Establishment Labs Holdings Inc (ESTA) 2024 Q1 法說會逐字稿

Good afternoon. Welcome to Establishment Labs First Quarter 2024 earnings call. (Operator Instructions) As a reminder, today's call is being recorded. I will now turn the call over to Ryan Dunlap, Chief Financial Officer. Please go ahead.

午安.歡迎參加Establishment Labs 2024 年第一季財報電話會議。（操作員說明）謹此提醒，今天的通話正在錄音。我現在將把電話轉給財務長 Ryan Dunlap。請繼續。

Thank you, operator, that you're joining us with me today as one is each county rose our Chief Executive Officer. Following our prepared remarks, we'll take your questions.

謝謝你，接線員，今天你和我一起加入我們，因為每個縣都有一位執行長。在我們準備好的發言之後，我們將回答您的問題。

Before we begin, I would like to remind you that comments made by management during this call will include forward-looking statements within the meaning of federal securities laws. These include statements on Establishment Labs' financial outlook and the company's plans and timing for product development and sales. These forward-looking statements are based on management's current expectations and involve risks and uncertainties for discussion of the principal risk factors and uncertainties that may affect our performance or cause actual results to differ materially from these statements. We encourage you to review our most recent annual and quarterly reports on Form 10 K and Form 10 Q as well as other SEC filings which are available on our website at Establishment Labs.com. I'd also like to remind you that our comments may include certain non-GAAP financial measures with respect to our performance, including but not limited to sales results, which can be stated on a constant currency basis for profitability of the Company's business, which can be stated as EBITDA or adjusted EBITDA. Reconciliations to comparable GAAP financial measures for non-GAAP measures, if available may be found in today's press release, which is available on our website.

在我們開始之前，我想提醒您，管理層在本次電話會議中發表的評論將包括聯邦證券法含義內的前瞻性陳述。其中包括有關Establishment Labs 的財務前景以及公司的產品開發和銷售計劃和時間表的聲明。這些前瞻性陳述是基於管理階層目前的預期，涉及風險和不確定性，用於討論可能影響我們績效或導致實際結果與這些陳述有重大差異的主要風險因素和不確定性。我們鼓勵您查看我們最新的 10 K 表格和 10 Q 表格年度報告和季度報告以及其他 SEC 備案文件，這些文件可在我們的網站 Improvement Labs.com 上取得。我還想提醒您，我們的評論可能包括與我們業績相關的某些非公認會計準則財務指標，包括但不限於銷售業績，這些業績可以以固定貨幣為基礎來說明公司業務的盈利能力，其中可以表述為EBITDA 或調整後的EBITDA。如果有的話，可以在今天的新聞稿中找到非公認會計原則財務指標與非公認會計原則財務指標的對賬，該新聞稿可在我們的網站上找到。

Please also note that established labs received an investigational device exemption from the FDA for Motiva Implants and is undergoing a clinical trial to support regulatory approval in the United States, we continually seek to expand the geographies in which our products are regulatory approved. Please check with your local authority for product availability The content of this conference call contains time-sensitive information accurate only as of the date of this live broadcast May eighth, 2024. Except as required by law, Establishment Labs undertakes no obligation to revise or otherwise update any statement to reflect events or circumstances after the date of this call.

另請注意，已建立的實驗室已獲得 FDA 的 Motiva 植入物研究設備豁免，並且正在進行臨床試驗以支持美國監管部門的批准，我們不斷尋求擴大我們的產品獲得監管部門批准的地區。請諮詢您當地的主管機關以了解產品的可用性 本次電話會議的內容包含時效性信息，僅截至本次直播日期 2024 年 5 月 8 日準確。除法律要求外，Establishment Labs 不承擔修改或以其他方式更新任何聲明以反映本次電話會議之後發生的事件或情況的義務。

Without it is my pleasure to turn the call over to our CEO, Juan Jose.

如果沒有，我很高興將電話轉給我們的執行長胡安·何塞。

Thank you, Raj, and good afternoon. Everyone. revenue in the first quarter of 2024 totaled $37.2 million. Our markets continued to stabilize and we are seeing improving demand. All of our global regions showed sequential improvement in the first quarter. We saw this in both our direct and distributor markets, and we expect to see continued improvement throughout 2024. Our first quarter also showed the tangible results of the cost reduction and efficiency improvement activities we undertook in the second half of last year, adjusted EBITDA improved to a loss of less than $4 million. This was a notable improvement from the loss of $17 million last quarter. We are off to a busy start in 2024. Over the past several months, we launch with Eva implants in China in our Flora tissue expander in the United States. We are also making significant progress toward approval of Motiva implants in the United States. The number of clinics offering me around the world is growing, and the feedback on this transformative breast technology continues to surpass even our own expectations. We are well positioned for multiyear growth while steadily improving our margin structure in achieving the necessary scale to reach cash flow profitability in 2025, Raj will provide more on our financial results and outlook in a moment. But first, I want to highlight several recent events as we announced two important developments on our path to US approval to four year data from our Motiva US IDE study was presented at the aesthetic meeting on May second by Dr. Caroline Glickman, the medical director and a principal investigator of the study as Dr. Glickman highlighted, it is particularly notable that our rates of Baker Grade three and four capsular contracture and rupture have not changed for the past two years at year four there continues to be only two patients with capsular contracture and only one patient with a suspected rupture, which were the exact same numbers at two years and at three years, these low complication rates are a confirmation of a new standard for breast implants, and we expect plastic surgeons will adopt our products given their technological superiority and performance. While these are not comparative studies. It is worth noting that at four years, the FDA data from the two largest competitors in the US showed that between one and seven one in 12 women developed a baker Grade three or four capsular contracture in the multi-dose study, it was one in 200 women. We also announced last week that Jeff or Hart will lead our North American business. Jeff, most recently ran the plastic and reconstruction division of Allergan aesthetics and was responsible for the Breast Products portfolio. Jeff is a strong commercial leader with over 25 years of experience in this industry, I cannot imagine anyone better suited to introduce Motiva to the U.S. market. Jeff is already building an experienced team with a successful track record in this industry, including NPU, who will head our U.S. sales team and venue cut was Director of surgeon engagement and business development will lead our outreach to the plastic surgeon community. This is truly an all-star team at the annual meeting of the aesthetic society in Vancouver this past weekend Establishment Labs and with Diva Ward, the talk of the conference plastic surgeons are overwhelmingly enthusiastic about our new hires and the launch of Motiva in the United States might be the most anticipated launch of an aesthetic product in decades. Surgeons and investors alike want to know when with Ciba will be available in the United States. While the second quarter inspection of our facilities is a critical point in the process, we will continue not to predict an exact timeline for both competitor and regulatory reasons. That said, the conversations with the FDA are highly constructive and we have high confidence that we will be on market in 2024. While we wait for the approval of Motiva Flora, our unique tissue expander continues to gain traction in the U.S. market. Flora has many important and novel features, including our patented with Silk surface technology as well as an RFID-enabled non-magnetic port mislabeled as MR conditional by the FDA. This is a distinct advantage to Flora as all other commercially available breast tissue expanders include magnet. We had many surgeons come by our booth in Vancouver to learn about the advantages of Flora in reconstruction, and we expect adoption of this technology will continue throughout the course of 2024. We have completed the vac process at a number of the premier cancer centers in the United States and more are pending as the benefits of this device in breast reconstruction are being demonstrated and shared in the clinical community, the number of hospitals providing floor up to patients. We'll grow in the US BFM tech is creating an entirely new minimally invasive category within breast aesthetics and the list of cities across the world where MI is available continues to grow. In Q1, we added media centers into new geographies, Middle East and Latin America. We now have centers certified to provide them the experience in Riyadh, Jeddah, Dubai, Abu Dhabi, Beirut in our hometown of San Jose in total, we have 55 clinics signed up for Amea, authentic Partnership, of which 33 are operating in 22 new clinics in the process of being onboarded for medical education and practice develops. In addition, we have 37 clinics under negotiation. The consumers are sharing their experiences on social media, highlighting the convenience and aesthetic outcomes of their breath harmonization journey confirming our conviction that word of mouth will ultimately be the biggest growth driver for me, authentic. It is still early in the launch of Mia, but we are seeing proof points that we are creating and capturing new consumer demand in this new category in breast distance in China, the reception of our recent launch has been strong. Chinese plastic surgeons and consumers have a strong appreciation for Motiva as the latest in innovation, science and technology. And there is a willingness to pay a premium for such offerings in this market. Our exclusive distribution partner is pursuing an aggressive strategy of medical education and marketing events in Tier one and Tier two cities across China. The early results give us confidence that our market position in China over the next few years will match what we have seen in surrounding markets in Asia where we are market leaders.

謝謝你，拉傑，下午好。每個人。 2024 年第一季的營收總計 3,720 萬美元。我們的市場持續穩定，我們看到需求有所改善。我們所有的全球地區在第一季都出現了環比改善。我們在直接市場和分銷市場中都看到了這一點，並且預計 2024 年將持續改善。我們的第一季也顯示了去年下半年我們進行的成本削減和效率提升活動的實際成果，調整後的 EBITDA 改善至虧損不到 400 萬美元。與上季 1700 萬美元的虧損相比，這是一個顯著的改善。2024 年我們將迎來一個忙碌的開始。在過去的幾個月裡，我們在美國的 Flora 組織擴張器中在中國推出了 Eva 植入物。我們也在美國批准 Motiva 植入物方面取得了重大進展。世界各地為我提供服務的診所數量不斷增加，對這種變革性乳房技術的回饋甚至持續超出我們自己的預期。我們已做好多年的成長準備，同時穩步改善我們的利潤結構，以實現必要的規模，以在 2025 年實現現金流盈利。但首先，我想強調最近發生的幾件事，因為我們宣布了在獲得美國批准的道路上的兩項重要進展，我們的Motiva US IDE 研究的四年數據由醫學主任Caroline Glickman 博士在5 月2日的美容會議上介紹正如Glickman 博士所強調的那樣，該研究的主要研究者強調，特別值得注意的是，在過去的兩年裡，我們的貝克三級和四級包膜攣縮和破裂的發生率在第四年仍然只有兩名患者發生包膜攣縮和破裂。標準，我們預計整形外科醫生將採用我們的產品，因為他們的產品技術優勢和性能。雖然這些不是比較研究。值得注意的是，四年來，FDA 來自美國兩個最大競爭對手的數據顯示，在多劑量研究中，每12 名女性中就有1 到7 人出現麵包師三級或四級包膜攣縮，這一比例為200 名女性。我們上週也宣布傑夫或哈特將領導我們的北美業務。Jeff 最近負責管理艾爾建 (Allergan) 美容整形和重建部門，並負責乳房產品組合。Jeff 是一位實力雄厚的商業領導者，在該行業擁有超過 25 年的經驗，我無法想像還有誰比他更適合將 Motiva 引入美國市場。Jeff 已經在組建一支經驗豐富的團隊，在該行業擁有成功的業績記錄，其中包括NPU，他將領導我們的美國銷售團隊，場地切割是外科醫生參與和業務開發總監，將領導我們向整形外科醫生社區的推廣。上週末在溫哥華舉行的美容學會年會上，這確實是一支全明星團隊，Establishment Labs 和Diva Ward 一起參加了會議，整形外科醫生對我們的新員工和Motiva 在美國的推出表現出極大的熱情States 可能是幾十年來最受期待的美容產品發布。外科醫生和投資者都想知道汽巴何時在美國上市。雖然第二季對我們設施的檢查是過程中的關鍵點，但出於競爭對手和監管方面的原因，我們將繼續不預測確切的時間表。也就是說，與 FDA 的對話非常有建設性，我們對 2024 年上市充滿信心。在我們等待 Motiva Flora 批准的同時，我們獨特的組織擴張器繼續在美國市場獲得關注。Flora 具有許多重要且新穎的功能，包括我們專利的 Silk 表面技術，以及被 FDA 錯誤標記為 MR 條件的支援 RFID 的非磁性連接埠。這對 Flora 來說是一個明顯的優勢，因為所有其他市售乳房組織擴張器都包含磁鐵。我們在溫哥華的展位吸引了許多外科醫生來了解 Flora 在重建方面的優勢，我們預計該技術將在 2024 年繼續採用。我們已經在美國的一些主要癌症中心完成了vac 流程，隨著該設備在乳房重建中的好處正在臨床界得到展示和分享，還有更多的流程正在等待中，為患者提供底層服務的醫院數量也不斷增加。我們將在美國成長 BFM 技術正在乳房美學領域創建一個全新的微創類別，並且世界各地可進行 MI 的城市名單不斷增加。在第一季度，我們在中東和拉丁美洲等新地區增加了媒體中心。現在，我們在利雅德、吉達、杜拜、阿布達比、貝魯特以及我們的家鄉聖荷西總共擁有經過認證的中心，可以為他們提供體驗，我們有55 家診所與Amea 簽約，這是真正的合作夥伴關係，其中33 家診所在22 個新的國家和地區運作。此外，我們還有37家診所正在洽談中。消費者在社群媒體上分享他們的體驗，強調他們呼吸協調之旅的便利性和美觀效果，這證實了我們的信念，即口碑最終將成為我最大的成長動力，真實。Mia 的推出還處於早期階段，但我們看到的證據表明，我們正在中國這個胸距新類別中創造和捕捉新的消費者需求，我們最近推出的產品反應強烈。中國整形外科醫生和消費者對 Motiva 作為最新的創新、科學和技術有著強烈的讚賞。在這個市場上，人們願意為此類產品支付溢價。我們的獨家經銷合作夥伴正在中國一線和二線城市推行積極的醫學教育和行銷活動策略。早期結果讓我們相信，未來幾年我們在中國的市場地位將與我們在亞洲週邊市場所看到的市場地位相匹配，我們是亞洲週邊市場的市場領導者。

I will now turn over the call to Rob.

我現在將把電話轉給羅布。

Thank you, Juan Jose total revenue for the first quarter was 37.2 million, a decline of 20% from the year ago period. Direct sales in the first quarter were approximately 39% of implant sales. While distributors made up the balance from regional perspective, sales in Europe, Middle East and Africa were approximately 55% of the global total Asia-Pacific, 21% in Latin America, 23%. Brazil, which is our largest market globally, accounted for approximately 11% of total quarterly sales. Our gross profit for the first quarter was 24.4 million or 65.6% of revenue compared to $30.1 million or 64.7% of revenue for the same period in 2023. Our gross profit in the first quarter reflected an increase in average selling prices year over year, offset somewhat by higher overhead and labor costs change in foreign exchange rates between the USD and the Costa Rican colon also continued to be a headwind as reported USD to continued strengthening of the Cologne has resulted in higher operating costs.

謝謝，Juan Jose 第一季總營收為 3,720 萬美元，年減 20%。第一季的直接銷售額約佔植入物銷售額的 39%。雖然從區域角度來看，經銷商彌補了平衡，但歐洲、中東和非洲的銷售額約佔全球總量的55%，亞太地區為21%，拉丁美洲為23%。巴西是我們全球最大的市場，約佔季度總銷售額的 11%。我們第一季的毛利為 2,440 萬美元，佔營收的 65.6%，而 2023 年同期毛利為 3,010 萬美元，佔營收的 64.7%。我們第一季的毛利反映出平均銷售價格年增，但在一定程度上被較高的管理費用和勞動力成本所抵消，美元和哥斯達黎加科朗之間的匯率變化也繼續成為不利因素，據報道，美元持續上漲科隆的強化導致營運成本上升。

Sg&a expenses for the first quarter declined approximately 2.8 million to 28.9 million compared to 31.7 million in the first quarter of 2023. Sg&a expenses also declined approximately 8 million from the 36.9 million reported in the fourth quarter. R&d expenses for the fourth quarter declined approximately 2.2 million in the same quarter a year ago to 4.3 million and were down 1.5 million sequentially. Total operating expenses for the first quarter were 33.2 million, a decrease of approximately 5 million in the year ago period and declined approximately $9.5 million from the first the fourth quarter due primarily to cost reduction initiatives. The decrease in operating expenses in the first quarter was primarily the result of the cost reduction initiatives we undertook in the second half of 2023 and into 2024, as well as the timing of certain planned expenses this year.

第一季的銷售、管理及行政費用 (SG&A) 支出下降約 280 萬美元，至 2,890 萬美元，而 2023 年第一季為 3,170 萬美元。SG&A 費用也比第四季報告的 3,690 萬減少了約 800 萬。第四季研發費用較去年同期下降約220萬美元至430萬美元，季減150萬美元。第一季的總營運費用為 3,320 萬美元，比去年同期減少約 500 萬美元，比第四季第一季減少約 950 萬美元，這主要是由於成本削減措施。第一季營運費用的減少主要是由於我們在 2023 年下半年和 2024 年採取的成本削減措施以及今年某些計畫費用的時間表。

Net loss from operations for the first quarter was $8.8 million compared to a net loss of $8.2 million in the same period in 2023 and 22.1 million in the fourth quarter. Adjusted EBITDA was a loss of 3.7 million in the quarter. This compared to a loss of 17.3 million in the fourth quarter and a loss of 4 million in the year ago period. Our cash position on March 31st was 73 million compared to 40 million at the end of 2023. And excluding the proceeds from our January 50 million private placement underlying cash use in the first quarter was 16.8 million. As a reminder, we have two remaining tranches in our debt facility, which totaled 50 million. We can access the first 25 million on US FDA approval of Motiva implants in the second, with the additional milestone of achieving $195 million in 12 trailing 12 months sales for 2024. Revenue guidance continues to exclude the contribution of Motiva implants in the United States. Our guidance remains at 174 to $184 million, representing growth of 5% to 11%. We expect currency to have a minimal impact on our sales results this year. We do expect gross margins in 2024 to be approximately 100 basis points higher than 2023 to a range of 65.5% to 66%. Pacing of operating expenses this year is going to be fluid. Given the timing of approval of Motiva implants in the US, our increasing confidence in approval this year has led us to begin making some key hires to begin limited activities to prepare for the launch. As such, we expect operating expenses will increase modestly from first quarter levels. We remain focused on managing operating expenses and cash use and excluding investments investments in the U. S, we are targeting positive adjusted EBITDA by the end of 2024 and positive cash flow by the end of 2025. The timing of U.S. commercialization will affect when we achieve these targets. However, the additional capital which becomes available to us for more than fully support our current launch plans, also given the strong ASPs in the United States or North America business achieves profitability very quickly. We are very focused on ensuring that the cash we currently have on hand and which is accessible to us under our credit facility for properly fund our business profitability without the need for additional capital.

第一季營運淨虧損為 880 萬美元，而 2023 年同期淨虧損為 820 萬美元，第四季淨虧損為 2,210 萬美元。該季度調整後 EBITDA 虧損 370 萬美元。相較之下，第四季虧損 1,730 萬美元，去年同期虧損 400 萬美元。截至 3 月 31 日，我們的現金部位為 7,300 萬美元，而 2023 年底為 4,000 萬美元。不包括我們一月進行的 5,000 萬次私募的收益，第一季的現金使用額為 1,680 萬美元。提醒一下，我們的債務融資還剩下兩部分，總計 5,000 萬美元。我們可以在第二年獲得美國 FDA 批准的 Motiva 植入物的首批 2500 萬美元，另一個里程碑是在 2024 年過去 12 個月的 12 個月內實現銷售額 1.95 億美元。收入指引繼續排除 Motiva 植入物在美國的貢獻。我們的指導仍為 174 至 1.84 億美元，成長 5% 至 11%。我們預期貨幣對我們今年的銷售業績影響最小。我們預計 2024 年的毛利率將比 2023 年高出約 100 個基點，達到 65.5% 至 66% 的範圍。今年的營運支出節奏將是不穩定的。鑑於 Motiva 植入物在美國獲得批准的時機，我們對今年批准的信心不斷增強，這促使我們開始聘請一些關鍵人員，開始有限的活動，為上市做準備。因此，我們預計營運費用將較第一季水準小幅成長。我們仍專注於管理營運費用和現金使用，不包括在美國的投資。美國商業化的時機將影響我們何時實現這些目標。然而，考慮到美國或北美業務強勁的 ASP，我們獲得的額外資本不僅可以完全支持我們目前的推出計劃，而且很快就能實現盈利。我們非常注重確保我們目前手頭上擁有的現金以及我們可以透過信貸安排獲得的現金，以便在不需要額外資本的情況下為我們的業務盈利能力提供適當的資金。

I will now turn the call back to Juan Jose.

我現在將把電話轉回給胡安·何塞。

Thank you, Raj. 2024 is off to a very good start. We are seeing steady recovery in our markets and our differentiated technologies continue to support our progress globally. The work we did at the end of last year in restructuring, refocusing organization is allowing us to invest in growth while we progress towards profitability. Our goals of being adjusted EBITDA positive by the end of the year and cash flow positive next year, excluding investments in the U.S. remain firmly intact and are a key focus for us as an organization and management team early this year we entered China, the second largest market for our technologies globally. Flora is pushing us deeper into breast reconstruction while establishing a new standard of care. Our most recent family of implants Ergonomix two supporting exciting new program offerings like joy and of course, BFM Tech, which is creating an entirely new category in breast aesthetics and which will lead to real market expansion over time, the rest of the year will be even more exciting. The pending launch of Motiva United States is a culmination of years of work at Establishment Labs, and we can not wait to introduce our story to women and surgeons in the largest market in the world. As a company focused on women's health, we are building on a solid foundation and have a clear path to further establish ourselves as the leader globally in breast aesthetics and reconstruction.

謝謝你，拉吉。2024 年是一個好的開始。我們看到市場穩步復甦，我們的差異化技術繼續支持我們在全球的進步。我們在去年年底在重組和重新調整組織方面所做的工作使我們能夠在實現盈利的同時投資於成長。我們的目標是在年底實現調整後EBITDA 為正值，明年現金流量為正值（不包括在美國的投資），這仍然是我們作為組織和管理團隊的重點關注點，今年年初我們進入了中國，這是我們第二次進入中國我們技術的全球最大市場。Flora 正在推動我們更深入地進行乳房重建，同時建立新的護理標準。我們最新的植入物系列Ergonomix 有兩個支持令人興奮的新項目產品，例如Joy，當然還有BFM Tech，它正在創建乳房美學的全新類別，隨著時間的推移，這將帶來真正的市場擴張，今年剩餘時間將更令人興奮。Motiva United States 即將推出，是Establishment Labs 多年工作的結晶，我們迫不及待地想向全球最大市場的女性和外科醫生介紹我們的故事。作為一家專注於女性健康的公司，我們正在打下堅實的基礎，並有明確的道路來進一步確立自己在乳房美學和重建領域的全球領導者地位。

I will now turn the call over to the operator for your questions.

我現在將把電話轉給接線員詢問您的問題。

(Operator Instructions) Harrison Parsons, Stephens, Inc.

（操作員說明）Harrison Parsons, Stephens, Inc.

Hi, this is Harrison on for George. Good afternoon and thanks for taking our questions. I wanted to start with your underlying assumptions in your reiterated guidance guidance. I know you and the press release spoke to market demand stabilizing. I just wanted to wanted to dig in on kind of what you're assuming from a macro perspective in that.

大家好，我是喬治的哈里森。下午好，感謝您提出我們的問題。我想從您重申的指導方針中的基本假設開始。我知道您和新聞稿都談到了市場需求的穩定。我只是想從宏觀角度深入了解您的假設。

Got it. I'm sure I Harrison, you know, as you saw in this quarter, we saw a nice sequential improvement over where we were in the fourth quarter. And as we move into the second quarter, we expect to see a similar level of improvement in demand. Generally, we're seeing distributor orders come back. The direct markets are doing a bit better. And so generally, I think things are stabilizing. And so as we progress through the year, we expect that trend's going to continue.

知道了。我確信哈里森，你知道，正如你在本季看到的那樣，我們看到比第四季的情況有了很好的連續改善。隨著進入第二季度，我們預計需求也會出現類似水準的改善。一般來說，我們看到經銷商訂單回來了。直接市場的表現稍好。總的來說，我認為事情正在穩定下來。因此，隨著今年的進展，我們預計這種趨勢將持續下去。

Yes. Overall, we feel pretty good about where we are and how things are shaping up in and things are definitely getting better out there.

是的。整體而言，我們對自己所處的位置以及事情的進展感到非常滿意，而且事情肯定會變得更好。

Great. Yes. And then I know you just touched on it, but wanted to dig in a little bit on the and what you're hearing from your international distributors. Where do you think their inventory levels sit today? And I know obviously but that's out of your control. But what are your expectations for those inventory levels going throughout the year? And is that going to be a headwind or tailwind for the remainder thanks for the questions.

偉大的。是的。然後我知道您剛剛談到了這個問題，但想深入了解您從國際分銷商那裡聽到的情況。您認為他們今天的庫存水準在哪裡？我顯然知道，但這不是你能控制的。但您對全年庫存水準有何預期？對剩下的人來說，這會是逆風還是順風，謝謝你的提問。

What we hear from our distribution partners around the world is that demand is improving and that's very much in all regions of the world. They think Latin America is probably a lagger there. We don't expect demand there to come back as quickly as in the other regions. And as a result, of course, they're, you know, they're running through their inventories. And that's why they're ordering. Again, if you saw like the pattern of distribution demand this quarter, it was back to what we consider more normalized levels and around the 60 40 percentage.

我們從世界各地的分銷合作夥伴那裡聽到的是，需求正在改善，而且在世界各地都是如此。他們認為拉丁美洲可能是個落後者。我們預計那裡的需求不會像其他地區那樣迅速恢復。結果，當然，他們正在耗盡庫存。這就是他們訂購的原因。同樣，如果您看到本季的分銷需求模式，它又回到了我們認為更正常化的水平，即 60-40% 左右。

Great. That sounds good. Thanks for taking the questions.

偉大的。聽起來很好。感謝您提出問題。

Allen Gong, JPMorgan.

龔艾倫，摩根大通。

So I just kind of want to dive deeper into, you know, direct markets, right? You talked about how it seems like trends are getting better. So when we think about the fact that you reiterated the guidance off of a quarter that at least relative to Street expectations, looks a little bit better. How should we think about, you know, the kind of assumptions that get you to the bottom more higher end of that range?

所以我只是想更深入地了解直接市場，對吧？您談到了趨勢似乎正在變得更好。因此，當我們考慮到您重申了季度指引的事實時，至少相對於華爾街的預期，看起來要好一些。你知道，我們應該如何考慮讓你到達該範圍的底部和更高端的假設？

Yes, I think, Alan, you know, we're only really through one quarter in the year. Right? And as we commented the last question, you think things are feeling better rates. You can see in the trends the sequential improvement this quarter, we're talking about a similar sequential improvement into the second quarter. So in terms of the range. You know, at this point in the year, we feel some early to be adjusting that. But overall, we're feeling pretty good about about where we are and really trending towards the upper end of that range this year.

是的，我想，艾倫，你知道，我們一年才真正度過了四分之一。正確的？正如我們評論最後一個問題時，您認為情況感覺更好。您可以在趨勢中看到本季的連續改善，我們正在討論第二季的類似連續改善。所以從範圍上來說。你知道，在今年的這個時候，我們覺得調整這一點還為時過早。但總體而言，我們對自己所處的位置感覺非常好，並且今年確實趨向於該範圍的上限。

Got it. And then I guess just, you know, in anticipation of a U.S. launch later this year, can you talk to kind of the underlying health of the U.S. market. I know we're still kind of waiting for the societies to put out the volume data from 2023, but we saw that it really was bouncing around quite a bit during and in the wake of the pandemic. So can you just talk to the underlying health of the US and how that positions you for a launch in the back half of the year? Thank you.

知道了。然後我想，你知道，預計今年稍後將在美國推出，你能談談美國市場的潛在健康狀況嗎？我知道我們仍在等待各協會公佈 2023 年的數量數據，但我們看到它在大流行期間和之後確實出現了相當大的波動。那麼您能否談談美國的基本健康狀況以及這對您在今年下半年推出的產品有何影響？謝謝。

Yes. Thanks, Alan. So we were just at the American Society of Aesthetic Plastic Surgery meeting in Vancouver, and we had the opportunity to talk about this with many plastic surgeons from all over the US. And I think they did see a significant dip down in the level of procedures last year. And what they have said is that they see an improvement taking place. It is, of course, not close to the hype that they saw during the second part of the pandemic where they really saw, you know, above normal demand in nearly all over the United States, but are but it is starting to normalize according to what we heard from them over last week.

是的。謝謝，艾倫。所以我們剛剛在溫哥華參加美國美容整形外科協會會議，我們有機會與來自美國各地的許多整形外科醫生談論這個問題。我認為去年他們確實看到程序水準顯著下降。他們所說的是，他們看到了正在發生的改進。當然，這與他們在大流行第二階段看到的炒作相差甚遠，他們確實看到，你知道，幾乎整個美國的需求都高於正常水平，但根據上週我們從他們那裡聽到了什麼。

Marie Thibault, BTIG.

瑪麗蒂博，BTIG。

Thanks so much for taking the questions and congrats on a very nice start to the year. I wanted to ask here with the US approval expected this year. Hoping we can get a little bit more detail on how you're thinking about the sales force buildout with Jeff in place would love to hear a little bit about the go-to-market strategy. I know we'll have to wait to see some of the bigger spending and investment and would really love to just hear about, you know, a potential range for how many sales reps and and you know that selling strategy that you're going to be targeting?

非常感謝您提出問題，並祝賀您今年有一個良好的開端。我想在這裡問一下，預計今年美國會批准。希望我們能更詳細地了解您如何考慮傑夫就職後的銷售隊伍建設，我們很想聽聽有關進入市場策略的一些資訊。我知道我們將不得不等待看到一些更大的支出和投資，並且真的很想听聽，你知道，有多少銷售代表的潛在範圍，並且你知道你要採取的銷售策略被瞄準？

Yes. Thanks very well, we have been investing in the US for quite some time. We have been building the necessary foundation for the commercial organization, especially in the back office commercial ops. And we are also leveraging initiatives, leveraging a lot of the infrastructure we have built in areas like HR, legal, finance and regulatory from our global team. So that's been part of what we've done already and you can see it already why we're invoicing and shipping Flora tissue expanders to U.S. Now with having Jeff on board, I think it signals our conviction that we need to get preparation for the U.S. launch. And not only did we add, Jeff, we also add NPU, who will head our U.S. sales team and venue card, who's late basically Director of surgeon engagement and business development. As you know, their combined experience in the US market is, I would say, second to none. And with that, what we are building is a strong foundation for launch readiness. We are going to be very mindful of how we grow our sales force. But I think we're getting to the point where like that foundation that commercial foundations are already there. And you know, we've added a couple of sales reps already for the tissue expander and we continue to add more, you know, in the next few months as we feel that we are getting closer and closer to the launch for competitive reasons. I'm not going to share too much of the details, but but definitely we are at a point where we are going to start building up that on that sales force.

是的。非常感謝，我們在美國投資已經有一段時間了。我們一直在為商業組織建立必要的基礎，特別是在後台商業運作方面。我們也利用我們的全球團隊在人力資源、法律、財務和監管等領域建立的大量基礎設施。這就是我們已經完成的工作的一部分，您已經可以看到為什麼我們要開立發票並將 Flora 組織擴張器運送到美國。現在傑夫的加入，我認為這表明我們堅信我們需要為在美國的推出做好準備。傑夫，我們不僅增加了 NPU，他將領導我們的美國銷售團隊和場館卡，他後來基本上擔任外科醫生參與和業務開發總監。如你所知，我想說，他們在美國市場的綜合經驗是首屈一指的。至此，我們正在建立的就是為發布做好準備的堅實基礎。我們將非常注意如何發展我們的銷售團隊。但我認為我們已經到了這樣的地步：商業基金會已經存在了。你知道，我們已經為組織擴張器增加了幾名銷售代表，並且在接下來的幾個月裡，我們將繼續增加更多的銷售代表，因為我們覺得出於競爭原因，我們越來越接近發布。我不會透露太多細節，但我們肯定正處於這樣一個階段：我們將開始在銷售團隊中建立這一點。

Okay. That's great to hear. Thanks for that detail. And then I wanted to ask my next question here on China. Any ability to offer more details on, you know, on the amount of revenue recognized in China this quarter or how we should think about that over the year is it going sort of according to expectations? And where can you eventually see market share going to in China? And thanks for taking the questions.

好的。聽到這個消息我很高興。謝謝你的詳細資料。然後我想問下一個關於中國的問題。您是否有能力提供更多有關本季度在中國確認的收入金額的詳細信息，或者我們應該如何考慮這一年的情況是否符合預期？您最終會發現中國的市佔率會流向哪裡？感謝您提出問題。

Yes, I can start with that. And Jay can talk a little about the market share. We think as we've talked about China, right, we as we move through 2023, where we had expected in 23, we pushed into 2024. I can tell you that we are tracking to that. China is developing as we expected. We're seeing demand. It is building. And so I can tell you that we're on track in terms of our plans in China in terms of eventual market share and the size of that market. Jj, if you want to maybe take that?

是的，我可以從這個開始。Jay 可以談談市場佔有率。我們認為，正如我們所談論的中國，對吧，隨著我們進入 2023 年，我們原本預計在 23 年，我們將推遲到 2024 年。我可以告訴你，我們正在追蹤這一點。中國正按照我們的預期發展。我們看到了需求。它正在建設。所以我可以告訴你，就我們在中國的計畫而言，無論是最終的市佔率還是市場規模，我們都步入正軌。 Jj，如果你願意的話可以接受嗎？

Yes, of course. So it's super early on. It's just been a few months since we launched in China where at this point, basically hitting Tier one and Tier two cities with our events, medical education. So it's early, but we have a very good experience in the blueprint that we have used in other countries in Asia in surrounding countries where you have a strong Chinese population like Singapore or Taiwan, Hong Kong. And what we see is that they quickly realize that this is a superior technology. There is a willingness to pay. So we do expect, you know, our market share in the next few years to match some of the same leadership that we've seen in the surrounding countries where we have between 40% and 70% market share in China right now, one of our competitors has 70% or more market share. So we have a very clear plan on how to go about that. And definitely, you know, as we build on this some initial launch activities, I think we'll be able to talk with more detail about how we are doing there

是的當然。所以現在還非常早。自從我們在中國推出以來才幾個月，目前我們的活動、醫學教育基本上已經涵蓋了一二線城市。所以現在還為時過早，但我們在亞洲其他國家使用的藍圖上有很好的經驗，在新加坡、台灣、香港等擁有大量華人人口的周邊國家。我們看到的是，他們很快就意識到這是一項卓越的技術。有支付意願。因此，我們確實預計，未來幾年我們的市場份額將與我們在周邊國家看到的領先地位相匹配，目前我們在中國擁有 40% 至 70% 的市場份額，其中之一我們的競爭對手擁有70 % 或更多的市場佔有率。因此，我們對於如何實現這一目標有一個非常明確的計劃。當然，你知道，當我們在此基礎上開展一些初步啟動活動時，我認為我們將能夠更詳細地討論我們在那裡的進展情況

Anthony Petrone, Mizuho Securities.

安東尼‧佩特龍，瑞穗證券。

Thank you, and good afternoon, everyone. Maybe one just on the in the process of the FDA inspection now, how long that actually takes and what the range of turnaround time is. I'm just trying to get an idea of timing and how the actual process plays out.

謝謝大家，大家下午好。也許現在正在進行 FDA 檢查，實際需要多長時間以及週轉時間範圍是多少。我只是想了解時間安排以及實際過程如何進行。

And then on on China specifically follow-up question there would be just on the stimulus package that was announced in March. There are some other healthcare consumer related companies that do see this as a potential catalyst into the second half of the year. So when do you think Chinese stimulus could actually lead to upside as we get into the second half? Thanks again.

關於中國具體的後續問題，將涉及三月宣布的經濟刺激計畫。還有一些其他醫療保健消費者相關公司確實認為這是今年下半年的潛在催化劑。那麼，當我們進入下半年時，您認為中國的刺激措施什麼時候才能真正帶來上行？再次感謝。

Yes, yes. Well, thank you, Anthony. On the first one, you know, last time we were able to speak openly about it. And what we talked about is that, you know, the FDA had given us a date for Q2. And I can tell you now that pre-approval inspection of our manufacturing facility in Costa Rica is scheduled to take place in less than 30 days and our team is super well prepared and looking forward for it. In parallel, we have been making good progress with labeling and post-market approval studies. And these are the last significant steps before the FDA approval. So we are getting very close to final stages on this. And we want just to be very mindful of not disrupting that process and on China and the stimulus package?

是的是的。好吧，謝謝你，安東尼。關於第一個問題，你知道，上次我們能夠公開談論它。我們討論的是，FDA 已經給了我們第二季的日期。我現在可以告訴您，我們在哥斯達黎加的製造工廠的預先批准檢查預計將在 30 天內進行，我們的團隊已做好充分準備並期待這一結果。同時，我們在標籤和上市後批准研究方面取得了良好進展。這些是獲得 FDA 批准之前的最後一個重要步驟。所以我們已經非常接近這方面的最後階段了。我們只想非常注意不要擾亂這一進程以及中國和刺激計劃？

Yes, we're very well aware of it, and we think it's a good development. It will take time to get through so that it can really impact consumer demand but we do see it as a positive. And remember, deep build in the lowest of the Chinese market in breast aesthetics happening actually in 2022. And since then, it's been bouncing back, our expectation does was that it was going to be back to 2019 levels by 2025, but maybe that stimulus package will be able to get us there faster.

是的，我們非常清楚這一點，我們認為這是一個很好的發展。要真正影響消費者需求需要時間，但我們確實認為這是正面的。請記住，中國乳房美容市場最低點的深度建設實際上會在 2022 年發生。從那時起，它一直在反彈，我們的預期是到 2025 年它將回到 2019 年的水平，但也許刺激計劃能夠讓我們更快地實現這一目標。

Matt Taylor, Jefferies.

馬特泰勒，杰弗里斯。

Great. Thanks for taking the questions. Maybe I'll ask one on the media commentary that you gave me, it's encouraging to see that you're signing up all these centers. I was wondering if you could excuse me, talking about health material revenue contribution is going to be this year and then maybe you could frame the centers that you're adding for MEFM. tech in terms of your overall centers. So what percentage is that today? And what do you think will be at maturity?

偉大的。感謝您提出問題。也許我會問你給我的媒體評論，看到你簽署了所有這些中心真是令人鼓舞。我想知道您是否可以原諒我，今年將討論衛生材料收入貢獻，然後也許您可以建立為 MEFM 添加的中心。技術就你的整體中心而言。那麼今天這個比例是多少呢？你認為成熟時會是什麼樣子？

Yes, I think with that one, Matt, at this point, what I'd tell you is that what we are trying to do at a qualitative level which is create a network of clinics in within those clinics, start bringing in all of our marketing assets, the practice development, all the things that we we we provide, so that you can have the new category really coming to light in there. And I can see that some clinics who started in Europe, for instance, in September, October of last year, have started to get to the numbers where we would like to see them in terms of number of procedures per month. We still have work to do to see those numbers in every single one of the centers, but that's part of the entire process of building a new category. So we're not in a rush. However, I think that, you know, having signed up 55 clinics already 33 core active right now does, of course, you know the ones that are that have started, you know, in the fall of that last year, are the ones, of course, that are getting more cases at this point. And in addition, we have 37 new clinics under negotiation. We have this aspirational goal of getting to 100 clinics by the end of this year. And I think after that, you would know what our expectations are is that in every Tier one city there will be a few of these clinics in every Tier two city, there will be a couple of those. And in some Tier three cities, you'll see one. And then when you start putting those numbers in and you start getting to the levels at which we see the initial clinics. I think we get an understanding of how quickly this can ramp up. But in 2024. It is mostly qualitative, but you will start seeing more revenue coming out of MIA and we are very dedicated to the qualitative part. It is not time yet to breakout media revenue. But I think when when it becomes material, we will be the first ones willing to do that.

是的，我認為，馬特，在這一點上，我要告訴你的是，我們正在努力在定性水平上做的事情，即在這些診所內創建一個診所網絡，開始引入我們所有的診所營銷資產，實踐開發，我們提供的所有東西，以便您可以在那裡真正看到新的類別。我可以看到，例如去年九月、十月在歐洲開業的一些診所已經開始達到我們希望看到的每月手術數量的數字。我們仍然有工作要做，才能在每個中心看到這些數字，但這是建立新類別整個過程的一部分。所以我們並不著急。然而，我認為，你知道，已經與 55 家診所簽約，現在已經有 33 個核心活躍，當然，你知道那些已經開始的診所，你知道，在去年秋天，是那些，當然，目前這種情況正在增加。此外，我們還有37家新診所正在洽談中。我們的宏偉目標是在今年年底前開設 100 家診所。我想在那之後，你就會知道我們的期望是，在每個一線城市都會有一些這樣的診所，在每個二線城市都會有一些這樣的診所。在一些三線城市，你會看到一個。然後當你開始輸入這些數字時，你就開始達到我們看到的最初診所的水平。我想我們已經了解了這種情況的發展速度有多快。但到了2024年。它主要是定性的，但你會開始看到更多的收入來自 MIA，我們非常致力於定性部分。現在還不是媒體收入突破的時候。但我認為，當它變得物質化時，我們將是第一個願意這樣做的人。

Great. Thanks, JJ. Maybe just one follow-up on China. It seems like everything's going well there. I just wanted to confirm more specifically, you talked about the $10 million in stocking revenue kind of spread out through the first half of the year now, is that for the guidance, is that still your assumption? And are you seeing any reordering?

偉大的。謝謝，傑傑。也許只是對中國的一項後續行動。看起來那裡一切都很順利。我只是想更具體地確認一下，您談到了今年上半年分佈的 1000 萬美元的庫存收入，這是為了指導，這仍然是您的假設嗎？您是否看到任何重新排序？

It's still early as one as I mentioned. I mean, we've been there are just a couple of months now launched in January. So it is tracking as we expected to the numbers you described. We'll see how the reordering starts to build in the back half of the year. But so far things are tracking.

正如我所提到的，現在還早。我的意思是，我們從一月推出到現在才幾個月。因此，它正在按照我們的預期追蹤您所描述的數字。我們將看看今年下半年如何開始重新排序。但到目前為止，一切都在追蹤之中。

Okay. All right. Thank you. Thanks, Rusty.

好的。好的。謝謝。謝謝，魯斯蒂。

Joanne Wuensch, Citibank.

喬安妮‧溫施，花旗銀行。

Thank you for taking the question and very nice quarter. I appreciate the commentary on the guidance that it is early in the year, but you did exceed consensus. And I'm curious how you think about the next couple of quarters. I just want to make sure that the second third and fourth quarters are so set up appropriately.

感謝您提出問題，這個季度非常愉快。我很欣賞今年年初對指導意見的評論，但你們確實超越了共識。我很好奇你如何看待接下來的幾季。我只是想確保第二、第三和第四季的安排得當。

Yes. I think, Joanne, as you mentioned, you look at the sequential increase in the first quarter over last quarter and about 6 million. And I think a similar sequential increase into the second quarter is the right way to think about it the back half of the year, um, again, we'll see likely a small sequential increase in the third. It tends to be the weakest of the quarters for us as the year unfolds, but you have today the dynamic of the recovery in the markets. And so we'll see growth into the third quarter as well. So generally gets back to the commentary we made about this recovery that we're seeing in the markets, the distributor orders improving. So I think that's probably a good way to think about it over the balance of the year.

是的。我想，Joanne，正如您所提到的，您看到第一季比上個季度連續增長了大約 600 萬。我認為第二季類似的連續成長是考慮今年下半年的正確方式，嗯，我們再次看到第三季可能會出現小幅連續成長。隨著一年的展開，這往往是我們最疲軟的季度，但今天市場復甦的勢頭依然強勁。因此，我們也將看到第三季的成長。因此，總的來說，回到我們對市場復甦所做的評論，分銷商訂單有所改善。所以我認為這可能是在今年剩下的時間裡思考這個問題的好方法。

Thank you. And then is there anything you can share regarding your go-to-market strategy in the United States, something pricing number of salespeople you would need or anything else that you're comfortable sharing at this stage of the process? Thank you.

謝謝。那麼，關於您在美國的市場進入策略，您有什麼可以分享的嗎？謝謝。

Yes, unfortunately, Joanne, it's for competitive reasons. This is exactly the type of things that we cannot give out. We have a very clear understanding of how we want to price in United States. We are coming in with two products. You know, the motivation would seal ground and the Motiva smooth silk ergonomics. And those are some of our best selling products in our international market and have been so for many years to come in, we will make the necessary investments to make sure that, you know, we provide the accounts as we move into different quarters after the launch, the necessary service that they deserve. So at this point, that's all I can tell you.

是的，不幸的是，喬安妮，這是出於競爭原因。這正是我們不能給予的。我們非常清楚我們想要在美國如何定價。我們將推出兩種產品。要知道，動力會密封地面，而 Motiva 則符合人體工學光滑絲。這些是我們在國際市場上最暢銷的一些產品，多年來一直如此，我們將進行必要的投資，以確保，你知道，我們在進入不同季度後提供帳戶。所以目前我能告訴你的就是這些。

I appreciate that. Thank you.

我很感激。謝謝。

Josh Jennings, TD Cowen.

喬許·詹寧斯，TD·考恩。

I was hoping to follow up on May first and just in the past one is that your team has talked about Amir partner clinics are becoming million revenue generators for Establishment Labs. And it sounds like these early launch trends are positive.

我希望在 5 月 1 日跟進，就在過去，您的團隊談到了 Amir 合作夥伴診所正在成為建立實驗室的數百萬美元收入來源。聽起來這些早期發布趨勢是正面的。

But to get to that million per account seat, you had some relatively conservative assumptions. I just wanted to sanity check, make sure that that's your team is still optimistic that revenue run rate per per partner clinic is still in play potentially?

但要達到每個帳戶席位數 100 萬，您有一些相對保守的假設。我只是想進行健全性檢查，確保您的團隊仍然樂觀地認為每個合作夥伴診所的收入運作率仍然有可能發揮作用？

Yes. Thank you, Josh. In the direct market, a Mayo Clinic that is doing an average for a year 24 cases per month will be will eventually lead to approximately 1 million that was recognized by Establishment Labs. And we think that number is achievable. And like I said, in a couple of the clinics that began last fall are starting to trend to those numbers. So that's what gives us a conviction that those numbers can be achieved. And you know, our job now is to expand the network of clinics to cities, for instance, across our direct markets in Europe, some of the distributor markets have already kicked in. You can see in the social media handle of MEFM. tech, a lot of the work that has been done, for instance, to launch in several cities across the Middle East so all of that tells you that we are building something special. And when you think about, you know, the current market for breast aesthetics market that is growing at low single digits at best. And what media brings is this new shiny object in what we see is that, you know, those those numbers are not something that we see as unachievable and what we would like to see is that clinics are in the first or 2nd year, depending on them being Tier one or Tier two, Tier two city clinics can get there Great.

是的。謝謝你，喬許。在直接市場中，梅奧診所平均每年每月處理 24 例病例，最終將獲得約 100 萬例，並得到了機構實驗室的認可。我們認為這個數字是可以實現的。就像我說的，去年秋天開始的幾家診所開始出現這些數字。這讓我們堅信這些數字是可以實現的。你知道，我們現在的工作是將診所網路擴展到城市，例如，在我們歐洲的直接市場中，一些經銷商市場已經開始發揮作用。您可以在 MEFM 的社群媒體帳號中看到。技術，已經完成了很多工作，例如，在中東的幾個城市推出，所以所有這些都告訴你我們正在打造一些特別的東西。當您想到時，您就會知道，目前的乳房美容市場最多只能以較低的個位數成長。媒體帶來的是我們所看到的這個新的閃亮物體，你知道，這些數字並不是我們認為無法實現的，我們希望看到的是診所在第一年或第二年，這取決於他們是一級或二級，二級城市診所可以到達那裡很棒。

And I appreciate some of the color on the US Flora launch was hoping to just check in on the state of affairs of the recon franchise internationally, both on the tissue expander side and on the implant side, any any updates you can provide just on traction there in Europe and in other regions? Thanks for taking the questions.

我很欣賞美國 Flora 發布會上的一些色彩，希望能夠了解國際上 Recon 特許經營權的狀況，無論是在組織擴張器方面還是在植入物方面，您可以提供有關牽引力的任何更新歐洲和其他地區有嗎？感謝您提出問題。

Yes, on that one, Josh, again, like I think what we've said many times is that breast reconstruction is lower because you're not really convincing just a plastic surgeon. You have to convince the plastic surgeons of a reconstructive department in a hospital and then wait for a tender to take place. So that's why, although we see great feedback from the hospitals who have adopted on a floor up in who have started to use with Flora, our breast implants, you know, still, you know, not going at the same speed of adoption that we normally see when we go into a market on purely aesthetics. However, over time it will build. And I think it's some it's a big demonstration of our technology, and our One is helped credentials in this industry.

是的，在這一點上，喬什，我想我們已經說過很多次了，乳房重建率較低，因為你並不能真正說服整形外科醫生。你必須說服醫院重建科的整形外科醫生，然後等待招標。這就是為什麼，儘管我們看到已經開始使用 Flora（我們的乳房植入物）的醫院給予了很好的反饋，但仍然沒有像我們那樣採用同樣的速度。到這種情況。然而，隨著時間的推移，它會建立起來。我認為這是對我們技術的大型展示，我們的一員在這個行業中獲得了資歷。

Appreciate that. Thanks.

感謝。謝謝。

That is all the time we have for questions today. I will now turn the call back over to Juan Jose for closing remarks.

這就是我們今天提問的時間了。現在，我將把電話轉回給胡安·何塞，讓其致閉幕詞。

Thank you, for joining us on today's call, and we look forward to providing our next quarterly update in August, and we wish everyone continued good health and how Thank you.

感謝您參加今天的電話會議，我們期待在八月提供下一個季度更新，祝大家身體健康，謝謝。

This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.

今天的會議到此結束。此時您可以斷開線路，感謝您的參與。