Inmode Ltd (INMD) 2024 Q2 法說會逐字稿

Good day, and welcome, to Inmode second quarter 2024 earnings results conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Miri Segal, CEO of MS-IR. Please go ahead.

美好的一天，歡迎參加 Inmode 2024 年第二季財報電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議交給 MS-IR 執行長 Miri Segal。請繼續。

Thank you, operator, and everyone for joining us today. Welcome to InMode conference 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.

感謝運營商以及大家今天加入我們。歡迎參加 InMode 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，並且今天的收益發布中概述的安全港聲明也與本次電話會議有關。

If you have not received a copy of the release, please visit the Investor Relations section of the company's IR website. Changes in business, competitive, technological, regulatory and other factors could cause actual results differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance.

如果您尚未收到新聞稿副本，請造訪公司投資者關係網站的投資者關係部分。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有重大差異。我們的歷史結果不一定代表未來的表現。

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.

因此，我們無法保證前瞻性陳述的準確性，並且不承擔更新前瞻性聲明的義務，除非法律要求。

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

說到這裡，我想將電話轉接給 Inmode 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 CFO; Shakil Lakhani, our President in North America; our Medical Director and VP of Medical Affairs, Dr. Eran Krieger; and Rafael Lickerman, our VP of Finance.

謝謝你，米里，也謝謝大家加入我們。今天與我在一起的有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；我們的醫療總監兼醫療事務副總裁 Eran Krieger 博士；以及我們的財務副總裁 Rafael Lickerman。

Following our prepared remarks, we will all be available for question and answer. I would like to highlight and to highlight the development of the second quarter. As we previously mentioned, in Q1, we launched our two new advanced platforms, IgniteRF and Optimus Max.

在我們準備好的發言之後，我們都可以接受提問和回答。我想強調並強調第二季的發展。正如我們之前提到的，在第一季度，我們推出了兩個新的高級平台：IgniteRF 和 Optimus Max。

We are happy to report that we have began deliveries of both platforms, and we believe we are on track to complete deliveries of preorders before the end of the year. We're happy to see strong demand, and we believe that these innovative platforms that offer several technologies and handpieces will be solid contributor in the coming year.

我們很高興地報告，我們已經開始交付這兩個平台，我們相信我們預計在年底前完成預購訂單的交付。我們很高興看到強勁的需求，我們相信這些提供多種技術和手機的創新平台將在未來一年做出堅實的貢獻。

Once again, IgniteRF is the next generation of our legacy RFAL technology, a minimally invasive platforms with the new Morpheus8 BURST handpiece and all the new QuantumRF, a new version, minimally invasive static surgical procedure in a box. The QuantumRF handpiece has been recently cleared by the FDA.

IgniteRF 再次成為我們傳統 RFAL 技術的下一代，這是一個微創平台，配備新的 Morpheus8 BURST 手機和所有新的 QuantumRF，這是一種新版本的盒裝微創靜態手術程序。QuantumRF 手機最近已獲得 FDA 批准。

With the Ignite physician may adjust the depth of the power, allowing for more effective treatment in less time. These feature are highly valued by physicians that aspire to shorten treatment time while achieving good results.

透過 Ignite，醫生可以調整功率的深度，從而在更短的時間內實現更有效的治療。這些功能受到渴望縮短治療時間同時取得良好效果的醫師的高度重視。

The Optimus Max is a multi-application platforms with Morpheus8, noninvasive RF handpieces, IPL and laser-based treatment. It is most complicated device we have ever manufactured, and it has many features that doctors and patient desire, such as the ability to deliver different energy levels at various depth, allowing for stronger results in less time and with less discomfort.

Optimus Max 是一個多應用平台，配備 Morpheus8、非侵入性射頻手機、IPL 和雷射治療。它是我們製造過的最複雜的設備，並且具有醫生和患者期望的許多功能，例如能夠在不同深度提供不同能量水平，從而在更短的時間內獲得更強的結果，並減少不適。

The macroeconomics trend that we discussed on our last call impacted the market demand as well as our financial results. The second quarter was a challenging one for us and for the aesthetic doctors. We have seen a major decrease in demand for treatment, mainly in the US. Our Israeli team working longer shift to ensure we maintain our commitment to timely delivery.

我們在上次電話會議中討論的宏觀經濟趨勢影響了市場需求以及我們的財務表現。第二季度對我們和美容醫生來說都是充滿挑戰的。我們看到治療需求大幅下降，主要是在美國。我們的以色列團隊工作時間更長，以確保我們履行及時交付的承諾。

Their dedication and hard work are crucial to our success while maintaining our leadership position in the market. Earlier this month, we were happy to update our FDA cleared Morpheus8 for contraction, soft tissue, the first and only of its kind. Our Morpheus8 treatment as become the gold standard in aesthetic treatment and our most popular technology.

他們的奉獻精神和辛勤工作對於我們的成功以及保持我們在市場中的領導至關重要。本月早些時候，我們很高興地更新了 FDA 批准的 Morpheus8 用於收縮、軟組織的情況，這是同類產品中第一個也是唯一一個。我們的 Morpheus8 療程已成為美容療程的黃金標準和我們最受歡迎的技術。

Additionally, we need the new indication enable petitioner to expand their patient base. We continue to invest in R&D to provide medical professional with the advancement they need to deliver the highest quality of care to achieve best results.

此外，我們需要新的適應症使申請人能夠擴大其患者基礎。我們繼續投資於研發，為醫療專業人員提供所需的進步，以提供最高品質的護理，以實現最佳結果。

On the corporate level, I'm pleased to introduce Dr. Eran Krieger, as our Medical Director and VP of Medical Affairs.

在公司層面，我很高興地介紹 Eran Krieger 博士，他是我們的醫療總監兼醫療事務副總裁。

Dr. Krieger joined the company -- join InMode four years ago. He has 30 years of experience in medical aesthetic and has worked for several Italian and Israeli companies in the field. I would like to thank Dr. Spero Theodorou, for his time with InMode and wish him best of luck in his future.

Krieger 博士四年前加入公司——加入 InMode。他擁有30年的醫學美容經驗，曾在該領域的多家義大利和以色列公司工作。我要感謝 Spero Theodorou 博士在 InMode 度過的時光，並祝他未來一切順利。

Now, I would like to turn the call over to Yair Malca, our CFO.

現在，我想將電話轉給我們的財務長 Yair Malca。

Thank you, Moshe, and hello, everyone. Thank you for joining us. As Moshe mentioned, we launched two new platforms back in Q1 and started selling them on a preorder basis. Once again, the sales that had not yet been delivered could not be recognized as revenue.

謝謝你，摩西，大家好。感謝您加入我們。正如 Moshe 所提到的，我們在第一季推出了兩個新平台，並開始以預訂的方式銷售它們。再次強調，尚未交付的銷售額不能確認為收入。

So therefore, we continue to provide pro forma results, which adds to the non-GAAP results, the preorder sales and related expenses. We believe the pro forma results better reflect our business activity during the quarter.

因此，我們繼續提供預期結果，其中包括非公認會計準則結果、預購銷售和相關費用。我們相信預計業績更能反映了我們本季的業務活動。

Starting with total revenue, InMode generated $86.4 million in the second quarter of 2024. However, pro forma revenue was $102.6 million, which includes preorders of new platforms not yet delivered. GAAP gross margin in Q2 was 80% and non-GAAP gross margin was 81%. While pro forma gross margin was 82% compared to 84% in Q2 of 2023. In Q2, our minimally invasive technology platforms accounted for 87% of total revenue.

從總收入開始，InMode 在 2024 年第二季實現了 8,640 萬美元的收入。然而，預計收入為 1.026 億美元，其中包括尚未交付的新平台的預訂。第二季 GAAP 毛利率為 80%，非 GAAP 毛利率為 81%。預計毛利率為 82%，而 2023 年第二季為 84%。第二季度，我們的微創技術平台佔總營收的87%。

Moving to our international operations, second quarter sales outside the US accounted for $40.9 million, representing 47% of total sales, a 17% decrease compared to Q2 last year. In Q2, Europe was the largest revenue contributor from outside the US to support our operations and to ensure future growth, we currently have a sales team of more than 250 direct reps and 83 distributors worldwide.

轉向我們的國際業務，第二季美國以外的銷售額為 4,090 萬美元，佔總銷售額的 47%，比去年第二季下降 17%。第二季度，歐洲是美國以外最大的收入貢獻者，為支持我們的營運並確保未來的成長，我們目前在全球擁有一支由 250 多名直接代表和 83 名經銷商組成的銷售團隊。

GAAP operating expenses in the second quarter were $51 million, an 11% decrease year-over-year. Sales and marketing expenses decreased to $45.1 million in the second quarter compared to $51.1 million in the same period last year. This decrease is due to the revenue shortfall in Q2 of 2024.

第二季 GAAP 營運費用為 5,100 萬美元，年減 11%。第二季銷售和行銷費用下降至 4,510 萬美元，去年同期為 5,110 萬美元。這一下降是由於 2024 年第二季的收入短缺所致。

Next, we looked at share-based compensation, which decreased to $5.2 million in the second quarter of 2024. GAAP operating margin for Q2 was 21% compared to an operating margin of 42% in the second quarter of 2023.

接下來，我們研究了基於股份的薪酬，該薪酬在 2024 年第二季降至 520 萬美元。第二季的 GAAP 營業利潤率為 21%，而 2023 年第二季的營業利潤率為 42%。

Non-GAAP operating margin for the second quarter was 27% and pro forma operating margin was 34% compared to a non-GAAP operating margin of 47% in the second quarter of 2023. GAAP diluted earnings per share for the second quarter were $0.28 compared to $0.65 per diluted share in Q2 of 2023. Non-GAAP diluted earnings per share for this quarter were $0.34, and pro forma diluted earnings per share for this quarter were $0.46 compared to $0.72 per diluted share in the second quarter of 2023 on a non-GAAP basis.

第二季非 GAAP 營運利潤率為 27%，預計營運利潤率為 34%，而 2023 年第二季非 GAAP 營運利潤率為 47%。第二季 GAAP 攤薄每股收益為 0.28 美元，而 2023 年第二季攤薄每股收益為 0.65 美元。本季非 GAAP 稀釋每股收益為 0.34 美元，本季預計稀釋每股收益為 0.46 美元，而 2023 年第二季非 GAAP 稀釋每股收益為 0.72 美元。

Once again, we ended the quarter with a strong balance sheet. As of June 30, 2024, the company had cash and cash equivalents, marketable securities and deposits of $729.2 million. This quarter, InMode generated $42.1 million from operating activities. Regarding our latest share repurchase program as of today, we successfully completed acquiring all 8.37 million shares at an average price of [$17.97] per share.

我們再次以強勁的資產負債表結束了本季。截至2024年6月30日，該公司擁有現金和現金等價物、有價證券和存款為7.292億美元。本季度，InMode 的營運活動創造了 4,210 萬美元的收入。關於我們今天最新的股票回購計劃，我們成功完成了以每股 [17.97 美元] 的平均價格收購全部 837 萬股股票。

As for future capital allocation plans, we continue to carefully evaluate all options, and we will provide updates as soon as we have news to report. Before I turn the call back to Moshe, I'd like to share with you our guidance for 2024.

至於未來的資本配置計劃，我們將繼續仔細評估所有選項，一旦有訊息報告，我們將立即提供最新消息。在我將電話轉回給 Moshe 之前，我想與您分享我們對 2024 年的指導。

Full year 2024 revenue to be $430 million to $440 million compared to previous guidance of $485 million to $495 million, non-GAAP gross margin between 82% and 84%, which is the same as previous guidance. Non-GAAP income from operations between higher $150 million to $155 million compared to previous guidance of $169 million to $174 million. Non-GAAP earnings per diluted share between $1.92 to $1.96 compared to previous guidance of $2.01 to $2.05.

2024 年全年收入為 4.3 億至 4.4 億美元，而先前的指引為 4.85 億至 4.95 億美元，非 GAAP 毛利率在 82% 至 84% 之間，與先前的指引相同。非 GAAP 營運收入在 1.5 億至 1.55 億美元之間，高於先前指引的 1.69 億至 1.74 億美元。非 GAAP 每股攤薄收益在 1.92 美元至 1.96 美元之間，而先前的指引為 2.01 美元至 2.05 美元。

I will now turn over the call back to Mr. Moshe.

我現在將把電話轉回給摩西先生。

thank you, Yair. Operator, I believe we are ready for the Q&A session.

謝謝你，亞伊爾。接線員，我相信我們已經準備好進行問答環節了。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Danielle Antalffy, UBS.

丹妮爾·安塔菲，瑞銀集團。

Hi, good morning, guys. Thanks so much for taking the question, and congrats on the product launches. My question is -- I appreciate the guidance you're giving for 2024. But looking ahead to 2025, how we should be thinking about the evolution of the market here. I mean, it will be off easier comps, obviously, you have these new product launches, which will start getting delivered in the back half of this year.

嗨，早上好，夥計們。非常感謝您提出問題，並祝賀產品發布。我的問題是——我感謝您為 2024 年提供的指導。但展望2025年，我們該如何思考這裡市場的演變。我的意思是，這將是更容易的比較，顯然，你有這些新產品的發布，這些新產品將在今年下半年開始交付。

So it's double digit growth to return to double digit growth in your mind is a feasible thing in 2025, even if the market doesn't turn around or do we really need to see that market turnarounds in order to get back there? Thanks so much.

因此，在您看來，兩位數成長在 2025 年恢復兩位數成長是可行的事情，即使市場沒有好轉，或者我們真的需要看到市場好轉才能回到那個水平嗎？非常感謝。

Hi, this is Moshe, how are you? I believe it will be very it now it's very early to judge what will happen next year. We have two quarters ahead of us. The third quarter, in medical aesthetic is usually the softest one. And we believe that the fourth quarter probably will be a strong one following the election in the United States.

嗨，我是摩西，你好嗎？我相信現在判斷明年會發生什麼事還為時過早。我們還有兩個季度。第三季，在醫美上通常是最柔和的。我們相信，美國大選後第四季可能會表現強勁。

We're still waiting to see the interest rate go down on lease packages on that will enable doctors openly to buy more systems and end and not wait. Right now, it's not happening yet. In addition to that, we need to see how the two platforms that we just launched will succeed in the market. We launch them only in the United States.

我們仍在等待租賃套餐利率的下降，這將使醫生能夠公開購買更多系統並結束而不是等待。現在，這還沒有發生。除此之外，我們還需要看看我們剛推出的兩個平台將如何在市場上取得成功。我們僅在美國推出它們。

We still have to launch them also in Europe and other territories are usually that's what we do. We started in the US, we continue. We all hope that that all the changes that we do on the organization and the territories, the two companies that we have established in Japan and Germany will pick up in the second core in the second half of 2024 and will be ready in 2025.

我們仍然必須在歐洲和其他地區推出它們，這通常是我們所做的。我們從美國開始，並將繼續。我們都希望我們在組織和地理上所做的所有改變，我們在日本和德國建立的兩家公司能夠在2024年下半年在第二核心中實現，並在2025年準備就緒。

The plan, I can tell you everything if everything will go well and the war in Israel will not escalate. And this is a major issue right now for us as everybody knows on it. We track that on a daily basis, especially now all of a sudden yesterday, most of the airline discontinue fly to Israel. So hopefully, we will not be short of supplies of all kind of components in the near future or in the new few weeks. So there are several elements that we cannot foresee and we need to wait and see what will happen in the third quarter before we can say something strongly about 2025.

計劃，如果一切順利，以色列的戰爭不會升級，我可以告訴你一切。眾所周知，這對我們來說是一個重大問題。我們每天都會追蹤這一情況，尤其是昨天突然，大多數航空公司停止飛往以色列的航班。因此，希望我們在不久的將來或新的幾週內不會出現各種組件供應短缺的情況。因此，有幾個因素是我們無法預見的，我們需要等待第三季會發生什麼，然後才能對 2025 年做出強有力的評價。

Okay. That's helpful. I appreciate that. And then just on the margin side of things, I mean, you guys have been pretty transparent about your willingness to continue to invest even in it in -- an environment. I guess just how do we think about that potential drivers of margins here going forward -- margin improvement going forward and into 2025? Are these new platforms accretive to margin dilutive to margin in line? Any color there? Thanks so much.

好的。這很有幫助。我很欣賞這一點。然後就邊際而言，我的意思是，你們對於繼續投資的意願非常透明，即使是在一個環境中。我想我們如何看待未來利潤率的潛在驅動因素——未來直至 2025 年的利潤率改善？這些新平台是否會增加利潤並稀釋利潤？那裡有什麼顏色嗎？非常感謝。

Every product that we develop in every platform that we develop and every hand piece that we develop, we design it from the beginning and we calculate what will be the margin. We will never develop a product that on the drawing base, it will show 60% or 65% gross margin.

我們在我們開發的每個平台上開發的每個產品以及我們開發的每個手機，我們從一開始就進行設計，並計算利潤。我們永遠不會開發出在圖面上顯示毛利率為 60% 或 65% 的產品。

So everything that we do relate to margin, we designed the product. So the margin will be high. And as you can see, even when the sales go down because of many, many reasons, microeconomics are less demand for treatment, which we now see in the United States as I said, the war in Israel. Everything relate -- everything in the design phase and we continue to invest in R&D. Everything is planned to be on the high margin, and that's the philosophy of the company.

因此，我們所做的一切都與利潤有關，我們設計了產品。所以利潤率會很高。正如你所看到的，即使銷售由於很多很多原因而下降，微觀經濟也減少了對治療的需求，正如我所說，我們現在在美國看到了以色列的戰爭。一切都是相關的——一切都在設計階段，我們繼續投資於研發。一切都計劃以高利潤為目標，這就是公司的理念。

Understood. Thanks so much.

明白了。非常感謝。

Caitlin Cronin, Canaccord Genuity.

凱特琳·克羅寧，Canaccord Genuity。

Hi, everyone. Good morning, and thanks for taking the questions. I guess just maybe if you could provide some more color on why the environment was so much worse versus the prior quarters? Was it really just and deterioration in patient demand. And then on that point from you noted earlier, if interest rates go down but the patient demand remains lower, it would make sense that the providers would still not -- would still be hesitant about buying systems. Do you think both of those really have to recover for demand to come back?

大家好。早上好，感謝您提出問題。我想您是否可以提供更多資訊來解釋為什麼環境比前幾季糟糕得多？這真的是公正的嗎？然後就您之前提到的這一點而言，如果利率下降但患者需求仍然較低，那麼提供者仍然不會——仍然會對購買系統猶豫不決，這是有道理的。您認為這兩者真的必須恢復才能使需求回升嗎？

Eventually, it will come back, but I know that the regular interest rate, yes, you're right, went down. But the interest rate on lease packages, especially for five years, the doctors are using lease companies in order to finance the purchase did not come down far enough to enable us to -- enable sell more system. And eventually it will come, I don't know when I believe that it will take some time.

最終，它會回來，但我知道常規利率，是的，你是對的，下降了。但租賃套餐的利率，特別是五年來，醫生們利用租賃公司來為購買提供資金，但利率並沒有下降到足以讓我們能夠銷售更多系統。最終它會到來，我不知道什麼時候我相信這需要一些時間。

The second half of this year is crucial to see what will happen on the demand. Regarding procedures, the way we know that the procedures are numbers are coming down is because we sell less disposable in the United States, we sold 30% less disposable compared to Q2 2023. That's crucial and our investigating the main reason for that.

今年下半年對於了解需求至關重要。關於手術，我們知道手術數量正在下降是因為我們在美國銷售的一次性產品減少了，與 2023 年第二季度相比，我們銷售的一次性產品減少了 30%。這是至關重要的，我們正在調查其主要原因。

I believe people are saving money and doing less treatment in a time like that. Hopefully it will go back because aesthetic people wants to continue to look nice and aesthetic eventually will go up again. And the technology, the special technology that we are selling will be on demand. If you want to judge us by comparing us to some of our competitors like Cutera, which is a public company of Venus and others we're still selling, we're still making money, we still have a positive cash flow. Although it's a tough time, we keep all the employees.

我相信在這樣的時期人們會省錢並減少治療。希望它會回歸，因為有美學的人希望繼續看起來漂亮，而美學最終會再次上升。我們銷售的技術、特殊技術將按需提供。如果你想透過將我們與一些競爭對手進行比較來判斷我們，例如Cutera（Venus 的一家上市公司）以及我們仍在出售的其他公司，我們仍然在賺錢，我們仍然擁有正現金流。儘管現在很困難，但我們保留了所有員工。

We don't lay down of fire people right now because this is the assets of the company. Hopefully that everything will get better and we will continue the momentum.

我們現在不會解僱消防人員，因為這是公司的資產。希望一切都會變得更好，我們將繼續保持這種勢頭。

Got it. That makes sense. And then just pushing a little further, you lowered guidance further than the Q2 [myth]. Is that really just to reflect conservatism into the back half of the year?

知道了。這是有道理的。然後，只要進一步推動，您就比第二季度[神話]進一步降低了指引。這真的只是為了反映下半年的保守主義嗎？

Conservatism on what? I didn't understand the question?

保守主義在什麼方面？我沒聽懂問題？

You lowered the guidance which appeared further than the Q2 myth. So just wondering if you just expect and you're just being more conservative with your guidance into the back half of the year?

您降低了比第二季度神話更進一步的指導。所以想知道您是否只是期望並且對下半年的指導更加保守？

I understand the question. Thank you for repeating it. We're always conservative on the guidance always, and then we changed the guidance because the revenue in Q2 which is usually a strong quarter, which usually is was a strong quarter over the last few years. Not just for InMode for the entire industry was not good enough.

我明白這個問題。謝謝您重複一遍。我們對指導總是保守的，然後我們改變了指導，因為第二季度的收入通常是一個強勁的季度，通常是過去幾年的強勁季度。不只是InMode，整個產業都還不夠好。

And we were not satisfied from the numbers that we showed. And in the two quarters on the pro forma base we did something like $196 million. In order to meet the $230 million or $240 million we still have to make $240 million in the next two quarters. As I said before the third quarter is usually a slow one because it's summer and people do less treatment during the summer.

我們對所展示的數字並不滿意。在預計的兩個季度中，我們的收入約為 1.96 億美元。為了滿足 2.3 億或 2.4 億美元的目標，我們仍然需要在接下來的兩個季度賺取 2.4 億美元。正如我之前所說，第三季度通常是一個緩慢的季度，因為現在是夏天，人們在夏天進行的治療較少。

We all hope that we will do well in the third quarter compared to the regular numbers of the third quarter. And if that will be the case we are -- I don't want to say absolutely sure, but we will be encouraged to show that the fourth quarter will be strong. And then, we will do this $240 million to meet the $440 million guidance.

我們都希望第三季的業績比第三季的常規數字更好。如果情況確實如此——我不想說絕對確定，但我們將被鼓勵證明第四季度將會強勁。然後，我們將用這 2.4 億美元來滿足 4.4 億美元的指引。

Understood. Thanks so much.

明白了。非常感謝。

Jeff Johnson, Baird.

傑夫·約翰遜，貝爾德。

Thank you. Good morning, guys. A couple of questions here. I guess Moshe, you've got about 11,000 almost 11,000 systems now placed in the US almost 25,000 globally. Remind me of any of those systems have been upgraded over the years and I think the answer is no on that.

謝謝。早安，夥計們。這裡有幾個問題。我想 Moshe，您現在在美國部署了大約 11,000 個系統，近 11,000 個系統在全球部署了近 25,000 個系統。提醒我這些系統多年來已經升級，我認為答案是否定的。

Are the new systems, Optimus Max and IgniteRF and those kind of systems, are those systems that should have upgrade demand in addition to new system demand or the feature sets different enough than the older technology in the field? Will you be offering kind of trade in programs in that? is that a focus or is it really just focus on new system sales at this point? Thanks.

新系統、Optimus Max 和 IgniteRF 以及此類系統是否除了新系統需求之外還應該有升級需求，或者功能集是否與該領域的舊技術有足夠的不同？你們會在這方面提供某種貿易項目嗎？這是一個重點還是目前只關注新系統的銷售？謝謝。

At this point where we're focusing on new systems sales, but as we stated more than once the Ignite is our second technology for minimally invasive RF. It's a little bit different than the BodyTite, FaceTite, and NeckTite. It is not exactly replacing them that because it's working with a different technology. So I believe that doctors who have the BodyTite, FaceTite, NeckTite platforms which were happy with the system, will buy the Ignite as well in order to have a comprehensive opportunity for different indications.

目前我們的重點是新系統的銷售，但正如我們不只一次所說的那樣，Ignite 是我們的第二種微創射頻技術。它與 BodyTite、FaceTite 和 NeckTite 略有不同。它並沒有完全取代它們，因為它使用的是不同的技術。所以我相信擁有BodyTite、FaceTite、NeckTite平台並對系統感到滿意的醫生也會購買Ignite，以獲得針對不同適應症的綜合機會。

Regarding the Optimus Max, as you remember we had the Optimus before the Optimus Max, but the Optimus Max has some different hand pieces with a little bit different energy levels and more user-friendly. So yes in the future we will do some trade-in, but we will not do a program to do trade-in for everybody. But the plan is eventually to sell the Optimus Max to all the doctors who previously has the Optimus and they already paid off and they already paid in full the original lease which is between three to five years. So partially it will be trade in, mostley it will be new system.

關於 Optimus Max，正如您所記得的那樣，我們在 Optimus Max 之前就有了 Optimus，但是 Optimus Max 有一些不同的手柄，能量水平略有不同，並且更加用戶友好。所以，是的，未來我們會進行一些以舊換新，但我們不會制定一個為所有人進行以舊換新的計劃。但計劃最終是將 Optimus Max 出售給所有以前擁有 Optimus 的醫生，他們已經還清了費用，並且已經全額支付了原始租約三到五年的費用。因此，部分它將以舊換新，大部分將是新系統。

Okay. That's helpful. And then two other follow-up questions. I guess one, just on the procedural consumable sales down 30%, it sounds like you said year over year in the US. Obviously, we saw the global number in the press release. Do you believe that all just macro-driven. Any indications from the field the doctors, you're talking to about any kind of conversion to other technologies share lost anything there. So that's one question.

好的。這很有幫助。然後是另外兩個後續問題。我想，就程序消耗品銷售下降 30% 而言，聽起來就像你說的在美國同比下降。顯然，我們在新聞稿中看到了全球數字。你認為這一切只是宏觀驅動的。來自醫生領域的任何跡象，你正在談論任何向其他技術的轉換，都失去了任何東西。這是一個問題。

And then two, your placements, this quarter did go up sequentially and obviously, I know 2Q tends to be a seasonally stronger quarter than 1Q, but that sequential increase from 1Q to 2Q was almost a fairly normal increase like we've seen in some of the past years. Is there anything to read that on the margin you're through the worst of it or am I being too optimistic there, which I might be? Thanks.

然後兩個，你的展示位置，這個季度確實連續上升，顯然，我知道第二季度往往是比第一季度更強的季節性季度，但從第一季度到第二季度的連續增長幾乎是相當正常的成長，就像我們在一些國家看到的那樣過去幾年。有什麼可以讀到的，你已經經歷了最糟糕的時期，還是我太樂觀了（我可能是這樣）？謝謝。

Okay, let's start with the disposables. I said that we see a drop in the disposable in the US, but we have some increase in other countries. So we have some offsetting numbers on the total, which were totally less than the second quarter of 2023, but that the main decline or the main drop came from the US market. Now the reason for that can be we believe it's a macroeconomics, people are saving money because our treatments are not $500 or $300 like regular cosmetic treatment, hair removal, vascular lesion, et cetera.

好吧，我們先從一次性用品開始吧。我說過，我們看到美國的一次性用品有所下降，但其他國家的一次性用品增加。所以我們在總數上有一些抵消的數字，完全低於2023年第二季度，但主要下降或主要下降來自美國市場。原因可能是我們相信這是宏觀經濟學，人們正在省錢，因為我們的治療不像常規美容治療、除毛、血管病變等那樣花費 500 或 300 美元。

Doctors are charging on minimally invasive treatment. They charge in between, I would say, $3,000 to $6,000, $7,000 per treatment. And therefore it seems relatively expensive to some people. And therefore, I believe that drives that the downtrend.

醫生正在對微創治療收費。我想說，他們的收費在 3,000 美元到 6,000 美元之間，每次治療 7,000 美元。因此，對於某些人來說，它似乎相對昂貴。因此，我相信這會推動下降趨勢。

In addition to that, just because, for example, the Morpheus was very, very popular and become a gold standard. We start seeing some Chinese copies on the market with the same name with the same logo with the same label on the back, they claim that this is made by InMode sometime even with the same part number. We don't know how they got into the market, especially Europe and some in Asia.

除此之外，僅僅因為，例如，Morpheus 非常非常受歡迎，並成為黃金標準。我們開始在市場上看到一些中文仿製品，它們具有相同的名稱、相同的徽標、背面有相同的標籤，他們聲稱這是 InMode 製造的，甚至具有相同的零件號碼。我們不知道他們是如何進入市場的，尤其是歐洲和亞洲的一些市場。

And now we see some in Latin America, and I'm sure that there are some in the United States as well. And doctors get confused and they made they make mistakes to buy a $10,000 system instead of buying $120,000 system from InMode believing that is doing the same. But finally, they realize that this is a fake. We tried to fight it and we do a lot of legal activity against those companies trying to stop them for bringing them into the several territories. But, it's just because of the success.

現在我們在拉丁美洲看到了一些，我確信美國也有一些。醫生們感到很困惑，他們錯誤地購買了 10,000 美元的系統，而不是從 InMode 購買 120,000 美元的系統，並相信 InMode 能起到同樣的作用。但最後，他們意識到這是假的。我們試圖與之抗爭，並對那些試圖阻止他們將其帶入多個地區的公司採取了許多法律行動。但是，這只是因為成功。

Therefore, the Chinese said, okay, this is a good product, let's fake it. Let's try to develop something similar. Sometimes it looks the same. It's just a pure Chinese copy. Did I answer your question or you had another one?

因此，中國人說，好吧，這是個好產品，我們假一下。讓我們嘗試開發類似的東西。有時看起來是一樣的。這只是一個純粹的中國複製品。我回答了你的問題還是你還有另一個問題？

Yes, I think that that raises about five other questions, which maybe will handle offline in the callback. But on the sequential increase in placements that was the question I asked. And again, I know 2Q tends to be seasonally stronger than 1Q. I get that --

是的，我認為這引發了大約五個其他問題，這些問題可能會在回調中離線處理。但關於展示位置的連續增加，這就是我問的問題。再說一遍，我知道第二季的季節性往往比第一季更強。我明白了--

Jeff, I didn't say increase.

傑夫，我沒有說增加。

The sequential increase in the number of units you placed in the second quarter was higher than the first quarter. I don't want to overread that and say that, means the market's getting better, but that sequential increase of units placed in 2Q did go off. It did follow a somewhat normal pattern. My question is just does that tell us that we're at kind of a little bit better place than we were maybe a quarter ago? Or is that too optimistic of a read? Thank you.

您在第二季投放的單位數量的季增幅高於第一季。我不想過度解讀這一點，並說這意味著市場正在好轉，但第二季投放的單位數量確實出現了連續增加。它確實遵循了某種正常的模式。我的問題是，這是否告訴我們，我們現在的處境比一個季度前要好一些？或者這樣的解讀過於樂觀？謝謝。

I understand that. And then the answer relates to the difference between the regular recognition and the pro forma. The system sometime when a doctor order Optimus Max and the deal is closed and financed and we don't have the Optimus Max and we send them an Optimus, our regular. It's not the same system, but you can start working with an Optimus.

我明白這一點。那麼答案就牽涉到常規認可和形式認可之間的差異。有時，當醫生訂購 Optimus Max，交易完成並融資時，我們沒有 Optimus Max，我們會向他們發送我們的常客 Optimus。這不是同一個系統，但您可以開始使用 Optimus。

And once the Optimus Max is available, we replaced it and therefore it creates some confusion on the total system delivered. I will suggest to look at the numbers of US dollars and not on the total. By the end of the year, everything will be balanced.

一旦 Optimus Max 可用，我們就更換了它，因此這對交付的整個系統造成了一些混亂。我建議看美元的數字而不是總數。到年底，一切都會平衡。

Understood. Thank you.

明白了。謝謝。

(Operator Instructions)

（操作員說明）

Joseph Conway, Needham & Company.

約瑟夫·康威，李約瑟公司。

Hi guys. I hope your day ids going well. Maybe just one question on the Optimus. And you had mentioned that, this is the most complicated device you have manufactured home at this date. I was just kind of curious your thoughts on the laser, the IPO market in general, if it's growing more than minimally invasive. This is kind of an area you guys are going after more. And maybe just a little bit more color if you could kind of describe what portion of your business or total business is that laser IPL technology?

嗨，大家好。我希望你今天一切順利。也許只是關於擎天柱的一個問題。您曾提到，這是您迄今為止在家中製造的最複雜的設備。我只是有點好奇你對雷射、整個 IPO 市場的看法，如果它的成長速度超過微創的話。這是你們更追求的領域。如果您能描述一下雷射 IPL 技術佔您的業務或整個業務的哪一部分，也許可以再多一點色彩？

I assume you're talking about the Optimus Max, and not the Optimus. Am I right?

我猜你說的是擎天柱，不是擎天柱。我說得對嗎？

Yes.

是的。

Okay. On the Optimus Max, for example, the IPL is much more powerful than the one on the Optimus because we learn how to get more from the same energy level. The Optimus Max has more power in the system itself, so it can deliver more energy. The Optimus Max is a different type of software to enable all kinds of new procedures, which is not available or not possible on the Optimus.

好的。例如，在 Optimus Max 上，IPL 比 Optimus 上的 IPL 強大得多，因為我們學習如何從相同的能量水平中獲得更多。Optimus Max 系統本身俱有更多功率，因此可以提供更多能量。Optimus Max 是一種不同類型的軟體，可實現各種新程序，而這在 Optimus 上不可用或不可能。

The Optimus Max can handle the two Morpheus8 BURST with the scale and the BURST technologies, which again, was not often on the regular Optimus. On the Optimus Max, eventually we will be able to upgrade to other laser system, which cannot be done on the regular Optimus. So overall, although it seems like the same name, it's a fully upgraded technology with a better, I would say with a better way to setup energy depth and et cetera, is much more, as I said, powerful as new hand pieces of Morpheus.

Optimus Max 可以透過規模和 BURST 技術處理兩個 Morpheus8 BURST，這在常規 Optimus 上並不常見。在 Optimus Max 上，最終我們將能夠升級到其他雷射系統，這是常規 Optimus 上無法做到的。所以總的來說，雖然它看起來像同一個名字，但它是一項完全升級的技術，具有更好的，我會說有更好的方式來設置能量深度等等，正如我所說，與Morpheus 的新手持件一樣強大。

The regular handpieces of non-invasive RF like the former are the same like in the Optimus but the outside design is a little bit different. It's the most comprehensive system, but the most complicated system that we ever manufactured. Look on the Internet and you see the system itself and you will realize for yourself. But we believe that there is nothing like that on the market for regular medical aesthetic treatment, not very, I would say, invasive and this system eventually will be a very successful one.

前者的常規非侵入式射頻手機與Optimus中的相同，但外觀設計略有不同。這是我們製造過的最全面的系統，也是最複雜的系統。上網看看，你就會看到系統本身，你就會自己體會。但我們相信，市場上沒有類似的常規醫療美容治療，我想說，不是非常有創，而且這個系統最終將是一個非常成功的系統。

Okay thanks. Thanks for that color. And then I guess two more, I'll just ask them together. The consumable and service revenue decline this quarter is kind of the first time, it declined in our model, obviously a tough comp and you laid out some of the reasons for that. I was curious, though, if the handpieces are those supply-constrained InMode or is that more focused to the capital equipment?

好的，謝謝。謝謝那個顏色。然後我猜還有兩個，我就一起問他們。本季的消費品和服務收入下降是第一次，它在我們的模型中下降，顯然是一個艱難的比較，您列出了其中的一些原因。不過，我很好奇，這些手機是供應受限的 InMode 還是更專注於資本設備？

And then just a separate question in terms of the share repurchase program, 8.37 million shares is that kind of a target or some for a potential follow-on or potential another share purchase program, would you target that similar level or are you guys thinking kind of a higher level, lower level?

然後是關於股票回購計劃的一個單獨的問題，837 萬股是一個目標，或者是潛在的後續或潛在的另一個股票購買計劃的目標，你們的目標是類似的水平還是你們想好？高，等級較低？

I will start with your first question. Handpieces is part of the system and it's a capital equipment. Handpieces is not disposable. Disposable is what you put on the handpiece in order to do the treatment or connect to the system like the BodyTite, FaceTite, or the Quantum so you can do the procedures.

我將從你的第一個問題開始。手機是系統的一部分，是資本設備。手機不是一次性的。一次性設備是指您放在手機上進行治療或連接到 BodyTite、FaceTite 或 Quantum 等系統以便進行手術的設備。

So, handpieces refer to laser handpieces, Morpheus handpiece, IPL handpiece, Lumecca, Forma, BodyFX, MiniFX. It's part of the capital equipment. It is not disposable. On your second question, we did a buyback of 8.37 million shares, which is exactly 10% of the total outstanding shares that we had.

所以，手機指的是雷射手機、Morpheus手機、IPL手機、Lumecca、Forma、BodyFX、MiniFX。它是資本設備的一部分。它不是一次性的。關於你的第二個問題，我們回購了837萬股，剛好是我們流通股總數的10%。

Why is it 10%? Because of some tax issues. If we do more than 10%, we'll have to pay, according to the Israeli IRS, we'll have to pay dividend tax. They allow us to do, and hopefully they will allow us to continue but we ask for a pre-ruling from the Israeli IRS, and they allow us to do 8.37 million shares, which is about 10% of the total shares. And if we will decide in the future to continue with buyback, all the options are on the table right now.

為什麼是10%？因為一些稅務問題。如果我們做得超過 10%，根據以色列國稅局的規定，我們就必須繳納股利稅。他們允許我們這樣做，希望他們允許我們繼續這樣做，但我們要求以色列國稅局做出預先裁決，他們允許我們購買 837 萬股，約佔總股本的 10%。如果我們將來決定繼續回購，所有選擇現在都在考慮之中。

We will ask again, and hopefully it will be approved so we can do some more in addition to the 8.37 million shares.

我們會再次詢問，希望能夠獲得批准，這樣我們就可以在 837 萬股之外做更多的事情。

Okay. Thank you for taking your questions.

好的。感謝您提出問題。

At this time, there are no further questions in the question queue. So this concludes our question-and-answer session. I would like to turn the conference back over to Moshe Mizrahy, CEO of InMode for any closing remarks.

此時，問題隊列中已經沒有其他問題了。我們的問答環節到此結束。我想將會議轉回 InMode 執行長 Moshe Mizrahy 發表閉幕詞。

Thank you very much, operator. Thank you, Miri, and thanks to all the employees of InMode in Israel, Europe North America, Latin America, Asia, in all of our subsidiaries, thanks to all the distributors in the 96 countries that we operate.

非常感謝您，接線生。謝謝你，Miri，感謝 InMode 在以色列、歐洲、北美、拉丁美洲、亞洲以及我們所有子公司的所有員工，感謝我們經營的 96 個國家的所有經銷商。

Thanks to the shareholders of InMode that are working with us for so many years up special tanks for the Israeli team, as I said before, that work in spite of the war that is now escalating, especially in the north side of Israel, where we are located, continue to come to work every day and if needed, even two shifts today in order to be able to supply everything, very dedication.

感謝 InMode 的股東多年來與我們合作，為以色列團隊打造特種坦克，正如我之前所說，儘管戰爭正在升級，但這些坦克仍然在工作，特別是在以色列北部，我們在那裡位於，繼續每天上班，如果需要，甚至今天兩班倒，以便能夠提供一切，非常敬業。

I would like to thank them especially. And we will see you all in the next quarter. Thank you very much.

我要特別感謝他們。我們將在下個季度與大家見面。非常感謝。

The conference has now concluded. 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。