Paragon 28 Inc (FNA) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to Paragon 28 second-quarter 2024 earnings conference call. (Operator Instructions)

下午好，歡迎參加 Paragon 28 2024 年第二季財報電話會議。（操作員說明）

As a reminder, this call is being recorded for replay purposes. And I would now like to hand the conference over to your host today, Mr. Matthew Brinckman, SVP of Strategy and Investor Relations. Mr. Brinckman, please go ahead.

謹此提醒，本次通話將會被錄音以供重播。現在我想將會議交給今天的東道主，策略與投資者關係高級副總裁 Matthew Brinckman 先生。布林克曼先生，請繼續。

Good afternoon, and thank you for joining Paragon 28 Second Quarter 2024 Financial Results and Earnings Call. Presenting on today's call are Albert DaCosta, Chairman and Chief Executive Officer; and Krissy Wright, Interim Chief Financial Officer. We are also pleased to have Chadi Chahine, newly appointed Chief Financial Officer and EVP of Supply Chain Operations joining us.

下午好，感謝您參加 Paragon 28 2024 年第二季財務業績與收益電話會議。出席今天電話會議的有董事長兼執行長阿爾伯特‧達科斯塔 (Albert DaCosta)；臨時財務長 Krissy Wright。我們也很高興新任命的財務長兼供應鏈營運執行副總裁 Chadi Chahine 加入我們。

Before we begin, I would like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒您，管理層將在本次電話會議期間發表聲明，其中包括聯邦證券法含義內的前瞻性聲明，這些聲明是根據1995 年《私人證券訴訟改革法案》的安全港條款制定的。

Forward-looking statements include statements made as to the company's or management's intentions, hopes, beliefs, expectations, or predictions of future events, results, or performance. These forward-looking statements are subject to a number of risks, uncertainties, estimates, and assumptions that may cause actual results to differ materially from these forward-looking statements.

前瞻性陳述包括有關公司或管理層的意圖、希望、信念、期望或對未來事件、結果或業績的預測的陳述。這些前瞻性陳述受到許多風險、不確定性、估計和假設的影響，可能導致實際結果與這些前瞻性陳述有重大差異。

All forward-looking statements are based upon current available information, and Paragon 28 assumes no obligation, except as required by law, to update these statements. Additional information concerning certain risks and uncertainties that may impact these forward-looking statements is contained from time to time in the company's SEC filings and in the press release that was issued earlier today.

所有前瞻性陳述均基於當前可用信息，除法律要求外，Paragon 28 不承擔更新這些陳述的義務。有關可能影響這些前瞻性陳述的某些風險和不確定性的更多信息，不時包含在該公司向 SEC 提交的文件和今天早些時候發布的新聞稿中。

During this presentation, we will refer to the non-GAAP financial measure of adjusted EBITDA and constant currency net revenue growth. A reconciliation to the most comparable GAAP financial measure, net income and reported net revenue growth respectively, is contained in our press release issued earlier today.

在本示範中，我們將參考調整後 EBITDA 的非 GAAP 財務指標和恆定貨幣淨收入成長。我們今天稍早發布的新聞稿中包含了與最具可比性的公認會計原則財務指標（淨利潤和報告的淨收入成長）的調節。

And with that, I will now turn the call over to Albert.

現在，我將把電話轉給艾伯特。

Thanks, Matt. Good afternoon, and thank you for joining us for our second quarter 2024 earnings call. First, I'd like to welcome Chadi to the team. We are thrilled to have him joining us. Now I want to kick this call off by thanking the entire Paragon 28 team for their enduring commitment to our mission.

謝謝，馬特。下午好，感謝您參加我們的 2024 年第二季財報電話會議。首先，我歡迎 Chadi 加入團隊。我們很高興他加入我們。現在，我想先感謝整個 Paragon 28 團隊對我們使命的持久承諾。

I am truly grateful for their efforts, which have enabled us to achieve impressive results on the top line as well as the bottom line in the second quarter. This has been a critical quarter for the company, and we are coming out of it with strong commercial execution, improvements to operating expenses in a rapid cadence of meaningful product launches. For all that, I thank the team. Now turning to our performance.

我衷心感謝他們的努力，使我們在第二季的營收和利潤上都取得了令人印象深刻的成績。對於公司來說，這是一個關鍵的季度，我們將以強大的商業執行力、營運費用的改善以及有意義的產品快速發布的節奏來擺脫這個季度。為此，我感謝團隊。現在轉向我們的表現。

Global revenue for the second quarter of '24 was $61 million, representing 19.6% and 19.7% reported in constant currency growth, respectively. We continue to drive balanced growth across all our subsegments in the quarter.

2024 年第二季的全球營收為 6,100 萬美元，以固定匯率計算分別佔 19.6% 和 19.7%。本季我們持續推動所有子部門的平衡成長。

Looking at the US business performance. Revenue for the second quarter of '24 was $49.7 million, representing 17.6% reported growth. During the quarter, we grew our surgeon customer base to 2,271, which is 11% growth compared to the second quarter of '23. Over the same time period, we increased our US producing sales rep roster by 13.1% to 277 reps and saw a 7% increase in productivity across our rep base.

看看美國的企業表現。2024 年第二季的營收為 4,970 萬美元，年增 17.6%。本季度，我們的外科醫生客戶群增至 2,271 名，與 2023 年第二季度相比增長了 11%。同期，我們的美國生產銷售代表名冊增加了 13.1%，達到 277 名代表，整個代表的生產力提高了 7%。

Looking at the momentum across these commercial metrics, you can see that we've continued to execute on our commercial growth strategy, and we have laid the foundation for durable growth in the future. Importantly, we are continuing to expand our customer base, and enabling our sales force to be increasingly productive, bolstered further by significant new product launches and continued investments in medical education.

看看這些商業指標的勢頭，你可以看到我們繼續執行我們的商業成長策略，並為未來的持久成長奠定了基礎。重要的是，我們正在繼續擴大我們的客戶群，並透過重要的新產品發布和對醫學教育的持續投資進一步增強我們的銷售團隊的生產力。

Second quarter international revenue was $11.3 million, representing 29.4% and 29.6% reported in constant currency growth, respectively. International growth was driven primarily by the United Kingdom, Australia, South Africa, and Spain. We look forward to continuing to bolster international growth as we clear and launch additional products in markets outside the United States.

第二季國際營收為 1,130 萬美元，以固定匯率計算分別成長 29.4% 和 29.6%。國際成長主要由英國、澳洲、南非和西班牙推動。隨著我們在美國以外市場清理和推出更多產品，我們期待繼續促進國際成長。

One final word on the commercial front, I want to reiterate that I truly believe we have the best reps in the foot and ankle business. I am so proud of our sales team and the many agencies that we work with, both in the US and in the international markets. They are working every day to be the best possible partners to our surgeon customers while scaling their business to align with Paragon 28's vision. It isn't easy to do what they do, and I am impressed with the results they deliver every single day.

關於商業方面的最後一句話，我想重申，我堅信我們在足部和腳踝業務方面擁有最好的代表。我為我們的銷售團隊以及在美國和國際市場與我們合作的許多機構感到非常自豪。他們每天都在努力成為我們外科醫生客戶的最佳合作夥伴，同時擴大業務規模以實現 Paragon 28 的願景。做他們所做的事情並不容易，他們每天的成果給我留下了深刻的印象。

Turning next to our product portfolio. We are setting a new pace of foot and ankle innovation, having fully launched six products in the first quarter, followed by another six products in different stages of market release.

接下來談談我們的產品組合。我們正在引領足部和腳踝創新的新步伐，第一季已全面推出六款產品，隨後還有六款產品處於不同的市場發布階段。

That makes 12 launches through the first seven months of the year, and many of those launches are in high growth or high-impact indications, spanning nearly all of our subsegments. Our R&D engine is really firing on all cylinders, and we still have additional projects in the pipeline, which we expect to roll out later this year.

這使得今年前 7 個月推出了 12 項產品，其中許多產品都處於高成長或高影響力的跡象，幾乎涵蓋了我們所有的細分市場。我們的研發引擎確實在全速運轉，而且我們還有其他項目正在進行中，預計將在今年稍後推出。

As a reminder, our Q1 launches included the FJ2000, PRECISION MIS, and limited market release of Bun-Yo-Matic, which, while early in the cycle, are performing nicely and expected to be significant growth drivers, particularly in forefoot in the future. We rounded those out with four soft tissue products that are highly complementary to our hardware portfolio.

提醒一下，我們第一季推出的產品包括FJ2000、PRECISION MIS 和Bun-Yo-Matic 的有限市場發布，這些產品雖然處於週期早期，但表現良好，預計將成為重要的成長動力，尤其是未來的前足領域。我們用四種軟組織產品完善了這些產品，這些產品與我們的硬體產品組合高度互補。

Looking at what's new for this earnings cycle. We have two-line extensions and limited market release. First is the recently launched BONOBO Ball Joint Strut designed specifically for diabetic limb salvage and increases the functionality of our Monkey Rings Circular ex-fix system.

看看這個獲利週期有什麼新變化。我們有兩條線的延伸和有限的市場釋放。首先是最近推出的 BONOBO 球關節支柱，專為糖尿病肢體搶救而設計，並增強了我們的 Monkey Rings Circular ex-fix 系統的功能。

Second, we are preparing to launch a novel right angle drill designed to precisely drill vertical holes in the tibia to prepare the appropriate interface for our APEX 3D total ankle implant, streamlining implant implementation for the surgeon.

其次，我們正準備推出一款新型直角鑽頭，旨在在脛骨上精確鑽出垂直孔，為我們的 APEX 3D 全踝關節植入物準備合適的接口，從而簡化外科醫生的植入實施過程。

There will be more updates coming soon on our recent launches, but I want to share an early preview of where we are, because we're getting into some truly groundbreaking areas, and this is what I personally live for, to change the world of foot and ankle with incredible innovation.

我們最近發布的產品很快就會有更多更新，但我想分享我們所處位置的早期預覽，因為我們正在進入一些真正突破性的領域，這就是我個人的生活目標，改變世界足部和腳踝具有令人難以置信的創新。

First, we have the R3FLEX Stabilization System on limited market release. The R3FLEX is planned to be the crown jewel of our syndesmotic injury repair portfolio with novel features that give surgeons the ability for the first time to precisely adjust and visualize tension during a repair with a simple turn of the handle.

首先，我們有有限市場發布的 R3FLEX 穩定係統。R3FLEX 計劃成為我們韌帶聯合損傷修復產品組合中的皇冠上的寶石，其新穎的功能使外科醫生首次能夠透過簡單轉動手柄來精確調整和可視化修復過程中的張力。

That dynamic tensioning is incredibly important, and we believe it will help mitigate the arthritic response, which is a primary complication following these types of ankle fractures. The R3FLEX is highly complementary to our ankle fracture plating portfolio and is expected to be a significant catalyst for our fracture business.

這種動態張力非常重要，我們相信它將有助於減輕關節炎反應，這是此類踝關節骨折後的主要併發症。R3FLEX 與我們的踝關節骨折鋼板產品組合高度互補，預計將成為我們骨折業務的重要催化劑。

Now turning to SMART 28, which rounds out the rest of our product updates for the quarter. I am pleased to say that our SMART 28 case management portal is now live.

現在轉向 SMART 28，它完善了我們本季的其餘產品更新。我很高興地宣布，我們的 SMART 28 案例管理入口網站現已上線。

The portal will host all of our 3D preoperative planning modules and patient-specific implants, while also giving surgeons the ability to plan cases, coordinate surgery dates, and submit patient imaging. It will also serve as a direct line of communication with the Paragon 28 engineering and sales teams for real-time support, status updates, and surgical planning insights.

該入口網站將託管我們所有的 3D 術前規劃模組和患者特定植入物，同時也使外科醫生能夠規劃病例、協調手術日期和提交患者影像。它還將作為與 Paragon 28 工程和銷售團隊的直接溝通管道，以獲得即時支援、狀態更新和手術規劃見解。

Also, on the SMART 28 front, we launched our highly anticipated first module, a SMART Bun-Yo-Matic for bunion correction, which is FDA cleared for both weight-bearing CT scans and x-rays, making it highly suitable for both acute and ASC settings. With the ability to leverage both CT scans and x-ray imaging, 3D planning will be widely available to all surgeons.

此外，在SMART 28 方面，我們推出了備受期待的第一個模組，即用於拇囊炎矯正的SMART Bun-Yo-Matic，該模組已獲得FDA 批准，可用於承重CT 掃描和X 射線，使其非常適合急性和 ASC 設定。憑藉利用 CT 掃描和 X 光成像的能力，3D 規劃將廣泛供所有外科醫生使用。

The SMART Bun-Yo-Matic revolutionizes preoperative planning and correction for hallux valgus by creating plans tailored for the individual patient, utilizing AI-enabled algorithms and statistical models, combined with the surgeon input to identify abnormalities and seamlessly export a surgical plan within only about 10 minutes.

SMART Bun-Yo-Matic 徹底改變了拇趾外翻的術前計劃和矯正方法，它利用人工智慧演算法和統計模型，為每位患者制定量身定制的計劃，並結合外科醫生的輸入來識別異常情況，並在大約大約時間內無縫匯出手術計劃。

The ability to 3D plan and correction is groundbreaking. But perhaps what differentiates SMART Bun-Yo-Matic the most, is the ability for surgeons to precisely implement the plan down to the millimeter with full intraoperative surgeon control.

3D 規劃和校正的能力是開創性的。但也許 SMART Bun-Yo-Matic 最大的不同之處在於，外科醫生能夠在手術中完全控制下精確實施計劃，精確到毫米。

The SMART 28 ecosystem is a massive advancement in helping surgeons understand highly complex deformities and optimize multiplanar correction, which we believe will ultimately result in improved precision and reproducible outcomes. We will be sharing more on SMART 28 and the SMART Bun-Yo-Matic in the coming weeks ahead, but we could not wait to share a glimpse with you all now, after completing our first cases in late July.

SMART 28 生態系統在幫助外科醫生了解高度複雜的畸形和優化多平面矯正方面取得了巨大進步，我們相信這最終將提高精度和可重複的結果。我們將在未來幾週內分享有關 SMART 28 和 SMART Bun-Yo-Matic 的更多信息，但在 7 月底完成第一批案例後，我們迫不及待地想與大家分享。

Now before I hand things over to Krissy to walk through financials, I want to share an update on our strategy to drive improved operational efficiency.

現在，在我將事情交給 Krissy 介紹財務之前，我想分享一下我們推動提高營運效率的策略的最新情況。

While we remain hyper-focused on top line growth, we believe that it's crucial that we also maintain a sharp focus on operational efficiency and capital allocation. To that end, today, we are announcing a comprehensive plan to foster operational excellence and drive discipline across all facets of our business, ensuring every dollar is strategically allocated to improve surgeon experience, patient outcomes, and maximize value for our shareholders.

雖然我們仍然高度關注營收成長，但我們認為，維持對營運效率和資本配置的高度關注也至關重要。為此，今天，我們宣布一項全面計劃，以促進卓越運營並推動業務各個方面的紀律，確保每一美元都得到戰略性分配，以改善外科醫生的經驗、患者的治療效果，並為股東實現價值最大化。

Elements of our operational efficiency plan include a reduction of current and planned workforce, a one-time realignment of 2024 executive compensation, and reductions in areas like travel, IT, professional services and freight, to name a few.

我們的營運效率計畫的要素包括減少目前和計畫中的員工隊伍、一次性調整 2024 年高階主管薪酬，以及減少旅行、IT、專業服務和貨運等領域的開支。

Further, we are implementing an inventory burn-down plan that will improve our days inventory on hand and preserve cash throughout 2025. These measures, combined with a rigorous focus on cost control, will result in durable savings and will enable us to sustain high growth while building a solid foundation for long-term success.

此外，我們正在實施一項庫存消耗計劃，該計劃將改善我們的現有庫存並在 2025 年保留現金。這些措施與對成本控制的嚴格關注相結合，將帶來持久的節約，並使我們能夠維持高速成長，同時為長期成功奠定堅實的基礎。

In closing, we are positioning Paragon 28 for long-term sustainable growth and operational excellence, and we believe we are very well aligned to drive shareholder value with every dollar invested.

最後，我們將 Paragon 28 定位為長期永續成長和卓越運營，我們相信我們能夠很好地利用每一美元投資來推動股東價值。

With that, I will now turn it over to Krissy.

這樣，我現在就把它交給 Krissy。

Thank you, Albert. Before we dive into the rest of the P&L, I will first share an update regarding our recent 8-K filing from July 30th as well as the 10-K/A and 10-Q/A filed earlier today. As noted in that 8-K filing, during the second quarter of 2024, we identified errors in the calculation of excess and obsolete inventory as well as errors in accounting for inventory variances, which resulted in a net overstatement of inventory and a net understatement of cost of goods sold for the year-ended 2023 and for Q1 2024.

謝謝你，艾伯特。在我們深入探討損益表的其餘部分之前，我將首先分享我們最近於 7 月 30 日提交的 8-K 歸檔以及今天早些時候提交的 10-K/A 和 10-Q/A 的更新。正如 8-K 文件中所指出的，在 2024 年第二季度，我們發現了過量和過時庫存計算中的錯誤以及庫存差異會計中的錯誤，導致庫存淨高估和淨低估2023 年底和2024 年第一季的銷售商品成本。

The correction of these errors resulted in cost of goods sold being understated by $8.4 million for the 2023 fiscal year, and $1.7 million for the first quarter of 2024. Consequently, net inventory balance was overstated by $8 million for 2023, and $9.7 million for the first quarter of 2024. These areas did not have an impact on revenue or reported cash and cash equivalents for the restated periods.

這些錯誤的更正導致 2023 財年的銷售成本被低估了 840 萬美元，2024 年第一季被低估了 170 萬美元。因此，2023 年的淨庫存餘額被高估了 800 萬美元，2024 年第一季的淨庫存餘額被高估了 970 萬美元。這些領域對重述期間的收入或報告的現金和現金等價物沒有影響。

Additionally, we disclosed in our amended filings that management concluded that our internal control over financial reporting was not affected due to material weaknesses in our control environment and monitoring. Over the past several weeks, management has begun developing a remediation plan.

此外，我們在修訂後的文件中揭露，管理層得出的結論是，我們對財務報告的內部控制並未因我們的控制環境和監控方面的重大缺陷而受到影響。在過去的幾周里，管理層已開始製定補救計劃。

This plan includes hiring resources with appropriate accounting and internal controls expertise, evaluating the organization design of the finance and accounting function, and enhancing the design of our monitoring and management review controls, and internal controls over financial reporting. The company will continue to share progress update on the status of our remediation efforts in future quarters.

該計劃包括僱用具有適當會計和內部控制專業知識的資源，評估財務和會計職能的組織設計，以及加強我們的監控和管理審查控制以及財務報告內部控制的設計。公司將在未來幾季繼續分享我們修復工作的最新進展。

Now turning to the rest of the P&L. For year-over-year comparisons and references to 2023, we will reference the restated figures noted in our 10-K/A and 10-Q/A filed earlier today, beginning with gross margin. Gross profit margin for the quarter was 75.0% compared to 77.3% in the second quarter of 2023.

現在轉向損益表的其餘部分。對於 2023 年的同比比較和參考，我們將參考今天早些時候提交的 10-K/A 和 10-Q/A 中重述的數據，從毛利率開始。該季度的毛利率為 75.0%，而 2023 年第二季為 77.3%。

The decrease in gross profit margin is primarily the result of higher prices from suppliers, higher non-cash expense for excess and obsolete inventory and higher revenue from international, which has lower average selling prices, partially offset by lower freight expense as a percentage of revenue.

毛利率下降主要是由於供應商價格上漲、過剩和過時庫存的非現金費用增加以及國際收入增加（平均售價較低），但部分被運費佔收入百分比下降所抵銷。

At this time, we believe gross margin has stabilized. We have several initiatives in place to drive improvements to gross profit, including ongoing actions to reduce pricing of legacy SKUs to pre-COVID levels. We expect a tailwind over time as we sell through the high-cost inventory purchased in 2023. Second quarter R&D expense was $7.1 million or 11.6% of revenue, compared to $7.7 million or 15.1% of revenue in the prior year period.

目前，我們認為毛利率已經穩定。我們採取了多項措施來推動毛利的提高，包括持續採取行動將舊版 SKU 的定價降低至新冠疫情爆發前的水平。隨著我們銷售 2023 年購買的高成本庫存，我們預計隨著時間的推移，將會出現順風車。第二季研發費用為 710 萬美元，佔營收的 11.6%，去年同期為 770 萬美元，佔營收的 15.1%。

The improvement is driven by the implementation of cost savings initiatives to lower outsourced consulting services, partially offset by increased investments in personnel. SG&A expense in the quarter was $49.4 million, a $5.6 million or 12.8% increase compared to the second quarter of 2023.

這項改善是由於實施成本節約措施以減少外包諮詢服務而推動的，但部分被人員投資的增加所抵消。本季的 SG&A 費用為 4,940 萬美元，與 2023 年第二季相比增加了 560 萬美元，即 12.8%。

As a percentage of revenue, SG&A improved 490 basis points to 81% compared to the prior year period. The increase in SG&A expense was primarily driven by increased variable commission expense, increased personnel costs, and depreciation expense. Adjusted EBITDA for the second quarter of 2024 was a $3 million loss, an improvement of $2.4 million compared to the second quarter of 2023.

SG&A 佔營收的百分比比去年同期提高了 490 個基點，達到 81%。SG&A 費用的增加主要是由於可變佣金費用的增加、人員成本和折舊費用的增加。2024 年第二季調整後 EBITDA 虧損 300 萬美元，比 2023 年第二季減少 240 萬美元。

The improvement in adjusted EBITDA is driven by a $6.3 million increase in gross profit, offset by a $4.2 million increase in operating expense, excluding non-cash depreciation and amortization and stock-based compensation.

調整後 EBITDA 的改善是由毛利增加 630 萬美元推動的，但被營業費用增加 420 萬美元所抵消，不包括非現金折舊和攤銷以及股票薪酬。

Now turning to our cash flow and liquidity. Operating cash flow for the second quarter of 2024 was negative $10.2 million, compared to negative $6.3 million in the prior year period after adjusting for the $13 million legal settlement payment made in the second quarter of 2023. The increase in cash use is primarily attributed to changes in net working capital items, namely accounts payable and is offset by lower inventory purchases in the second quarter of 2024 compared to the second quarter of 2023.

現在轉向我們的現金流和流動性。2024 年第二季的營運現金流為負 1,020 萬美元，而在 2023 年第二季支付的 1,300 萬美元法律和解付款進行調整後，去年同期為負 630 萬美元。現金使用的增加主要歸因於淨營運資本項目（即應付帳款）的變化，並被 2024 年第二季庫存採購量較 2023 年第二季減少所抵銷。

Looking at the rest of 2024, we expect improvement to operating cash flows, driven by our broader operational efficiency plan, particularly in the fourth quarter of 2024 and into 2025.

展望 2024 年剩餘時間，我們預計在更廣泛的營運效率計畫的推動下，營運現金流將有所改善，特別是在 2024 年第四季和 2025 年之前。

We ended the second quarter of 2024 with $97 million of total liquidity, consisting of $47 million of cash on the balance sheet and $50 million available through our credit facility.

截至 2024 年第二季末，我們的流動資金總額為 9,700 萬美元，其中包括資產負債表上的 4,700 萬美元現金和透過我們的信貸安排提供的 5,000 萬美元。

I will pass it back over to Albert to share updates on our guidance and future outlook.

我會將其傳回給阿爾伯特，以分享我們的指導和未來展望的最新資訊。

Thanks, Krissy. Before I get into guidance, I want to thank you for your incredible leadership as Interim CFO. I cannot understate how critical this quarter has been, and we couldn't ask for a better partner.

謝謝，克麗絲。在開始指導之前，我要感謝您作為臨時財務長的出色領導。我無法低估本季的重要性，我們找不到更好的合作夥伴了。

Now turning to revenue guidance. For the full year of 2024, we are narrowing our revenue guidance range to $249 million to $255 million, representing reported growth of 15.1% to 17.8%, which assumes no change in current foreign exchange rates.

現在轉向收入指導。對於 2024 年全年，我們將營收指引縮小至 2.49 億美元至 2.55 億美元，相當於報告的成長 15.1% 至 17.8%（假設當前外匯匯率沒有變動）。

Looking at the back half of the year, we remain highly confident in our commercial strategy, led by growth in sales reps and our continued cadence of significant product launches, and we continue to monitor how the underlying macroenvironment may impact the foot and ankle market. We have the strategy, the people, and the products to be a long-term growth company, but we don't stop at growth. We want to be the best company possible and always.

展望今年下半年，我們對我們的商業策略仍然充滿信心，在銷售代表的成長和我們持續推出重要產品的節奏的帶動下，我們將繼續監測潛在的宏觀環境可能如何影響足部和腳踝市場。我們擁有成為一家長期成長型公司的策略、人才和產品，但我們不會止步於成長。我們希望永遠成為最好的公司。

And that includes improving operations, managing costs, preserving cash, and building an incredible highly competent team at all levels in all functions. That's how we will drive shareholder value by making smart investments and taking the right steps to achieve success in all of these areas.

這包括改善營運、管理成本、保留現金，以及在各個職能部門的各個層級建立一支令人難以置信的高素質團隊。這就是我們如何透過明智的投資並採取正確的步驟在所有這些領域取得成功來推動股東價值。

Now I want to hand it over to Chadi to share a few words. But before I do, I want to tell you a little bit about why we are so excited to have him on board. Outside of being a heck of a nice guy, Chadi stood out from the pack during our CFO search for his wealth of experience in the orthopedic market, finance, and operations.

現在我想請 Chadi 分享幾句話。但在此之前，我想告訴你們為什麼我們對他的加入如此興奮。除了是個好人之外，查迪在我們的財務長搜尋過程中也脫穎而出，因為他在骨科市場、財務和營運方面擁有豐富的經驗。

He has a track record of fostering strong business partnerships, and we believe he is going to be a huge asset to Paragon 28, and importantly, a great partner for me. He's only a few days in, and he's already rolled up his sleeves, working closely with Krissy and me to prepare for this transition.

他在培養牢固的業務合作夥伴關係方面擁有良好的記錄，我們相信他將成為 Paragon 28 的巨大資產，更重要的是，他將成為我的絕佳合作夥伴。他剛上任幾天，就已經捲起袖子，與 Krissy 和我密切合作，為這一轉變做好準備。

Now turning to Chadi.

現在轉向查迪。

Thanks, Albert. No pressure at all. Good afternoon, everyone. I'm incredibly excited to join Paragon 28 at such an important inflection point. Albert and the team have built an incredible company as needed in the foot and ankle market, with a strong reputation within orthopedics. And I'm impressed with the business potential for sustainable and profitable growth.

謝謝，艾伯特。完全沒有壓力。大家下午好。我非常高興能在如此重要的轉捩點加入 Paragon 28。艾伯特和他的團隊根據足部和腳踝市場的需要建立了一家令人難以置信的公司，在骨科領域享有盛譽。可持續和獲利成長的商業潛力給我留下了深刻的印象。

My goal is to help scale the business to the next level, and I'm eager to start making an impact immediately. I'm ramping up quickly and spending a lot of time getting to know the team and understanding all the unique opportunities ahead of us. From day one, I'm focused on executing the strategic initiatives and priorities that Albert laid out earlier on the call to drive sustainable growth, improve profitability, and deliver shareholder value.

我的目標是幫助將業務規模提升到一個新的水平，並且我渴望立即開始產生影響。我的進步很快，並花了很多時間來了解團隊並了解我們面前的所有獨特機會。從第一天起，我就專注於執行阿爾伯特早些時候在電話會議上提出的戰略舉措和優先事項，以推動可持續增長、提高盈利能力並創造股東價值。

I look forward to working closely with the entire Paragon 28 team to build on the company's strong momentum and help take us to the next level.

我期待與整個 Paragon 28 團隊密切合作，以鞏固公司的強勁勢頭，幫助我們更上一層樓。

With that, I will now turn it back over to Matt.

有了這個，我現在將把它轉回給馬特。

Thanks, Chadi. We will now start our Q&A session. Operator, may we have our first question, please?

謝謝，查迪。我們現在開始問答環節。接線員，我們可以問第一個問題嗎？

Craig Bijou, Bank of America.

克雷格‧比茹，美國銀行。

I want to start with the revenue guidance. So obviously, the guidance for the year comes down at the midpoint, and I believe that implies 14% to 15% growth in the second half, which is less than the first half despite easier comps.

我想從收入指導開始。很明顯，今年的指導在中點下降，我認為這意味著下半年增長 14％ 至 15％，儘管比較容易，但仍低於上半年。

So I guess the question is, we keep moving away from kind of the 20% growth that we had attached to you guys for the last couple of years. And I want -- I was hoping that you guys could help us understand exactly the reason why that growth rate keeps coming down? So is it the market growth?

所以我想問題是，我們一直在遠離過去幾年我們為你們帶來的 20% 的成長。我希望──我希望你們能幫助我們準確地理解成長率持續下降的原因？那麼是市場成長嗎？

I know we've heard from some other companies that maybe the foot and ankle market was a little bit softer in the first half, is it Paragon specific, either product-wise or maybe when you look at some of the cost savings that you're implementing, that may have an impact? And then just how should we think about that growth level? Or what should we expect going forward?

我知道我們從其他一些公司那裡聽說，上半年腳部和腳踝市場可能有點疲軟，這是 Paragon 特有的，無論是產品方面還是當你考慮到你所節省的一些成本時？ 重新實施，可能會產生影響嗎？那我們該如何看待這個成長水準呢？或者我們應該期待什麼？

I'll take this one. Maybe to start, what I'll say is we definitely felt some of the choppiness as well in the second quarter. And honestly, some of that lingering into the third quarter as well. So that was a consideration for us.

我要這個。也許首先，我要說的是，我們在第二季也確實感受到了一些波動。老實說，其中一些問題也持續到第三季。所以這是我們的一個考慮因素。

Given some of that choppiness that we experienced in the second quarter, we were thrilled to put up 19.7% constant currency growth, and a lot of that was fueled by some of the new product launches that definitely drove some energy for us disproportionate to maybe what some of the others were communicating.

考慮到我們在第二季度經歷的一些波動，我們很高興能夠實現19.7% 的持續貨幣增長，其中很大一部分是由一些新產品的發布推動的，這些產品肯定為我們帶來了一些不成比例的能量。

We felt a lot of energy in the second quarter despite some of that choppiness. What I will say, looking at this is we've factored all of that in. We've got some exciting products hitting the market. We have a lot of confidence in our commercial strategy.

儘管存在一些波動，但我們在第二季度感到充滿活力。我要說的是，我們已經考慮到了所有這些因素。我們有一些令人興奮的產品推出市場。我們對我們的商業策略充滿信心。

And when we set kind of within that range there, we kind of brought the range to $249 million to $255 million based on our confidence to hit that, while we're also carefully monitoring some of the macroeconomic noise that we're seeing there.

當我們設定在這個範圍內時，我們基於我們對達到這個目標的信心，將這個範圍擴大到了 2.49 億美元至 2.55 億美元，同時我們也在仔細監控我們在那裡看到的一些宏觀經濟噪音。

We're also carefully monitoring some of that choppiness to see if it's just a short-term effect or if there could be some lingering effects into the second half. So all of that is factored into our guide where we feel really confident, again, in that range from $249 million to $255 million. And that implies 15.1% to 17.8% on the high end.

我們也正在仔細監控其中的一些波動，看看這是否只是短期影響，或者是否會在下半年產生一些揮之不去的影響。因此，所有這些都已納入我們的指南中，我們再次對 2.49 億美元至 2.55 億美元的範圍充滿信心。這意味著高端為 15.1% 至 17.8%。

And we want to make sure when we set something with you that we've got the commitment to execute on that, Craig, and that's our plan here. I will refrain from commenting further out than that.

克雷格，我們希望確保當我們與您制定某些計劃時，我們有承諾執行該計劃，這就是我們的計劃。我不會再進一步發表評論。

We'll certainly look at some of the numbers going into next year. But for now, our confidence level, again, is high on the commercial strategy. A lot of new product launch energy, but carefully monitoring the macroeconomic conditions there just to make sure that we get a good understanding of where that's going to end up.

我們肯定會關註明年的一些數字。但就目前而言，我們對商業策略的信心再次很高。許多新產品的推出都充滿活力，但仔細監控那裡的宏觀經濟狀況只是為了確保我們充分了解最終的結果。

And maybe I think the other thing that investors are focused on is obviously EBITDA, cash flow, and I heard Krissy's comments, and I appreciate the fact that you guys are implementing a new cost savings program.

也許我認為投資者關注的另一件事顯然是 EBITDA、現金流，我聽到了 Krissy 的評論，我很欣賞你們正在實施新的成本節約計劃。

So is there any way to quantify or maybe just talk about how we should expect the progression of EBITDA, of cash flow in the second half and then even into '25 to the extent that you can talk about it? And will these programs and some of the other steps that you're taking be enough to where your needs for capital -- where you have enough capital to move forward?

那麼，有沒有什麼方法可以量化，或者只是談談我們應該如何預期下半年的 EBITDA、現金流的進展，甚至進入 25 年，達到你可以談論的程度？這些計劃和您正在採取的其他一些步驟是否足以滿足您對資本的需求—您有足夠的資本來推進？

Yes. And Craig, your second question actually reminded me a part of your first question that I didn't get to hear. The impact of the operational efficiency is to enhance our business. We were really careful when we were looking at areas that we could target, looking at simplification of roles and head count.

是的。克雷格，你的第二個問題實際上讓我想起了你第一個問題中我沒有聽到的一部分。營運效率的影響是增強我們的業務。當我們尋找我們可以瞄準的領域、考慮角色和人數的簡化時，我們非常小心。

I'm really understanding the things that we could influence that wouldn't have any effect on our growth opportunities. And so we were very careful that was in front of us. And so we anticipate that those are going to be supportive of the business and just enhance our operational efficiency. So we don't anticipate that affecting our ability to grow and hit top line numbers.

我真的很了解我們可以影響的事情不會對我們的成長機會產生任何影響。所以我們非常小心擺在我們面前的事情。因此，我們預計這些將支援業務並提高我們的營運效率。因此，我們預計這不會影響我們成長和達到頂線數字的能力。

On the other side of that is -- and forgive me, I'll preface this answer by saying, I hope that I repeat this a few times on the call today because I just want to emphasize how important this is.

另一方面，請原諒我，我會在回答前說，我希望我在今天的電話會議上重複幾次，因為我只是想強調這有多重要。

Going forward, and based on that operational efficiency project that we're working on, it's really important that I emphasize that my absolute top priority right now as the leader of Paragon 28 and the entire team around me is simple, to achieve EBITDA positivity in the year 2025 and to achieve cash flow positivity in '26. That is our absolute target.

展望未來，基於我們正在進行的營運效率項目，我強調，作為 Paragon 28 的領導者和我周圍的整個團隊，我現在的絕對首要任務很簡單，那就是實現 EBITDA 正值，這一點非常重要。年並在26 年實現正現金流。這是我們的絕對目標。

And again, I'm going to emphasize that all the things that we're talking about are going to move us in that direction, and that's going to be our priority. The other part of that may be some of the things that I can quantify, some of the improvements that we've already kicked off, we believe have contributed to about 840 basis points to OpEx.

我要再次強調，我們正在討論的所有事情都將推動我們朝這個方向發展，這將是我們的首要任務。另一部分可能是我可以量化的一些事情，我們已經啟動的一些改進，我們相信已經為營運支出貢獻了約 840 個基點。

So we're starting to see some improvement there. And this year, what I can quantify for you is that the impact of some of the head count optimizations, we anticipate to be about $8 million, with about $1 million of severance committed to achieving that $8 million. So that is, hopefully, that answered your question.

所以我們開始看到一些改進。今年，我可以為您量化的是，一些人員優化的影響預計約為 800 萬美元，其中承諾支付約 100 萬美元的遣散費來實現這 800 萬美元。希望這能回答您的問題。

Matthew O'Brien, Piper Sandler.

馬修·奧布萊恩，派珀·桑德勒。

This is Phil on for Matt. And congrats on the quarter despite the headwinds. It still looks like you outgrew a lot of your competition, and I think that's going to get lost in the weeds today. But as I look at the operational strategy you unrolled, what part of the organization might see the biggest loss here? And in the past, you've mentioned SG&A that is a big part of the growth story as you scale. So curious to hear your take on how you expect SG&A to move through the balance of this year and into 2025?

這是菲爾替馬特發言。儘管存在逆風，但還是祝賀本季的業績。看起來你的成長速度仍然超過了很多競爭對手，我認為今天這一點將會消失在雜草中。但當我查看您展開的營運策略時，組織的哪個部分可能會遭受最大的損失？過去，您曾提到 SG&A，這是您在規模擴張過程中成長故事的重要組成部分。很想知道您對 SG&A 預計如何度過今年剩餘時間並進入 2025 年的看法？

Yes. And thank you for recognizing the performance in the quarter. We are very proud of that, especially given some of the commentary around the foot and ankle market. To start, I want to just maybe reemphasize that we were really, really careful to look at every aspect of the business. When we went public, we made some significant investments, one to be a public company, but really to accelerate some opportunities to position the company the best way to move forward, right?

是的。感謝您對本季業績的認可。我們對此感到非常自豪，特別是考慮到有關足部和腳踝市場的一些評論。首先，我想再次強調，我們非常非常謹慎地審視業務的各個面向。當我們上市時，我們進行了一些重大投資，其中之一是成為一家上市公司，但實際上是為了加速一些機會，使公司成為前進的最佳方式，對嗎？

Our aspiration has always been to be a $1 billion foot and ankle business, but to balance that with good financial performance. What we were doing now is just looking at every dollar of spend and analyzing the return on that dollar, the anticipated investment, and making sure that we're putting those dollars not being stingy on growth.

我們的願望一直是成為價值 10 億美元的足部和腳踝業務，但要與良好的財務表現相平衡。我們現在所做的只是專注於每一美元的支出，分析每一美元的回報、預期投資，並確保我們不會吝惜這些美元用於成長。

We don't want to affect our ability to grow this business. We don't want to impact the structure in a way that's going to compromise our ability to move this thing forward. But we do want to optimize every dollar of investment to make sure it's going to the right places.

我們不想影響我們發展這項業務的能力。我們不想以一種會損害我們推進這件事的能力的方式影響結構。但我們確實希望優化每一美元的投資，以確保它用在正確的地方。

And that's really the target of this. So looking at things like travel, freight, professional services, looking at maybe some of our marketing presence, the amount and optimization of where we're positioning some of those dollars, looking at medical education spend, just looking at every -- again, every dollar, really putting a lot of emphasis to on inventory and working capital.

這確實是我們的目標。因此，看看旅行、貨運、專業服務等方面，看看我們的一些行銷存在，我們配置這些資金的金額和優化，看看醫學教育支出，再看看每一項，每一美元，確實非常重視庫存和營運資金。

So from a net working capital perspective, you all know that last year and the year before, we had some significant headwinds because of the supply chain, and that forced us to build some excess inventory to manage through that. Well, we did that at less than perfect pricing, right? And so it's -- that's an area for us to eyeball and target is how do we leverage some of that inventory burn, help burn some of that down and create a tailwind for us moving forward.

因此，從淨營運資本的角度來看，大家都知道，去年和前年，由於供應鏈的原因，我們遇到了一些重大阻力，這迫使我們建立一些過剩的庫存來應對這個問題。好吧，我們以不太完美的價格做到了這一點，對嗎？因此，這是我們需要關注的一個領域，目標是我們如何利用部分庫存消耗，幫助燃燒其中一些，並為我們前進創造順風。

And so all of those things are target areas for us. What I hope I'm answering for you is that we are absolutely obsessed with making sure that we don't compromise this company, the ability to do what we need to do, which is bringing the best technology to patients to improve outcomes, to keep growing this business in a meaningful way, but to make sure that we get that fiscal responsibility that was honestly our trademark going into the IPO.

因此，所有這些都是我們的目標領域。我希望我能回答你的是，我們絕對致力於確保我們不會損害這家公司的能力，我們有能力做我們需要做的事情，這就是為患者帶來最好的技術，以改善結果，繼續以有意義的方式發展這項業務，但要確保我們承擔財政責任，這實際上是我們在首次公開發行時的標誌。

We were the unicorn for that, and we know how to manage that in an effective way without compromising growth, and we're going to do that.

我們是這方面的獨角獸，我們知道如何在不影響成長的情況下以有效的方式管理這一點，我們將這樣做。

And then not to get too far ahead of myself here. But again, you clearly could share this quarter. What does the back half guide as soon as -- as far as share taking goes? And then any thoughts on at least growing, call it, mid-teens next year? And when might we finally get back to a more level of end growth -- end market growth?

然後不要在這裡太過超前。但同樣，您顯然可以分享本季的情況。就份額而言，後半部有何指導？那麼明年至少有成長到十幾歲的想法嗎？我們什麼時候才能最終恢復到更高水準的終端成長－終端市場成長？

Yes, you got it. One thing, I apologize. When I mentioned the $8 million of potential savings from the head count simplification, the one thing that I missed there is the word annualized, right? So our anticipated savings there is an annualized number of $8 million, not what we would expect for the second half of this year. So I just wanted to make that correction to myself.

是的，你明白了。一件事，我道歉。當我提到人員數量簡化可能節省 800 萬美元時，我錯過了「年度化」這個詞，對吧？因此，我們預計每年可節省 800 萬美元，而不是我們今年下半年的預期。所以我只是想對自己進行修正。

I should have caught that when I was saying it. On the second part of that is, this was a really interesting first half of the year because despite some of the choppiness that we've communicated, we had such positive energy from the product launches.

當我這麼說的時候我就應該明白這一點。第二部分是，今年上半年非常有趣，因為儘管我們溝通時存在一些波動，但我們從產品發布中獲得瞭如此積極的能量。

We launched six pretty key products in Q1, mostly around the forefoot space. Those carried a ton of -- a ton of momentum for us in the second quarter. So in one sense, there's this sense of choppiness. On the other sense, there's all this excitement around product launches.

我們在第一季推出了六種非常關鍵的產品，主要圍繞在前足空間。這些為我們第二季度帶來了巨大的動力。所以從某種意義上來說，有一種不穩定的感覺。另一方面，產品發布也令人興奮。

Well, we anticipate that carrying forward, right? As you all can expect, when we launch products, there's a several quarter lag before you start seeing meaningful contributions. And despite the excitement, we would expect in the second half, those first quarter launches to really start being more meaningful for us. So on the high end of our range, that's certainly what's implied there is that we feel a lot of that momentum carrying forward into the second half and honestly, even being more meaningful into '25.

好吧，我們預計會繼續下去，對嗎？正如大家所期望的那樣，當我們推出產品時，在您開始看到有意義的貢獻之前會有幾個季度的延遲。儘管令人興奮，但我們預計在下半年，第一季的發布將真正開始對我們變得更有意義。因此，在我們範圍的高端，這肯定意味著我們感受到了許多這種勢頭延續到下半年，說實話，甚至到了 25 年都更有意義。

The other part of this is we want to be -- we want to be clear and transparent, but we also want to be cautious because with Chadi on the team now, we want to make sure he's got time to really understand the financial statement and look at where we are as a company, helps us with the optimization strategy, and really get a handle on all the things that are important for us, but keeping in mind, that priority number one for us, EBITDA positivity in '25, cash flow positivity in '26.

另一方面，我們希望做到清晰透明，但我們也希望保持謹慎，因為查迪現在加入了團隊，我們希望確保他有時間真正了解財務報表和看看我們作為一家公司所處的位置，幫助我們制定優化策略，並真正掌握對我們來說重要的所有事情，但請記住，對我們來說，第一要務是25 年的EBITDA 積極性，現金'26 中的流量積極性。

And so I am thrilled to be working with Chadi to look at all of that information. We'll be communicating our sense for '25 when we get closer to '25. But for right now, what we're really focusing on is executing in the second half on all these things, the operational efficiency, getting the remediation plan in place and execute it for the corrections, and then looking at all of the exciting things that we've got in front of us, which is our sales force execution and productivity increases, product launches, we've got a really exciting second half.

因此，我很高興能與 Chadi 合作查看所有這些資訊。當我們接近“25”時，我們將傳達我們對“25”的感受。但現在，我們真正關注的是下半年執行所有這些事情，營運效率，制定補救計劃並執行糾正，然後看看所有令人興奮的事情擺在我們面前的是我們的銷售隊伍執行力和生產力的提高，產品的發布，我們有一個非常令人興奮的下半年。

Dave Turkaly, Citizens JMP.

Dave Turkaly，公民 JMP。

You mentioned the 7% increase in sales force productivity. I was wondering, did you quantify like where that stands today and maybe where you think that's going?

您提到銷售人員生產力提高了 7%。我想知道，您是否量化過今天的情況以及您認為未來的情況？

Yes. To answer that question, productivity for us is something that we're always looking at balancing productivity, head count increases. Productivity comes from a few different places. One, it comes from new product introductions, right? So as we launch new products, that certainly helps to bring the productivity level up, but also a lot of our investments in medical education really contribute to that.

是的。為了回答這個問題，我們一直在考慮平衡生產力和員工數量增加的生產力。生產力來自幾個不同的地方。第一，它來自新產品的推出，對吧？因此，當我們推出新產品時，這無疑有助於提高生產力水平，而且我們在醫學教育方面的大量投資也確實對此做出了貢獻。

We've referenced in the past that about half of our attendees at medical education courses are existing users looking at additional products that they might not be utilizing yet. Half of that -- the attendees are brand new to the story.

我們過去曾提到，大約一半的醫學教育課程參與者是現有用戶，他們正在尋找他們可能尚未使用的其他產品。其中一半——與會者對這個故事是全新的。

So we've got a really nice mix there. And that definitely influences not only the efficiency or effectiveness for the sales reps and productivity, but it also really impacts the surgeon's awareness of the products that we're bringing to the market, et cetera, et cetera. So that's a number that we really do look at.

所以我們有一個非常好的組合。這肯定不僅會影響銷售代表的效率或效果和生產力，而且還會真正影響外科醫生對我們推向市場的產品的認識等等。所以這是我們真正關注的數字。

The one confusing point to that, if I can be transparent on that is as new people funnel into the sales producing rep sales area that we tend -- they're lower in the curve. And so we tend to see that productivity fluctuate just a little bit. But then we see that momentum just carrying forward.

令人困惑的一點是，如果我能對此保持透明的話，那就是當新人湧入我們傾向於銷售的銷售代表銷售區域時，他們處於曲線的較低位置。因此，我們往往會看到生產力略有波動。但隨後我們看到這種勢頭正在繼續發展。

So that's something to keep in mind as people funnel in on the lower end, we can bring that productivity number down a little bit, but then we expect that certainly to ramp up. And there's also a little bit of seasonality to the productivity piece as well.

因此，當人們進入低端時，需要記住這一點，我們可以稍微降低生產力數字，但我們預計它肯定會上升。生產力方面也有一點季節性。

A quick follow-up. Was there any day impact in the quarter? And is there any in the back half?

快速跟進。本季有任何日間影響嗎？還有後半部有嗎？

Krissy, do you want to hit that one?

克麗絲，你想打那個嗎？

Yes. Thanks for the question. So no day impact in the second quarter versus second quarter last year. I think on last earnings call, I implied that there might be a couple of days change. There was no change, same days this quarter and next quarter. And for the back half of the year, there is one day more in Q --

是的。謝謝你的提問。因此，與去年第二季相比，第二季沒有任何影響。我想在上次財報電話會議上，我暗示可能會有幾天的變化。本季和下季的日子相同，沒有變化。而下半年，Q裡還有一天--

Three.

三。

Q3 versus Q3 last year.

第三季與去年第三季相比。

Mike Matson, Needham.

麥克馬森，李約瑟。

Yes. So just in terms of this choppiness that you're talking about seeing in the second quarter that kind of anticipated, worried about continuing in the second half of the year. I was just wondering, is it affecting some areas of the business more than others, like, for example, maybe like bunions, which tend to be more elective and maybe affecting things like trauma less. In other words, is it like some kind of -- there seems to be some sort of economic impact to the business?

是的。因此，就您所說的第二季度出現的波動而言，這種波動是預期的，擔心下半年會持續下去。我只是想知道，它對業務的某些領域的影響是否比其他領域更大，例如，可能像拇囊炎，這往往更具選擇性，並且可能對創傷等方面的影響較小。換句話說，這是否會對企業產生某種經濟影響？

Yes, Mike. Honestly, I looked at that, and I didn't see it. But one thing I looked carefully, and to brag a little bit, I'm really proud again of the diversity of our portfolio that we have enough of -- we're present in every segment. And each of those five segments, we reported pretty strong balanced growth across the entire foot and ankle spectrum. So really excited about that. And again, I'm thrilled that we took that diverse approach because it did give us some balance.

是的，麥克。說實話，我看過這個，但我沒看到。但我仔細觀察了一件事，並且吹噓一下，我再次為我們的投資組合的多樣性感到自豪，我們擁有足夠的多樣性 - 我們存在於每個細分市場。對於這五個細分市場中的每一個細分市場，我們都報告了整個腳部和腳踝範圍的相當強勁的平衡成長。對此我真的很興奮。再說一遍，我很高興我們採取了這種多樣化的方法，因為它確實為我們帶來了一些平衡。

When I looked at the elective and non-elective, I really saw nice momentum across both. So -- and I was looking to see exactly what you asked there, Mike, was there some kind of influence on the elective piece? But the one caveat that I'll say is, we launched a lot of forefoot products in the Q1 time frame that really boosted us in the second quarter. And so that might have muted a little bit of what we were seeing there.

當我查看選修課和非選修課時，我確實看到了兩者的良好動力。所以——我想確切地了解你在那裡問的問題，麥克，這對選修課有某種影響嗎？但我要說的一個警告是，我們在第一季推出了許多前腳產品，這確實在第二季推動了我們的發展。因此，這可能會削弱我們在那裡看到的一些東西。

But to the best that I could see, the choppiness was more week-to-week choppiness and less product-specific choppiness.

但據我所知，波動性更多的是每週的波動性，而不是特定產品的波動性。

And then as far as this inventory burn-down plan, so how will that work? And what sort of implications, if any, does it have for the cash flow and margins? I mean, I'd imagine it's probably positive for cash flow, but I don't know if -- it may be negative for gross margin? I don't know.

那麼就這個庫存燃盡計劃而言，它將如何運作？如果有的話，它對現金流和利潤率有何影響？我的意思是，我想這可能對現金流有利，但我不知道是否——對毛利率可能不利？我不知道。

Yes. Our baseline of gross margin today, as we stand with the corrected statements is, our baseline is around 75%, right? And so we don't anticipate that -- that 75% accounts for the increased pricing for some of the inventory build in '23. And that will take us a little bit of time to burn that inventory down to where we can start to get to pre-COVID pricing on primarily our legacy SKUs, and to see a positive influence there.

是的。根據更正後的報表，我們今天的毛利率基準是 75% 左右，對吧？因此，我們預期 23 年部分庫存價格上漲的原因不會是 75%。這將需要我們一點時間來消耗庫存，以達到我們可以開始對主要舊有 SKU 進行疫情前定價的水平，並看到那裡的積極影響。

When we talk about burning down, there's two keys there. One is selling more and two is ordering less. So we've got inventory today, which we've mentioned on previous calls and part of that stockpiling that we've communicated was essential to try to manage through the inventory shortage or capacity shortage issues in '23 and '22.

當我們談論燒毀時，有兩個關鍵。一是銷售量增加，二是訂購量減少。因此，我們今天有庫存，我們在之前的電話會議中已經提到過，我們所傳達的部分庫存對於嘗試解決 23 年和 22 年的庫存短缺或產能短缺問題至關重要。

We've got the opportunity now to position that inventory, burn some of that down without the need to replenish just yet. So that's essentially what we're communicating when we anticipate in the second half to see some modest effect from that burn down.

我們現在有機會定位庫存，燒掉其中一些，而無需補充。因此，當我們預計下半年會看到燒毀產生一些適度影響時，這基本上就是我們所傳達的內容。

And just looking at the company and kind of what's happened since the IPO, I mean, it seems like you've done a great job from an R&D perspective, innovation perspective. But clearly, there's been some issues on kind of the operational side.

看看公司以及自首次公開募股以來發生的事情，我的意思是，從研發角度、創新角度來看，你們似乎做得很好。但顯然，在營運方面存在一些問題。

And I know that's part of Chadi's new title. So -- but I'm just wondering, is -- I mean, does it make sense to have kind of the CFO doing both? Or would it maybe make more sense to bring a kind of a fully dedicated person just given the degree of trouble that you've had in this area?

我知道這是查迪新頭銜的一部分。所以——但我只是想知道——我的意思是，讓財務長同時做這兩件事有意義嗎？或者考慮到您在該領域遇到的麻煩程度，帶一位完全敬業的人員可能更有意義嗎？

Yes. Let me take a stab at that one first, and then I might even have Chadi say a few words on that. But one, maybe to start, one of the real attractions to us about Chadi was how diverse his background is. Tons of experience in all of these things, finance, building partnerships within the organization, managing aspects of operational efficiency, just his history and experience was so perfect for what we were looking for. So we -- that was part of the marriage there.

是的。讓我先談談這個問題，然後我甚至可能會讓查迪就此說幾句話。但也許首先，查迪真正吸引我們的地方之一是他的背景是多麼多元化。他在財務、在組織內建立合作夥伴關係、管理營運效率等所有方面都擁有豐富的經驗，他的歷史和經驗非常適合我們所尋找的東西。所以我們——那是那裡婚姻的一部分。

On the other side of it is, when we went public, we made some investments, aggressive investments to make sure we were positioning ourselves, as I mentioned, on two fronts. One, to take advantage of the opportunity and enhance some of our growth opportunities, but two, really to set us up to be a public company. There is some significant operational expense associated with that and building that team out to support future stages was something we really looked at building quickly in our post-IPO phase.

另一方面，正如我所提到的，當我們上市時，我們進行了一些投資，積極的投資，以確保我們在兩個方面定位自己。一是利用這個機會並增強我們的一些成長機會，二是真正讓我們成為一家上市公司。與此相關的營運費用相當可觀，而建立團隊以支援未來階段是我們真正考慮在 IPO 後階段快速建立的事情。

Now to that end, looking at those pieces are what we're analyzing today, just making sure that, one, we don't overcomplicate things like, I think, some of the 8-K announcement, found some areas where errors were being made just because of the complexity there, and that's a real opportunity for us to simplify that process and put some controls there to ensure we don't make those kinds of errors. So when we talk about simplification, there's tons of areas where we can improve.

為此，我們今天要分析的就是這些內容，只是要確保，第一，我們不會把事情過於複雜化，比如我認為 8-K 公告中的一些內容，發現了一些存在錯誤的領域之所以這樣做只是因為那裡的複雜性，這對我們來說是一個真正的機會來簡化該流程並在那裡進行一些控制以確保我們不會犯此類錯誤。因此，當我們談論簡化時，我們有很多可以改進的地方。

Now that we've got the team, we've got the infrastructure, we've always had the product development pipeline. We've always had the commercial engine. Those things, I'm happy to say have been a strength of ours. But one thing I've always communicated is we don't want to be a lopsided company. We don't want to be the best product development or with very little commercial organization or the strongest sales force with no product pipeline.

現在我們已經有了團隊，我們有了基礎設施，我們一直都有產品開發管道。我們一直擁有商業引擎。我很高興地說，這些都是我們的優勢。但我一直傳達的一件事是我們不想成為一家不平衡的公司。我們不想成為最好的產品開發者，或商業組織很少，或是沒有產品管道的最強大的銷售團隊。

We really want to be balanced across the full spectrum of a company. And that means that finance and operations and IT and regulatory compliance and health care compliance, we want every single part of this business, honestly, to be optimized, and that's something we're always going to mature as a company and always enhance moving forward.

我們確實希望在公司的各個方面保持平衡。這意味著財務和營運、IT 和監管合規性以及醫療保健合規性，老實說，我們希望這項業務的每個部分都能得到最佳化，這是我們作為一家公司始終要走向成熟並不斷增強的東西。

So -- and then the last piece to that question is, I don't want to give the impression that Chadi is going to be working alone to improve operations. This is a priority for the entire company. Every single aspect of this company right now is looking at freight, travel, SG&A, OpEx, we're analyzing every dollar of spend.

所以，這個問題的最後一點是，我不想給人留下查迪將單獨努力改善營運的印象。這是整個公司的首要任務。該公司現在的每個方面都在關注貨運、旅行、SG&A、營運支出，我們正在分析每一美元的支出。

And the feedback we've gotten from the team has been incredibly positive. Everybody is on board. Everybody is working to find the most optimized way to move this thing forward.

我們從團隊得到的回饋非常正面。每個人都在船上。每個人都在努力尋找最優化的方式來推動這件事的發展。

So anything to add to that, Chadi?

那還有什麼要補充的嗎，查迪？

Albert, I think I really understand and as I said in my prepared remarks, I'm very excited about being able to have that responsibility, because I firmly believe that moving us from goals to deliverables through talent, process, and systems, through strengthening our operating mechanism.

艾伯特，我想我真的理解，正如我在準備好的發言中所說，我很高興能夠承擔這一責任，因為我堅信，透過人才、流程和系統，透過加強我們的能力，使我們從目標轉向可交付成果我們的運作機制。

So we have the visibility. So we are not in a reactive mode. And instead, we are in a proactive mode. So I have no doubt that I have the trust of the organization and the support to make this deliverable the reality. And I look forward for it.

所以我們有可見性。所以我們並不是處於被動模式。相反，我們處於主動模式。因此，我毫不懷疑我得到了組織的信任和支持，使這項成果成為現實。我很期待。

Caitlin Cronin, Canaccord Genuity.

凱特琳·克羅寧，Canaccord Genuity。

Congrats on the growth this quarter. Just we would love a little more color on what you mean by this choppiness from a macro perspective, and whether this is a phenomenon you're seeing both in the US and also internationally.

恭喜本季的成長。只是我們希望從宏觀角度進一步解釋您所說的這種波動的含義，以及這是否是您在美國和國際上看到的現象。

Thanks for the compliment. Again, we felt like it was a really strong quarter, all things considered. On the choppiness, we mentioned last year that we felt a return to a more normal seasonality. And part of that seasonality was people taking holidays, vacations that honestly weren't able to take them in the years prior.

謝謝你的誇獎。考慮到所有因素，我們再次感覺到這是一個非常強勁的季度。關於波動性，我們去年提到過，我們感覺回到了更正常的季節性。季節性的一部分是人們度假，老實說，這些假期在前幾年是無法享受的。

We mentioned that because of COVID and the years following COVID, hospitals had some pretty significant restrictions on surgeons leaving, especially trips out of the country. And so we felt like last year, we felt a more return to normal there where people were actually taking some vacation during the summer months. Sometimes those summer months continue on at the beginning half of Q3.

我們提到，由於新冠肺炎疫情以及新冠肺炎疫情發生後的幾年，醫院對外科醫生的出境實施了一些相當嚴格的限制，尤其是出國旅行。所以我們感覺就像去年一樣，我們感覺那裡更加恢復正常，人們實際上在夏季休假。有時，這些夏季月份會在第三季的上半段繼續。

And so that's what we're carefully looking at is to see, is it just a seasonal piece? Or is there something other macroeconomic piece there, inflation or something else influencing that? But again, I want to point out, at least in our early glance here, we didn't see much of a difference between the elective and non-elective pieces of our business, both of them marching strong.

這就是我們要仔細觀察的，它是否只是季節性作品？或者有其他宏觀經濟因素，例如通貨膨脹或其他影響因素嗎？但我想再次指出，至少在我們的早期觀察中，我們沒有看到我們業務的選修部分和非選修部分之間有太大區別，兩者都進展強勁。

So it felt like maybe there's some choppiness associated with vacations in that quarter and certainly lingering a little bit into Q3. But we're going to carefully monitor that before we make any definitive comments about what the second half might look like, just to see how the rest of this quarter shapes up.

因此，感覺可能會出現一些與該季度假期相關的波動，並且肯定會持續到第三季。但在對下半年的情況做出任何明確評論之前，我們將仔細監控這一情況，看看本季度剩餘時間的情況如何。

And also congrats on the pilot launch of SMART 28 with Bun-Yo-Matic. I guess when do you think you'll move into more of a full launch with that module? And when do you plan to add additional modules?

也恭喜 SMART 28 與 Bun-Yo-Matic 的試點啟動。我想您什麼時候會全面啟動該模組？您計劃什麼時候添加額外的模組？

Caitlin, I can't thank you enough for that question. My face is smiling right now, and I'm blushing because I get so excited about some of the SMART 28 initiatives. I'm certainly thrilled about the launch of that first module, which we've been really talking about for 1.5 years or almost since the acquisition of Disior.

凱特琳，我非常感謝你提出這個問題。我現在滿臉微笑，臉紅了，因為我對 SMART 28 的一些舉措感到非常興奮。我對第一個模組的推出感到非常興奮，我們已經討論這個模組 1.5 年了，或者說幾乎自從收購 Disior 以來。

We also launched the portal for the case management system, which is really exciting. I don't mean to overshadow that piece because of SMART Bun-Yo-Matic, but just really excited about where that type of technology is going to take us in the future.

我們還推出了案件管理系統的門戶，這確實令人興奮。我並不是想因為 SMART Bun-Yo-Matic 而讓這件作品黯然失色，只是對這種技術未來將帶我們走向何方感到非常興奮。

When we talk about launching that more fulsome, we're having some of our key surgeons taking a look at the system. Early feedback is really good. And there's something there that it's worth pointing out. When we're 3D planning surgeries, and we're trying to replicate those surgeries in the operating room with some sort of patient-specific guide system, the surgeon loses some intraoperative flexibility. If there's anything they see that they're not comfortable with, it's hard to make those adjustments.

當我們談論推出更豐富的系統時，我們正在請一些主要的外科醫​​生來檢查該系統。早期的反饋確實很好。其中有一些事情值得指出。當我們進行 3D 規劃手術並嘗試使用某種針對特定患者的引導系統在手術室中複製這些手術時，外科醫生會失去一些術中靈活性。如果他們發現有什麼不舒服的地方，就很難做出調整。

By guiding the SMART Bun-Yo-Matic with the plan, it gives them all that sophistication in pre-op planning, but it gives them complete intraoperative versatility to make those adjustments as they see fair. So surgeons' feedback on that part has been really positive.

透過指導 SMART Bun-Yo-Matic 制定計劃，它為他們提供了術前計劃的所有複雜性，同時也為他們提供了完整的術中多功能性，可以按照他們認為公平的方式進行這些調整。所以外科醫生對此部分的回饋非常積極。

One more point to brag about here is we worked really hard to develop an AI-algorithm using some statistical shape models, et cetera, to have the ability to not only model CTs into three-dimensional plans, but to do the same with x-ray. We are aware that we think the future of pre-op planning is definitely going to be enhanced with CT capability. But for at least now, not everybody has access to that.

這裡還有一點值得誇耀的是，我們非常努力地使用一些統計形狀模型等來開發一種人工智慧演算法，不僅能夠將 CT 建模為三維平面，而且能夠對 x- 進行相同的操作射線。我們知道，我們認為 CT 能力肯定會增強術前計畫的未來。但至少現在，並不是每個人都能獲得它。

And it was really important that we gave that access to the world. So we're really, really excited to report that we also have an FDA clearance for x-ray to 3D planning. So the SMART Bun-Yo-Matic, we're expecting the second half of this year to be moving forward nicely. And one more point to add there. I'd like to say it's better to be lucky than good.

我們讓這種接觸世界的途徑非常重要。因此，我們非常非常興奮地宣布，我們也獲得了 FDA 的 X 光轉 3D 規劃許可。因此，SMART Bun-Yo-Matic，我們預計今年下半年將取得良好進展。還有一點要補充。我想說，幸運比優秀好。

But it just so happens that bunion reimbursement is being considered by CMS in primarily surgery center settings and outpatient settings. That timing with us launching these forefoot solutions, I think, couldn't be any better. So it opens really some really interesting avenues for us to look at more of the surgery center options. And so anyway, it's just all-around excitement on that.

但碰巧的是，CMS 主要在手術中心和門診機構中考慮拇囊炎報銷。我認為，我們推出這些前足解決方案的時機再好不過了。因此，它為我們打開了一些非常有趣的途徑，讓我們可以了解更多手術中心的選擇。無論如何，這都是令人興奮的事情。

Thank you for asking about SMART Bun-Yo-Matic, and I really hope to give you more visibility to what the sophistication of that planning is.

感謝您詢問 SMART Bun-Yo-Matic，我真的希望能讓您更清楚地了解該計劃的複雜性。

And the last part of your question -- sorry, I just realized I haven't answered yet. Our goal is to bring that preoperative planning, intraoperative tool, postoperative evaluation to essentially all aspects of the foot and ankle, right? And that complexity exists in almost all of our procedures, and we think it's really going to help to identify some patterns and improve outcomes. So our goal is to bring that to the entire foot and ankle.

你問題的最後一部分——抱歉，我剛剛意識到我還沒有回答。我們的目標是將術前計劃、術中工具、術後評估引入足部和踝關節的各個方面，對吧？這種複雜性存在於我們幾乎所有的程序中，我們認為這確實有助於識別一些模式並改善結果。所以我們的目標是將其帶到整個腳和腳踝。

George Sellers, Stephens Inc.

喬治·塞勒斯，史蒂芬斯公司

Maybe just to follow-up on that SMART 28 discussion. I'm just curious if you could give us some additional color on that sort of business model? What's the -- how does that system and platform generate revenue? Is there an associated licensing fee for access to that platform? What's sort of the business model? And how should we think about that impacting revenue and growth?

也許只是為了跟進 SMART 28 討論。我只是好奇你能否給我們一些關於這種商業模式的額外資訊？該系統和平台如何產生收入？造訪該平台是否需要支付相關授權費用？商業模式是什麼樣的？我們應該如何看待這對收入和成長的影響？

To start, let me say that the model will be very similar to what we do today really for total ankle replacement, what we call the MAVEN System, where we're converting CT scans into a preoperative plan, giving surgeons the ability to guide that correction plan, that correction and then turn that into an intraoperative tool. There is a fee associated with that service, and that includes the guide systems for the intraoperative piece. It also includes the planning part of that.

首先，我要說的是，該模型將與我們今天真正進行的全踝關節置換術非常相似，我們稱之為 MAVEN 系統，我們將 CT 掃描轉換為術前計劃，使外科醫生能夠指導手術矯正計劃，即矯正，然後將其轉變為術中工具。該服務需要付費，其中包括術中部件的引導系統。它還包括其中的規劃部分。

There are a few situations where there could be just the plan used alone without the intraoperative tools. And there's also a situation where there might be some enhanced engineering support to handle some really difficult cases. And so there are a few exceptions that might go outside of that.

在某些情況下，可能只會單獨使用計劃而沒有術中工具。還有一種情況是，可能需要一些增強的工程支援來處理一些非常困難的情況。因此，還有一些例外情況可能超出此範圍。

But generally speaking, we expect that to be similar to what we do today for the MAVEN for total ankle replacement. The other part of that is that we expect some -- some pull-through of all of our other products, right?

但總的來說，我們預計這與我們今天為 MAVEN 進行全踝關節置換術所做的類似。另一方面，我們期望我們所有其他產品都能獲得一些突破，對吧？

We've got a multitude of fixation options for addressing the first TMT or what's known as Lapidus. We have nails, we have plates, we've got staples. So a surgeon can really customize a solution based on the needs of that patient. And that's -- the planning part of that is certainly going to give them visibility to that.

我們有多種固定選項來解決第一個 TMT 或所謂的 Lapidus。我們有釘子，我們有盤子，我們有訂書釘。因此，外科醫生確實可以根據患者的需求量身定制解決方案。那就是——其中的規劃部分肯定會讓他們看到這一點。

One more part there, George, sorry. Sorry for the delayed part of that. But it takes a few months to get these things up and running, right, medical education, hospital contracting, et cetera, et cetera. So we would anticipate more meaningful contributions in '25, a little bit less, a lot of excitement in '24, but we would expect to see some real contributions in '25 and '26 and beyond.

還有一部分，喬治，抱歉。對於延遲的部分，我們深表歉意。但這些事情需要幾個月的時間才能啟動和運行，對吧，醫學教育、醫院承包等等。因此，我們預計在 25 年會有更有意義的貢獻，在 24 年會少一些，但會令人興奮，但我們預計會在 25 年和 26 年及以後看到一些真正的貢獻。

And then maybe shifting gears back to focusing on the quarter. Could you give us a little bit of maybe some quantitative detail on how some of the new devices that you launched early in the first quarter, how those have progressed and what contribution those devices had to revenue growth here this quarter?

然後也許會重新關注本季。您能否向我們提供一些定量細節，說明您在第一季初推出的一些新設備的情況、這些設備的進展以及這些設備對本季度收入成長的貢獻？

We try not to get too granular on the contribution amount, just for -- obviously, for some competitive reasons. But I could tell you, we've exceeded our expectations on the performance of some of those Q1 launches. We've had some real excitement around a lot of the forefoot solutions, including the Power Console, the FJ2000. The PRECISION MIS Bunion System has been doing incredibly well. There's a real patient demand for that right now, and it's really good timing there.

我們盡量不要對捐款金額太過細化，顯然是出於某些競爭原因。但我可以告訴你，我們對第一季發布的一些產品的表現超出了我們的預期。我們對許多前足解決方案感到非常興奮，包括 Power Console、FJ2000。PRECISION MIS Bunion 系統一直表現得非常好。現在患者確實有這樣的需求，而且時機非常好。

We've had a great response on our Bun-Yo-Matic alone, even absent of the SMART Bun-Yo-Matic algorithm, and we're expecting a more fulsome launch of just the Bun-Yo-Matic right now as well. So great momentum there. And then the other piece is we had several soft tissue products that are really contributing nicely. So all around really positive momentum there. The feedback has been great.

即使沒有 SMART Bun-Yo-Matic 演算法，我們僅在 Bun-Yo-Matic 上就獲得了很好的反響，我們也期待現在推出更豐富的 Bun-Yo-Matic。那裡的勢頭如此之大。另一件事是我們有幾種軟組織產品確實做出了很好的貢獻。因此，到處都有非常積極的勢頭。反饋非常好。

I don't want to be hyperbolic, but we're thrilled. We expect to see more meaningful contribution from those Q1 launches in the second half of this year, where some of the more recent launches like R3FLEX, although it's off to a great start. In SMART Bun-Yo-Matic, we would anticipate more of a '25 contribution, but also really exciting there from feedback and performance so far.

我不想誇張，但我們很興奮。我們預計今年下半年第一季的發布將帶來更有意義的貢獻，其中包括 R3FLEX 等最近發布的一些產品，儘管它已經有了一個很好的開始。在 SMART Bun-Yo-Matic 中，我們預計會有更多 25 年的貢獻，但迄今為止的回饋和表現也非常令人興奮。

We've got a few products that are coming. Sorry, I keep interrupting you. I keep forgetting more, but we do have several other exciting launches coming in the second half of this year, and we've had a lot of line extensions with our right angle drill, our ball joint strut for ex-fix line. So we've got a lot of excitement around all five subsegments, which has been pretty balanced for us.

我們即將推出一些產品。抱歉，我老是打擾你。我總是忘記更多，但我們確實在今年下半年推出了其他幾款令人興奮的產品，並且我們通過直角鑽頭和用於前固定線的球接頭支柱進行了很多產品線延伸。因此，我們對所有五個子細分市場都感到非常興奮，這對我們來說非常平衡。

Brandon Vazquez, William Blair.

布蘭登·巴斯克斯，威廉·布萊爾。

I also wanted to kind of stay on SMART 28 for a second, just given, as you were saying, Albert, this is kind of one of the things you've been talking about since the IPO. I have a couple of questions. I'll kind of list off and then I have an unrelated follow-up.

我還想在 SMART 28 上停留一秒鐘，正如你所說，Albert，這是你自 IPO 以來一直在談論的事情之一。我有幾個問題。我會列出一些清單，然後進行不相關的後續行動。

But on SMART 28, can you talk a little bit about what training is like? Is this a new technology in the space? So what's the upfront lift kind of like for new surgeons on this? Is this going to be an open or a closed platform to your hardware specifically? And then any plans you can share to build clinical data over the coming years to kind of demonstrate the benefits of these modules?

但在 SMART 28 上，您能談談訓練是什麼樣的嗎？這是該領域的新技術嗎？那麼對於新外科醫師來說，在這方面的前期工作是什麼樣的呢？對於您的硬體來說，這將是一個開放式平台還是封閉式平台？那麼您有什麼計劃可以分享在未來幾年建立臨床數據以展示這些模組的好處嗎？

Yes, let me address the first part of this where it's the complexity. So one of the things we were really careful when designing this first module, one of our real leading three-dimensional thinking surgeon adviser is Dr. Cesar de Netto out of Duke.

是的，讓我談談第一部分的複雜性。因此，在設計第一個模組時，我們非常小心的一件事是，我們真正領先的三維思維外科醫生顧問之一是來自杜克大學的 Cesar de Netto 博士。

And when he gives his presentation, we've always noticed that everybody in the room is in oohs and aahs at the three-dimensional complexity that he's able to analyze with tools like this. But there's a general fear that they're not as technically savvy as Dr.Cesar is. And so our goal when we were designing this was to make it as streamlined and easy for people to use as Instagram or Facebook, potentially even easier, right?

當他做演講時，我們總是注意到房間裡的每個人都對他能夠使用這樣的工具來分析三維複雜性感到驚訝。但人們普遍擔心他們不像塞薩爾博士那樣精通科技。因此，我們設計此產品時的目標是使其像 Instagram 或 Facebook 一樣精簡且易於人們使用，甚至可能更容易，對吧？

So the ability to upload a DICOM image, the ability less than 10 minutes to convert that into a plan, then the flexibility surgeons have to manipulate that plan and see different configurations and rerun it to turn that into some preoperative, a tool that they can even use to communicate with the patient.

因此，上傳 DICOM 影像的能力，能夠在 10 分鐘內將其轉換為計劃，然後外科醫生必須靈活地操縱該計劃並查看不同的配置並重新運行它，將其轉變為術前工具，他們可以甚至用來與病人溝通。

What's really important here is that planning is giving them so much sophistication three-dimensionally to not just what they're correcting, but to the deformity that exists within that particular patient. And sometimes, when you look at a three-dimensional plan, you see things that you wouldn't see just on a simple view, right, on the 2D view.

這裡真正重要的是，規劃為他們提供瞭如此多的三維複雜性，不僅針對他們要糾正的內容，而且針對特定患者體內存在的畸形。有時，當您查看 3D 平面圖時，您會看到一些在簡單視圖（對的，2D 視圖）上看不到的東西。

And so we're really excited that surgeons are going to be armed with a lot more information to make better decisions for their patients, but then to have all that flexibility that I described. So one, really easy-to-use platform, we focused on that so that everybody didn't have to be a Dr. Cesar to do this.

因此，我們非常高興外科醫生將掌握更多信息，以便為患者做出更好的決策，同時擁有我所描述的所有靈活性。因此，我們專注於一個非常易於使用的平台，這樣每個人都不必成為塞薩爾博士才能做到這一點。

Two, we wanted to make sure that we gave surgeons really good information to help them in diagnosing the deformity in the first place. And I've mentioned this on previous calls that a bunion is a really complex three-dimensional deformity. And there's a multitude of pathways that are really unique, right?

第二，我們希望確保為外科醫生提供真正好的信息，以幫助他們首先診斷畸形。我在之前的電話會議中提到過，拇囊炎是一種非常複雜的三維畸形。有很多非常獨特的途徑，對嗎？

There's at least five different pathways that we know of today, that should have different considerations when surgeons are determining how to fix that. So if we're going to customize treatment options for a patient, truly patient specific, we have to give surgeons those tools and better diagnostic capabilities to make those decisions.

我們今天知道至少有五種不同的途徑，當外科醫生決定如何解決這個問題時，應該有不同的考慮。因此，如果我們要為患者量身定制治療方案，真正針對患者俱體情況，我們必須為外科醫生提供這些工具和更好的診斷能力來做出這些決定。

So all of that was a consideration for us when we were developing this. Another reason why we're so excited as we're launching this.

因此，所有這些都是我們在開發此產品時考慮的因素。我們推出此產品時感到如此興奮的另一個原因。

And then maybe as a follow-up, switching gears a little bit, might be for either Chadi or Krissy, but now with cash flow positivity pushed out to 2026, how are you guys thinking about just kind of the balance sheet and the capital that you have, do you feel comfortable where you are? Just talk to us about that given pushout and cash flow positivity.

然後，也許作為後續行動，稍微改變一下方向，可能是 Chadi 或 Krissy，但現在隨著現金流積極性推遲到 2026 年，你們如何考慮資產負債表和資本你有，你在哪裡感覺舒服嗎？只需與我們討論給定的推出和現金流積極性。

So one thing I'll say just again, focusing on cash flow positivity in '26, this might be one of the first times we're communicating that formally, that our top priority is to be cash flow positive by '26. All of the moves that we're making right now are going to enhance and create an opportunity for us to achieve that. We've taken all of this into account. We've got, again, a top priority on everything we're doing right now to make sure we're EBITDA positive in '25, and then cash flow breakeven or positive in '26.

所以我要再說一遍，重點關注 26 年的現金流量正值，這可能是我們第一次正式溝通，我們的首要任務是到 26 年實現現金流量為正值。我們現在採取的所有措施都將增強並為我們實現這一目標創造機會。我們已經考慮到了所有這些。我們現在所做的一切都是重中之重，以確保我們在 25 年實現 EBITDA 為正值，然後在 26 年實現現金流盈虧平衡或正值。

Any color you want to add to that, Krissy or Chadi?

你想加什麼顏色，Krissy 或 Chadi？

No. I guess I would just add that we're looking at acceleration in EBITDA in the back half of the year as well as acceleration of cash flow. And that is contributing to our confidence and our ability to hit those two performance metrics that Albert has mentioned.

不。我想我只想補充一點，我們正在考慮下半年 EBITDA 的加速以及現金流的加速。這增強了我們的信心，也增強了我們達到艾伯特所提到的這兩個績效指標的能力。

And I want to reiterate, as the CFO, this is my number one priority to roll up my sleeves and have deliverables that make that happen.

我想重申，身為財務官，這是我的首要任務，那就是捲起袖子，交付成果來實現這一目標。

And with no further questions in the queue at this time, I would like to hand back to management for any closing remarks.

由於目前隊列中沒有其他問題，我想將任何結束語交還給管理層。

Yes. Thanks, everybody, for joining us on our call today. We look forward to seeing you all at upcoming investor conferences. We'll be at the Canaccord Conference next week and other industry conferences over the next couple of months. Thanks again. That concludes our remarks.

是的。感謝大家今天加入我們的電話會議。我們期待在即將舉行的投資者會議上見到大家。我們將參加下週的 Canaccord 會議以及接下來幾個月的其他行業會議。再次感謝。我們的發言到此結束。

Thank you, everyone. This concludes the Paragon 28 second-quarter 2024 earnings call. You may know disconnect your line.

謝謝大家。Paragon 28 2024 年第二季財報電話會議到此結束。您可能知道斷開線路。