Cutera Inc (CUTR) 2024 Q2 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Cutera, Inc., second-quarter 2024 results conference call. (Operator Instructions) The conference is being recorded.

謝謝你的支持。這是會議操作員。歡迎參加 Cutera, Inc. 2024 年第二季業績電話會議。（操作員指示）會議正在錄音。

I would now like to turn the conference over to Shelby Eckerman, Vice President of Finance. Please go ahead.

現在我想將會議交給財務副總裁謝爾比‧艾克曼 (Shelby Eckerman)。請繼續。

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

謝謝運營商，也謝謝大家今天加入我們。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 reflect 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 modeling purposes.

在我們開始之前，我要指出的是，今天的討論包含前瞻性陳述。這些前瞻性陳述反映了管理階層目前對公司未來業務某些方面的預測或預期，包括但不限於為建模目的提供的任何財務指引。

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 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.

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，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等陳述。

For words that may identify forward-looking statements, we encourage you to refer to the Safe Harbor statement in our press release earlier today. 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.

對於可能識別前瞻性陳述的詞語，我們鼓勵您參考我們今天早些時候新聞稿中的安全港聲明。所有前瞻性陳述均受到風險和不確定性的影響，包括在向美國證券交易委員會提交的10-K 表中標題為「風險因素」的部分中描述的風險因素，以及隨後提交的10-Q 表中更新的風險因素。

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 unanticipated events. Future results may differ materially from management's current expectations.

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。未來的結果可能與管理層目前的預期有重大差異。

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

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。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 GAAP 財務指標應與 GAAP 規定的經營績效指標一起考慮，但不能取代 GAAP 規定的經營績效指標。

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, Shelby. I'll start by acknowledging that we're reporting a disappointing second quarter performance and full year outlook. Historically, our business and our industry have seen increased capital purchase activity as we move sequentially into the second quarter. This year, that trend didn't hold. Primarily, we believe, due to continued macroeconomic pressure, which we're assuming will persist through the balance of the year.

謝謝你，謝爾比。首先我要承認，我們報告的第二季業績和全年前景令人失望。從歷史上看，隨著進入第二季度，我們的業務和行業的資本購買活動增加。今年，這種趨勢並沒有持續下去。我們認為，主要是由於持續的宏觀經濟壓力，我們假設這種壓力將持續到今年剩餘時間。

We are marching forward with new commercial leadership in North America, additional cost reductions and we're building upon the strong momentum that we're generating with AviClear. I'm proud of the resilience that our team at Cutera is demonstrating and of the foundational changes we continue to pursue to position the company well for future growth. There were some important bright spots in our second quarter performance, and I want to highlight those.

我們正在北美地區憑藉新的商業領導、額外的成本削減以及與 AviClear 共同創造的強勁勢頭繼續前進。我為 Cutera 團隊所展現的韌性以及我們繼續追求的根本性變革感到自豪，這些變革為公司未來的發展奠定了良好的基礎。我們第二季的業績有一些重要的亮點，我想強調這些。

First, the international launch of AviClear is proceeding exceedingly well. We've sold over 70 AviClear systems outside of North America. And for the approximately 50 customers that have had systems in place for at least two months, utilization is averaging over 10 treatments per month. Now, we're very early in the launch, so it wouldn't be appropriate to extrapolate that performance, but it is still quite encouraging.

首先，AviClear 的國際發布進展非常順利。我們已在北美以外地區銷售了 70 多個 AviClear 系統。對於已經安裝系統至少兩個月的約 50 名客戶來說，平均每月的使用率超過 10 次。現在，我們還處於發布的早期階段，因此推斷該性能並不合適，但它仍然相當令人鼓舞。

Second, we've had highly positive feedback from the launch of Xeo+ in North America, and we're exceeding our expectations there. Xeo offers tremendous flexibility in customization with over 25 applications from Cutera's signature laser genesis procedure to hair removal to pigment reduction and more.

其次，我們在北美推出 Xeo+ 後獲得了非常正面的回饋，並且超出了我們的預期。Xeo 在客製化方面提供了巨大的靈活性，具有超過 25 種應用，從 Cutera 的標誌性雷射生成程序到除毛到色素減少等。

We believe that Xeo+ can be a great upgrade option for our installed base of legacy Xeo accounts over time. But in the second quarter, we actually sold more Xeo+ systems into accounts that are new to Cutera, which we view as a positive indicator of the long-term opportunity.

我們相信，隨著時間的推移，Xeo+ 可以成為我們的舊 Xeo 帳戶安裝基礎的一個很好的升級選項。但在第二季度，我們實際上向 Cutera 的新帳戶銷售了更多 Xeo+ 系統，我們認為這是長期機會的正面指標。

Third, we've strengthened our North American sales force over the past quarter. In July, we promoted Steve Kreider to SVP of North America with full responsibility for a unified commercial organization including capital sales, practice development, marketing, and customer excellence. Steve is a mission driven leader and he has tremendous passion for building great teams, training and developing people, and providing clarity and focus on priorities. All of those attributes as well as his deep experience in both dermatology and aesthetics will serve Cutera well.

第三，我們在過去一個季度加強了北美銷售團隊。7 月，我們晉升 Steve Kreider 為北美高級副總裁，全面負責統一的商業組織，包括資本銷售、實踐開發、行銷和客戶卓越。史蒂夫是一位使命驅動的領導者，他對建立優秀團隊、培訓和發展人員以及明確並專注於優先事項充滿熱情。所有這些特質以及他在皮膚病學和美學方面的豐富經驗將為 Cutera 帶來很好的幫助。

Steve and his leadership team are focused on driving consistent execution and improved productivity. To this end, we've restructured our capital sales organization under the leadership of two new directors and a team of regional managers, across both capital and practice development, our leaders are focused on team management, collaboration, training, and process improvements, including utilization of the sales force platform to improve execution and forecasting.

史蒂夫和他的領導團隊致力於推動一致的執行和提高生產力。為此，我們在兩位新董事和區域經理團隊的領導下重組了我們的資本銷售組織，在資本和實踐發展方面，我們的領導者專注於團隊管理、協作、培訓和流程改進，包括利用銷售人員平台來改進執行和預測。

Our current North American team represents a solid mix of Cutera veterans and new talent. In recent months, we have attracted a number of proven capital salespeople and practice development managers with deep industry experience. We've also had a fair amount of turnover much through performance management.

我們目前的北美團隊由 Cutera 資深人士和新人才組成。近幾個月來，我們吸引了一群經驗豐富的資本銷售人員和具有深厚行業經驗的實踐開發經理。我們也透過績效管理實現了相當多的人員流動。

Turnover to tracks from revenue in the short-term as it takes new reps, even experienced ones sometime to build their territories. But we believe that the overall transition has strengthened our team for higher levels of performance over the medium and long-term.

短期內，營業額會從收入轉向賽道，因為需要新的銷售代表，甚至有時需要經驗豐富的銷售代表來建立自己的領地。但我們相信，整體轉型增強了我們團隊的實力，使其能夠在中長期內實現更高水準的績效。

Turning to our overall financial performance in the second quarter. Revenue was below our expectation due to a combination of macro pressure and the aforementioned sales force transition. Overall capital systems revenue increased sequentially in international markets due to the strength of the AviClear launch, but it declined sequentially in North America.

轉向我們第二季的整體財務表現。由於宏觀壓力和上述銷售人員轉型的共同影響，收入低於我們的預期。由於 AviClear 的推出，國際市場的整體資本系統收入連續成長，但在北美則是連續下降。

Customers across multiple geographies continue to struggle with access to capital and financing terms, which are limiting their ability to invest in new capital. Our gross margin was also below expectations primarily due to lower sales volume, but also attributable to a mix shift and some continued charges related to the remediation of our operational challenges.

多個地區的客戶繼續在獲得資本和融資條款方面遇到困難，這限制了他們投資新資本的能力。我們的毛利率也低於預期，主要是由於銷售量下降，但也歸因於組合轉變以及與糾正我們的營運挑戰相關的一些持續費用。

The mix shift is important to understand. In the first half of the year, we had a meaningful shift toward international revenue, which comes at a reduced gross margin. Relative to our forecast we also had lower sales of our RF energy platforms, True Body and Secret. These platforms have higher margin profiles than our stand-alone lasers, and we also have inventory of these systems that we're attempting to work down.

理解混合轉變很重要。今年上半年，我們對國際收入進行了有意義的轉變，但毛利率有所下降。相對於我們的預測，我們的射頻能量平台 True Body 和 Secret 的銷售額也有所下降。這些平台比我們的獨立雷射器具有更高的利潤率，而且我們還擁有我們正在嘗試減少的這些系統的庫存。

So a shift away from these platforms hits gross margin and changes the timing of our working capital benefit. Our operating expenses were well controlled in the second quarter which offset some of the reduction in revenue and gross margin.

因此，遠離這些平台會影響毛利率，並改變我們的營運資本利得的時間。第二季我們的營運費用得到了很好的控制，抵消了部分收入和毛利率的下降。

I'll now provide an update on how we're responding to some of these challenges and on our focus areas moving forward. First, operational excellence, all in support of our customers. We continue to make great progress in all of the key areas that we identified last year product reliability, field service, inventory control, supply demand planning and cost of operations. The overarching goal of these improvements is to support our customers. That is the mindset with which we're approaching the business. And that's the same goal as we have with our North American commercial leadership change and restructuring.

我現在將提供有關我們如何應對其中一些挑戰以及我們未來重點領域的最新資訊。首先，卓越運營，一切都是為了支持我們的客戶。我們繼續在去年確定的產品可靠性、現場服務、庫存控制、供需計劃和營運成本的所有關鍵領域取得巨大進展。這些改進的首要目標是支持我們的客戶。這就是我們開展業務的心態。這與我們北美商業領導層變更和重組的目標相同。

Second, our cost structure. During the fourth quarter of last year, we initiated a restructuring that reduced headcount by 25% and our expense base by approximately $20 million. In response to the reduced revenue outlook for 2024, we've identified additional cost savings that should annualize at approximately $10 million in 2025.

第二，我們的成本結構。去年第四季度，我們啟動了重組，員工人數減少了 25%，費用基礎減少了約 2,000 萬美元。為了因應 2024 年收入前景下降的情況，我們確定了到 2025 年每年可節省約 1,000 萬美元的額外成本。

Third, AviClear. We continue to be encouraged by international launch dynamics, including the uptake by thought leading KOLs in major markets, as well as the strong utilization of the installed base that we are seeing. This gives us the confidence that AviClear can become a mainstay platform in aesthetic dermatology across the globe with utilization opportunity expanding over time as we add indications like sebaceous hyperplasia to the already significant opportunity in acne.

第三，AviClear。我們繼續受到國際發布動態的鼓舞，包括主要市場中思想領先的 KOL 的採用，以及我們所看到的安裝基礎的強勁利用率。這讓我們相信，AviClear 可以成為全球美容皮膚科的主要平台，隨著時間的推移，隨著我們在已經很重要的痤瘡機會中添加皮脂腺增生等適應症，利用機會不斷擴大。

In North America, we're still working through the transition from the initial lease business model. As of the end of the second quarter, there were approximately 925 systems operating under the least model, down from 1,050 last quarter with approximately 270 more on a list to be returned in the coming quarters. We continue to expect that more than half of the original lease installed base of systems will be returned.

在北美，我們仍在努力從最初的租賃業務模式過渡。截至第二季末，大約有 925 個系統在最小模型下運行，低於上季度的 1,050 個，並且在未來幾季將返回的清單中還有大約 270 個系統。我們仍然預計一半以上的原始租賃安裝系統將被歸還。

Now this process requires a significant amount of attention, both from our field team and our internal customer support and operations teams, but it's critical work to allow us to continue the rebuilding process. In parallel with this windowing activity, we are seeing our growth oriented investments start to bear fruit. Utilization of our cooperative marketing program increased to over 40% in the second quarter. And our Cutera Academy initiative continues to receive rave reviews.

現在，這個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，但這是讓我們能夠繼續重建流程的關鍵工作。在進行這項窗口活動的同時，我們看到以成長為導向的投資開始取得成果。第二季我們的合作行銷計劃的使用率增加到 40% 以上。我們的 Cutera Academy 計劃繼續受到好評。

We've now hosted four academy events with 98% of participants saying that it had a significant impact on their confidence with AviClear. Buoyed by these early proof points, alongside the momentum we're generating internationally, we continue to see a bright future for AviClear, and we remain focused organizationally on driving toward that vision.

我們現在已經舉辦了四場學院活動，98% 的參與者表示這對他們對 AviClear 的信心產生了重大影響。受到這些早期證據的鼓舞，加上我們在國際上產生的動力，我們繼續看到 AviClear 的光明未來，並且我們仍然專注於在組織上推動實現這一願景。

And last, working capital. Due to the reduced revenue outlook and product mix shift, our ability to realize an inventory work down benefit has been delayed from the second half of this year into 2025. And we're focused intently on positioning the company to benefit from a material reduction of inventory next year.

最後，營運資金。由於收入前景下降和產品結構轉變，我們實現庫存下降效益的能力已從今年下半年推遲到 2025 年。我們專注於讓公司從明年的庫存大幅減少中受益。

We currently anticipate a year-over-year improvement in cash burn of over $50 million as we move from 2024 to 2025 and that's related to working capital alone even in the absence of revenue growth or gross margin improvement, or the expense reductions that have already been identified. So digging into this a bit more.

我們目前預計，從 2024 年到 2025 年，現金消耗將比去年同期改善超過 5,000 萬美元，這僅與營運資本相關，即使沒有收入成長或毛利率改善，或已實現的費用削減。所以再深入研究一下。

In 2024, we anticipate an outflow of cash of over $25 million related to working capital, primarily from a build in inventory in the first half of the year. In 2025, though, even if revenue were to stay flat at 2024 levels, we should recognize a cash benefit from inventory reduction of approximately $25 million. In addition to that working capital reversal, we have identified $10 million of expense reductions and we're positioning both our North American and international businesses for growth next year led by AviClear.

到 2024 年，我們預計與營運資金相關的現金流出將超過 2,500 萬美元，主要來自上半年的庫存增加。不過，到 2025 年，即使收入與 2024 年的水準持平，我們也應該認識到庫存減少帶來的現金收益約為 2,500 萬美元。除了營運資本逆轉之外，我們還確定了 1000 萬美元的費用削減，並且我們將北美和國際業務定位為明年由 AviClear 領導的成長。

We're comfortable that our current cash balance and capital structure provides sufficient liquidity and runway for the near-term. That said, at the same time that we're strengthening our business operationally, we constantly evaluate our liquidity and capital structure needs and options, and we expect to address both of those when conditions are right. We see opportunity to reduce the debt the company is currently carrying and bringing in additional capital would allow us to fund our growth initiatives as we return the business to profitability.

我們感到滿意的是，我們目前的現金餘額和資本結構為近期提供了充足的流動性和跑道。也就是說，在我們加強業務運作的同時，我們不斷評估我們的流動性和資本結構需求和選擇，我們希望在條件合適時解決這兩個問題。我們看到了減少公司目前所背負的債務的機會，並且引入額外的資本將使我們能夠在業務恢復盈利的同時為我們的增長計劃提供資金。

Before I turn the call over to Stuart, I would like to highlight our new partnership with L'Oreal's SkinCeuticals business in Japan. We're very excited about this partnership. We've been successful with skin care in Japan in the past, and with SkinCeuticals, we will now be representing the global leader in physician skincare in the Japanese market.

在將電話轉給史都華之前，我想先強調一下我們與歐萊雅日本修麗可業務的新合作關係。我們對這次合作感到非常興奮。過去，我們在日本的皮膚護理領域取得了成功，現在，透過修麗可 (SkinCeuticals)，我們將成為日本市場上醫師皮膚護理領域的全球領導者。

Our team will focus on introducing the SkinCeuticals portfolio into physician offices, primarily aesthetic dermatology, while L'Oreal will provide comprehensive marketing support. We plan to launch in the fourth quarter of 2024 and as such, we expect an immaterial financial impact this year.

我們的團隊將專注於將修麗可 (SkinCeuticals) 產品組合引入醫生辦公室，主要是美容皮膚科，而歐萊雅將提供全面的營銷支援。我們計劃於 2024 年第四季推出，因此，我們預計今年不會產生重大財務影響。

With that, I'll turn the call over to Stuart.

這樣，我就把電話轉給史都華。

Thank you, Taylor. This afternoon, I will discuss our Q2 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，我將討論我們第二季度的 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 second quarter was $34.4 million compared to $61.8 million for the same period in 2023 and compared to $38.8 million in Q1 of 2024. Our Q2 revenue decrease of $4.4 million compared to Q1 of 2024, mainly reflected Q1 skincare distribution revenue of $4.2 million. We terminated our skincare distribution agreement in March 2024.

第二季總營收為 3,440 萬美元，而 2023 年同期為 6,180 萬美元，2024 年第一季為 3,880 萬美元。與 2024 年第一季相比，我們第二季的收入減少了 440 萬美元，主要反映第一季護膚品分銷收入為 420 萬美元。我們於 2024 年 3 月終止了護膚品分銷協議。

The $27.4 million or 44% decrease in revenue compared to the second quarter of 2023 was due mainly to a $13.8 million decline in North American capital equipment revenue, a $9.4 million decline in skin care revenue and a $3 million decline in consumables revenue. This decrease in North American capital equipment revenue resulted primarily from continued macroeconomic pressures as well as the sales force dynamic that Taylor referenced.

與 2023 年第二季相比，收入減少 2,740 萬美元，即 44%，主要是由於北美資本設備收入減少 1,380 萬美元，皮膚護理收入減少 940 萬美元，消耗品收入減少 300 萬美元。北美資本設備收入的下降主要是由於持續的宏觀經濟壓力以及泰勒提到的銷售人員動態所造成的。

Non-GAAP gross profit for the second quarter of 2024 was $9.6 million, with a gross margin rate of 28.8% compared to a gross margin rate of 46.6% for the second quarter of 2023. The 18.6 percentage point decrease in gross margin rate was driven primarily by decreased sales volume and a change in sales mix with a shift in sales in North America to sales in Europe and an increase in our reserve for excess inventory.

2024年第二季的非公認會計準則毛利為960萬美元，毛利率為28.8%，而2023年第二季的毛利率為46.6%。毛利率下降18.6個百分點，主要是因為銷售下降、銷售結構變化（北美銷售轉向歐洲銷售）以及過剩庫存儲備增加所致。

On a normalized basis, excluding inventory reserves our non-GAAP gross margin would be approximately 35%. Non-GAAP operating expenses for the second quarter of 2024 were $30.9 million compared to $42.1 million for the same period last year. This $11.2 million decrease mainly reflects personnel savings resulting from the restructuring announced in November 2023 and lower sales commissions.

在正常化的基礎上，不包括庫存儲備，我們的非 GAAP 毛利率約為 35%。2024 年第二季的非 GAAP 營運費用為 3,090 萬美元，去年同期為 4,210 萬美元。這筆 1,120 萬美元的減少主要反映了 2023 年 11 月宣布的重組和較低的銷售佣金帶來的人員節省。

In Q2 of 2024, we received close to $5.8 million of litigation proceeds. This amount was included as income within general and administrative expense and was excluded from our non-GAAP results. For the second quarter of 2024, we incurred a non-GAAP loss from operations of $21.3 million compared to a loss from operations of $13.2 million in the prior year period.

2024 年第二季度，我們收到近 580 萬美元的訴訟收益。這筆金額作為收入計入一般和管理費用，不包括在我們的非公認會計準則績效中。2024 年第二季度，我們的非 GAAP 營運虧損為 2,130 萬美元，而去年同期營運虧損為 1,320 萬美元。

Turning to our balance sheet. We ended the quarter with $84.3 million of cash, cash equivalents and restricted cash compared to $105.4 million in March 31, 2024. The $21.1 million quarterly sequential decrease was driven mainly by a $16.7 million net cash loss for the quarter, as well as inventory purchase commitments.

轉向我們的資產負債表。截至本季末，我們的現金、現金等價物和限制性現金為 8,430 萬美元，而 2024 年 3 月 31 日為 1.054 億美元。季度環比減少 2,110 萬美元，主要是由於該季度 1,670 萬美元的淨現金損失以及庫存採購承諾。

Now turning to our guidance. We are revising full year revenue guidance to a range of $140 million to $145 million compared to previous revenue guidance of $160 million to $170 million. We are also revising our expected cash, cash equivalents, and restricted cash balance at December 31, 2024, to be approximately $40 million. Our previous guidance was a range of $55 million to $60 million.

現在轉向我們的指導。我們將全年收入指引修改為 1.4 億至 1.45 億美元，而先前的收入指引為 1.6 億至 1.7 億美元。我們也將 2024 年 12 月 31 日的預期現金、現金等價物和限制性現金餘額修改為約 4,000 萬美元。我們之前的指導範圍是 5500 萬至 6000 萬美元。

Operator, we are now ready to begin the question and an answer session.

接線員，我們現在準備開始問答環節。

(Operator Instructions) Jon Block, Stifel.

（操作員說明）Jon Block，Stifel。

Great. Thanks for taking the question. It's actually Jordan Bernstein on for Jon. I just wanted to pick up on the international AviClear. Checks have seemed to pick up some very strong momentum there throughout the first half of the year, it sounds like the rollout has been progressing. Any additional color on additional markets that are coming in coming quarters would be appreciated. Any specifications on the cadence there would be helpful. And then I have a follow-up as well.

偉大的。感謝您提出問題。實際上是喬丹·伯恩斯坦（Jordan Bernstein）代替喬恩（Jon）。我只是想了解國際 AviClear。今年上半年，檢查似乎取得了非常強勁的勢頭，聽起來推廣工作正在取得進展。未來幾季出現的其他市場上的任何其他顏色將不勝感激。任何關於節奏的規範都會有幫助。然後我也有後續行動。

Sure, Jordan. Yeah, I think your checks are accurate. That's exactly what we're seeing. We've really had almost flawless launch of AviClear internationally. It's proceeding at or above the levels that we had anticipated.

當然，喬丹。是的，我認為你的檢查是準確的。這正是我們所看到的。我們確實在國際上幾乎完美地推出了 AviClear。它的進展達到或高於我們預期的水平。

In the second quarter, we were up in terms of revenue versus the first quarter of the launch. Even though we didn't really go to too many new markets, so we're just seeing good traction in existing markets. We were at a couple of more markets in the second quarter compared to the first. But really, what we're doing is just solidifying the base of installed customers, giving them great support. Starting to expand within those territories.

在第二季度，我們的營收比發布的第一季有所成長。儘管我們並沒有真正進入太多新市場，但我們只是在現有市場中看到了良好的吸引力。與第一季相比，第二季我們涉足了幾個市場。但實際上，我們所做的只是鞏固已安裝客戶的基礎，為他們提供大力支持。開始在這些地區擴張。

And you see that with the utilization numbers that I talked about. So that's really critical. These are, I think, excellent utilization numbers and they're at levels that are going to show other customers that they can really integrate and make AviClear a mainstay in their practices. Now as we look at the second half of the year, we expect the launch to continue to trend in that upward direction.

你可以從我談到的利用率數字中看到這一點。所以這真的很關鍵。我認為，這些利用率數據非常出色，它們的水平將向其他客戶表明他們可以真正整合並使 AviClear 成為其實踐的中流砥柱。現在，當我們展望今年下半年時，我們預計發布將繼續呈上升趨勢。

We are in the third and fourth quarter, starting to go to a broader range of distributor territories. However, there are some markets like Japan, where we may not from a regulatory perspective launch this year. So we'll still have good new market opportunity internationally beyond 2024. Again, though, I think the most important indicator of launch health is utilization and we're feeling really good on that front.

我們在第三和第四季開始進入更廣泛的分銷區域。然而，有一些市場，例如日本，從監管角度來看，我們今年可能不會推出。因此，2024 年之後，我們在國際上仍將擁有良好的新市場機會。不過，我再次認為，發射健康狀況最重要的指標是利用率，我們在這方面感覺非常好。

Great. That's helpful color. Thanks. And then my follow-up is on the skin care agreement with L'Oreal, the SkinCeuticals line. Your prior skincare distribution agreement had hovered around 20% of total company sales. Do you think this product line has the potential to approach that? Or any color on quantifying the new agreement would be helpful.

偉大的。這是有用的顏色。謝謝。然後我的後續行動是與歐萊雅（L'Oreal）的護膚協議，即修麗可（SkinCeuticals）系列。你們先前的護膚品分銷協議一直徘徊在公司總銷售額的 20% 左右。您認為該產品線有潛力實現這一目標嗎？或者任何量化新協議的顏色都會有所幫助。

Sure. Yeah, what I would say is we have all the building blocks in place to make this a very important product line for Cutera. So we have the infrastructure, we have the relationships, we know how to sell and distribute skin care. And we're taking on what we view as the best global physician dispensed skin care line in the world.

當然。是的，我想說的是，我們已經具備了所有建置模組，使其成為 Cutera 非常重要的產品線。所以我們有基礎設施，我們有關係，我們知道如何銷售和分銷護膚品。我們正在開發我們認為是世界上最好的全球醫生配發的護膚系列。

So as we thought about replacing this business in Japan, it obviously took us a few quarters to reach an agreement with someone, but we could not have landed on a better partner and a better option than SkinCeuticals with L'Oreal. So we're really excited about it.

因此，當我們考慮取代日本的這項業務時，我們顯然花了幾個季度才與某人達成協議，但我們不可能找到比修麗可與歐萊雅更好的合作夥伴和更好的選擇。所以我們對此感到非常興奮。

And we do think that there's a ton of potential over time. I wouldn't expect that over the next two years or so that we're going to be approaching the peak levels that we got to with the Xeo skin health line just because it takes a while to build to that level and there were some COVID-related dynamics that I think helped that. But as I said, the building blocks are in place for this to become really meaningful, really important over time.

我們確實認為隨著時間的推移會有很大的潛力。我不認為在接下來的兩年左右的時間裡，我們會接近 Xeo 皮膚健康系列所達到的峰值水平，只是因為達到這個水平需要一段時間，而且有一些新冠疫情我認為相關的動態對此有所幫助。但正如我所說，隨著時間的推移，這些基礎設施將變得非常有意義、非常重要。

Great. Thanks, for all.

偉大的。謝謝大家。

Harrison Parson, Stephens.

哈里森帕森、史蒂芬斯。

Hey, this is Harrison on for George. Good afternoon and thanks for taking the questions. So I wanted to start on the reduction in revenue guidance for the full year. It sounds like it's due to systems. I wanted to see if you could kind of outline or break down the impact from the sales force turnover versus what you're seeing in the macro environment sort of which one of those had more of an impact on the quarter?

嘿，這是喬治的哈里森。下午好，感謝您提出問題。因此，我想從全年收入指導的減少開始。聽起來好像是系統的原因。我想看看您是否可以概述或分解銷售人員流動率的影響與您在宏觀環境中看到的影響，哪一個對本季的影響更大？

Sure. Yeah. So I'll give you a little of additional color and hit on those questions that you're asking, Harrison. So of the reduction, the vast majority of that is North America. The only thing that's unchanged really is the international launch of AviClear, where we're still tracking really, really well, better than we thought at the beginning of the year, in fact.

當然。是的。因此，哈里森，我將為您提供一些額外的信息，並回答您提出的那些問題。因此，在減少的數量中，絕大多數是北美。唯一真正沒有改變的是 AviClear 的國際發布，我們仍然在跟踪，非常非常好，事實上比我們年初想像的要好。

And then so within North America, both of those dynamics affected us, the macro pressures and the sales force restructuring and turnover. It's hard to parse those out but I think they could have been almost equal contributors. Just to put a little bit of color around it. Normally, we have a sequential uptick. This time, we had a sequential downturn in North America.

然後在北美，這兩種動態都影響了我們，宏觀壓力以及銷售人員重組和人員流動。很難解析這些，但我認為他們可能是幾乎平等的貢獻者。只是為了在它周圍加一點顏色。通常情況下，我們會出現連續上升的情況。這一次，我們在北美經歷了連續的低迷。

And so but we saw some of that hit our core capital internationally, which is why we know there's a I feel confident there's a macro issue here. The turnover though is real. And like I said, this is going to be, I think, good for the long-term because we've been able to attract some very strong new players and we've retained our all-stars, our superstars.

因此，我們看到其中一些影響了我們在國際上的核心資本，這就是為什麼我們知道這裡存在宏觀問題。但營業額是真的。就像我說的，我認為這對長期以來來說是有利的，因為我們已經能夠吸引一些非常強大的新球員，並且我們保留了我們的全明星，我們的超級明星。

So I feel really good about the composition of the team and what that's going to mean for productivity going forward, but we had approximately 40% turnover in the North America capital organization during the second quarter. And so that's going to have an impact. It takes people time to ramp.

因此，我對團隊的組成以及這對未來生產力的意義感到非常滿意，但第二季我們北美資本組織的人員流動率約為 40%。這將會產生影響。人們需要時間來提升。

Got it. Yeah, that's helpful. And then I wanted to turn to the cash burn guidance for the full year. Is there any sort of cadence we should expect in the back half? And then I guess is that 4Q number, is that how we should think about 2025, at least in the first quarter?

知道了。是的，這很有幫助。然後我想談談全年的現金消耗指引。下半場我們該期待什麼節奏嗎？然後我猜第四季的數字是我們應該如何看待 2025 年的，至少在第一季是這樣？

Yeah. So the back half of the year, it will be lower burn than what we had in the first half of the year. It's just not as low as we had thought earlier and that's due primarily to the shift in timing of the working capital benefit. And so for that reason, no, actually, the fourth quarter, I think, is going to be at a higher level of burn than we should have entering 2025.

是的。因此，下半年的燃燒量將低於上半年。它只是沒有我們之前想像的那麼低，這主要是因為營運資本效益的時間變化。因此，出於這個原因，我認為，實際上，第四季度的燒錢水準將高於我們進入 2025 年應有的水準。

And so really, this is an important dynamic to consider. We have been at elevated inventory levels. We've talked about that and we are positioning ourselves to start working that inventory level down. We had thought we were going to get a benefit of that starting in the second half of the year, but because of the revenue outlook, that has been pushed, but it's really been pushed to the start of 2025.

事實上，這是一個需要考慮的重要動態。我們的庫存水準一直很高。我們已經討論過這一點，我們正在做好準備，開始降低庫存水準。我們原以為我們將從今年下半年開始受益，但由於收入前景，這一目標已被推遲，但實際上已推遲到 2025 年初。

So that's why I mentioned in our prepared remarks, we're anticipating right now, even if revenue were to stay the same, that we would have a reversal of cash burn in the range of $50 million. Just due to working capital, we had a $25 million hit or this year, that's what we're experiencing. We think we're going to have a $25 million benefit from inventory work down next year.

這就是為什麼我在準備好的發言中提到，我們現在預計，即使收入保持不變，我們也將扭轉 5000 萬美元左右的現金消耗。僅由於營運資金的原因，我們今年就實現了 2500 萬美元的收入，這就是我們正在經歷的。我們認為明年庫存工作的減少將為我們帶來 2500 萬美元的收益。

And then you factor in the $10 million of expense reductions that we've identified and some growth on top of that you're starting to look at a pretty material change in cash burn. And on that growth point we are already planning on growing on a year-over-year basis internationally in the second half of the year.

然後你考慮到我們已經確定的 1000 萬美元的費用削減以及除此之外的一些增長，你開始看到現金消耗的相當大的變化。在這個成長點上，我們已經計劃在今年下半年在國際上實現同比增長。

So that trajectory should take us into 2025 on a really solid footing. And then all the changes we've described in our North America team should also position us for much better performance next year. So that's there will be a change as we enter 2025.

因此，這一軌跡應該會讓我們在 2025 年打下堅實的基礎。然後，我們在北美團隊中描述的所有變化也應該使我們在明年取得更好的表現。進入 2025 年，情況將會改變。

Understood. Thanks for the color.

明白了。謝謝你的顏色。

James Beer, William Blair.

詹姆斯·比爾，威廉·布萊爾。

Hey, guys, thanks for taking the questions. It's Jimmy on for Margaret. First, I wanted to maybe dive deeper a little bit on the macro weakness. If you could sort of maybe decipher it a little bit more. Are you seeing that weakness in the med spas? Is that volume weakness you've seen primarily med spas and then is that spreading across other end markets, such as derms and plastic surgeons?

嘿，夥計們，感謝您提出問題。吉米替瑪格麗特上場。首先，我想更深入地探討宏觀疲軟的問題。如果你能稍微解讀一下的話。您看到醫療水療中心的弱點了嗎？您所看到的銷售疲軟是否主要是醫療水療，然後是否蔓延到其他終端市場，例如皮膚科醫生和整形外科醫生？

Hey, Jimmy. Yeah, this is more concentrated in the med derm community. And really, it's an issue -- sorry, in the med spa community, it's really an issue of access to capital. So there is a segment of our customer base that financing has been shut off for. So it's not just a matter of rates or terms which are definitely more onerous now than they have been in the past. It's actually for a segment of customers and inability to access capital at all.

嘿，吉米。是的，這更集中在醫學皮膚社區。實際上，這是一個問題 - 抱歉，在醫療水療社區中，這實際上是一個獲得資本的問題。因此，我們的部分客戶群的融資已關閉。因此，這不僅僅是利率或條款的問題，現在肯定比過去更繁重。它實際上是針對一部分根本無法獲得資金的客戶。

And that's generally for people who are earlier in their business venture or who don't have an MD beside the name on the office, it's just tougher to get financing. So we're not seeing it be that type of an issue in the medical community and the dermatology community, although the rates and terms are challenging there. So that's the real issue. I will say I'm hopeful, right, that we're going to start to see some rate relief here.

一般來說，對於那些剛開始創業的人，或者除了辦公室名字之外沒有董事總經理的人來說，獲得融資會更困難。因此，我們在醫學界和皮膚病學界並沒有看到這種問題，儘管那裡的費率和條款都具有挑戰性。這才是真正的問題。我想說的是，我希望我們將開始看到利率下降。

Now, that won't necessarily immediately transfer into financing opening up, but it's the start of a healing process. So that's the reason we haven't assumed that it's going to get easier in the second half of the year, but I think there's still room for some optimism.

現在，這不一定會立即轉化為融資開放，但這是治癒過程的開始。所以這就是我們沒有認為下半年情況會變得更容易的原因，但我認為仍然有一些樂觀的空間。

Okay. That's helpful. And maybe on that point of not assuming things get better in the second half, just did some quick math. But I think to get to maybe the middle to low end of the range you're looking at maybe Q3 down sequentially and maybe back up again in Q4. Is that the right way to think about the cadence for the rest of the year?

好的。這很有幫助。也許在不假設下半場情況會好轉的這一點上，只是做了一些快速的數學計算。但我認為，要達到您所關注的範圍的中低端，可能會在第三季度依次下降，並可能在第四季度再次回升。這是考慮今年剩餘時間節奏的正確方法嗎？

It is. Yeah, that is traditionally the way that our industry and our business works. So in setting our guidance, we assumed Q2 is a new normal in terms of conditions. Those macro conditions don't change and we just looked at the range of historically sequential movement as we go into Q3, Q4.

這是。是的，這就是我們的行業和業務的傳統運作方式。因此，在製定指導意見時，我們假設第二季度是新常態。這些宏觀條件不會改變，我們只是觀察了進入第三季、第四季時的歷史連續變動範圍。

Now, what will obviously be driving toward is, hey, we've got a new product cycle with AviClear. And we are taking AviClear into the dermatology community, both internationally and in North America, which should be a more resilient community.

現在，顯然我們的目標是，嘿，我們已經有了 AviClear 的新產品週期。我們正在將 AviClear 引入國際和北美的皮膚病學界，這應該是一個更有彈性的社區。

And so we're going to be driving towards that, we're going to be driving toward productivity enhancements across our North America team. But if you just look at what has played out from a sequential trend perspective for the industry over time, then that's what leads you into the guidance range. I think you've got the cadence you're thinking about that appropriately.

因此，我們將朝著這個目標努力，我們將努力提高整個北美團隊的生產力。但如果你只是從行業連續趨勢的角度來看隨著時間的推移所發生的情況，那麼這就是引導你進入指導範圍的原因。我認為你已經有適當的節奏來思考這個問題了。

Great. That's helpful. Thank you.

偉大的。這很有幫助。謝謝。

(Operator Instructions) Matthew O'Brien, Piper Sandler.

（操作員說明）Matthew O'Brien、Piper Sandler。

This is Samantha on for Matt. Thank you for taking our question. I guess, first regarding AviClear in North America. You mentioned some expectations that AviClear contribute or lead growth in North America next year. I'm wondering if you could provide any more color on that, maybe in terms of timing or what could really drive some of that growth?

這是薩曼莎為馬特代言的。感謝您提出我們的問題。我想，首先是關於北美的 AviClear。您提到了對 AviClear 明年在北美做出貢獻或引領成長的一些期望。我想知道您是否可以提供更多的信息，也許是在時間方面，或者什麼可以真正推動這種增長？

Sure. So hi, Samantha, thanks for the question. Yeah, AviClear is, it's a clear growth driver for us internationally right now. And we're in the process of transitioning our business model in North America from what we started with, which was a lease model, and we went really broad to what we're moving to,which is an ownership model focused on the highest potential, most productive users, which is largely aesthetic dermatology.

當然。嗨，薩曼莎，謝謝你的提問。是的，AviClear 是，它現在是我們國際市場的明顯成長動力。我們正在將我們在北美的業務模式從最初的租賃模式轉變為我們正在轉向的模式，即專注於最高潛力的所有權模式，最有生產力的用戶，這主要是美容皮膚科。

We are, I think, reasons to believe that, that's going to turn into a strong growth driver. There are a few. First, is that's what we're seeing internationally. And we're really in the process of repeating that playbook as we move into this new phase in North America. Second, we've already transitioned a number of accounts to an ownership model in North America.

我認為，我們有理由相信，這將成為強勁的成長動力。有幾個。首先，這就是我們在國際上看到的情況。當我們進入北美的新階段時，我們確實正在重複這個劇本。其次，我們已經將北美的一些帳戶轉變為所有權模式。

And if you look at the utilization of those owned devices compared to the leased devices even the leased devices that are active, it's over 2 times the utilization rates that we're seeing for those owned devices. So they're more productive. We're seeing great feedback from our Cutera Academy, just focused on AviClear sessions.

如果您將這些自有設備的使用率與租賃設備（甚至是活動的租賃設備）進行比較，您會發現它是我們所看到的這些自有設備利用率的 2 倍以上。所以他們的生產力更高。我們從 Cutera 學院看到了很好的回饋，主要專注於 AviClear 課程。

So people are coming out energized. We think we've got the training down, we've got the cooperative marketing program, and we now have an aligned practice development organization to focus on our target accounts. So we think with all of that, we're set up well to grow the AviClear franchise in North America. And we're seeing the green shoots on that front.

所以人們出來時充滿活力。我們認為我們已經完成了培訓，我們已經有了合作行銷計劃，而且我們現在有了一個一致的實踐開發組織來專注於我們的目標客戶。因此，我們認為，有了所有這些，我們就可以很好地發展 AviClear 在北美的特許經營權。我們正在看到這方面的萌芽。

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

問答環節到此結束。我想將會議轉回泰勒哈里斯致閉幕詞。

Well, great. Thanks, everyone for joining us today. And just one more time, I want to say thanks to the Cutera team for all of your support. Let's go get them in the second half of the year. Feel free to follow up if you have any more questions. Thanks.

嗯，太好了。謝謝大家今天加入我們。我想再次感謝 Cutera 團隊的所有支持。下半年我們就去拿吧。如果您還有任何疑問，請隨時跟進。謝謝。

This brings to a 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，祝您有個愉快的一天。