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.

美好的一天，歡迎參加 InMode 2023 年第二季度盈利結果電話會議。所有參與者都將處於僅聽模式。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）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.

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.

感謝運營商和大家今天加入我們。歡迎參加 InMode 2023 年第二季度財報電話會議。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信息可能包含前瞻性陳述，今天的收益發布中概述的安全港聲明也適用於本次電話會議。如果您尚未收到新聞稿副本，請訪問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.

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

業務、競爭、技術、監管和其他因素的變化可能導致實際結果與今天前瞻性陳述所表達的結果存在重大差異。我們的歷史結果並不一定代表未來的表現。因此，我們無法保證前瞻性陳述的準確性，也不承擔更新前瞻性陳述的義務，除非法律要求。

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.

謝謝你，米里和大家加入我們。今天與我在一起的有我們的聯合創始人兼首席技術官 Michael Kreindel 博士； Yair Malca，我們的首席財務官； Shakil Lakhani，我們的北美總裁； Spero Theodorou 博士，我們的首席醫療官；以及我們的財務副總裁 Rafael Lickerman。在我們準備好的發言之後，我們將可以回答您的問題。

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.

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.

我們很高興地報告各方面都創紀錄的季度業績。我們宣布收入達到創紀錄的 1.361 億美元，與 2022 年第二季度相比增長 20%。我們平台的銷量達到 1,600 多件，一次性用品銷量總計超過 270,000 件，創公司歷史最高紀錄。

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.

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.

作為我們持續全球擴張的一部分，我們在第二季度設立了兩家新子公司，一家在日本，一家在德國。我們的理念和戰略是在我們認為應該直接而不是通過分銷商進行銷售的國家/地區建立子公司。

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.

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

目前，InMode 是該領域僅有的幾家其創始人仍積極參與管理和所有權的公司之一，我相信我們的大力參與和承諾是 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帶來穩固的品牌認知度。

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.

感謝摩西和大家加入我們。我們很高興地報告第二季度創歷史新高，同時消費品銷售也出現顯著增長。消耗品及服務收入同比增長近44%。這強烈表明我們的平台被更頻繁地使用，意味著持續的需求和品牌認知度的提高。

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.

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

我們的非手術眼科平台 Envision 在北美獲得了巨大的關注。我們計劃繼續聘請特定產品的銷售代表，以擴大對眼科市場的滲透。 Morpheus8 仍然是我們的領先技術。總體而言，品牌、患者需求和出色的效果使該產品獨樹一幟。最後，我要感謝我們整個北美團隊的持續辛勤工作。

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，沙基爾，大家好。再次感謝您加入我們。 InMode 在 2023 年第二季度創造了創紀錄的 1.361 億美元收入，同比增長 20%，按 GAAP 計算毛利率為 84%。第二季度美國以外地區的銷售額為 4,950 萬美元，而去年第二季度為 4,120 萬美元。我們繼續看到來自全球不同地區的增長，第二季度，亞洲的銷售額創下新紀錄。

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%.

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.

為了支持我們的運營和增長，InMode 目前在全球 92 個國家/地區開展業務，銷售團隊由超過 264 名直銷代表和 81 名經銷商組成。第二季度資本設備佔總收入的84%，消耗品和服務收入佔剩餘的16%。

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.

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.

第二季度銷售和營銷費用增至 5110 萬美元，而去年同期為 3970 萬美元。這一增長歸因於新銷售代表的增加，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，以支持公司的增長預測。

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.

I will now turn over the call back to Moshe.

2023 年第二季度服務薪酬為 650 萬美元，較 2022 年第二季度的 640 萬美元略有增長。第二季度 GAAP 運營費用為 5700 萬美元，同比增長 26%。按非公認會計原則計算，第二季度運營費用為 5110 萬美元，而 2022 年同一季度的運營費用總計為 3950 萬美元，增長 29%。

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。我確信他們中的大多數人和其中一些人今天都在聽我們的講話。這一點很重要。

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

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

我們現在開始問答環節。 （操作員說明）第一個問題來自 Jefferies 的 Matt Taylor。請繼續。

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?

早上好。這是（聽不清）針對馬特的。感謝您回答我的問題，並祝賀您度過了一個愉快的季度。首先我想開始——消耗品繼續保持強勁增長。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，並可能評論一下您在 7 月迄今為止所看到的情況？

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.

嗯，嗨，馬特。這是摩西。就耗材和耗材的使用而言，本季度初看起來很強勁，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。他們在夏季之前就這樣做了，這就是為什麼第二季度一次性使用量非常強勁，這意味著完成了更多的手術。

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.

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?

談到您銷售的系統數量，我希望您也能給我們介紹資本設備環境的最新情況，也許只是評論一下您在需求趨勢方面所看到的情況，您是否看到了任何變化？醫生為這些系統提供資金的能力是否會發生微小變化，特別是隨著費率持續上升？

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

好的。我會請沙克代表北美地區作答，然後我會補充一些內容。沙克，請。

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增加。我們還沒有看到對需求的太大影響，這很好，但我們在獲取其他幾個來源方面有了一些創意。我們努力在比賽中取得領先。我們每四五年就會看到這種情況發生一次。有些事情往往會像這樣出現，但這就是我們如何應對它的方法。

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.

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.

因此，我們肯定已經研究了其他一些來源，這並沒有顯著減緩事情的進展，但事情有點——很多再融資公司正在尋找更多的信息，這是我們過去不會做的事情，但我們已經實施了一個流程，以便我們可以保持船舶順利航行。

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，通過租賃套餐購買系統的醫生數量並不像美國那麼多。但我們從今年年初就設法做到了，我們在歐洲有一家銀行，現在正在與各個國家合作，為每個國家製定租賃方案。我們從西班牙開始，然後去意大利和我們所有的子公司，我們可能還有一些經銷商。因此，與 2022 年第二季度相比，本季度 OW 增長了 21%。我認為融資仍然是一個問題，尤其是在利率較高的情況下，但我們管理得很好。

The next question is from Matt Miksic with Barclays.

下一個問題來自巴克萊銀行的馬特·米克西奇。請繼續。

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，有幾個問題。因此，我們首先要跟踪當前市場的基調，但更具體地說，是跟踪下半年系統銷售的季節性節奏。如果您能給我們任何感覺，第二季度的實力是否在第三季度有所緩解，並在第四季度反彈，或者任何顏色，無論是區域性的還是跨您可以提供的不同系統，以及一些支出和投資例如，你在眼科領域所做的事情，以及進入新的專業領域。我確信，不是在詳細討論 2024 年，但我們是否應該預期這些支出水平將持續到年底並持續到 2024 年，或者您可以提供任何顏色嗎？如果可以的話，我會進行快速跟進。

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。那麼醫美、美容外科行業有一定的季節性。雖然在2021年和2020年，僅僅因為新冠疫情，我們沒有看到同樣的季節性。例如，2020 年第二季度由於新冠疫情的影響，是一個非常艱難的季度，我們表現不佳。但一切，當我們開始時，當第三季度市場開盤時，相對來說應該是夏季，速度較慢，我們看到了一個很大的跳躍。 2020-2022年也是如此，只是因為新冠疫情，我們沒有經歷同樣的季節性。這就是我們需要說的。

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.

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?

但總體而言，2023 年，我相信季節性將會回歸。而醫美中的季節性通常是Q1比較軟，Q軟。Q2比較強。 Q3，因為是夏季，歐洲和美國，歐洲和美國慢一點；儘管亞洲和拉丁美洲沒有經歷完全相同的季節性。對於他們來說，Q3是比較強勢的。第四季度對於所有地區、所有地區來說都是一個強勁的季度。

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.

好，當然。因此，正如 Moshe 所說，第三季度通常是在我們清理漏斗之後，7 月的前幾周和第一周，基本上是 7 月的前兩到四個星期，我們就開始建立備份渠道。話雖這麼說，正如 Moshe 提到的，我們有點難以向您提供任何有關事情進展的信息。這就是我們——我們管理團隊中的許多人在該行業擁有超過 15、20 年的經驗。

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.

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?

所以我們已經習慣了，但就像 Moshe 在談到新冠疫情時所說的那樣，我們不知道第三季度會發生什麼，會比第二季度更強，我認為這在很多地方都沒有真正發生。但我們認為總體需求（至少在北美）比以往任何時候都強勁。正如我之前提到的，產品和品牌知名度肯定會有所幫助。而且，你會問關於設想和持續支出的問題，摩西不喜歡使用“支出”這個詞。他喜歡使用“投資”這個詞，並做出改進“花錢”。

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…

只是，聽起來我們應該預計這些事情將在這些業務背後持續到 2024 年，因為我們知道你不會屈服……

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。不要忘記，眼科平台已在加拿大推出，現在在美國進行軟啟動，但我們還沒有在 ROW 啟動，其他地區也沒有啟動，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.

後續行動剛剛開始，您之前已經談到了競爭環境。希望您能了解最新情況，了解您所看到的內容，您期望看到的內容，是否有需求，您是否需要比一兩年前更多或更少地為之奮鬥，任何您在那里分享的顏色會有幫助。

Shakil, I believe you should answer that.

沙基爾，我相信你應該回答這個問題。

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，我認為他有連接問題，所以我會處理這個問題。就競爭而言，是的，就競爭而言，是的，我不會說這很容易，或者我認為這永遠不會容易。如果真的發生了，我相信我們都會對此感到非常高興。但是，正如我所提到的，我們確實在品牌知名度方面進行了投資，我想說，這讓事情變得更容易了。

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.

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.

許多競爭對手將採取不同的策略，每個人都將繼續推銷競爭以提高意識。因此，我們的理念是，如果每個人都在我們的業務中表現出色，那麼對每個人都更好，而不是採取不同的方法試圖擊敗一個巨頭，而許多競爭對手都試圖這樣做。但這只是——這不是我們處理事情的方式。

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.

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.

所以從我們的角度來看，這個行業做得越好，它就越好，我們感覺消費者的需求，但也加上職位需求，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、收入等等。等等，我們將繼續推動這項業務，我們有責任繼續創新，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。

The next question is from Caitlin Cronin with Canaccord Genuity.

下一個問題來自（聽不清）Canaccord Genuity。請繼續。

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?

大家好。這是凱拉·羅斯的凱特琳，祝賀這個季度的出色表現。只是幾個問題。從 Empower 開始，後續發布進展如何？預期有何更新？您是否已開始僱用任何 Empower 特定代表？我們從 OUS 啟動和批准的角度出發？我有後續行動嗎？

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 正在成長。 Empower 的銷量正在增長。我們不會確切地公佈數字，因為現在我們還沒有準備好這樣做。但我們也看到 Empower 平台出現了一些增長。

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.

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.

關於 SUI 的適應症，我們與 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。我們將向他們反饋結果以最終確定協議，希望在今年年底之前完成。然後我們將向 IRB 提交申請，以便在美國進行這項研究，當然，在獲得 FDA 批准的情況下，我們將進行這項研究。所以我認為我們不應該看到 - 在 2024 年底之前我們不會看到任何許可，但我們確實在平台上對 Viton 進行了所有類型女性健康指示的許可，目前我們正在通過這些平台營銷這些平台指示。

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.

凱特琳只是補充一下摩西所說的，我們注意到的一件事是，很多競爭對手都有，我們過去也討論過這一點，但他們已經退出了市場，並且所以我們確實看到這是一個很好的小開頭，我們正在嘗試利用這一點，但再次以摩西提到的正確方式來做。

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

太棒了，然後我想問一個關於 eoke 的簡單問題，您想要下一代產品嗎？謝謝。

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，我們開發了具有額外動力和額外能量的下一代，我想說的是能量，不同的能量。它還沒有上市。我們現在正在敲定產品的最後一個微調。希望它能在本季度投入生產，我們可能會在今年年底的某個時候推出。

The next question is from Jeff Johnson with Baird.

下一個問題是 Jeff Johnson 和 Baird 提出的。

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兩三個。國際單位銷量 966 絕對是一個強勁的數字。那裡的任何東西在本質上都是直接的，聽起來像日本，我想你說的是我寫下的另一個市場，我現在可以，但是那個市場有沒有庫存，那裡有嗎？任何有庫存的新經銷商或 966 個乾淨數字，如果是這樣，我們傾向於將第四季度視為每年的峰值，如果我們認為進入第四季度時您仍然可以銷售超過 966 個單位今年第二季度再次出現強勁數字？

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.

國際市場並不是一個市場。在國際市場上，我們需要與27種語言和超過27個監管機構打交道，一些針對一個國家的主張並不適用於另一國家，並且一些產品由於監管問題需要進行一些修改。因此，與國際市場打交道是一個國家一個國家、一個地區一個地區的過程。

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.

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.

我們目前在亞洲大力投資，開展大量營銷活動和培訓，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。對於醫療美容來說，這通常是一個很好的市場，我們在日本的經銷商做得很好，但並不像我們預期的那樣。

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.

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.

所以日本將是另一個國家——此外，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，我們在新冠疫情之前就已經建立了這家公司，但由於新冠疫情我們沒有運營它，沒有人可以已經去過中國了。因此，現在我們正在考慮除了與分銷商合作之外，我們還可以考慮如何直接進行分銷，因為在中國你不能只使用一種分銷方式。這是一個非常複雜的國家，取決於領土。即使在中國，你也需要了解五種不同的語言和五種不同的操作方式，但我們正在密切關注。

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.

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.

拉丁美洲，我們再次對所有國家進行投資。今年我們將在10月在聖保羅首次使用拉丁美洲的500名醫生會議，這是非常重要的。我們現在覆蓋全國，包括拉丁美洲的九個國家。我們一個月前簽署了最後一份合同，我們正在逐個國家再次製定監管規定，因為巴西的簽證規定與哥倫比亞的規定不同。而且你必須單獨與每個監管組織或監管機構打交道。

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，從我們開設子公司的那一刻到我們開始看到重大貢獻的那一刻，通常需要一些時間。所以回答你的問題，傑夫，國際市場上沒有一次性的，或者在第二季度根本沒有。這都是正常的業務過程。

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。所以恭喜你。然後，我不知道 Spiro 是否能夠重新連接或 [Dr.克蘭德爾]，也許這適合你，我不確定。但我只是想確保我了解這裡的女性醫療保健策略。我覺得我的理解在這個問題上來回反復了好幾次。我想當我們一兩個月前在邁阿密談話時，焦點仍將主要集中在非報銷方面的現金支付婦女醫療保健上。我知道您現在正在進行概念驗證研究，SUI，您顯然是通過這些專利獲得的。

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?

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，我們希望找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，我們正在努力這樣做，但要為您和失禁患者獲得 FDA 批准是一個漫長的過程。當迄今為止所有公司都失敗時，包括 Viveve，在花費了 2.5 億美元之後，他們破產了，而我們正在購買，我們只是購買了他們的 IP。

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.

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，我想跟進一下，Viveve 花費的 2.5 億美元，我的意思是，您正在花費，我面前沒有您的模型，但每年的研發費用約為 1500 萬美元。是否有一個數字必須比 1500 萬美元大很多，即使它不是 [250] 來追求 SUI，或者這可以在研發收入中低到中個位數百分比的某個地方完成嗎？未來幾年的支出？

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.

我們不會在研發上省錢。我們不會在研發上省錢。我們需要多少就花多少。再僱用 25 名工程師並不會給我們帶來更高的生產力。我們在以色列有一支優秀的工程團隊，涵蓋電子工程、軟件工程、臨床工程、機械工程、法規等等，你可以自己判斷。

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.

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.

在過去的兩年裡，我們向市場推出的產品數量超過了整個行業的總和，我們每年都會推出兩個平台，正如我在未來 12 個月的演講中所說，我們將在以下方面推出四項新技術：現有技術升級或一些新的。我們將繼續這樣做。

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.

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.

我不明白為什麼人們用支出或銷售額的百分比來衡量研發。這不是正確的測量方法。衡量R&D的標準應該是R&D的生產率。我認為，在過去的四、五年裡，我們以最好的產品進入市場，即使其中一個產品成功進入市場，但我們確實沒有失敗，我們也沒有失敗。

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。我並不是想讓你上台演講，這是一種批評。我試圖了解研發的長期發展方向，以及如何在這些層面上繼續創新。所以這是更多的理解和策劃，而不是批評這一點，但謝謝你的到來。

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.

我想告訴您的另一件事是，隨著新產品上市，您需要考慮您現有的產品組合。你不想太快地蠶食它。因此，這完全取決於您帶來什麼以及什麼樣的新適應症或新程序，以及它將如何在完整的投資組合系統中。在我們定義您想要開發的產品之前，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.

讓我在傑夫這裡添加一些顏色。顯然，你可以看出 Moshe 對此充滿熱情，而且他是一名工程師，所以他的意思本質上是我們將做我們需要做的事情，以獲得我們需要得到的東西。然而，正如他提到的，衡量標準不應該是我們要花多少錢。更多的是我們要做什麼？我們需要做什麼？我認為有很多公司涉足這一領域，我們能夠從那裡獲取一些知識產權是有原因的，因為它們已經不在這裡了。

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.

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

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

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度 FDA 批准乾眼症的情況。您能否向我們介紹一下最新情況以及您對推動 Envision 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，你是對的。我們認為我們會在第三季度開始研究。我希望如此。我們正處於 FDA 批准該協議的非常激烈的階段。我們已經向 FDA 進行了預提交，其中我們建議這是協議。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。希望在本月底之前將其提交給他們，然後進行 IOP。因此，在本季度中期的某個時候，我們已經有了將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.

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，您認為當眼科醫生考慮是否購買該產品時，這是一個重要的特徵嗎？他們是否願意現在購買它，因為他們知道這將在 6 到 12 個月期間的某個時候發生？

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，甚至不僅僅是眼科界特有的技術，是如果你的醫生取得了良好的結果，他們就有冷漠的患者，並且他們正在產生一些不錯的收入他們從中為我們進行銷售。這只是因為他們相信這一點。他們做得很好，只要他們得到了我們 100% 看到的結果，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.

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.

我想在這裡補充一件事，這很重要，歸根結底，我們是在一家靜態公司。所以，每個平台，包括envision，都會有一些手件來做美化。所以，眼科醫生可以用更多的視野來做眶週皺紋治療。您可以進行皮膚緊緻或全面（聽不清），這是 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.

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，他在增加銷售營銷支出方面提出的其中一件事就是 DTC，我猜你如何看待一場活動。那麼，您能談談您要發送到的地方嗎？這是一種社交媒體嗎？是嗎？自由、認可就是這樣，我不認為你在做電視廣告，但也許我錯過了。

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

無處不在，無​​處不在。從廣告牌到社交媒體、網站、B2B、B2C 與醫生的會議、研討會、會議、醫生大會、研究出版物，一切應有盡有。

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.

我們通常選擇使我們做這些事情的方式多樣化，然後我們根據我們嘗試和嘗試跟踪哪些方面是成功的以及哪些資金沒有以正確的方式使用來獲得一個指標，然後我們在我們需要的領域加倍努力。看到了良好的回報。

And we do have random back to those ones.

我們確實有隨機返回這些內容。

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

下一個問題來自 SVB 證券的瑞安·巴羅卡斯 (Ryan Barokas)。請繼續。

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 (UBS) 的瑞恩·巴羅卡斯 (Ryan Barokas)，今天為丹妮爾 (Danielle) 發言。感謝您回答我們的問題。我們這裡的第一個問題是關於資本配置。祝賀您最近獲得了 IV 專利。只是想了解您的整體資本分配優先事項的最新情況。儘管進行了這些專利收購，您的興趣是否仍然像最近幾個季度一樣高？我們是否可以期待更多的知識產權和較小類型的交易，或者仍然有可能嗎？我們預計在不久的將來會有規模更大的交易。

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.

好吧，我想說兩件事。第一，如果有機會購買更多與我們業務相關的知識產權並增強我們的知識產權組合地位，我們就會這樣做。我們與加州大學獲得了一項與女性健康相關的許可。我們購買了整個投資組合（聽不清），但花的錢並不多。所以，這不是我們需要數千萬美元的事情。我們不會——我們不會花那樣的錢。

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.

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?

謝謝 Moshe，然後為我介紹最後一篇關於資本環境和為您的客戶提供新技術的潛在升級的文章。因此，我們從其他資本密集型公司那裡聽說，強調租賃在其係統佈局中所佔的比例更高。只是好奇您是否看到同樣的動態，然後在這些租賃安排中為您的客戶提供新技術，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件更新，以便客戶訪問這項新技術？非常感謝。

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談到了這一點，就融資或租賃公司與現金交易等的百分比而言，沒有任何真正改變。這幾乎是現狀。所以希望這對你來說能更好地處理這個問題。但當涉及到實際的租賃方面時，您的平均租賃期約為五年。所以到那時，因為正如 Moshe 之前提到的，我們介紹過，我們每年都會嘗試向市場推出至少兩個平台或升級。我們已經遠遠領先了。

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.

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?

就目前擁有或當前租賃的設備而言，至少據我所知，我們實際上是一家已經進入並多次免費提供某些軟件升級的公司，諸如此類。如果有硬件，我們可能會付出一定的成本，但我相信，根據這個市場的歷史，我們的定價非常公平。

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.

當然。問答環節到此結束。我想將會議轉回主席兼首席執行官 Moshe Mizrahy 發表閉幕詞。

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.

謝謝你，接線員。感謝參與這次通話的所有團隊。我要再次感謝我們在世界各地的所有員工及其家人。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。我們真的很感激。我要感謝我們所有的供應商、分包商以及所有與我們合作的人，他們使我們取得了今天的成功。沒有他們我們就無法做到這一點。希望我們能在下一次財報電話會議上見到大家。謝謝，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，感謝大家參加今天的演講。您現在可以斷開連接。