exiting the year higher than where we started. Right now, we're about at par. We are adding both in our capital organization as well as our CAM, that's our key account manager, organization that's focused on practice development.

我們的計劃一直是建立，我們仍然為此和全年進行計劃，以便我們在今年結束時比我們開始時的水平更高。現在，我們基本上持平。我們正在增加我們的資本組織和我們的 CAM，即我們的大客戶經理，一個專注於實踐開發的組織。

And I'd say we've had a -- there's been a mix of the profile that we've been able to attract to the Company, which I think is encouraging and that mix has, for sure, included some on the fairly experienced side, which I think is a good sign of buy-in to what we're doing here. And the opportunity they see both with the full portfolio, but probably with AviClear in particular.

我想說的是，我們已經能夠吸引到公司的各種人才，我認為這是令人鼓舞的，而且這種組合肯定包括一些經驗豐富的人才我認為這是支持我們在這裡所做的事情的一個好兆頭。他們在完整的產品組合中看到了機會，但可能特別是 AviClear。

Okay. That's really helpful. I'll leave it there and thank you all again for your time.

好的。這真的很有幫助。我將把它留在那裡，再次感謝大家抽出寶貴的時間。

You got it. Thanks, George.

你說對了。謝謝，喬治。

Jon Block, Stifel.

喬恩·布洛克，斯蒂菲爾。

Hey, guys, good afternoon, Taylor maybe I'll just start with Xeo. I think you mentioned 2,500 legacies used in the field. Would love to hear earlier or any early feedback for Xeo+ and how you see that opportunity playing out throughout the year, replacement versus new accounts. And I asked because just like back of the envelope, even a modest 5% to 10% of that current installed base upgrading seems like it could be material revenue. So maybe you could just talk through that opportunity a bit.

嘿，夥計們，下午好，泰勒，也許我會從 Xeo 開始。我想您提到了該領域使用的 2,500 個遺產。我很想聽到有關 Xeo+ 的早期或任何早期反饋，以及您如何看待這一機會在全年中發揮作用，更換帳戶與新帳戶。我之所以這麼問，是因為從表面上看，即使目前安裝基礎升級的 5% 到 10% 看起來也可能是物質收入。所以也許你可以談談這個機會。

Sure. So yeah, thanks for the question, John. We introduced Xeo+ in early April at the ASLMS meeting and feedback has been positive. I think what we've heard most commonly, there's a real appreciation for the handpiece design, users are telling us it just have better visibility. It also -- we've got enhanced contact cooling. We're able to do procedures more quickly that for sure means benefits to the patient means benefits to the practice in terms of ROI. But I think from a user's perspective, it's this visibility issue that has been highlighted and generally better visibility means a better procedure. So we're optimistic on that front

當然。是的，謝謝你的提問，約翰。我們在 4 月初的 ASLMS 會議上介紹了 Xeo+，並得到了正面的回饋。我認為我們最常聽到的是，人們對手機設計非常欣賞，用戶告訴我們它只是具有更好的視覺性。我們也增強了接觸冷卻。我們能夠更快地完成手術，這肯定意味著對患者的好處意味著對投資回報率方面的實踐的好處。但我認為從使用者的角度來看，這個可見性問題已經被強調，通常更好的可見性意味著更好的程式。所以我們對這方面持樂觀態度

Yeah, the opportunity we've had Xeo in the field for 20 plus years. So there is a nice installed base of users. And I think that's where we're most likely to target. This is a -- as we mentioned on the call, as everybody knows, it's a difficult macro environment for a lot of accounts and so I think I'm probably more optimistic on the upgrade opportunity than I am on the new system opportunity. But over time, we think that both are real and yeah, we think that this can be a nicely additive or at least support the overall effort as we go through 2024.

是的，我們已經讓 Xeo 在該領域工作了 20 多年。因此，有一個很好的用戶安裝基礎。我認為這就是我們最有可能瞄準的目標。正如我們在電話會議中提到的，眾所周知，對於許多帳戶來說，這是一個困難的宏觀環境，因此我認為我對升級機會可能比對新系統機會更加樂觀。但隨著時間的推移，我們認為兩者都是真實的，是的，我們認為這可以成為一個很好的補充，或者至少支持我們 2024 年的整體努力。

Got it. Great. That was helpful. And maybe just to shift gears, for AviClear, as you mentioned, you're getting systems back and more will come back shortly. Maybe if you could just comment on what the go to market strategy is there, you'd want to get those out the door as soon as possible, arguably just from a cash flow perspective, but Avi is still a very new lauch, so you started offering the new systems and the refurbs immediately. Do that in the same market, maybe if you could just talk through how you're going to attack the market, how you get those systems back more frequently?

知道了。偉大的。這很有幫助。也許只是為了換檔，對於 AviClear，正如您所提到的，您正在恢復系統，並且很快就會恢復更多系統。也許如果你能評論一下進入市場的策略是什麼，你會希望盡快將這些策略推出，可以說只是從現金流的角度來看，但 Avi 仍然是一個非常新的產品，所以你立即開始提供新系統和翻新設備。在同一個市場上這樣做，也許你可以談談你將如何攻擊市場，如何更頻繁地恢復這些系統？

Sure. So as we contemplate new accounts for AviClear, our number one focus is well, I should say our focus is on accounts with a profile that we really think can support developing a healthy franchise, a healthy business over time. And that generally means a practice that is either already familiar with the treatment of acne more broadly or has the ability to get up that learning curve very quickly. It generally means you've got a physician on site and then there's got to be a willingness or willingness to train the entire staff to go through programs like our academy into invest behind the product.

當然。因此，當我們考慮為 AviClear 建立新帳戶時，我們的首要關注點是，我應該說，我們的重點是具有我們真正認為可以支持發展健康的特許經營權、長期健康的業務的帳戶。這通常意味著一種實踐要么已經更廣泛地熟悉痤瘡的治療，要么有能力快速提升學習曲線。這通常意味著您在現場有一名醫生，然後必須願意或願意培訓全體員工透過像我們學院這樣的計畫來投資產品。

Now we think that the most likely the best target that meets that profile is an aesthetic dermatology practice, ideally, one that has connections with medical dermatology, which is where you're going to see probably the healthiest flow of acne patients. So really the -- is step number one is, find that target audience. We think there are a call it, 3,000 to 4,000 aesthetic dermatology practices across the country. So there's a good target here to go after. And there are other accounts that could meet the profile that we're looking for as well.

現在我們認為，最有可能滿足這一要求的最佳目標是美容皮膚病學實踐，理想情況下，是與醫學皮膚病學相關的實踐，在那裡你將看到可能是最健康的痤瘡患者流動。所以實際上，第一步是找到目標受眾。我們認為全國有 3,000 到 4,000 個美容皮膚科診所。所以這裡有一個很好的目標值得追求。還有其他帳戶也可以滿足我們正在尋找的個人資料。

But really the focus is, unlike the first time around, it's not on just getting machines out of the field. The focus is on getting machines into places where we think we're going to see a great return over time, both for the practice and for us. So now then whether it's a new or a refurbished system, we will have both to offer, there could be a cost advantage to a practice if they go with a refurbished. Refurbished is we make, we make it new, I mean it is effectively a brand new machine. We've got a great team that does that work back here at headquarters. So both will be available.

但真正的重點是，與第一次不同，它不僅僅是將機器帶出現場。重點是讓機器進入我們認為隨著時間的推移我們會看到巨大回報的地方，無論是對實踐還是對我們來說。因此，現在無論是新的還是翻新的系統，我們都會提供，如果使用翻新的系統，可能會帶來成本優勢。翻新是我們製造的，我們使它成為新的，我的意思是它實際上是一台全新的機器。我們有一支優秀的團隊在總部從事這項工作。所以兩者都可用。

Got it. Thanks for the colour, guys.

知道了。謝謝你們的顏色。

Thank you, John.

謝謝你，約翰。

James Beers, William Blair.

詹姆斯·比爾斯，威廉·布萊爾。

Hey, guys, it's Jimmy on for Margaret. Thanks for taking the question. Maybe start off just on the capital environment, maybe go back to some of the macro thoughts, but we continue to hear the environment, at least for aesthetics is pretty tough, just securing financing. Could you maybe speak to what you're seeing on the macro front in the first quarter and then know now here a little bit into the second quarter. Any trends you may point out?

嘿，夥計們，吉米替瑪格麗特上場。感謝您提出問題。也許只是從資本環境開始，也許回到一些宏觀想法，但我們繼續聽到環境，至少對美學來說是相當困難的，只是確保融資。您能否談談您在第一季宏觀方面看到的情況，然後現在了解第二季度的情況。您可以指出什麼趨勢嗎？

Sure. Hey, Jimmy. Yeah, we agree with the feedback that it sounds like you're hearing more broadly. I put it into a couple of categories, the financing environment is challenging, it is and we saw this in the second half of last year. We saw it in the first quarter. There is a segment of the legacy user base that really just doesn't have access to financing right now.

當然。嘿，吉米。是的，我們同意您所聽到的更廣泛的回饋。我把它分成幾類，融資環境充滿挑戰，我們在去年下半年就看到了這一點。我們在第一季就看到了這一點。有一部分舊用戶群目前確實無法獲得融資。

And we've been trying to work with third parties to unlock that, there some things that you can do, but not a lot for a certain segment. So financing is tough rates are higher, even for someone who's creditworthy. So it's definitely more challenging there. And we also are hearing from customers that practice volumes just generally not just for us, but just practice volumes are sluggish.

我們一直在嘗試與第三方合作解鎖這一點，你可以做一些事情，但對於某個細分市場來說，做的並不多。因此，融資很困難，即使對於信譽良好的人來說，利率也會更高。所以那裡肯定更具挑戰性。我們也從客戶那裡聽到，練習量通常不僅適合我們，而且練習量很慢。

And I think that's probably contributing to some lack of confidence in moving forward with capital purchases. So that's the environment we're operating in. That is what we had generally expected as we entered the year. I'd say we're seeing it -- The only other thing I'd add is in the body business, the body contouring business, I think it's particularly tough and there may be a GLP-1 impact there. So all of that is -- it was to be expected, it was it was part of the way we thought about the outlook for the year.

我認為這可能導致人們對推進資本購買缺乏信心。這就是我們的營運環境。這是我們進入這一年時的普遍預期。我想說我們正在看到它——我要補充的唯一的另一件事是在身體業務、身體輪廓業務中，我認為這特別困難，並且可能會受到 GLP-1 的影響。所以所有這些都是——這是可以預料的，這是我們思考今年前景的方式的一部分。

And I tell you it takes us back to real -- we're just fortunate to have a product like AviClear that we're able to be launching right now into what we believe is a less sensitive portion of the customer base in a market that should be less sensitive from a consumer perspective as well.

我告訴你，這讓我們回到了現實——我們很幸運能夠擁有像 AviClear 這樣的產品，我們現在能夠將其推出到我們認為市場上不太敏感的客戶群中。也應該不那麼敏感。

Great. That's really helpful. And then maybe just touching on the modelling side. Like you said, kind of it seems like it's still a pretty tough selling environment, for Q2 capital tends to have one of its stronger quarters. How should we think about modelling capital into Q2? And what are you sort of assuming for guidance into Q2 and then thereon for capital? Thank you.

偉大的。這真的很有幫助。然後也許只是觸及建模方面。正如您所說，似乎仍然是一個相當艱難的銷售環境，因為第二季資本往往是最強勁的季度之一。我們應該如何考慮將資本建模到第二季？您對第二季的指導以及隨後的資本有何假設？謝謝。

And we are expecting an uptick from Q1 to Q2. We're not going to give specific guidance on that, but I'd say Q2 should be from a capital perspective, stronger than Q1, the second half of the year, we think will be stronger than the first half of the year.

我們預計第一季到第二季將會有所上升。我們不會對此給予具體指導，但我想說第二季度應該從資本角度來看，強於第一季度，下半年我們認為會強於上半年。

We do have the macro backdrop, but we're also launching Xeo+. We think we're going to be a bit stronger in terms of the overall field force so we've got some offsets to that pressure. That's the way we've been thinking about them in terms of puts and takes.

我們確實有宏觀背景，但我們也推出了 Xeo+。我們認為我們的整體戰力會更強一些，因此我們可以抵消這種壓力。這就是我們從看跌期權和拿取角度來思考它們的方式。

Great. Thanks for the questions.

偉大的。感謝您的提問。

(Operator Instructions)

（操作員說明）

Nick Sherwood, Maxim Group.

尼克‧舍伍德，馬克西姆集團。

Good evening. My first question is what is the runway that you're seeing for this international expansion? I imagine you're targeting a lot of high-quality leads, but what is once you get some of those easier wins with practices that might have more capital on hand, what do you see as the environment for maybe lower quality leads and they're financing potential?

晚安.我的第一個問題是，您認為這次國際擴張的跑道是什麼？我想你的目標是大量高品質的潛在客戶，但是一旦你透過手頭可能有更多資本的實踐獲得了一些更容易的勝利，你認為可能較低質量的潛在客戶和他們的環境是什麼？融資潛力？

Hey, Nick. So where we're at with the launch, we think there's a pretty long runway ahead. So first quarter was truly limited commercial release, which means a few KOL type sites, and we were in around 10 markets in the first quarter. With that as we move into the second quarter, we're broadening a bit in some of those markets. So for example, in Australia, we're starting to reach out more broadly in the dermatology community. We are not yet moving to full market coverage though.

嘿，尼克。因此，就目前的發射情況而言，我們認為前面還有很長的路要走。因此，第一季的商業發布確實有限，這意味著一些 KOL 類型的網站，而我們第一季的市場涵蓋了約 10 個市場。隨著進入第二季度，我們將在其中一些市場上進行一些擴展。例如，在澳大利亞，我們開始更廣泛地接觸皮膚病學界。不過，我們尚未實現全面的市場覆蓋。

So there's I think over the next several quarters, there's going to be a gradual broadening within some of these target markets. And then as we get into later in the year, we'll start moving into some of our distributor territories. And then there are other markets like Japan where we probably won't have regulatory approval in 2024. So that would be something that we layer in next year.

因此，我認為在接下來的幾個季度中，其中一些目標市場將逐漸擴大。然後，當我們進入今年晚些時候時，我們將開始進入我們的一些經銷商區域。還有其他市場，例如日本，我們可能不會在 2024 年獲得監管部門的批准。所以這將是我們明年分層的內容。

And there are other markets that will be able to come online over the years to come. So as an example, China, that's probably a multi-year opportunity in terms of the length of time, it will take us to get clearances there. So I think you're going to see this launch build for a fair amount of time.

未來幾年，還有其他市場將能夠上線。以中國為例，就時間長度而言，這可能是一個多年的機會，我們需要在那裡獲得許可。所以我認為你會在相當長的時間內看到這個發布版本。

Awesome, thank you for that colour. And then switching gears, can you talk a little bit about sort of the innovation you're driving through, your R&D, are you tried to build upon your current product lines to make them more appetizing to your current customers? Or are you also more looking into newer products that can really kick things off and start growing revenues faster?

太棒了，謝謝你的顏色。然後換個角度，你能談談你正在推動的創新、你的研發嗎？或者您也在更專注於能夠真正啟動並開始更快增加收入的新產品？

What I'd say to start with is we don't suffer from a lack of ideas. We've got a really innovative team and an innovative leader, Michael Karavitis. And what the what the team is working on at various stages would be a combination of everything you described. What to expect in the near term, though, I would say we're seeing and you know, good near-term opportunity is just on the clinical expansion with AviClear.

首先我要說的是，我們並不缺乏創意。我們擁有一支真正具有創新精神的團隊和一位具有創新精神的領導者，邁克爾·卡拉維蒂斯 (Michael Karavitis)。團隊在各個階段所做的工作將是您所描述的所有內容的組合。不過，我想說的是，我們正在看到近期會發生什麼，而且您知道，近期的好機會就在於 AviClear 的臨床擴展。

So we are going to be putting some investment dollars behind some initial clinical studies in new indications, over time we will likely need new handpieces to support some of those new indications. So this is early, but we see a good opportunity to expand the utility of this system and this is a system that's a novel wavelength and new wave links for the industry and we're the leaders. So it just makes sense to invest behind a capability set like that.

因此，我們將在新適應症的一些初步臨床研究上投入一些投資，隨著時間的推移，我們可能需要新的手機來支持其中一些新適應症。所以現在還為時過早，但我們看到了擴展該系統實用性的好機會，這是一個對於行業來說是新波長和新浪潮鏈路的系統，我們是領導者。因此，投資這樣的能力集合是有意義的。

Understood. And then for my last question, you kind of mentioned briefly that potential GLP-1 impact into the body contouring business. Can you just give any additional color or detail that you've heard from some of your partners and customers about that?

明白了。對於我的最後一個問題，您簡要地提到了 GLP-1 對塑身業務的潛在影響。您能否提供您從一些合作夥伴和客戶那裡聽到的任何其他資訊或細節？

Sure. So just to add a little bit more colour, I think this is probably the area where we had a little more weakness than expected in the first quarter. I think across the board things were in terms of the macro environment were more in line with what we thought. But body took a step down for us and we've heard it across the industry.

當然。因此，為了增加一點色彩，我認為這可能是我們第一季比預期稍弱的領域。我認為整體而言，宏觀環境方面的情況更符合我們的想法。但 Body 為我們做出了讓步，我們在整個行業都聽到了這樣的聲音。

So we are pretty light in terms of what we sold in the first quarter. What we're hearing is just that with the GLP-1 dynamic, you've got a lot of patients who are moving on to that therapy. And so practice volumes at customer sites are down. And so that obviously creates an air pocket in the market for people thinking about investing in a new energy-based platform.

因此，就第一季的銷售量而言，我們的銷售量相當少。我們聽到的是，隨著 GLP-1 的動態，許多患者正在繼續接受這種治療。因此，客戶現場的練習量有所下降。因此，這顯然為考慮投資新能源平台的人們在市場上創造了一個空氣袋。

Now what we also hear and what we expect is that patients aren't going to be on these drugs forever. And while they're really good at debulking, they aren't going to address stubborn pockets of fat, which are likely to be residual and which is what the body contouring industry was designed for in the first place. So you're likely to see a wave. People are riding that GLP-1 wave right now, they're going to come off. They're going to have certain pockets of fat. They're going to have loose skin. They're going to have -- they're losing muscle just like they're losing fat.

現在我們還聽到並期望的是患者不會永遠服用這些藥物。雖然它們確實擅長減肥，但它們無法解決頑固的脂肪團，這些脂肪團很可能是殘留的，而這正是塑身產業最初設計的目的。所以你很可能會看到波浪。人們現在正乘著 GLP-1 浪潮，他們即將消失。他們會有一定的脂肪。他們的皮膚會鬆弛。他們將會失去肌肉，就像失去脂肪一樣。

And we believe there's going to be a need in the future for the energy-based device space to address. What I can't tell you is how long it's going to take that wave to get to shore. But we think it's coming.

我們相信，未來將需要解決基於能源的設備領域的問題。我無法告訴你的是那股波浪需要多長時間才能到達岸邊。但我們認為它即將到來。

Thank you for that detail, and I'll return to the queue.

謝謝您提供的詳細信息，我將返回隊列。

Thank you.

謝謝。

This concludes the question-and-answer session, I'd like to turn the conference back over to Taylor Harris for any closing remarks.

問答環節到此結束，我想將會議轉回泰勒·哈里斯（Taylor Harris）做總結發言。

Well, thank you. Thank you, everyone, for joining us. Before we conclude, I just wanted to thank the entire Cutera team. We've just got an amazing group of passionate committed Cuterans. And so thanks for all the hard work, and thanks for everyone who joined us today, have a good evening.

嗯，謝謝。謝謝大家加入我們。在結束之前，我想感謝整個 Cutera 團隊。我們剛剛擁有一群令人驚嘆的充滿熱情、忠誠的可愛人。感謝大家的辛勤工作，感謝今天加入我們的所有人，祝大家晚上愉快。

This brings to close 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。感謝您的參與並祝您有個愉快的一天。