Inmode Ltd (INMD) 2023 Q2 法說會逐字稿

Good day, and welcome to the InMode Second Quarter 2023 Earnings Results Conference Call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 InMode 2023 年第二季財報電話會議。 （操作員指示）請注意，此事件正在被記錄。

I'd now like to turn the call over to Miri Segal of MS-IR. Please go ahead.

現在我想將電話轉給 MS-IR 的 Miri Segal。請繼續。

Thank you, operator and to everyone for joining us today. Welcome to InMode's second quarter 2023 earnings call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please go to the Investor Relations section of the Company's website.

謝謝接線員以及今天加入我們的所有人。歡迎參加 InMode 2023 年第二季財報電話會議。在我們開始之前，我想提醒我們的聽眾，本次電話會議中提供的某些資訊可能包含前瞻性陳述，今天的收益報告中概述的安全港聲明也適用於本次電話會議。如果您尚未收到該新聞稿的副本，請造訪公司網站的投資者關係部分。

Changes in business, competitive, technological, regulatory and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them, except as required by law.

業務、競爭、技術、監管和其他因素的變化可能會導致實際結果與今天前瞻性陳述的結果有重大差異。我們的歷史表現不一定能代表未來的表現。因此，我們無法保證我們的前瞻性聲明的準確性，並且不承擔更新它們的義務，除非法律要求。

With that, I'd like to pass the call over to Moshe Mizrahy, Chairman and CEO. Moshe, please go ahead.

說完這些，我想將電話轉給董事長兼執行長 Moshe Mizrahy。摩西，請繼續。

Thank you, Miri and to everyone for joining us. With me today are Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer; Yair Malca, our Chief Financial Officer; Shakil Lakhani, our President in North America; Dr. Spero Theodorou, our Chief Medical Officer; and Rafael Lickerman, our VP of Finance. Following our prepared remarks, we will be available to answer your question.

謝謝 Miri 及各位朋友的參與。今天與我一起的是我們的共同創辦人兼技術長 Michael Kreindel 博士； Yair Malca，我們的財務長； Shakil Lakhani，我們的北美總裁；我們的首席醫療官 Spero Theodorou 博士；以及我們的財務副總裁 Rafael Lickerman。在我們準備好發言之後，我們將回答您的問題。

We're happy to report a record quarter on all fronts. We announced record revenue of $136.1 million, an increase of 20% compared to the second quarter of 2022. Sales from our platforms reached over 1,600 units, and the numbers of disposable sold totaled over 270,000, the most in our company history.

我們很高興地報告本季各方面均創下了紀錄。我們宣布創紀錄的 1.361 億美元營收，較 2022 年第二季度增長 20%。

As part of our ongoing global expansion, during the second quarter, we established 2 new subsidiaries, one in Japan and one in Germany. Establishing subsidiaries in countries where we believe we should be selling directly and not through distributor is our philosophy and strategy.

作為我們正在進行的全球擴張的一部分，我們在第二季度建立了兩家新子公司，一家在日本，一家在德國。在我們認為應該直接銷售而不是透過經銷商銷售的國家建立子公司是我們的理念和策略。

Currently, InMode is one of the only companies in the space where its founders still actively involved in the management and the ownership, and I believe that our strong involvement and commitment is part of InMode DNA. InMode innovation supports our growth and leads to a solid brand recognition within a highly competitive aesthetic industry.

目前，InMode 是該領域僅有的幾家創辦人仍積極參與管理和所有權的公司之一，我相信我們的積極參與和承諾是 InMode DNA 的一部分。 InMode 創新支持我們的成長，並在競爭激烈的美容行業中贏得了穩固的品牌知名度。

To further secure our competitive advantage in the next 12 months, we intend to invest heavily on product development and to launch a new minimal invasive technology and platform, upgraded Morpheus8 technology with new features, a new handsfree family of platforms for face and body, and a new multi-application -- applicator platforms with new technologies.

為了在未來 12 個月內進一步鞏固我們的競爭優勢，我們計劃在產品開發方面投入大量資金，推出新的微創技術和平台、具有新功能的升級版 Morpheus8 技術、用於面部和身體的全新免提系列平台，以及具有新技術的新型多應用塗抹器平台。

In addition, we plan to secure additional indication cleared by the FDA. There are currently 8 FDA studies in process. Within the next 12 months, InMode portfolio of platforms and indication will be completely new and upgraded and we will continue aggressively enhance and protect our IP and patent. Lastly, we are happy to report that just last month, InMode become part of the Russell 2000 Index. This index is most widely quoted measure of the overall performance of small cap and mid-cap stock.

此外，我們還計劃獲得 FDA 批准的額外適應症。目前有 8 項 FDA 研究正在進行中。在接下來的 12 個月內，InMode 平台和指示組合將煥然一新併升級，我們將繼續積極增強和保護我們的智慧財產權和專利。最後，我們很高興地報告，就在上個月，InMode 成為了羅素 2000 指數的一部分。該指數是衡量小型股和中型股整體表現最廣泛引用的指標。

Now, I'd like to turn the call to Shakil, our President in North America. Shakil?

現在，我想把電話轉給我們北美總裁沙基爾 (Shakil)。沙基爾？

Thanks, Moshe, and everyone for joining us. We are happy to report a record second quarter, while also seeing significant growth in consumable sales. Revenue from consumables and service reached nearly 44% year-over-year growth. This is a strong indication that our platforms are being used more frequently, signifying continued demand and increased brand recognition.

感謝 Moshe 以及所有人的加入我們。我們很高興地報告第二季創下了紀錄，同時也看到消耗品銷售顯著成長。耗材及服務收入較去年同期成長近44%。這有力地顯示我們的平台使用頻率越來越高，意味著需求持續成長且品牌認知度不斷提高。

Envision, our non-surgical ophthalmic platform is gaining significant traction in North America. We plan to continue hiring product-specific sales reps to expand penetration into the ophthalmology market. Morpheus8 continues to be our leading technology. Overall the branding, patient demand and excellent results puts this product in a class of its own. Lastly, I'd like to thank our entire North American team for their continued hard work.

設想一下，我們的非手術眼科平台正在北美獲得顯著的發展。我們計劃繼續招募特定產品的銷售代表，以擴大對眼科市場的滲透。 Morpheus8 繼續成為我們領先的技術。總體而言，品牌、患者需求和優異的效果使該產品自成一派。最後，我要感謝我們整個北美團隊的持續努力。

I will now hand over the call to Yair for a review of the financial results in more detail. Yair?

現在，我將把電話交給亞伊爾，讓他更詳細地審查財務結果。亞伊爾？

Thanks, Shakil, and hello, everyone. Thanks again for joining us. InMode generated a record revenue of $136.1 million in the second quarter of 2023, representing a 20% year-over-year increase with a gross margin of 84% on a GAAP basis. Second quarter sales outside of the US accounted for $49.5 million compared to $41.2 million in Q2 last year. We continue to see growth coming from different regions around the world, and in Q2, sales from Asia hit a new record.

謝謝，Shakil，大家好。再次感謝您的加入。 InMode 在 2023 年第二季創造了 1.361 億美元的創紀錄收入，年增 20%，以 GAAP 計算的毛利率為 84%。第二季美國以外地區的銷售額為 4,950 萬美元，而去年第二季為 4,120 萬美元。我們繼續看到來自世界各地不同地區的成長，在第二季度，來自亞洲的銷售額創下了新紀錄。

To support our operations and growth, InMode now operates in a total of 92 countries with a sales team of more than 264 direct sales reps and 81 distributors worldwide. Capital equipment in the second quarter represented 84% of total revenue, while consumables and service revenues accounted for the remaining 16%.

為了支持我們的營運和成長，InMode 目前在全球共有 92 個國家開展業務，銷售團隊由 264 多名直銷代表和 81 個經銷商組成。第二季的資本設備佔總收入的 84%，而消耗品和服務收入佔剩餘的 16%。

Sales and marketing expenses increased to $51.1 million in the second quarter compared to $39.7 million in the same period last year. This increase is attributed to the addition of new sales representatives, as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company growth projection.

第二季銷售和行銷費用從去年同期的 3,970 萬美元增至 5,110 萬美元。這一增長歸因於增加新的銷售代表，以及對直接面向消費者的廣告活動和舉辦現場活動的投資，以支持公司的成長預測。

Service compensation accounted for $6.5 million in the second quarter of 2023, a slight increase compared to $6.4 million in the second quarter of 2022. GAAP operating expenses in the second quarter were $57 million, a 26% increase year-over-year. On a non-GAAP basis, operating expenses were $51.1 million in the second quarter compared to a total of $39.5 million in the same quarter of 2022, representing a 29% increase.

2023年第二季服務報酬為650萬美元，較2022年第二季的640萬美元略有增加。以非公認會計準則計算，第二季營運費用為 5,110 萬美元，而 2022 年同期總計 3,950 萬美元，成長 29%。

GAAP operating margin for the second quarter of 2023 was 42%, compared to an operating margin of 43% in the second quarter of 2022. Non-GAAP operating margin for the second quarter of 2023 was 47%, compared to 49% for the second quarter of 2022. GAAP diluted earnings per share for the second quarter were $0.65, compared to $0.52 per diluted share in Q2 of 2022. Non-GAAP diluted earnings per share for this quarter were a record $0.72, compared to $0.59 per diluted share in the second quarter of 2022. Once again, we ended the quarter with a strong balance sheet. As of June 30, 2023, the company had cash and cash equivalents, marketable securities and deposits of $629.4 million.

2023 年第二季的 GAAP 營業利潤率為 42%，而 2022 年第二季的營業利潤率為 43%。 2023 年第二季的非 GAAP 營業利潤率為 47%，而 2022 年第二季為 49%。收益創下 0.72 美元的紀錄，而 2022 年第二季的稀釋每股收益為 0.59 美元。截至 2023 年 6 月 30 日，該公司擁有現金和現金等價物、有價證券和存款 6.294 億美元。

Before I turn the call back to Moshe to take your questions, I'd like to reiterate our increased guidance for 2023. Revenue between $530 million and $540 million, non-GAAP gross margin between 83% and 85%, non-GAAP income from operations between $238 million and $243 million, non-GAAP earnings per diluted share between $2.62 and $2.66.

在我將電話轉回給 Moshe 回答您的問題之前，我想重申我們對 2023 年的上調預期。

I will now turn over the call back to Moshe.

我現在將電話轉回給 Moshe。

Thank you. Thank you, Yair. Thank you, Shakil and thanks to all of our employees around the world. I'm sure that most of them and some of them are listening to us today. It's important.

謝謝。謝謝你，亞伊爾。謝謝你，Shakil，也感謝我們在世界各地的所有員工。我相信他們中的大多數人和一些人今天都在聽我們講話。這很重要。

Operator, we're ready for Q&A session.

接線員，我們已準備好進行問答環節。

(Operator Instructions) The first question is from Matt Taylor with Jefferies.

（操作員指示）第一個問題來自 Jefferies 的 Matt Taylor。

This is Mike Sarcone on for Matt. Congrats on a nice quarter. Just first wanted to start with -- you continue to have very strong growth in consumables. Can you just talk about how you view the sustainability of that demand, particularly in the event of any macroeconomic headwinds, and maybe comment on what you're seeing so far through July?

這是 Mike Sarcone，代替 Matt 發言。恭喜您度過了一個愉快的季度。首先我想說的是──你們的消耗品業務持續保持強勁成長。您能否談談您如何看待這種需求的可持續性，特別是在出現任何宏觀經濟逆風的情況下，並評論一下截至 7 月您所看到的情況？

Well, Hi, Matt. This is Moshe. As far as consumables and the use of consumables, the beginning of this quarter looks strong, although I have to say that we have seasonality in our business, and people sometimes do not like to do a static procedure in the summertime. They do it before the summertime, and this is why Q2 was very strong as far as usage of disposable, which means more procedures were done.

嗨，馬特。這是摩西。就消耗品和消耗品的使用而言，本季初看起來很強勁，儘管我不得不說我們的業務具有季節性，人們有時不喜歡在夏季進行靜態程序。他們在夏季來臨之前就這樣做了，這就是為什麼第二季一次性用品的使用量非常強勁，這意味著完成了更多的程序。

But as of now, almost the end of the month of July, we don't see a slowdown. We see it continue to grow. That means that the doctors are still promoting the minimally invasive and the ablative, the Morpheus, very strongly, and it also depends on the numbers of Morpheus and minimally invasive systems that we sell, which is growing as well. So we might have a nice number in Q3, but I can assure you that Q4 will be much higher than what we see today.

但截至目前，七月快要結束了，我們並沒有看到經濟放緩的跡象。我們看到它繼續增長。這意味著醫生仍在大力推廣微創和消融 Morpheus，這也取決於我們銷售的 Morpheus 和微創系統的數量，而這一數量也在增加。因此，我們可能會在第三季取得不錯的數字，但我可以向你保證，第四季的數字將比我們今天看到的數字高得多。

Talking about the number of systems you sell, I was hoping you can also give us an update on how the capital equipment environment is holding up, maybe just comment on what you're seeing in terms of trends in demand, and do you see any changes on the margins in terms of doctors' ability to finance these systems, particularly as rates continue to increase?

說到您銷售的系統數量，我希望您能向我們介紹一下資本設備環境的最新情況，也許只是評論一下您所看到的需求趨勢，您是否看到醫生為這些系統提供資金的能力在邊際上發生了任何變化，特別是在費率持續上漲的情況下？

Okay. I will ask Shaq to answer for North America, and then I will add some on. Shaq, please.

好的。我會讓沙奎爾回答北美的問題，然後我會補充一些。請叫我沙奎爾。

So we've definitely seen industry-wide that rates obviously have increased. We haven't seen much of an impact on demand, which is good, but we've gotten a little creative in terms of getting a couple of other sources. We try to get ahead of the game. We've seen this happen every 4 or 5 years. Something tends to come up like this, but it's how do we navigate around it.

因此，我們確實看到整個行業的費率明顯上升了。我們沒有看到對需求產生太大的影響，這是好事，但我們在獲取其他一些來源方面變得有點創造性。我們盡力在比賽中取得領先。我們每四、五年就會看到一次這種情況。有些事情總是會發生這樣的事情，但問題是我們該如何解決它。

So we definitely have looked at some other sources, which has not slowed things down dramatically, but things are a little -- a lot of the refinancing companies are looking for a little more information, things that we wouldn't have done in the past, but we've already implemented a process so that we could kind of keep the ship smoothly sailing.

因此，我們確實研究了一些其他來源，這並沒有顯著減慢事情的速度，但事情有點——許多再融資公司都在尋求更多的信息，這是我們過去不會做的事情，但我們已經實施了一個流程，這樣我們就可以讓事情順利航行。

So with that being said, I'll hand it over to Moshe, but from our perspective in North America, we've definitely seen some things, but we've been able to adapt to the environment.

所以話雖如此，我會把它交給 Moshe，但從我們在北美的角度來看，我們確實看到了一些事情，但我們已經能夠適應環境。

Okay. In OW, the numbers of doctors who buy a system with the lease package is not as high as in the United States. But what we managed to do from the beginning of the year, we have one bank in Europe who is now working with country by country in order to put together a lease package plan for each country. We started with Spain, and we're going to Italy and to all of our subsidiaries, and we might have some of our distributors as well. So, OW grew this quarter 21% compared to the second quarter in 2022. And I believe that financing is still an issue, especially with the high interest rate, but we manage very well.

好的。在 OW，購買租賃系統的醫生數量並不像美國那麼多。但我們從今年年初開始就努力做到了，我們在歐洲有一家銀行，目前正在與各國合作，為每個國家製定一套租賃方案。我們從西班牙開始，然後到達義大利以及我們所有的子公司，也許還有一些經銷商。因此，與 2022 年第二季相比，OW 本季成長了 21%。

The next question is from Matt Miksic with Barclays.

下一個問題來自巴克萊銀行的 Matt Miksic。

So a couple of questions, if I could. So the first to follow up on sort of the current tone of the market, but more specifically kind of the seasonal cadence for the back half in terms of system sales. If you can maybe give us any sense of whether, the strength in Q2 eases here in Q3 and rallies in Q4, or any color, either regionally or across your different systems that you could provide, as well as on some of the spending and investment that you're making in ophthalmology, for example, and sort of entering new specialty areas. Is that -- not talking about 2024 in detail, I'm sure, but should we expect those spending levels to continue through year end and into 2024 or any color you can provide on that? And I have one quick follow-up, if I could.

如果可以的話，我有幾個問題。因此，首先要跟進當前的市場基調，更具體地說，要跟進下半年系統銷售的季節性節奏。如果您能告訴我們，第二季的強勁勢頭是否在第三季度減弱，而在第四季度反彈，或任何顏色，無論是區域性還是您所能提供的不同系統，以及您在眼科等領域的一些支出和投資，以及進入新的專業領域。是的——我確信不是在詳細談論 2024 年，但我們是否應該預計這些支出水平將持續到年底並持續到 2024 年，或者您能提供任何具體信息？如果可以的話，我還有一個快速的後續問題。

Yes. Well, the medical aesthetic and aesthetic surgical industry has some seasonality. Although in 2021 and 2020, just because the COVID, we did not see the same seasonality. For example, in 2020, the Q2 was a very tough quarter because of the COVID and we didn't do well. But everything, when we start, when the market opened in Q3, which is relatively should be a summer time, which is slower, we saw, a big jump. And the same in 2020 -- 2022, just because of the COVID, we did not experience the same seasonality. And that's something we need to say.

是的。嗯，醫學美容和美容外科行業有一定的季節性。儘管在 2021 年和 2020 年，僅僅因為疫情，我們沒有看到相同的季節性。例如，2020 年第二季因新冠疫情而變得非常艱難，我們的業績不佳。但是，當我們開始的時候，當市場在第三季開放的時候，相對來說應該是夏季，這時候速度比較慢，我們看到了一次大的跳躍。 2020 年至 2022 年也是如此，只是因為疫情，我們沒有經歷同樣的季節性。這是我們需要說的。

But overall, in 2023, I believe the seasonality will come back. And the seasonality in medical aesthetic is Q1 is usually softer, soft Q. Q2 is relatively strong. Q3, because of the summer, Europe and also the United States, Europe and the United States is a little bit slower; although Asia and Latin America are not experiencing exactly the same seasonality. For them, Q3 is relatively strong. And Q4 is a strong quarter for everywhere, all the territories.

但總的來說，我相信 2023 年季節性將會回歸。而醫療美容的季節性是Q1通常比較柔和，是軟Q。 Q3，因為進入夏季，歐洲和美國的情況稍微慢了一點；儘管亞洲和拉丁美洲所經歷的季節性並不完全相同。對他們來說，Q3 相對強勁。第四季對於所有地區來說都是一個強勁的季度。

In 2020 and 2021, we experienced increase compared to Q2 in the revenue. We don't have enough information to judge right now what will happen in Q3, 2023 worldwide. From what we see, we started very nicely with all the territories. What will happen in the month of August, which is usually the tougher month is yet to see. Now, Shakil, do you want to add something on North America?

2020 年和 2021 年，我們的收入與第二季相比有所增加。目前我們還沒有足夠的資訊來判斷 2023 年第三季全球會發生什麼事。據我們所知，我們在所有領域的開局都非常順利。八月通常是最艱難的一個月，但我們尚不清楚這個月會發生什麼。現在，Shakil，你想補充一些關於北美的內容嗎？

Yes, sure. So, as Moshe was saying, Q3 typically once we clear out our funnels, the first couple of weeks of July and the first, basically the first 2 to 4 weeks of July are spent starting to build back up the pipeline. So with that being said, as Moshe mentioned, it's a little hard for us to give you any indication of how things are going. This is what we've -- many of us on the management team have experienced for over 15, 20 years in the industry.

是的，當然。因此，正如 Moshe 所說，通常，一旦我們清理完漏斗，第三季就會開始重新建立管道，七月的頭幾周和第一周，基本上是七月的前 2 到 4 週。因此，正如 Moshe 所提到的那樣，我們很難向您透露事情的進展。這是我們——我們管理團隊中的許多人已經在這個行業工作了 15 到 20 年以上的經驗。

So we're kind of used to it, but you just like as Moshe said with COVID, we didn't know what to expect in Q3 was stronger than Q2, which I don't think has really happened in many places. But we feel like the demand overall, at least in North America is stronger than ever. As I mentioned before, the product and brand awareness is definitely helping. And, you'd ask the question in terms of envision and continuing to spend, Moshe doesn't like using the word spend. He likes using the word investing and makes improvements.to spend.

所以我們已經習慣了，但就像 Moshe 所說的那樣，對於 COVID，我們不知道第三季的表現會比第二季更強，我認為這在很多地方並沒有真正發生過。但我們覺得整體需求，至少在北美，比以往任何時候都更強勁。正如我之前提到的，產品和品牌知名度肯定有幫助。而且，你會問關於設想和繼續支出的問題，Moshe 不喜歡使用支出這個詞。他喜歡使用投資這個詞，並做出改進。

Moshe doesn't like using the word spend, he likes using the word investing, it makes him feel better. But with that being said, we're definitely going to invest in that market and as I mentioned earlier, in hiring new talent as well, but also penetrating more of those specific to that vertical itself. Does that make sense?

Moshe 不喜歡使用「花錢」這個詞，他喜歡使用「投資」這個詞，這讓他感覺更好。但話雖如此，我們肯定會在該市場進行投資，而且正如我之前提到的，我們不僅會聘用新的人才，還會滲透到該垂直領域的更多特定人才中。這樣有道理嗎？

And just, it sounds like we should expect those things to kind of continue behind those businesses into 2024, understanding that you're not giving in…

聽起來我們應該預期這些事情會在 2024 年繼續影響這些業務，因為我們明白你不會屈服…

Absolutely. Don't forget that the ophthalmology platforms were introduced in Canada, and now soft launch in the US, but we have not started in ROW, not in the other territories, we're waiting.

絕對地。別忘了，眼科平台是在加拿大推出的，現在正在美國軟啟動，但我們還沒有在世界其他地區開始，其他地區還沒有開始，我們正在等待。

And the follow up just is on, you've talked before about the competitive environment. Would love to get your an update as to sort of what you're seeing, what you expect to see, if there's demand, are you having to sort of fight for it any more or less than you did a year or 2 ago, any color you share there would be helpful.

後續問題是，您之前談到了競爭環境。我很想了解您目前看到的情況，您期望看到什麼，是否有需求，您是否需要比一兩年前更多或更少地爭取它，您分享的任何資訊都會有所幫助。

Shakil, I believe you should answer that.

Shakil，我想你應該可以回答這個問題。

Yes, Moshe, I'm not sure, I think he has a connection problem, so I'll handle that. In terms of competition, yes, in terms of competition, yes, I wouldn't say it was ever easy or I don't think it will ever be easy. And if that ever happens, I'm sure we'll all be pretty happy about that. But, we've definitely, as I mentioned, in terms of us investing in brand awareness, things like that, it's made it a little easier, I would say.

是的，Moshe，我不確定，我認為他遇到了連接問題，所以我來處理。就競爭而言，是的，就競爭而言，是的，我不會說這曾經很容易，或者我認為它永遠不會很容易。如果真的發生了，我相信我們都會非常高興。但正如我所提到的那樣，就我們對品牌知名度等的投資而言，我想說這確實讓事情變得更容易一些。

And a lot of the competitors, they're going to have different strategies and everyone's going to continue to sell competition breeds awareness. So we're of the philosophy that if everyone's doing well in our business, it's better for everybody, rather than taking a different approach trying to take down a giant, which a lot of the competitors try to do. But that's just -- that's not how we approach things.

許多競爭對手都會採取不同的策略，每個人都會繼續銷售，透過競爭來提高知名度。因此，我們的理念是，如果每個人在我們的業務中都做得很好，那麼對每個人來說都更好，而不是像許多競爭對手那樣，採取不同的方法試圖打倒巨頭。但那隻是——那不是我們處理事情的方式。

So from our perspective, the better the industry does, the better it is and we feel like consumer demand, but also coupled with position demand for the need to actually incorporate some of these technologies into their practices, for additional revenue, income, so on and so forth, is going to continue driving this business and, it's on us to continue innovating and providing them with the appropriate tools and technology so that they're able to do that and that's going to differentiate things.

因此，從我們的角度來看，行業做得越好，我們覺得消費者的需求，同時也加上職位需求，需要將其中一些技術實際融入到他們的實踐中，以獲得額外的收入、收益等等，這將繼續推動這項業務，我們要繼續創新，為他們提供適當的工具和技術，以便他們能夠做到這一點，這將使事情與眾不同。

We have a user meeting coming up in August in Chicago, and I think we have over 600 practices signed up every year. It's great. We try to give them the ammunition that they need as part of their practices, along with our post-sale support team who've done an incredible job. So our goal is, we try to equip our people with what they, our customers with what they need from a technology perspective, but also from a marketing perspective and how to help them be successful. We try our best at it. At least we can't guarantee anything.

我們將於 8 月在芝加哥召開一次用戶會議，我認為每年都有超過 600 個實踐報名參加。這很棒。我們嘗試為他們提供實踐中所需的彈藥，同時我們的售後支援團隊也做出了出色的工作。因此，我們的目標是，我們嘗試從技術角度為我們的員工和客戶提供他們所需要的東西，同時也從行銷角度為他們提供如何幫助他們成功的方法。我們盡力了。至少我們不能保證任何事。

But, as far as the competitive landscape goes, I think it's pretty strong right now demand-wise. I don't know if some of our competitors have made some of the changes that they may have needed to in terms of financing and how to handle that. But, we're a few steps ahead, I believe.

但就競爭格局而言，我認為目前的需求相當強勁。我不知道我們的一些競爭對手是否在融資方面以及如何處理融資方面做出了他們可能需要的一些改變。但我相信我們已經領先了幾步。

The next question is from Caitlin Cronin with Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Caitlin Cronin。

This is Caitlin on for Kyle Rose. Congrats on a great quarter. Just a couple questions. Starting with Empower, how's the continued launch going and any updates to expectations? And have you begun hiring any Empower-specific reps? And where are we from like an OUS launch and approval standpoint on that? And I have a follow-up?

這是凱特琳 (Caitlin)，取代凱爾羅斯 (Kyle Rose)。恭喜您度過了一個美好的季度。僅有幾個問題。從 Empower 開始，後續發布進度如何？您是否已經開始聘用 Empower 專門的代表了？那麼從 OUS 啟動和批准的角度來看我們處於什麼位置？我還有後續行動嗎？

Okay. Well, I believe the Empower is growing. The Empower sales is growing. We will not release numbers exactly because it's now we're not yet ready to do it. But we see some growth on the Empower platform as well.

好的。嗯，我相信 Empower 正在不斷發展。 Empower 的銷量正在成長。我們不會公佈具體數字，因為現在我們還沒有準備好這樣做。但我們也看到 Empower 平台的一些成長。

Regarding the indication for SUI, we have a discussion with the FDA on the protocol. They asked us to do some additional proof of concept study, which we're doing right now in Columbia. We will come back to them with the results to finalize the protocol, hopefully before the end of the year. And then we will file an IRB to do the study in the United States, with of course approval of the FDA we will conduct the study. So I believe we should not see -- we will not see any clearance before sometime to the end of 2024, but we do have clearance on the Viton for all kind of women health indication on the platforms and currently we are marketing the platforms with those indication.

關於SUI的適應症，我們已經與FDA就方案進行了討論。他們要求我們做一些額外的概念驗證研究，我們現在正在哥倫比亞進行。我們將向他們報告結果，以最終確定協議，希望能在年底前完成。然後我們將向 IRB 提交申請，在美國進行這項研究，當然，在獲得 FDA 的批准後，我們才會進行這項研究。因此，我相信我們不應該看到——在 2024 年底之前我們不會看到任何批准，但我們確實已經獲得了 Viton 用於平台上所有類型女性健康適應症的批准，目前我們正在通過這些適應症行銷平台。

In addition we are developing additional handpiece for the empower, which again now we are doing some proof of concept study after that we will do a study approved by the FDA. This is a little bit longer process with women health but we are spending a lot of money and investing in this technology.

此外，我們正在為 empower 開發額外的手柄，現在我們正在做一些概念驗證研究，之後我們將進行 FDA 批准的研究。對於女性健康而言，這是一個較長的過程，但我們在該技術上投入了大量資金和投資。

And Caitlin just to add to that to what Moshe was saying, the one thing that we have noticed is that a lot of the competitors have and we've talked about this in the past but they've kind of drawn out of the market and so we do see this is a nice little opening where we're trying to capitalize on that but again doing it the right way as Moshe had mentioned.

凱特琳 (Caitlin) 對摩西 (Moshe) 所說的內容進行了補充，我們注意到的一件事是，很多競爭對手都已經這樣做了，我們過去也談論過這個問題，但他們已經退出了市場，因此我們確實認為這是一個很好的機會，我們正試圖利用這一點，但同樣要以正確的方式去做，正如摩西 (Moshe) 提到的那樣。

Awesome and then just a quick question on evoke, to you want the next generation of the product yet?

太棒了，然後我只想問一下關於 evoke 的一個簡單問題，您想要下一代產品嗎？

Yes, we developed the next generation with additional power and additional I would say energy, different energy. It's not yet on the market. We are now finalizing the last I would say fine tune of the product. Hopefully it will go to production this quarter and we probably will launch it sometime to the end of the year.

是的，我們開發了下一代產品，它具有額外的動力和額外的能量，不同的能量。它還沒有上市。我們現在正在對產品進行最後的微調。希望它能在本季度投入生產，並可能在年底的某個時候推出它。

The next question is from Jeff Johnson with Baird.

下一個問題來自貝爾德的傑夫·約翰遜。

Just maybe if I could take through 2 or 3 quick ones here. The International Unit sales at 966 number was definitely a strong number. Anything in there one time in nature you went direct and it sounds like Japan and I think you said one other market that I wrote down that I could now, but was that had -- did that have any stock in order to it, were there any new distributors that had stock in or that 966 a clean number and if it is, we tend to take a fourth quarter being the peak every year should we think that you could still sell more than 966 units as we get into the fourth quarter of this year again a strong number here in the second quarter?

也許我可以在這裡快速完成 2 到 3 個。國際銷售量達到 966 台，無疑是一個非常強勁的數字。您曾經直接進入過日本，我想您說過我寫下的另一個市場，我現在可以這樣做，但是那裡有庫存嗎？ 有沒有新的分銷商有庫存？ 或者 966 是一個乾淨的數字，如果是的話，我們傾向於將第四季度作為每年的高峰，我們是否應該認為，當我們進入今年第四季度時，您仍然可以超過 966 台銷售，而第二季度又強勁？

Well the international is not one market. On the International market there are 27 languages and more than 27 regulatory bodies that we need to deal with and some claim on one country are not applicable to another country and some products need to do some modification because of regulatory issue. So the dealing with -- dealing with the international market is country by country, territory by territory.

是的，國際並不是一個市場。在國際市場上，我們需要處理 27 種語言和 27 多個監管機構，一個國家的某些規定並不適用於另一個國家/地區，並且某些產品需要由於監管問題進行一些修改。因此，因應國際市場需要針對一個國家、一個地區分別進行。

We're currently heavily investing in Asia with a lot of marketing activity and a lot of training and this is the reason why we open subsidiary in Japan because we believe Japan should be a good market for us. It's usually a good market for medical aesthetic and our distributor in Japan they did well but not as -- not according to our expectation.

我們目前正在亞洲投入大量資金，進行大量行銷活動和培訓，這就是我們在日本開設子公司的原因，因為我們相信日本對我們來說應該是一個很好的市場。這通常是一個好的醫療美容市場，我們在日本的經銷商表現也不錯，但並未達到我們的預期。

So Japan would be another country -- in addition China, China is opening up again and as you know we have a company in China in Guangzhou which we have established before the COVID, but we did not operate it because of the COVID, nobody could have gone and visited China. So now we are considering to see how we can go direct in addition to what we do with distributors because in China you cannot use only one way of distribution. It's a very complicated country, depends on the territory. Even in China you need to know 5 different languages and 5 different operating manners, but we're going closely.

因此日本將是另一個國家——此外還有中國，中國正在再次開放，正如你所知，我們在中國廣州有一家公司，這家公司是在新冠疫情爆發之前就成立的，但由於新冠疫情，我們沒有運營它，因為沒有人可以去中國。因此，現在我們正在考慮除了與經銷商合作之外，如何進行直銷，因為在中國，不能只採用一種分銷方式。這是一個非常複雜的國家，取決於領土。即使在中國你也需要了解5種不同的語言和5種不同的操作方式，但我們正在密切關注。

Latin America, again we are investing in all the countries. This year we would have the first use of meeting in Latin America in San Paulo in October 500 doctors, which is very important. We're covering all the country right now, 9 countries in Latin America. We signed the last contract a month ago and we're working on regulation again, country by country, because the regulation in Brazil, which is in visa, is not the same regulation in Colombia. And you have to deal with each regulatory organization or regulatory body by itself.

拉丁美洲，我們再次對所有國家進行投資。今年10月我們將在聖保羅舉行首次拉丁美洲500名醫生的會議，這非常重要。我們目前涵蓋全國，拉丁美洲的 9 個國家。我們一個月前簽署了最後一份合同，現在我們正在逐個國家地重新制定法規，因為巴西的簽證法規與哥倫比亞的法規不同。而且你必須單獨與每個監管機構或監管機構打交道。

In Europe, as I said in my speech, we just established a subsidiary in Germany and we intend to start operating the subsidiary sometime in the fourth quarter. We hired a managing director there and hopefully we will start interviewing some direct salespeople.

在歐洲，正如我在演講中所說，我們剛剛在德國建立了一家子公司，我們打算在第四季的某個時候開始經營該子公司。我們在那裡聘請了一位董事總經理，希望能夠開始面試一些直銷人員。

By the way, when we go direct, sometimes we don't sell more systems, but we recognize twice as much dollars, because when you go direct, you recognize the full value and not the transfer price and that's important. And also important, when you go direct, you feel the market, you talk with the doctor, you know what they want, what are their unmet needs, and it's easier.

順便說一句，當我們直接銷售時，有時我們不會銷售更多的系統，但我們會確認兩倍的美元，因為當你直接銷售時，你會確認全部價值而不是轉移價格，這一點很重要。同樣重要的是，當你直接去的時候，你會感受到市場，你會與醫生交談，你會知道他們想要什麼，他們尚未滿足的需求是什麼，而且這會更容易。

So I'm not suggesting that we will go, we're selling in 92 countries, we will go direct in 92 countries. In certain countries, we have a distributor that is doing a good job. In the future, we might offer them to become partner, 51%, so we can work together. But slowly and gradually, we are improving our position in Latin America, Europe and Asia.

所以我並不是建議我們去，我們在 92 個國家銷售，我們會直接在 92 個國家銷售。在某些國家，我們有一家經銷商，他們的表現非常好。將來，我們可能會邀請他們成為合作夥伴，佔 51%，這樣我們就可以一起合作。但我們正在緩慢而逐步地提高我們在拉丁美洲、歐洲和亞洲的地位。

I would like to add that it usually takes some time from the moment we open a subsidiary until the moment we start to see a significant contribution. So to answer your question, Jeff, there was no one-time in the international market or at all in Q2. It was all normal course of business.

我想補充一點，從開設子公司到開始看到重大貢獻通常需要一些時間。所以，傑夫，回答你的問題，國際市場上沒有出現一次性事件，或者第二季根本沒有出現過。這一切都是正常的業務流程。

Again, a very solid number. So congrats on that. And then, I don't know if Spiro was able to reconnect or [Dr. Crandell], maybe this is for you, I'm not sure. But I just want to make sure I'm understanding the women's healthcare strategy here. I feel like my understanding has gone back and forth a couple different times on this. I thought when we spoke in Miami just a month or 2 ago, the focus was going to remain primarily on kind of cash pay women's healthcare on the non-reimbursed side. I know you've got now this proof of concept study going on, SUI, you obviously acquired the by these patents.

這又是一個非常可靠的數字。對此我表示祝賀。然後，我不知道斯皮羅是否能夠重新連接或 [Dr.克蘭德爾，也許這適合你，我不確定。但我只是想確保我理解這裡的婦女保健策略。我感覺我對此的理解已經有幾次來回反覆了。我認為，當我們一兩個月前在邁阿密交談時，焦點仍然主要集中在非報銷方面的現金支付女性醫療保健。我知道您現在正在進行這項概念驗證研究，SUI，您顯然通過這些專利獲得了它。

One, I guess, Yair, for you, can we stay some 3% R&D as a percentage of revenue if we go into these more formalized, maybe bigger clinical trials? Is that $3.5, $4 million a quarter still the right run rate for R&D spend as we get into 2024, but more importantly, are you going to pursue some of these maybe costlier, I don't know if they're higher risk, but at least more reimbursed side of women's healthcare indications? Or is the focus primarily going to stay on kind of that rejuvenation, wellness, the non-reimbursed cash pay side of women's healthcare?

首先，Yair，我想問一下，如果我們進行這些更正式、甚至更大規模的臨床試驗，我們能否將研發支出維持在收入的 3% 左右？當我們進入 2024 年時，每季 350 萬美元、400 萬美元是否仍然是研發支出的正確運行率，但更重要的是，您是否會追求其中一些可能更昂貴、我不知道它們是否具有更高的風險，但至少在女性醫療保健指徵的報銷方面更多？或者主要重點仍將放在女性醫療保健的恢復活力、健康和非報銷現金支付方面？

This is Moshe. Definitely, we want to go to some indication that we can use reimbursement. But it's a process. The reason why we're doing, we're trying to do, but it's a long process to get FDA approval for you and Incontinence. When all the companies until now failed, including Viveve, after $250 million of spending, they bankrupt and we are buying, we just bought their IP.

這是摩西。當然，我們希望得到一些跡象表明我們可以使用報銷。但這是一個過程。我們這樣做的原因是我們想嘗試這樣做，但獲得 FDA 對您和失禁患者的批准是一個漫長的過程。到目前為止，包括 Viveve 在內的所有公司都失敗了，在花費 2.5 億美元之後，他們破產了，而我們正在收購他們，我們只是購買了他們的智慧財產權。

The reason why we're doing it is because this is the first stage toward getting a reimbursement code. In order to get a reimbursement code, you need to be FDA approved. You need to wait, you need to publish 5 studies, 5 independent studies, and you need to go and negotiate with the insurance companies. We're in the early stage of that, but that's one of our, I would say, strategic goal long-term.

我們這樣做的原因是，這是取得退款代碼的第一步。為了獲得報銷代碼，您需要獲得 FDA 的批准。你需要等待，你需要發表 5 項研究、5 項獨立研究，你還需要去與保險公司談判。我們尚處於早期階段，但我想說，這是我們的長期策略目標之一。

Moshe, just to follow up there, the $250 million that Viveve spent, I mean, again, you're spending, I don't have your model in front of me, but like $15 million a year on R&D. Is there a number that has to be a heck of a lot bigger than $15 million, even if it's not [250] to go after SUI, or can this be done somewhere in that low to mid-single-digit percentage of revenue for R&D spend over the next few years?

Moshe，順便問一下，Viveve 花了 2.5 億美元，我的意思是，你花了，我面前沒有你的模型，但每年在研發上花了 1500 萬美元。是否有一個數字必須比 1500 萬美元大得多，即使它不是 [250] 來追逐 SUI，或者這是否可以在未來幾年內以低到中等個位數的收入百分比用於研發支出？

We do not save money on R&D. We do not save money on R&D. We spend as much as needed. Hiring another 25 engineers will not give us more productivity. We have a great engineering team in Israel covering electronic engineering, software engineering, clinical engineering, mechanical engineering, regulation, etcetera and, you can judge by yourself.

我們不會在研發上節省資金。我們不會在研發上節省資金。我們按需要花多少錢。僱用另外 25 名工程師並不會提高我們的生產力。我們在以色列擁有一支優秀的工程團隊，涵蓋電子工程、軟體工程、臨床工程、機械工程、法規等等，您可以自行判斷。

In the last 2 years, we have launched to the market more than the entire industry altogether and we're coming with 2 platforms every year and as I stated in my speech in the next 12 months, we will come up with 4 new technologies on existing technologies upgrade or some new. And we will continue to do it.

在過去的兩年裡，我們向市場推出的產品比整個行業加起來還多，我們每年都會推出兩個平台，正如我在演講中所說，在未來的 12 個月裡，我們將在現有技術升級或一些新技術上推出 4 項新技術。我們將繼續這樣做。

I do not understand why people measuring R&D by spending or percentage of sales. That's not the right measurement. The measurement of R&D should be on the productivity of R&D. And I think that the aim on the profit itself in the last I would say 4, 5 years, coming to the market with the best product, we did not fail even with one of them in the market successfully without indeed that we have.

我不明白為什麼人們會用支出或銷售百分比來衡量研發。這不是正確的測量方法。研發的衡量標準應為研發的生產力。我認為，我們的目標是利潤本身，在過去的 4、5 年裡，我們把最好的產品推向市場，即使沒有其中一種產品在市場上取得成功，我們也沒有失敗。

So just to say, please increase your R&D from 3% of revenue to 7% of revenue will not make it different. It will create some kind of a mess. We know how to manage R&D. It's done in Israel. I believe we have the best R&D team in this industry worldwide, worldwide. And the profit in the pudding, look at the products that were coming with every year, look at the success of them, look how a people are happy with them. For example, fortune are our wealth, both use, for years in the market, 270,000 disposable in the last quarter.

所以說，請將你的研發費用從收入的 3％ 提高到 7％ 不會帶來任何變化。這會造成一些混亂。我們知道如何管理研發。這是在以色列完成的。我相信我們擁有全世界這個產業最好的研發團隊。至於布丁中的利潤，看看每年推出的產品，看看它們的成功，看看人們對它們的滿意程度。例如，財富是我們的財富，兩者都使用，在市場上多年，上個季度可支配收入為 270,000。

It will not happen unless you have good R&D team productive and the definition of what do you want to develop is right. I mean not just develop something. I'm looking on our competitors. And I see that the new products that they claim to the market, some of them are buying products from Korea just give it the new name and bring it to the United States. And some of them are repackaging all technologies in a nice box as a new product. We are coming with new indication, year-over-year, either a platform, a hand piece, a combination, etcetera and that's the competitive advantage of InMode.

除非你擁有優秀的研發團隊，並且對你想要開發的東西的定義正確，否則這一切都不會發生。我的意思不只是開發一些東西。我正在關注我們的競爭對手。我看到他們聲稱推向市場的新產品，其中一些是從韓國購買的產品，只是給它一個新名字然後帶到美國。他們中的一些人將所有技術重新包裝成漂亮的新產品。我們每年都會推出新的適應症，無論是平台、手持零件、組合等等，這就是 InMode 的競爭優勢。

Understood, Moshe. I don't mean to get you on your soapbox and that is a critique. I'm trying to understand where R&D is going long term and then how you can continue to innovate at these levels. And so it's more understanding that and a plotting that not critiquing that, but thank you for coming.

明白了，摩西。我並不是想讓你發表長篇大論，這是一種批評。我試著了解研發的長期發展方向，然後如何在這些層面上持續創新。因此，這更多的是理解和策劃，而不是批評，但還是感謝您的到來。

One more thing I wanted to tell you on this is coming with new products to the market, you need to take into consideration your existing portfolio. You don't want to cannibalize it too fast. So it all depend what do you bring and what kind of new indication or new procedure, how it will be in the full portfolio system. There's a lot of issues to be discussed and decide before we define what product you want to develop.

我想告訴你的另一件事是，當新產品推向市場時，你需要考慮現有的產品組合。你不想太快地蠶食它。所以這一切都取決於你帶來什麼、什麼樣的新適應症或新程序，以及它將如何融入完整的投資組合系統。在我們確定您想要開發什麼產品之前，還有很多問題需要討論和決定。

Let me add some color here at Jeff. Obviously, you can tell that the Moshe's got a lot of passion for this and he's engineer by trade and so what he's saying essentially is that we'll do what we need to do in order to get what we need to get. However, the measure, as he mentioned, shouldn't be from how much we're going to spend. It's more about what are we going to do? What do we need to do? I think there's a lot of companies that get into this and there's a reason that we were able to scoop up some of the IP from there will be right because they're no longer here.

讓我為傑夫添加一些色彩。顯然，你可以看出 Moshe 對此充滿熱情，而且他是一名工程師，所以他所說的本質上是，我們會做我們需要做的事情，以獲得我們需要得到的東西。然而，正如他所提到的，衡量標準不應該是我們要花多少錢。更重要的是我們要做什麼？我們需要做什麼？我認為有很多公司都涉足這個領域，我們之所以能夠從那裡獲得一些智慧財產權，是因為那些公司已經不存在了。

But I think for us, we've always been about saying power and longevity and so our engineering team is obviously strong, but we're not going to just multiply spending. I try to warn you guys that most of you have a problem with the word spending versus investing. Most of you will wholeheartedly invest when something makes sense. That's what we plan on doing in the women's health and wellness market.

但我認為對我們來說，我們一直在談論力量和長壽，所以我們的工程團隊顯然很強大，但我們不會只是增加支出。我想警告你們，大多數人對「支出」和「投資」這兩個詞有誤解。當某件事有意義時，大多數人都會全心全意地投資。這就是我們計劃在女性健康和保健市場所做的事情。

The next question is from Mike Matson with Needham & Company.

下一個問題來自 Needham & Company 的 Mike Matson。

Just on Envision, I think you talked about the dry eye FDA clearance coming in the third quarter. Can you just give us an update on that and how important is you driving sales in Envision?

就在 Envision 上，我想您談到了第三季即將獲得的乾眼症 FDA 批准。您能否向我們介紹最新情況，以及推動 Envision 的銷售有多重要？

Well, you're right. We thought that we will start the study on the third quarter. I hope it would be. We're in a very loud stage of the FDA approval of the protocol. We had, we did a pre-submission to the FDA with where we suggested this is the protocol. We had a long Zoom call with all the team in the FDA-ophthalmology department. We agreed on few things. They asked us to send a second version of the protocol, which were preparing right now. And, hopefully, by the end of this month, it will be filed with them and then, doing an IOP. So, sometime in the middle of this quarter, we already have the doctor that will do the study.

嗯，你說得對。我們認為我們將從第三季開始研究。我希望如此。我們正處於 FDA 批准協議的非常激烈的階段。我們已經向 FDA 進行了預先提交，並建議將此作為協議。我們與 FDA 眼科部門的所有團隊進行了長時間的 Zoom 通話。我們在一些事情上達成了一致。他們要求我們發送第二版協議，目前正在準備中。希望在本月底之前，可以將其提交給他們，然後進行 IOP。因此，在本季中期的某個時候，我們已經找到了進行這項研究的醫生。

Pilot study was done in Israel and other countries. We know that we know that it is working and we'll take it from there. And once we finished the study, we will submit to the FDA, hopefully, before the end of the year.

在以色列和其他國家進行了試點研究。我們知道它正在發揮作用，我們將從那裡開始。一旦我們完成研究，我們將提交給 FDA，希望在今年年底前。

And, do you think that that's an important feature to the ophthalmologist when they're considering whether or not to buy the product? Are they willing to buy it now with the knowledge that that's going to happen at some point in the 6- to 12-month period or something?

而且，您是否認為這對眼科醫生來說是一個重要的特徵，當他們考慮是否購買該產品時？他們是否願意現在就購買，並且知道這將在 6 到 12 個月內的某個時間點發生？

So what we've typically seen in the past with all of these technologies, not even just specific to the ophthalmology community, is that if you have physicians who are getting good results, they have apathy patients, and they're generating some good revenue from it, they do the selling for us. And it's just simply because they believe in it. They're doing well and as long as they're getting the results, which we are seeing 100%, they will do the job for us.

因此，我們過去通常看到的所有這些技術（甚至不僅僅特定於眼科學界）是，如果您的醫生獲得了良好的結果，他們擁有冷漠的患者，並且他們從中獲得了良好的收入，那麼他們就會為我們銷售產品。這只是因為他們相信它。他們做得很好，只要他們能取得成果，我們 100% 看到，他們就會為我們完成工作。

So, seeing that it's a little earlier, we do anticipate continuing some of the revenue growth and using it as a driver obviously here. But that's kind of the most important thing when you think about this is, okay, if we do launch something before, study like that that we were talking about, we're in the process of working and getting going. Do we have those other check marks, that we can put into place and as of this point, when I only see it getting better, we do.

因此，考慮到現在的時間稍早一些，我們確實預計部分收入將繼續成長，並且顯然會以此作為成長動力。但當你考慮到這一點時，這是最重要的事情，好吧，如果我們之前確實推出了一些東西，像我們正在談論的那樣進行研究，那麼我們正在努力並開始行動。我們是否有其他可以付諸實施的檢查標記，並且截至目前，我看到情況正在好轉，我們有。

One more thing I wanted to add here, which is important, and at the end of the day we're in a static company. So, every platform, including envision, will have some hand pieces to do aesthetic. So, the ophthalmologist can do periobital wrinkles with more views. You can do skin tightening or full (inaudible), which are approved indication by the FDA.

我想在這裡補充一點，這很重要，歸根結底，我們是一家靜態的公司。所以，每個平台，包括 Envision，都會有一些手工零件來實現美觀效果。因此，眼科醫生可以透過更多的觀察來治療眶週皺紋。您可以進行皮膚緊緻治療或全面（聽不清楚）治療，這些都是 FDA 批准的適應症。

So, for him, he has one modality to do dry eye, and 2 or 3 more modalities on the same platform to get more money from the customers, private money on, skin rejuvenation, full of face rejuvenation, periobital wrinkles etcetera. And the end of the day, it's a money machine.

因此，對他來說，他有一種治療乾眼症的方法，另外在同一個平台上還有另外 2 到 3 種方法從客戶那裡賺取更多的錢，私人資金、皮膚年輕化、全臉年輕化、眶週皺紋等等。最終，它就是一台賺錢機器。

And then just one of the things he called out in terms of increased sales marketing spending was DTC, how did you see a campaign, I guess. So, can you maybe just talk about that kind of where you're sending? Is it kind of social media, is it, so liberty, endorsement is it, I don't think you're doing the TV advertising, but maybe I missed that.

然後，在增加銷售行銷支出方面，他提到的一件事就是 DTC，我想，您是如何看待這項活動的？那麼，您能不能談談您要寄送的內容呢？它是一種社交媒體嗎？

Everywhere, everywhere. All the way from Billboard, to social media, website, B2B, B2C meetings with doctors, seminars, conferences, doctor conferences, study publication, everything.

到處都是。從公告牌到社交媒體、網站、B2B、B2C 與醫生的會議、研討會、會議、醫生會議、研究出版物，一切。

No TV advertising.

沒有電視廣告。

We typically choose to diversify what we do these things, and then we get a metric based on where we try and attempt to track what's being successful and where money is not being spent the right way, and then we double down in areas where we're seeing a good return.

我們通常會選擇多樣化我們所做的事情，然後根據我們嘗試追蹤哪些是成功的以及哪些錢沒有以正確的方式花來獲得一個指標，然後我們在看到良好回報的領域加倍努力。

And we do have random back to those ones.

我們確實隨機地回到那些。

The next question is from Ryan Barocas with SVB Securities (sic) [UBS.]

下一個問題來自 SVB Securities（原文如此）[瑞銀]的 Ryan Barocas。

Hey, this is Ryan Barocas from UBS on for Danielle today. Thanks for taking our questions. So first one from us here is on capital allocation. So congrats on the recent acquisitions of IV patents. Just wanted to get an update on your capital allocation priorities as a whole. Is your appetite still as high as it's been in recent quarters despite these patent acquisitions and can we expect more IP and smaller type deals or is it still possible? We see a larger size deal in the near future.

嘿，我是瑞銀的 Ryan Barocas，今天為丹妮爾主持節目。感謝您回答我們的問題。因此，我們首先要討論的是資本配置。恭喜您最近獲得 IV 專利。只是想了解你們整體的資本配置優先事項的最新情況。儘管進行了這些專利收購，您的興趣仍然像最近幾季一樣高？我們看到不久的將來會有更大規模的交易。

Well, I would say 2 things. One, if the opportunity will present itself to buy more IP which relates to our business and enhance our IP portfolio position, we will do it. We did one license with the University of California on something which also relate to women health. We bought the entire portfolio of (inaudible) not for big money. So, it's not something that we need tens of millions of dollars. We will not -- we will not spend that kind.

嗯，我想說兩件事。第一，如果有機會購買更多與我們的業務相關的智慧財產權並增強我們的智慧財產權組合地位，我們就會這麼做。我們與加州大學簽署了一份與婦女健康相關的許可。我們買了（聽不清楚）整個投資組合，不是為了花大錢。所以，這並不是我們需要數千萬美元的事情。我們不會——我們不會花那麼多錢。

Now regarding capital allocation, we are exploring all the time M&A opportunities. We are currently working with few banks. None of them exclusive, none of them exclusive. We open it to every bank who can come up with something. We do a quick check and if something looks okay to us, we will we will continue to search and explore and do some diligence. I cannot report on something that will happen in the next month or 2, but this is the plan.

現在關於資本配置，我們一直在探索併購機會。我們目前正在與幾家銀行合作。它們都不是獨有的，它們都不是獨有的。我們向所有能提出相關想法的銀行開放這項服務。我們會進行快速檢查，如果看起來沒問題，我們就會繼續搜尋和探索，並做一些盡職調查。我無法報告未來一兩個月內會發生的事情，但這是計劃。

And then one last one for me on the capital environment and potential upgrades for new technology for your customers. So we've heard from other capital intensive companies highlight a higher mix of leasing as a percent of their system placements. Just curious if you're seeing the same dynamic and then with the new technologies for your customers on these leasing arrangements, are there technology obsolescence clauses that would allow customers to upgrade to your new technology over the next 12 months? Or would this just be a simple software update on existing systems in the field for customers to access this new technology?

最後一個問題是關於資本環境以及為您的客戶提供新技術的潛在升級。因此，我們從其他資本密集型公司那裡聽說，租賃在其係統配置中所佔的比例更高。我只是好奇，如果您看到了相同的動態，那麼在這些租賃安排中為您的客戶提供新技術時，是否有技術過時條款，允許客戶在未來 12 個月內升級到您的新技術？或者這只是對現場現有系統進行簡單的軟體更新，以便客戶可以使用這項新技術？

So, we haven't, as far as the environment goes, I touched on that earlier from the leasing perspective, that nothing's really changed in terms of what percentage is financed or leasing companies versus, cash deals, so on and so forth. It's pretty much status quo. So hopefully that handles that better for you. But when it comes down to the actual leasing side of things, your average lease is about 5 years on average. And so by that time, because, as Moshe had mentioned earlier, we introduced, we're trying to introduce at least 2 platforms or upgrades to the market every year. We're well ahead of that.

因此，就環境而言，我之前從租賃的角度提到過，融資或租賃公司與現金交易等所佔比例並沒有發生什麼變化。這幾乎就是現狀。希望這能幫助您更好地解決這個問題。但當涉及實際租賃方面時，平均租賃期約為 5 年。所以到那個時候，正如 Moshe 之前提到的，我們每年都會嘗試向市場推出至少 2 個平台或升級。我們已經領先很多了。

In terms of devices that positions currently own or currently leased, we've actually been the one company that, at least to my knowledge, that's gone in and several times we've provided certain upgrades for software at no cost, things like that. If there's hardware, we might have a certain cost to it, but we're very fairly priced, I believe, based on the history of this market.

就職位目前擁有或租賃的設備而言，實際上，至少據我所知，我們是唯一一家這樣做的公司，我們已經多次免費提供某些軟體升級等。如果有硬件，我們可能會產生一定的成本，但我相信，根據這個市場的歷史，我們的定價是非常公平的。

So from that perspective, when you look at the leasing side of things, these, thankfully, the way that (inaudible) and his engineering team design these things, they're pretty stable. So, at least from a service standpoint, it's not an issue, but in terms of obsolescence, there's always a way for us to upgrade or add on. But as I mentioned, by the time a physician is done with their 5-year lease, they're ready to move on to another piece of technology. And our goal is to obviously, as I mentioned earlier, provide them with the tools and new technologies and innovations that they can actually add into their practices to better their treatment outcomes and revenue results from these devices. Does that make sense?

因此從這個角度來看，當你看一下租賃方面的事情時，幸運的是，（聽不清楚）和他的工程團隊設計這些東西的方式非常穩定。因此，至少從服務的角度來看，這不是問題，但就過時而言，我們總有辦法升級或添加。但正如我所提到的，當醫生的五年租約結束後，他們就準備轉向另一項技術了。正如我之前提到的，我們的目標顯然是為他們提供工具、新技術和創新，讓他們可以實際添加到他們的實踐中，以改善他們的治療結果並從這些設備中獲得收入。這樣有道理嗎？

This concludes the question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, Chairman and CEO, for any closing remarks.

問答環節到此結束。我想將會議交還給董事長兼執行長 Moshe Mizrahy，請他作最後發言。

Thank you, operator. Thanks to all the team that were with me in this call. I want to thank again to all of our employees and their families around the world. I want to thank all of our shareholders. Some of them have been with us for many years. We really appreciate that. I want to thank all of our suppliers, subcontractors, everybody that work with us that bring us to this to this success. Without them we cannot do it. Hopefully we'll see all of you in the next earning call. Thank you and goodbye.

謝謝您，接線生。感謝與我一起參加此次通話的所有團隊。我要再次感謝我們在世界各地的所有員工和他們的家人。我要感謝我們所有的股東。他們中的一些人已經和我們在一起很多年了。我們對此深表感激。我要感謝我們所有的供應商、分包商以及與我們合作的所有人，是他們讓我們取得了這樣的成功。沒有他們我們就無法做到這一點。希望我們能在下次財報電話會議中見到大家。謝謝你，再見。

The conference has now concluded and thank you for attending today's presentation. You may now disconnect.

會議現已結束，感謝您參加今天的演講。您現在可以斷開連線。