elf Beauty Inc (ELF) 2017 Q2 法說會逐字稿

Greetings, and welcome to the e.l.f. Beauty Second Quarter Fiscal 2017 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Allison Malkin of ICR. Thank you. You may begin.

問候，歡迎來到 e.l.f.美妝 2017 財年第二季度收益電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹你們的主持人，ICR 的艾莉森·馬爾金女士。謝謝。你可以開始了。

Good afternoon, everyone. Thank you for joining us today to discuss e.l.f.'s second quarter 2017 earnings results. A copy of today's press release is available in the Investor Relations section of elfcosmetics.com. A recording of the call will also be available for 90 days on elfcosmetics.com.

大家下午好。感謝您今天加入我們討論 e.l.f. 2017 年第二季度的盈利結果。今天新聞稿的副本可在 elfcosmetics.com 的投資者關係部分獲取。通話錄音也將在 elfcosmetics.com 上保留 90 天。

As a reminder, this call contains forward-looking statements that are based on management's beliefs and assumptions, expectations, estimates and projections. These statements, including those relating to the company's fiscal year 2017 outlook, are subject to known and unknown risks and uncertainties, and therefore, actual results may differ materially. Important factors that may cause actual results to differ from those expressed or implied by such forward-looking statements are detailed in today's press release and the company's SEC filings.

提醒一下，本次電話會議包含基於管理層的信念和假設、期望、估計和預測的前瞻性陳述。這些陳述，包括與公司 2017 財年展望相關的陳述，受到已知和未知的風險和不確定性的影響，因此，實際結果可能存在重大差異。今天的新聞稿和公司向 SEC 提交的文件中詳細介紹了可能導致實際結果與此類前瞻性陳述明示或暗示的結果不同的重要因素。

In addition, the company's presentation today includes information presented on a non-GAAP basis. We refer you to today's press release for a reconciliation of the differences between the non-GAAP presentation and the most directly comparable GAAP measures.

此外，該公司今天的演示文稿還包括基於非公認會計原則（Non-GAAP）的信息。我們建議您參閱今天的新聞稿，以了解非公認會計原則表述與最直接可比的公認會計原則衡量指標之間的差異。

With us from management today are Tarang Amin, Chairman and Chief Executive Officer; and John Bailey, President and Chief Financial Officer. For today's call, Tarang will begin with an overview of our results, and as typical for us, John and Tarang will then alternate sharing the progress we made against our growth strategies and providing additional details related to our financial performance and guidance. This will be followed by a Q&A session.

今天與我們一起出席的還有管理層的董事長兼首席執行官 Tarang Amin；以及總裁兼首席財務官約翰·貝利 (John Bailey)。在今天的電話會議中，塔朗將首先概述我們的業績，然後按照我們的慣例，約翰和塔朗將輪流分享我們根據增長戰略取得的進展，並提供與我們的財務業績和指導相關的更多詳細信息。隨後將進行問答環節。

It is now my pleasure to turn the call over to Tarang.

現在我很高興將電話轉給塔朗。

Thanks, Allison, and good afternoon, everyone. We're pleased with our progress in Q2, highlighted by revenue increasing 27%, gross margin expansion of over 700 basis points and adjusted EPS growth over 400%. We also continue to grow share. According to Nielsen, in the 52 weeks ended July 15, e.l.f.'s market share of the cosmetics category was 4.4%, up from 3.8% in the comparable period. For the full year, we continue to anticipate strong sales growth of 24% to 28%. This is ahead of our 2016 to 2019 growth algorithm of 20% compound annual sales growth.

謝謝艾莉森，大家下午好。我們對第二季度的進展感到滿意，收入增長了 27%，毛利率增長超過 700 個基點，調整後每股收益增長超過 400%。我們的份額也在持續增長。根據尼爾森的數據，截至 7 月 15 日的 52 週內，e.l.f. 在化妝品類別的市場份額為 4.4%，高於同期的 3.8%。我們繼續預計全年銷售額將強勁增長 24% 至 28%。這超出了我們 2016 年至 2019 年 20% 複合年銷售額增長的增長算法。

Our results reflect the team's dedication to our mission to make luxurious beauty accessible for all and execution against our 4 growth strategies. Our first strategy is to build a great brand. e.l.f. is a brand that makeup enthusiasts love, and we have a long track record of engaging them.

我們的業績反映了團隊致力於實現讓所有人都能享受奢華美容的使命，並執行我們的 4 項增長戰略。我們的首要戰略是打造一個偉大的品牌。e.l.f.是化妝愛好者喜愛的品牌，我們長期以來一直吸引著他們。

During Q2, we expanded on our Beautyscape influencer program. We brought up-and-coming influencers to Coachella and used this activation to launch our latest skin care innovation, Beauty Shield. We're able to reach a combined audience of 158 million. We also continue to build our loyalty program, Beauty Squad, which now has over 450,000 members, growing memberships 68% versus the first quarter. Beyond Beautyscape and Beauty Squad, we entered a partnership for digital displays in and around Times Square, where we elevated brand presence and generated strong response on elfcosmetics.com.

第二季度，我們擴大了 Beautyscape 影響者計劃。我們為科切拉音樂節帶來了嶄露頭角的影響者，並利用這次活動推出了我們最新的護膚創新產品 Beauty Shield。我們的受眾總數達到 1.58 億。我們還繼續建立我們的忠誠度計劃 Beauty Squad，該計劃目前擁有超過 450,000 名會員，會員數量比第一季度增長了 68%。除了 Beautyscape 和 Beauty Squad 之外，我們還在時代廣場及其周邊地區建立了數字展示合作夥伴關係，提高了品牌影響力並在 elfcosmetics.com 上產生了強烈反響。

I'll now turn it over to John to discuss progress on innovation and brand penetration.

現在我將把它交給約翰討論創新和品牌滲透方面的進展。

Thanks, Tarang. Our second strategy is to lead innovation. We believe our depth and breadth of high-quality innovation at an extraordinary value sets us apart from other brands. In Q2, we expanded our skin care portfolio with the launch of e.l.f. Beauty Shield, a line of 7 SKUs with antioxidants and SPF 50 to protect against the elements. Beauty Shield taps into an emerging consumer trend where our enthusiasts recognize that having good skin is the foundation for flawless makeup. e.l.f. is one of the few brands to take a holistic approach across both skin care and cosmetics. The initial response to this line is quite encouraging, and overall, we had 25 launches in the quarter, including 10 first-to-mass products.

謝謝，塔朗。我們的第二個戰略是引領創新。我們相信，高質量創新的深度和廣度以及非凡的價值使我們有別於其他品牌。第二季度，我們推出了 e.l.f.，擴大了我們的護膚產品組合。Beauty Shield，一系列 7 個 SKU，含有抗氧化劑和 SPF 50，可抵禦惡劣天氣。Beauty Shield 迎合了新興的消費趨勢，我們的愛好者認識到擁有良好的皮膚是完美妝容的基礎。e.l.f.是少數在護膚和化妝品領域採取整體方法的品牌之一。該系列產品的最初反應非常令人鼓舞，總體而言，我們在本季度推出了 25 款產品，其中包括 10 款首次量產的產品。

Our third strategy is to expand brand penetration. In national retailers, we completed our shelf resets at Target, and we'll now begin optimizing merchandising and assortment. We continue to see strong growth at Walmart and are delighted to report that consistent with plans heading into the year, we are expecting a 20% increase in linear footage in 2017. This expansion began in Q2, and the remainder is scheduled for the fourth quarter.

我們的第三個戰略是擴大品牌滲透率。在全國零售商中，我們完成了 Target 的貨架重置，現在我們將開始優化商品陳列和分類。我們繼續看到沃爾瑪的強勁增長，並很高興地報告，與今年的計劃一致，我們預計 2017 年線性鏡頭將增長 20%。此次擴張於第二季度開始，其餘部分計劃於第四季度完成。

Building on our early success on ulta.com, we began expanding e.l.f. into approximately 200 Ulta stores in the quarter and are optimistic about the potential for further expansion in 2018.

基於我們在 ulta.com 上的早期成功，我們開始擴展 e.l.f.本季度開設約 200 家 Ulta 門店，並對 2018 年進一步擴張的潛力持樂觀態度。

On elfcosmetics.com, we kicked off a major replatforming of the site, which should enable a better user experience, added functionality and enhanced CRM and loyalty capabilities. We expect the replatform to be complete in early 2018. Our direct business, which includes both elfcosmetics.com and e.l.f. stores, drives growth and also generates awareness, engagement and insights.

在 elfcosmetics.com 上，我們啟動了網站的重大平台重組，這將帶來更好的用戶體驗、增加的功能以及增強的 CRM 和忠誠度功能。我們預計平台重組將於 2018 年初完成。我們的直接業務包括 elfcosmetics.com 和 e.l.f.商店，推動增長，並產生意識、參與度和洞察力。

We're excited about the expansion of our international business and have now launched e.l.f. in over 200 Superdrug stores. We're pleased with the initial consumer response in this leading U.K. retailer.

我們對國際業務的擴展感到非常興奮，現在推出了 e.l.f.超過 200 家 Superdrug 商店。我們對這家英國領先零售商的最初消費者反應感到滿意。

I'll now turn it back to Tarang to discuss our operational progress.

現在我將把它轉回塔朗討論我們的運營進展。

Thanks, John. Our fourth strategy is to drive world-class operations, which starts with world-class people. Over my career, I've been fortunate to work with thousands of great people and I can definitively tell you that this is the strongest team I've ever worked with. In the past 3.5 years, we've hired 367 out of 390 e.l.f. employees. We handpicked almost every employee from blue chip CPG and beauty companies who have a proven track record of delivering results. We support this tremendous talent with a high-performance team culture that embraces speed and quality of execution. The result is excellence across almost every key performance indicator, including operations. For example, in Q2, our fulfillment rates were above 98% for national retailers, direct and international. In summary, we're making good progress on our strategy and goals.

謝謝，約翰。我們的第四個戰略是推動世界一流的運營，這要從世界一流的人才開始。在我的職業生涯中，我很幸運能夠與數千名優秀的人一起工作，我可以明確地告訴你，這是我合作過的最強大的團隊。在過去 3.5 年裡，我們僱傭了 390 名 e.l.f. 中的 367 名。僱員。我們從藍籌消費品公司和美容公司精心挑選了幾乎每一位員工，他們在交付成果方面擁有良好的記錄。我們通過注重執行速度和質量的高績效團隊文化來支持這些巨大的人才。結果是幾乎所有關鍵績效指標（包括運營）都表現出色。例如，在第二季度，我們的國內直營零售商和國際零售商的履行率均超過 98%。總之，我們在戰略和目標方面取得了良好進展。

I'll now turn it back to John to discuss our financial progress and outlook for 2017.

現在我將把話題轉回給 John，討論我們 2017 年的財務進展和前景。

Thanks, Tarang. For the second quarter, net sales increased 27% to $55.9 million. Gross margin expanded from 57% to 64% primarily as a result of margin-accretive innovation, coupled with improvements in customer terms, freight cost and the benefit of foreign exchange rate movements.

謝謝，塔朗。第二季度淨銷售額增長 27%，達到 5590 萬美元。毛利率從 57% 擴大到 64%，主要得益於利潤增長型創新，加上客戶條件、貨運成本和外匯匯率變動帶來的好處的改善。

On an adjusted basis, SG&A as a percentage of sales was 52%. Adjusted EBITDA was $10 million compared to $8.4 million in the second quarter of 2016. Adjusted net income was $6.2 million or $0.12 per share based on a fully diluted share count of 49.5 million. This compares to $1.2 million or $0.02 per share in Q2 2016 based on a pro forma diluted share count of 49.5 million.

經調整後，SG&A 佔銷售額的百分比為 52%。調整後 EBITDA 為 1,000 萬美元，而 2016 年第二季度為 840 萬美元。調整後淨利潤為 620 萬美元，即每股 0.12 美元（基於 4,950 萬股完全稀釋後的股份數）。相比之下，2016 年第二季度為 120 萬美元，即每股 0.02 美元（基於 4,950 萬股預計稀釋後股票數量）。

Year-to-date, net sales increased 20%. Gross margin expanded from 56% to 64%. Adjusted EBITDA grew from $20 million to $21.7 million, and adjusted net income grew nearly 150%. Adjusted net income per diluted share rose to $0.21 from $0.09 based on a pro forma diluted share count of 49.5 million.

年初至今，淨銷售額增長了 20%。毛利率從 56% 擴大至 64%。調整後 EBITDA 從 2,000 萬美元增長至 2,170 萬美元，調整後淨利潤增長近 150%。根據 4,950 萬股預計稀釋後股票數量，調整後稀釋後每股淨利潤從 0.09 美元增至 0.21 美元。

From a balance sheet perspective, we ended the quarter with an inventory balance of $72.3 million. We are comfortable with the level and composition relative to anticipated demand in the back half of the year. For the full year, we are reaffirming our guidance as presented in the press release.

從資產負債表的角度來看，本季度末我們的庫存餘額為 7230 萬美元。我們對今年下半年預期需求的水平和構成感到滿意。對於全年，我們重申新聞稿中提出的指導。

In closing, we are pleased with our progress and believe we are positioned to deliver on our objectives.

最後，我們對我們的進展感到滿意，並相信我們有能力實現我們的目標。

I'd now like to ask the operator to open the call for questions.

我現在想請接線員打開提問電話。

(Operator Instructions) Our first question is coming from the line of Stephanie Wissink with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Stephanie Wissink。

Just a really quick question here on inventory, if you could talk a little bit more, John, about that $72 million balance. If I equate that to kind of revenues based on your gross margin run rate, that would be north of $200 million of revenue opportunity on the balance sheet. So maybe just a sense of the composition of that inventory, your comfort level with it, which you indicated you were, and how we should think about that relative to your forecast for the year in terms of total sales.

這裡只是一個關於庫存的非常簡單的問題，約翰，您能否多談談 7200 萬美元的餘額。如果我將其等同於基於毛利率運行率的收入，那麼資產負債表上的收入機會將超過 2 億美元。因此，也許只是了解該庫存的構成、您對它的舒適程度（您表示自己是這樣的），以及我們應該如何相對於您對今年總銷售額的預測來考慮這一點。

Sure, Steph. So just a little bit of context for those who may be new to the story. Over the last few years, we had felt that we were running a bit lean on our inventory levels. And despite the fact that we've been able to keep up with some of the tremendous growth that we've seen in the business over that time, we made a strategic decision to take up the levels at the back half of the year, particularly as we came off of our warehouse move from New Jersey to California and saw some of our fill rates suffer. Where we took up our inventory levels were in some of our fastest moving items. And sitting here today, we feel quite comfortable not only with the level but also the composition of inventory relative to what we see in the back half of the year and really a proactive decision to target a new level of weeks of supply.

當然，斯蒂芬。對於那些可能不熟悉這個故事的人來說，這裡只是提供一些背景信息。在過去的幾年裡，我們感覺我們的庫存水平有點緊張。儘管事實上我們已經能夠跟上這段時間內我們在業務中看到的一些巨大增長，但我們還是做出了戰略決定，要在今年下半年提高水平，特別是當我們從新澤西州搬到加利福尼亞州的倉庫出來時，我們的一些填充率受到了影響。我們的庫存水平是在一些移動最快的商品上。今天坐在這裡，我們不僅對今年下半年的庫存水平感到滿意，而且對庫存的構成感到滿意，這確實是一個積極主動的決定，目標是達到新的周供應水平。

Our next question is coming from the line of Erinn Murphy with Piper Jaffray.

我們的下一個問題來自艾琳·墨菲 (Erinn Murphy) 和派珀·賈弗雷 (Piper Jaffray) 的線路。

A couple of questions for you guys. I guess first, if we could talk a bit about the category overall. It sounds like you guys are still really gaining some good share, but some of the conglomerates out of Europe have talked a little bit more about some challenges or slowing in the mass channel here in the United States. Could you just kind of speak to your perspective of what you're seeing big picture right now? And then secondly, you have a lot of really unique key retailer initiatives into the back half. Walmart was one you called out in particular. I would love to hear kind of what excites you about that opportunity as we sit here.

有幾個問題要問你們。我想首先，我們是否可以談談整個類別。聽起來你們仍然確實獲得了一些不錯的份額，但歐洲以外的一些企業集團更多地談論了美國大眾渠道的一些挑戰或放緩。您能談談您對目前所看到的大局的看法嗎？其次，後半段有很多真正獨特的關鍵零售商舉措。沃爾瑪是您特別提到的一家。當我們坐在這裡時，我很想听聽您對這個機會感到興奮的原因。

Sure. Erinn, Tarang. So what I'd tell you on the category is it's certainly going through a little bit of a slow spot right now. The context I'd give you on color cosmetics is over a long period of time, the category's been quite healthy. You'll get some quarters where it's a little softer, some quarters where it's a little stronger. In fact, the last time we saw this was as recent as the end of 2013. We saw the category slow up and was pretty flat the first half of 2014. It picked up pretty significantly in end of 2014. It's been quite strong throughout 2015 and most of 2016. So I'd say there are different cycles of where you'll see the category strong or soft, but we don't see anything fundamental from a consumer standpoint. In terms of what it means for e.l.f., we see it as a tremendous opportunity to continue taking share. If you take a look at our company in the 15 years we've been around, we've grown every single year regardless of the economic cycle or regardless of where the category was in any particular quarter. And the reason we've been able to grow -- and I think it's important because it really talks to our position going forward, is really 3 things: first, our ability to engage young, diverse makeup enthusiasts. For our consumer, makeup is not a discretionary purchase. She loves everything about it. And it better insulates us compared to some brands that may have broader consumer targets, where you may have some more fickleness in the consumer profile. Second is the business model itself. If you take a look at our ability to launch a couple of things new almost every week on elfcosmetics.com and in our stores, it gives us a tremendous arsenal from which to be able to bring our retail partners a proven and validated innovation where we're not trying to guess what the next trend or fad is going to be, but actually have products that are really performing in the marketplace. And the third, I'd say, is the tremendous white space that we have, both within existing customers as well as some of the newer customers, really gives us a lot of headroom to grow, again, regardless of where the category is, and it's one of the reasons why you've seen such strong growth from us even so far this year. And then talking to your second question on some of the unique key retailers, I would tell you that we -- our first priority is always to maximize the business in the customers we're already in, and I feel really good about what we've been able to do. And we've talked certainly on prior calls in terms of our progress at Target and them rewarding us with more space. This quarter, we're delighted to announce that Walmart, based on the strong performance of e.l.f. and the consumer profile we bring to them, has really declared kind of e.l.f. one of their key priority brands and is providing us more space, particularly as they continue to elevate beauty within the overall box. They have an initiative they call their whitewall initiative, which has much better signage, fixturing and a much more elevated beauty presentation that e.l.f. will be featured even more prominently in, so feel good about that, feel good about some of the other retailer initiatives we talked about. But it really very much ties into the overall model in terms of the consumer and the innovation that we can bring to the category.

當然。艾琳，塔朗。所以我要告訴你的是，關於這個類別，它現在肯定正在經歷一點緩慢的過程。我想向您介紹的關於彩妝的背景是，在很長一段時間內，該類別一直相當健康。你會得到一些更軟一些的季度，一些更強勁一些的季度。事實上，我們上次看到這種情況是在 2013 年底。我們發現該類別在 2014 年上半年增長緩慢，表現相當平淡。2014 年底，這一數字顯著回升。整個 2015 年和 2016 年的大部分時間都非常強勁。所以我想說，你會看到該類別的強弱有不同的周期，但從消費者的角度來看，我們沒有看到任何基本的東西。就 e.l.f. 的意義而言，我們認為這是一個繼續佔據市場份額的巨大機會。如果你看看我們公司成立 15 年來，我們每年都在增長，無論經濟周期如何，也無論該類別在任何特定季度的位置。我們能夠成長的原因——我認為這很重要，因為它真正關係到我們未來的地位，實際上是三件事：首先，我們有能力吸引年輕、多樣化的化妝愛好者。對於我們的消費者來說，化妝品不是可隨意購買的。她喜歡它的一切。與一些可能擁有更廣泛消費者目標的品牌相比，它更好地隔離了我們，這些品牌的消費者形象可能更加變化無常。其次是商業模式本身。如果您看看我們幾乎每週在elfcosmetics.com 和我們的商店中推出一些新產品的能力，它為我們提供了一個巨大的武器庫，使我們能夠為我們的零售合作夥伴帶來經過驗證和驗證的創新，我們我們並不是試圖猜測下一個趨勢或時尚是什麼，而是真正擁有在市場上表現出色的產品。第三，我想說的是，我們擁有巨大的空白，無論是現有客戶還是一些新客戶，都確實給了我們很大的增長空間，再次，無論類別在哪裡，這也是今年迄今為止我們仍能看到如此強勁增長的原因之一。然後談到關於一些獨特的主要零售商的第二個問題，我會告訴你，我們的首要任務始終是最大限度地擴大我們現有客戶的業務，我對我們所做的感到非常滿意已經能夠做到了。我們在之前的電話會議上肯定談到了我們在塔吉特的進展，以及他們獎勵我們更多的空間。本季度，我們很高興地宣布，基於 e.l.f. 的強勁表現，沃爾瑪我們為他們提供的消費者檔案，確實宣告了一種 e.l.f.他們的重點優先品牌之一，為我們提供了更多的空間，特別是當他們繼續提升整個盒子的美感時。他們有一項名為“白牆計劃”的計劃，該計劃具有比 e.l.f. 更好的標牌、固定裝置和更高的美感呈現。將會更加突出，所以對此感到滿意，對我們談到的其他一些零售商舉措感到滿意。但就消費者和我們可以為該類別帶來的創新而言，它確實與整體模型密切相關。

And just on Walmart, if I can clarify. What percent of the doors that you're in have more than 4 linear feet right now? And what's the kind of opportunity there for you (inaudible) next years?

如果我能澄清的話，就在沃爾瑪。現在，您所在的門中有百分之幾的線性英尺超過 4 英尺？明年您（聽不清）會有什麼樣的機會？

Yes, that's it. We have less than 10% of the Walmart doors with more than 4 feet. So it's a tremendous opportunity for further expansion. And just for additional context there, if you look at Walmart, we entered Walmart 4 years after we entered Target, and they're following a pretty good trajectory similar to Target. And similar thing happened at Target, wasn't up until a couple of years ago that we had more than 4 feet of space in Target. And now you look at our footprint there, just how much bigger it is. We think we have a huge opportunity with Walmart similarly.

對，就是那樣。我們只有不到 10% 的沃爾瑪門超過 4 英尺。因此，這是進一步擴張的巨大機會。就額外的背景而言，如果你看看沃爾瑪，我們在進入塔吉特四年後就進入了沃爾瑪，他們遵循著與塔吉特類似的相當好的發展軌跡。類似的事情也發生在 Target，直到幾年前我們才在 Target 擁有超過 4 英尺的空間。現在你看看我們在那裡的足跡，它有多大。我們認為沃爾瑪同樣擁有巨大的機會。

Great. And if I can sneak in one more just on gross margin, incredible performance, up 700 bps. Can you just talk about how much was that sweeten-the-mix initiative? How much further do we have to go on that? And then you called out, I guess, John, both FX and freight. Can you just break out those 2 components of that?

偉大的。如果我能在毛利率上再增加一個，令人難以置信的表現，上漲 700 個基點。您能談談這項讓混合舉措變得更加甜蜜的舉措有多少嗎？我們還需要走多遠？然後你就喊了，我猜，約翰，外彙和貨運。你能把這兩個部分分解一下嗎？

Sure, Erinn. Yes, and we're quite pleased with the gross margin expansion that's continued in the first half of this year. But more than just the financial progress, really what's been driving it -- and I think you touched on it, which is to say the single biggest component has been our innovation and sweeten-the-mix initiative. We did see some other benefit in the period from efficiencies on customer terms, FX and freight. If you take a look, FX was about 150 basis points in the period and freight was just about 200 basis points.

當然，艾琳。是的，我們對今年上半年毛利率的持續增長感到非常滿意。但不僅僅是財務方面的進步，真正推動它的因素是什麼——我想你已經談到了它，也就是說，最大的組成部分是我們的創新和優化組合計劃。在此期間，我們確實看到了客戶條件、外彙和運費效率方面的一些其他好處。如果你看一下，這一時期的外匯匯率約為 150 個基點，運費約為 200 個基點。

Our next question is coming from the line of Bill Chappell with SunTrust.

我們的下一個問題來自 SunTrust 的 Bill Chappell。

Just following up on the margin standpoint. Again, maybe for the second quarter, SG&A was also higher than expected. And so just trying to understand if that's more of the normal level we're looking at for this year or if you had made (inaudible) gross margin -- better-than-expected gross margin, if you're reinvesting maybe a little bit faster than you originally anticipated.

只是從保證金的角度進行跟進。同樣，也許第二季度的銷售、管理費用也高於預期。因此，只是想了解這是否更接近我們今年所關注的正常水平，或者您是否獲得了（聽不清）毛利率——如果您可能進行一點再投資，則毛利率高於預期比你最初預期的要快。

Bill, it's John. So just kind of harkening back to comments that we've made on prior calls, this very much is and continues to be a reinvestment story. So we have talked about our 2016 to 2019 growth algorithm of 20% net sales CAGR over that period, gross margin expansion of 100 basis points per year, and then 20% adjusted EBITDA CAGR during the same period. And so our goal is to take that gross margin expansion and redeploy it back against investments that will set us up for the long term across people, infrastructure and, most notably, brand. And that's continued to be the story in the first half of 2017.

比爾，這是約翰。因此，讓我們回顧一下我們在之前的電話會議中所做的評論，這在很大程度上是並且仍然是一個再投資的故事。因此，我們討論了 2016 年至 2019 年的增長算法，即在此期間淨銷售額複合年增長率為 20%，毛利率每年擴張 100 個基點，然後同期調整後 EBITDA 複合年增長率為 20%。因此，我們的目標是利用毛利率的擴張，並將其重新部署到投資上，這些投資將為我們在人員、基礎設施，尤其是品牌方面建立長期的基礎。2017 年上半年的情況依然如此。

Okay. And going back to Walmart, maybe just a little more color. I'm trying to understand just because, unlike Target, where you're just in a wall, and so it's easy to understand how you get 50% more shelf space, with Walmart, you're in a combination of wall and spinners, remodeled doors and old doors. And then also trying to understand -- usually, Walmart resets everything in the first half. So trying to understand why you would see a lift in the second quarter and then again in the fourth quarter. So just maybe how that all plays out would be helpful.

好的。回到沃爾瑪，也許只是多一點顏色。我試圖理解只是因為，與 Target 不同，你只是在牆上，所以很容易理解如何獲得 50% 以上的貨架空間，而在 Walmart，你處於牆壁和旋轉器的組合中，改造門和舊門。然後還試圖理解——通常，沃爾瑪會在上半場重置所有內容。因此，試圖理解為什麼你會在第二季度看到增長，然後在第四季度再次看到增長。因此，也許這一切如何進行會有所幫助。

Yes, sure. So our experience with Target, it seems every other year they've made pretty big changes to the overall category, whether the category picking up more space or making big brand moves, and that very much was the case earlier this year when we picked up more than 50% more space within Target. Walmart's expansion has been more continual in nature. So their approach with e.l.f., given the priority in terms of what we're able to bring from a consumer and innovation standpoint, is every time they touch a store, e.l.f. gets better placement. So we either get put onto the wall, we get better prominent placement on the wall and now, in some places, are expanding that space as well. And so Walmart's plans within this year, their big initiative, they'll continue to update their stores. As they do remodels, as they go ahead and refresh, you'll see a pick-up in terms of what e.l.f. gets there. In addition, I referenced this thing they call their whitewall initiative. They have a new beauty fixture. If you've been into some of their newer stores, beauty is much more prominently featured, kind of both where it is in the store as well as the fixture, the lighting, the signage that they have. And that whitewall initiative, I think that it's touching somewhere in the magnitude of over 1,500 stores and -- although the timing really varies between kind of that -- Q2 was one wave and then Q4.

是的，當然。根據我們在塔吉特的經驗，他們似乎每隔一年都會對整個品類做出相當大的改變，無論是該品類占據更多空間還是做出大的品牌舉動，今年早些時候我們採取的行動就是這種情況。 Target 內的空間增加了 50% 以上。沃爾瑪的擴張本質上更加持續。因此，考慮到我們能夠從消費者和創新的角度帶來什麼，他們對 e.l.f. 的態度是，每次他們接觸商店時，e.l.f.獲得更好的安置。因此，我們要么被放在牆上，要么在牆上得到更好的突出位置，現在，在某些地方，也在擴大這個空間。因此，沃爾瑪今年的計劃是他們的重大舉措，他們將繼續更新他們的商店。當他們進行改造時，當他們繼續進行和更新時，你會看到 e.l.f. 的內容有所改善。到達那裡。此外，我還提到了他們稱之為“白牆計劃”的事情。他們有一個新的美容裝置。如果你去過他們的一些新店，你會發現美感更加突出，無論是店內的位置，還是燈具、燈光和標牌。我認為白牆計劃已經觸及了超過 1,500 家商店的規模，而且——儘管時間上確實有所不同——第二季度是一波，然後是第四季度。

The next question is coming from the line of Jon Andersen with William Blair.

下一個問題來自喬恩·安德森和威廉·布萊爾的對話。

I was wondering if you could talk a little bit about the composition of the growth in the quarter, and I'm referring to the sales growth in terms of kind of velocity that you're seeing in -- within existing space and then the incremental space at existing customers. And you referenced at least one new customer -- a couple of new customers in Ulta and Superdrug. Was it kind of in line with your expectations? And can you talk about kind of the components there? And as you look to the back half of the year, can you talk a little bit about that balance of that mix as well as you look to kind of like 30% growth through the back half of the year?

我想知道您是否可以談談本季度增長的構成，我指的是您所看到的速度類型的銷售增長 - 在現有空間內，然後是增量現有客戶的空間。您至少提到了一位新客戶——Ulta 和 Superdrug 的幾位新客戶。這符合你的預期嗎？您能談談那裡的組件類型嗎？當您展望今年下半年時，您能談談這種組合的平衡嗎？您預計今年下半年將實現 30% 的增長？

Yes, sure. So the great, great thing about our growth is it's quite balanced. We reported in 2016 something like 3/4 of our growth came from existing doors versus up 1/4 in new doors. We'll update that specific percentage every year versus every quarter, but what I'll tell you is in the second quarter, our growth was quite balanced. And it's primarily focused on our existing doors, similar to kind of our prior history, but we did pick up some important new doors as I think of -- kind of as we've talked about Superdrug, Ulta. And our approach going into each year is some combination of what we're going to do with our existing doors, particularly through our innovation and productivity model, as well as mapping out what new doors we're going to go into. And we usually will talk about those after we get the distribution. So the back half will again have that balance between existing doors and some new doors.

是的，當然。因此，我們的增長最重要的一點是它非常平衡。我們在 2016 年報告稱，大約 3/4 的增長來自現有門，而這一比例則高達 1/4 來自新門。我們將每年與每個季度更新該具體百分比，但我要告訴您的是，在第二季度，我們的增長非常平衡。它主要集中在我們現有的門上，類似於我們之前的歷史，但正如我所想，我們確實選擇了一些重要的新門——就像我們談論過的 Superdrug、Ulta 一樣。我們每年的方法都是結合現有的業務，特別是通過我們的創新和生產力模型，以及規劃我們將要進入​​的新業務。我們通常會在獲得發行版後討論這些內容。因此，後半部分將再次在現有門和一些新門之間保持平衡。

Okay. And then on -- with respect to the Target resets and the -- I guess it was a greater than 50% increase in shelf space at Target. Has all of that reset activity now completed? And is there more work kind of for you to do there now, in concert with Target, to kind of optimize the assortment for that incremental space?

好的。然後 - 關於 Target 重置和 - 我猜 Target 的貨架空間增加了 50% 以上。所有重置活動現在都已完成嗎？您現在是否需要與塔吉特一起做更多工作，以優化增量空間的品種？

Yes. So the Target resets are mainly done. I mean, I think we've done a really good job with Target, kind of setting pretty much all of those stores. The next step, which we're always part of, is optimizing those shelf sets and merchandising. And again, for context, in 2016, we did not pick up any space at Target and yet we're able to grow that business 20% through that optimization. We're able to do it given the innovation pipeline we have and our ability kind of through the various resets to be able to continue to get even greater productivity off of that space.

是的。所以主要完成了Target重置。我的意思是，我認為我們在 Target 方面做得非常好，幾乎所有這些商店都設置好了。我們始終參與的下一步是優化這些貨架組和銷售。再說一次，就背景而言，2016 年，我們沒有在 Target 獲得任何空間，但我們能夠通過優化將業務增長 20%。考慮到我們擁有的創新渠道以及我們通過各種重置能夠繼續從該空間獲得更高生產力的能力，我們能夠做到這一點。

Okay. One more, if I could squeeze it in. On the replatforming of elfcosmetics.com, can you talk a little bit more about some of the enhancements there and the benefits of those enhancements?

好的。如果我能把它塞進去的話，再來一張。關於 elfcosmetics.com 的平台重構，您能多談談其中的一些增強功能以​​及這些增強功能的好處嗎？

Jon, it's John. So we've had a really good solution that served us well over the last few years since we've continued to build up our site. I think right now, the replatforming is just another stage of our evolution. And for us, it's really about finding a platform that will allow us to continue augmenting our capabilities on both the functionality and consumer engagement side. So we are looking to move to a Salesforce platform, which is Demandware, and we think that will set us up much better to add on some of the functionality that we're looking to add on in future years.

喬恩，是約翰。因此，自從我們繼續建立我們的網站以來，我們已經有了一個非常好的解決方案，在過去幾年中為我們提供了良好的服務。我認為現在，平台重組只是我們發展的另一個階段。對於我們來說，這實際上是為了找到一個平台，使我們能夠繼續增強我們在功能和消費者參與方面的能力。因此，我們希望轉向 Salesforce 平台，即 Demandware，我們認為這將使我們能夠更好地添加我們希望在未來幾年添加的一些功能。

The next question is coming from the line of Oliver Chen with Cowen and Company.

下一個問題來自 Cowen and Company 的 Oliver Chen。

This is Courtney Willson on for Oliver tonight. Just thinking about the direct business, you mentioned strong growth here. Do you have any updated thoughts on your own store count and any openings going forward? And then separately, just given solid initial consumer response with Superdrug, can you share any plans going forward on additional international expansion?

這是今晚奧利弗的考特尼·威爾森。就直接業務而言，您提到了強勁的增長。您對自己的商店數量和未來的開業有什麼最新的想法嗎？另外，鑑於消費者對 Superdrug 的初步反應，您能分享一下未來進一步國際擴張的計劃嗎？

Yes, I'll take the first and then Tarang can take the second, Courtney. So just as a refresher, our direct business is a huge opportunity for us not just to grow the business, but also in terms of the purpose it serves across consumer engagement, awareness and a lot of the testing and insights that we're able to feed into our innovation program. So we continue to be quite enthusiastic about the continued expansion of both elfcosmetics.com as well as our e.l.f. branded stores. We have spoken publicly about the cadence of store openings, which we've said is somewhere in the 5 to 15 range each year. Last year was obviously a significant year of openings for us as we launched our West Coast stores in the L.A. market. This year, we've discussed it will be on the lower end of that range. And we are still looking to open a number of stores in the back half of 2017, but it will be modest relative to where we were last year.

是的，我會選擇第一個，然後塔朗可以選擇第二個，考特尼。因此，回顧一下，我們的直接業務對我們來說是一個巨大的機會，不僅可以發展業務，而且還可以實現其在消費者參與、意識以及我們能夠進行的大量測試和見解方面所服務的目的。納入我們的創新計劃。因此，我們仍然對 elfcosmetics.com 和 e.l.f. 的持續擴張充滿熱情。品牌商店。我們公開談論過開店頻率，我們說每年開店頻率在 5 到 15 家之間。去年對於我們來說顯然是重要的一年，因為我們在洛杉磯市場開設了西海岸商店。今年，我們已經討論過它將處於該範圍的下限。我們仍然計劃在 2017 年下半年開設一些商店，但相對於去年的情況來說，這將是適度的。

And then on your second question regarding international. I'll tell you our first priority is the U.S. given the tremendous amount of white space we have in our home market. Our international strategy is fairly disciplined in terms of our expansion strategy. We have 3 priority countries that we're starting with. We've talked on prior calls our progress in Canada and Mexico, particularly with Walmart in those markets. We're quite excited about our launch into Superdrug in the U.K. We're only in a little bit over 200 of their stores out of their chain, and so we have further to go even within Superdrug. So I'd say we -- you will see us continue to be quite disciplined in terms of what our expansion looks like, but the good news is every place we've taken the brand so far, it resonates quite strongly and we're seeing many of the same dynamics as we've seen in the U.S.

然後關於你關於國際的第二個問題。我會告訴你，我們的首要任務是美國，因為我們的國內市場有大量的空白空間。我們的國際戰略在擴張戰略方面相當嚴格。我們首先從 3 個優先國家/地區開始。我們之前在電話中談到了我們在加拿大和墨西哥的進展，特別是與沃爾瑪在這些市場的進展。我們對在英國推出 Superdrug 感到非常興奮。我們在他們的連鎖店中只進駐了 200 多家商店，所以即使在 Superdrug 內部，我們也還有進一步的發展空間。所以我想說，你會看到我們在擴張方面繼續保持嚴格的紀律，但好消息是到目前為止我們品牌的每一個地方，它都引起了強烈的共鳴，我們正在我們看到了許多與我們在美國看到的相同的動態

(Operator Instructions) Our next question is coming from the line of Andrea Teixeira with JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 Andrea Teixeira。

So congrats on the results and the additional shelf space. So I'm curious why you kept the guidance as is. And if you have 20-plus percent more space at Walmart and also successful rolling 200 Ulta stores, so in comps -- on top of that, comps got easier with 14 -- by 14%, so why not take up the full year guidance? That's the first question. Is that an indication that you're seeing some cannibalization on the underlying business potentially or the timing of that roll-out? And related to that, if you can talk about the breakdown. I appreciate, John, your comment about like the international and direct not being very representative, but maybe that's the reason why you outperformed what the implied Nielsen data would suggest for the second quarter. Or is there any buildup on shipping to the customer so that they can service -- especially with the timing of this new shelf space. So I was just curious to see how we bridge the second quarter sellout against the sell-in and see if -- because inventories went up also during the quarter. So if you can help me understand those puts and takes.

所以恭喜你的結果和額外的貨架空間。所以我很好奇你為什麼保持指導不變。如果你在沃爾瑪擁有20% 以上的空間，並且還成功開設了200 家Ulta 商店，那麼在比較中- 最重要的是，在比較中，14 家商店的比較變得更容易- 14%，那麼為什麼不採用全年指導？這是第一個問題。這是否表明您正在看到潛在業務或推出時間的一些蠶食？與此相關，如果你能談談故障的話。約翰，我很欣賞您關於國際和直接的評論，但不太具有代表性，但這也許就是您第二季度表現優於尼爾森隱含數據所建議的原因。或者是否有任何累積的運輸給客戶以便他們可以提供服務 - 特別是在這個新貨架空間的時間安排上。因此，我很好奇我們如何將第二季度的售出與售入聯繫起來，看看是否會發生——因為庫存在本季度也有所增加。所以如果你能幫助我理解這些投入和需要。

Andrea, it's John. So on the guidance, just as a refresher, whenever we set up the year and establish that guidance, we have assumptions both for what's happening within our existing accounts across productivity, space, door counts, as well as assumptions for new distribution. And obviously, we have a certain level of visibility to the year when that guidance is established. Based on where we sit here today, we look at a 24% to 28% net sales growth year and feel that that's very strong and want to keep guidance where it is.

安德里亞，是約翰。因此，在指導上，回顧一下，每當我們設定年份並製定指導時，我們都會對現有賬戶中在生產力、空間、門數方面發生的情況做出假設，並對新的分銷做出假設。顯然，我們對該指南制定的年份有一定程度的了解。根據我們今天所處的情況，我們預計今年的淨銷售額將增長 24% 至 28%，我們認為這一增長非常強勁，並希望維持這一預期。

Yes. And on your second question, I think back to the difference that you see between kind of the Nielsen, the scanner data and our data, in our case, in particular -- and this is different than many of the categories [that worked]. Scanner data doesn't even represent 70% of our sales. So our direct business, international and specialty accounts, as John said, are not included in scanner. And in addition to that, what I'd say is you'll continue to see a discrepancy between scanner and what our sales are. In terms of your second part of that question, which is, is there a buildup in terms of inventories to our customers, I think what you'll see is we've been quite good and aligned in terms of penetrating supply chains of our customers and are quite efficient not only in terms of the fulfillment rates that we've had, over 98%, but just how efficient we've been with those customers. So there's no buildup in inventory at a customer level that you'll see. I mean, it really is off the strength of our overall sales.

是的。關於你的第二個問題，我回想一下你在尼爾森、掃描儀數據和我們的數據之間看到的差異，特別是在我們的例子中——這與許多[有效的]類別不同。掃描儀數據甚至不代表我們銷售額的 70%。因此，正如約翰所說，我們的直接業務、國際和專業賬戶不包含在掃描儀中。除此之外，我想說的是，您將繼續看到掃描儀與我們的銷售額之間的差異。就該問題的第二部分而言，即我們客戶的庫存是否有所增加，我認為您會看到我們在滲透客戶供應鏈方面表現得非常好並且保持一致不僅在我們的履行率（超過98% ）方面非常高效，而且在我們與這些客戶打交道的效率方面也非常高效。因此，您不會看到客戶級別的庫存積累。我的意思是，這確實與我們整體銷售的實力無關。

Yes, that's very helpful. So that reads into a positive third quarter picking up as we're -- I mean, it's implied obviously in the guidance. So we're still seeing positive momentum as you enter the quarter, right?

是的，這非常有幫助。因此，這意味著第三季度將出現積極的增長——我的意思是，這在指導中已經明確暗示了。因此，進入本季度時我們仍然看到積極的勢頭，對嗎？

Yes, we only guide to the annual number. And obviously, we have a couple of quarters left. So we'll talk about those when we're ready to report them.

是的，我們只指導年度數字。顯然，我們還剩下幾個季度。因此，當我們準備好報告這些問題時，我們會討論這些問題。

The next question is coming from the line of Mark Astrachan with Stifel.

下一個問題來自 Mark Astrachan 和 Stifel 的線路。

I wanted to ask a follow-up to the commentary on the category soft spot that you're talking about or that you're referring to going into, I guess, a little bit now. Have you seen any impact on retailer inventories as a result of that, any impact to your business overall and any change that you're seeing on your sales per door basis?

我想詢問有關您正在談論的類別軟肋的評論的後續內容，或者我想您現在要深入探討一下。您是否看到這對零售商庫存產生了任何影響，對您的整體業務產生了任何影響，以及您在每門銷售額上看到的任何變化？

Yes. So on retail inventory, at least from our standpoint, we haven't seen a change to that -- to the earlier question. I mean, our inventory levels at our retailers are where they've been, pretty efficient. In terms of -- certainly, if there was a category that's flat or growing 5%, that's going to have an impact on us. The bigger point for me is we're not dependent on where the category is to be able to get our growth and with the fundamental building blocks we have, both with our unique consumer set in addition to the innovation program productivity as well as new doors. So could growth be 5% more in the quarter had the category been up 5%? Maybe, but it's not how we build and it hasn't really been a factor relative to our overall growth algorithm.

是的。因此，在零售庫存方面，至少從我們的角度來看，我們沒有看到之前問題的變化。我的意思是，我們零售商的庫存水平與以前一樣，非常高效。當然，如果有一個類別持平或增長 5%，那將對我們產生影響。對我來說更重要的一點是，我們不依賴於該類別能夠獲得增長的地方，也不依賴於我們擁有的基本構建模塊，除了創新計劃生產力以及新門之外，還有我們獨特的消費者群體。那麼，如果該類別增長 5%，本季度的增長是否會增加 5%？也許吧，但這不是我們構建的方式，而且它並不是真正與我們整體增長算法相關的因素。

Got it. And just related to that, curious. Could you break out how the growth has been in makeup, sort of the core business versus the new launches in skin care and just how well that's been doing since you've launched it?

知道了。與此相關，很好奇。您能否透露一下化妝品（核心業務）與護膚品新產品的增長情況，以及自推出以來的表現如何？

Yes, we're really pleased with our skin care launch. And if you take a look, sometimes, there is this inverse relationship between color cosmetics and skin care. The last couple of years, color was very strong, skin was a little soft. Skin is really strong right now. I think we're well positioned because we're one of the few brands that have skin and colors together when you -- for example, if you go to a Target shelf set. And we have really strong innovation across both. So our -- we see -- we have great innovation across each and every one of our segments. One of the launches I'm particularly excited about that we just did online this last quarter was Beauty Shield. So -- and this is -- really ties into 7 SKUs, that was products that have antioxidants, SPF 50 but an amazing lightweight formula, and really taps into this, I think, growing consumer kind of understanding that you need great skin to have great makeup coverage. And so our ability to put those 2 things together, particularly in the same set, I think, gives us a real advantage. And all you have to do is go on elfcosmetics.com to see just how much innovation we have on skin care and how excited we are about it.

是的，我們對我們推出的護膚品感到非常滿意。而且如果你仔細觀察，有時候，彩妝和護膚之間存在著這種反比關係。最近幾年，顏色很濃，皮膚有點軟。現在的皮膚真的很堅韌。我認為我們處於有利位置，因為我們是少數幾個將膚色和顏色結合在一起的品牌之一——例如，如果您去 Target 貨架上。我們在這兩方面都擁有非常強大的創新。因此，我們看到，我們的每一個細分市場都有偉大的創新。讓我特別興奮的是我們上個季度剛剛在網上推出的產品之一是 Beauty Shield。所以，這確實與7 個SKU 相關，即含有抗氧化劑、SPF 50 的產品，但具有令人驚嘆的輕質配方，並且真正利用了這一點，我認為，讓消費者越來越了解，您需要擁有良好的皮膚很棒的化妝覆蓋率。因此，我認為，我們將這兩件事放在一起的能力，特別是在同一組中，給我們帶來了真正的優勢。您所要做的就是訪問 elfcosmetics.com，看看我們在皮膚護理方面有多少創新以及我們對此有多興奮。

We do have a follow-up question coming from the line of Andrea Teixeira with JPMorgan.

我們確實有來自摩根大通的 Andrea Teixeira 的後續問題。

Just a note, what is the type of SKUs are you rolling out at the store level? Is that similar to what we see online? Or is there any major difference or more kind of curated SKUs that they see fit within the store?

請注意，您在商店級別推出的 SKU 類型是什麼？是不是和我們網上看到的很像？或者他們認為店內是否有任何重大差異或更多類型的精選 SKU？

Yes. So Andrea, all of our -- all of the SKUs that you'll see in a retail setting have been first validated and tested online and in our stores. So our -- on elfcosmetics.com, we just have a much broader assortment. We're able to take kind of the bestsellers and the ones -- some of the ones that have the best reviews and take them to our retail partners. So it's -- usually, it's a subset of the SKUs that we have on elfcosmetics.com and in our stores but -- and there will be sometimes uniqueness by various retailers on things that they particularly want to highlight or run with, but our overall model is the bestseller model. We try to have people take the majority of our SKUs that are good sellers.

是的。因此，Andrea，您在零售環境中看到的所有 SKU 都首先在網上和我們的商店中進行了驗證和測試。因此，在 elfcosmetics.com 上，我們的產品種類更加廣泛。我們能夠挑選一些暢銷書和一些評論最好的書，並將它們帶到我們的零售合作夥伴那裡。因此，通常，它是我們在 elfcosmetics.com 和商店中擁有的 SKU 的一個子集，但是，有時各個零售商在他們特別想要強調或搭配的東西上會有獨特之處，但我們的整體型號為暢銷型號。我們嘗試讓人們購買我們大部分暢銷的 SKU。

Okay, not limited to any tools or just as you're seeing a fit for them, okay.

好的，不限於任何工具，或者只要您發現適合它們的工具即可。

No, very small.

不，非常小。

We do have an additional question coming from the line of Stephanie Wissink with Jefferies.

我們確實還有一個來自杰弗里斯的斯蒂芬妮·威辛克 (Stephanie Wissink) 的問題。

Just one follow-up, guys, on the SG&A with respect to the e-comm replatforming. I'm just curious if there were any expenses in the quarter and planned in the back half related to that technology investment that's flowed through the P&L that we should be mindful of as we model out into 2018, that you might be able to anniversary some of those elevated expenses related to e-comm.

伙計們，這只是關於電子商務平台重組的 SG&A 的後續行動。我只是好奇本季度是否有任何費用以及計劃在下半年與流經損益表的技術投資相關的任何費用，我們在預測 2018 年時應該注意這一點，這樣您可能能夠慶祝一些週年紀念日與電子商務相關的增加的費用。

Yes. Steph, so very modest in the second quarter. You'd start to see those investments really ramping Q3 into the early part of 2018, and a large portion of that will be capital versus actual OpEx.

是的。斯蒂芬，第二季度非常謙虛。你會開始看到這些投資在 2018 年第三季度開始真正增加，其中很大一部分將是資本與實際運營支出。

We have reached the end of our question-and-answer session. So I'd like to pass the floor back over to Mr. Amin for any additional concluding comments.

我們的問答環節已經結束。因此，我想將發言權交還給阿明先生，請他發表任何其他結論性意見。

Great. Well, thanks again for joining us. We'll be presenting at the Barclays Conference in September, and we look forward to discussing our third quarter results with you in November. Thanks, everyone.

偉大的。好的，再次感謝您加入我們。我們將在 9 月份的巴克萊會議上進行展示，並期待在 11 月份與您討論我們的第三季度業績。感謝大家。

Thanks.

謝謝。

Ladies and gentlemen, this does conclude today's teleconference. Again, we thank you for your participation, and you may disconnect your lines at this time.

女士們、先生們，今天的電話會議到此結束。我們再次感謝您的參與，此時您可以斷開線路。