Inmode Ltd (INMD) 2020 Q3 法說會逐字稿

Good day, and welcome to the InMode Ltd. Third Quarter 2020 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎來到 InMode Ltd. 2020 年第三季度收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Miri Segal of MS-IR. Please go ahead.

我現在想將會議轉交給 MS-IR 的 Miri Segal。請繼續。

Thank you, operator, and good day to everybody. I would like to welcome all of you to InMode's Third Quarter 2020 Financial Results Conference Call.

謝謝接線員，祝大家有個美好的一天。歡迎大家參加 InMode 2020 年第三季度財務業績電話會議。

With us on the line today are Mr. Moshe Mizrahy, Chairman of the Board and CEO; Dr. Michael Kreindel, Co-Founder and CTO; Mr. Yair Malca, CFO; Dr. Spero Theodorou, CMO; and Mr. Shakil Lakhani, President of InMode North America.

今天和我們一起在線的是董事會主席兼首席執行官 Moshe Mizrahy 先生； Michael Kreindel 博士，聯合創始人兼首席技術官；首席財務官 Yair Malca 先生；首席營銷官 Spero Theodorou 博士；和 InMode 北美總裁 Shakil Lakhani 先生。

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 view it in the Investor Relations section of the company's website. 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.

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。如果您沒有收到新聞稿的副本，請在公司網站的投資者關係部分查看。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所做的前瞻性陳述所表達的結果大不相同。我們的歷史結果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，也不承擔更新這些陳述的義務，除非法律要求。

Moshe will begin the call with a business update and pass it over to Shakil Lakhani, InMode's President of North America to discuss our North American operations, followed by Yair Malca, InMode's CFO, with an overview of the financials. We will then open the call for the question-and-answer session.

Moshe 將以業務更新開始通話，並將其轉交給 InMode 的北美總裁 Shakil Lakhani 以討論我們的北美業務，然後由 InMode 的首席財務官 Yair Malca 概述財務狀況。然後，我們將開啟問答環節。

I'll now hand over the call to Mr. Moshe Mizrahy, InMode's CEO. Moshe, please go ahead.

我現在將電話轉交給 InMode 的首席執行官 Moshe Mizrahy 先生。摩西，請繼續。

Thank you, Miri, and thanks to all of you for joining our third quarter 2020 financial results conference call.

謝謝 Miri，也感謝大家參加我們 2020 年第三季度財務業績電話會議。

In this earnings call, we will discuss our third quarter financial results in the context of COVID-19 pandemic, our strategy going -- during the crisis and our outlook going forward. We are an international company. With me on the line today, Yair Malca, our CFO, from California; Shakil Lakhani, our President of North America, in Houston; Dr. Michael Kreindel, our CTO and Co-Founder, in Toronto; and Dr. Spero Theodorou, our Chief Medical Officer from New York.

在本次財報電話會議上，我們將在 COVID-19 大流行的背景下討論我們第三季度的財務業績、我們在危機期間的戰略以及我們的未來展望。我們是一家國際公司。今天和我一起在線的是來自加利福尼亞的我們的首席財務官 Yair Malca；我們的北美總裁 Shakil Lakhani 在休斯敦；我們的首席技術官兼聯合創始人 Michael Kreindel 博士在多倫多；以及我們來自紐約的首席醫療官 Spero Theodorou 博士。

In the third quarter of 2020, InMode generated record revenue of $59.7 million, a 49% increase from third quarter of 2019, a record of $23.9 million of net income on a GAAP basis and $26.6 million of net income on a non-GAAP basis. In Q3 2020, we derived approximately 58% of our worldwide revenue from our surgical platforms engage in minimally invasive and subdermal ablative treatment, 35% from our recently introduced proprietary Hands-Free platforms and 7% from our traditional laser and noninvasive RF platforms.

2020 年第三季度，InMode 的收入達到創紀錄的 5970 萬美元，比 2019 年第三季度增長 49%，按 GAAP 計算的淨收入為創紀錄的 2390 萬美元，按非 GAAP 計算的淨收入為 2660 萬美元。 2020 年第三季度，我們全球收入的約 58% 來自我們從事微創和皮下消融治療的手術平台，35% 來自我們最近推出的專有免提平台，7% 來自我們的傳統激光和無創射頻平台。

The record revenue in the third quarter was driven by demand for our minimally invasive and Hands-Free proprietary electrosurgical bipolar RF platform, which are becoming the standard of care for a variety of surgical procedure. We have proven our organization adaptability and innovative leadership during the quarter as we successfully accelerate demand for our differentiated product in the U.S., once COVID-19 restriction eased. Internationally, we grew ourselves rapidly, more than doubling the revenue on a year-over-year basis. This growth was driven by our marketing and sales activity in China, Brazil, Mexico, Korea and through our subsidiaries in Europe and Asia. The COVID-19 pandemic has shifted our society into a new normal where social distancing, then health and safety concern are here to stay. We believe that InMode's clinic-based technology provides superior alternative to invasive hospital procedures and will continue to attract consumer and physicians in this environment.

第三季度創紀錄的收入是由對我們的微創和免提專有電外科雙極射頻平台的需求推動的，該平台正在成為各種外科手術的護理標準。一旦 COVID-19 限制放寬，我們在本季度成功地加速了對美國差異化產品的需求，證明了我們的組織適應性和創新領導力。在國際上，我們發展迅速，收入同比增長一倍多。這一增長是由我們在中國、巴西、墨西哥、韓國以及通過我們在歐洲和亞洲的子公司開展的營銷和銷售活動推動的。 COVID-19 大流行已將我們的社會轉變為一種新常態，在這種新常態中，社會距離、健康和安全問題將繼續存在。我們相信，InMode 的基於診所的技術為侵入性醫院程序提供了卓越的替代方案，並將繼續在這種環境中吸引消費者和醫生。

This quarter, while we continue to succeed in capturing market share and creating awareness to our technologies and platforms, we also continue to invest in our organization by advancing our research and development capability, diversifying our product pipeline, expanding our sales and marketing team and progressing our regulatory processes. Additionally, we introduced the groundbreaking Morpheus8 Body technology and Morpheus8 Platforms, which use our innovative RF fractional technology to treat the entire body at many depth. In addition, we were recently granted a patent, covering our fractional RF technology. We intend to protect our IP, vis-à-vis anyone who infringe our patent. Currently, our R&D pipeline is designed to bring the most innovative product to the aesthetic surgical industry and broaden the market we serve with our technology to address gynecology, ENT and ophthalmology market. Going forward, we plan to introduce 2 platforms into those markets in 2021 and beyond.

本季度，在我們繼續成功奪取市場份額並提高對我們的技術和平台的知名度的同時，我們還通過提高研發能力、豐富我們的產品線、擴大我們的銷售和營銷團隊以及取得進步來繼續投資於我們的組織我們的監管流程。此外，我們還推出了突破性的 Morpheus8 Body 技術和 Morpheus8 平台，它們使用我們創新的 RF 點陣技術在多個深度治療整個身體。此外，我們最近獲得了一項專利，涵蓋了我們的小數射頻技術。我們打算保護我們的知識產權，反對任何侵犯我們專利的人。目前，我們的研發管道旨在為美容外科行業帶來最具創新性的產品，並拓寬我們利用我們的技術服務的市場，以應對婦科、耳鼻喉科和眼科市場。展望未來，我們計劃在 2021 年及以後向這些市場推出 2 個平台。

As we roll out this new innovative technology, we will continue to build our brand and sales force to build interest and demand. Looking back, we are extremely pleased with our decision not to downsize our sales network due to the pandemic crisis, but instead, continue supporting and growing our organization for the future. Although the market uncertainty due to COVID-19 are not yet behind us, we will remain committed to investing in InMode's future success and are confident that we can continue to build our organization through even the most difficult times.

隨著我們推出這項新的創新技術，我們將繼續打造我們的品牌和銷售隊伍，以建立興趣和需求。回顧過去，我們非常高興我們決定不因大流行危機而縮減我們的銷售網絡，而是繼續支持和發展我們的組織以迎接未來。儘管 COVID-19 導致的市場不確定性尚未過去，但我們將繼續致力於投資 InMode 未來的成功，並有信心即使在最困難的時期也能繼續建設我們的組織。

As the mark that -- for that commitment and a strong belief in our value, we announced a share repurchase program of up to 1 million InMode shares in Q3. Considering our successful performance in the third quarter of 2020 and the visibility we have into the rest of 2020, we are increasing our full year 2020 revenue guidance range to $192 million to $195 million, and we intend to maintain a non-GAAP gross margin of 84% to 86%. Lastly, we continue to protect our employees worldwide and have followed local and regional guidelines to prioritize the health and welfare of our employees and customers.

作為標誌——為了這一承諾和對我們價值的堅定信念，我們在第三季度宣布了一項最多 100 萬股 InMode 股票的股票回購計劃。考慮到我們在 2020 年第三季度的成功表現以及我們對 2020 年剩餘時間的可見性，我們將 2020 年全年收入指導範圍提高到 1.92 億美元至 1.95 億美元，我們打算將非 GAAP 毛利率維持在84% 到 86%。最後，我們繼續保護我們在全球的員工，並遵循當地和地區的指導方針，優先考慮我們員工和客戶的健康和福利。

Now I would like to turn the call over to Mr. Shakil Lakhani, who will go into more detail on our activities in North America market. Shakil?

現在我想把電話轉給 Shakil Lakhani 先生，他將更詳細地介紹我們在北美市場的活動。沙基爾？

Thank you, Moshe, and hello, everyone. We reported a record quarter in North America with surging demand for our minimally invasive and Hands-Free devices. Confirming our previous thoughts, the fact that our minimally invasive and Hands-Free technologies could be done in office and adhere to social distancing guidelines to guard the physicians and consumers as restrictions eased. Due to the investment in our sales team, along with the dedication of our employees, we were able to keep physicians engaged and excited during the quarantine and ultimately, translate the growing interest for our technology into record sales in the third quarter. Building on this growth, we continue to expand our sales and marketing efforts. We believe that we have the right team in place to finish this year strong and strengthen our leading position as we turn to 2021.

謝謝你，Moshe，大家好。我們在北美報告了一個創紀錄的季度，對我們的微創和免提設備的需求激增。證實了我們之前的想法，我們的微創和免提技術可以在辦公室完成，並遵守社交距離準則，以在限制放寬後保護醫生和消費者。由於對我們的銷售團隊的投資，以及我們員工的奉獻精神，我們能夠在隔離期間讓醫生保持參與和興奮，並最終將對我們技術日益增長的興趣轉化為第三季度創紀錄的銷售額。在這種增長的基礎上，我們繼續擴大我們的銷售和營銷工作。我們相信，我們擁有合適的團隊，可以在今年強勢結束，並在我們邁向 2021 年時鞏固我們的領先地位。

During the quarter, we were excited to launch the Morpheus8 Platform and Morpheus8 Body, followed by Morpheus8 first technology announced last month. The Morpheus8 Platform is a state-of-the-art workstation, complete with dual hand pieces and 4 fractional tips and different microneedle configurations. This provides physicians with a stand-alone solution for full body fractional RF treatments. We are also able to go deeper than any other competing technology, which clearly shows InMode's commitment to true innovation. We are following the successful formula we have developed for our other minimally invasive solutions and applying that to Morpheus8. We expect Morpheus8 to be a significant sales contributor in 2021.

在本季度，我們很高興推出了 Morpheus8 平台和 Morpheus8 Body，隨後是上個月宣布的 Morpheus8 首項技術。 Morpheus8 平台是最先進的工作站，配有雙手部件和 4 個點陣尖端以及不同的微針配置。這為醫生提供了用於全身點陣射頻治療的獨立解決方案。我們還能夠比任何其他競爭技術更深入，這清楚地表明了 InMode 對真正創新的承諾。我們正在遵循我們為其他微創解決方案開發的成功公式，並將其應用於 Morpheus8。我們預計 Morpheus8 將在 2021 年成為重要的銷售貢獻者。

Looking to 2021, we will be preparing our team for the launch of 2 new additional technologies and continue to be optimistic despite the uncertainties of COVID-19 that still exist. We are very proud of our team's ability to navigate the pandemic so far. We remain focused on the future and further establishing ourselves as leaders and true innovators in the market.

展望 2021 年，儘管 COVID-19 的不確定性仍然存在，我們將讓我們的團隊為推出 2 項新的附加技術做好準備並繼續保持樂觀。我們為我們的團隊迄今為止應對大流行的能力感到非常自豪。我們仍然專注於未來，並進一步確立自己作為市場領導者和真正創新者的地位。

Now let me hand over the call to Yair to review our financial results in detail. Yair?

現在讓我將電話轉交給 Yair，詳細審查我們的財務業績。耶爾？

Thanks, Shakil. Good day, everyone. Total revenue in the third quarter of 2020 increased 49% to $59.7 million, with a gross margin of 84% on a GAAP basis. The increase in revenue was driven primarily by the expansion of InMode's direct sales organization in the United States,and the continued momentum of InMode's Hands-Free technology as well as the recently introduced Morpheus8 Body fractional technology. InMode continued to gain traction in international markets, with international revenue growing 109% year-over-year.

謝謝，沙基爾。今天是個好日子。 2020 年第三季度總收入增長 49% 至 5970 萬美元，按 GAAP 計算毛利率為 84%。收入增長的主要原因是 InMode 在美國的直銷組織的擴張，以及 InMode 免提技術和最近推出的 Morpheus8 Body fractional 技術的持續發展勢頭。 InMode 在國際市場上繼續受到關注，國際收入同比增長 109%。

GAAP operating expenses in the third quarter of 2020 totaled approximately $27 million, a 42.4% increase from the third quarter of 2019. Sales and marketing expenses increased 42% in the third quarter of 2020 compared to the third quarter of 2019. Although no new stock options were granted during the third quarter, stock-based compensation increased to $2.4 million in the third quarter of 2020 compared to $1.2 million in the second quarter of 2020. This increase is due to higher than previously estimated vesting of our performance-based options as a result of our record revenue in the third quarter as well as our revised guidance for 2020.

2020 年第三季度 GAAP 運營費用總額約為 2700 萬美元，較 2019 年第三季度增長 42.4%。2020 年第三季度銷售和營銷費用較 2019 年第三季度增長 42%。雖然沒有新增庫存在第三季度授予了期權，基於股票的薪酬從 2020 年第二季度的 120 萬美元增加到 2020 年第三季度的 240 萬美元。這一增長是由於我們基於績效的期權的歸屬高於之前的估計，因為這是我們第三季度創紀錄的收入以及我們修訂的 2020 年指引的結果。

On a non-GAAP basis, operating expenses totaled approximately $24.8 million in the third quarter of 2020 compared to the operating expenses of $18.6 million in the third quarter of 2019, an increase of 33.1%. The GAAP operating margin was 39% in the third quarter of 2020 compared to 40% in the third quarter of 2019. Non-GAAP operating margin in the third quarter of 2020 was 43% compared to 41% in the third quarter of 2019. This increase in non-GAAP operating margin was primarily attributable to decreased marketing activities in the United States, such as events and conference participation due to restrictions caused by COVID-19.

按非美國通用會計準則計算，2020 年第三季度營業費用總額約為 2480 萬美元，與 2019 年第三季度的營業費用 1860 萬美元相比增長 33.1%。 2020 年第三季度的 GAAP 營業利潤率為 39%，而 2019 年第三季度為 40%。2020 年第三季度的非 GAAP 營業利潤率為 43%，而 2019 年第三季度為 41%。這非 GAAP 營業利潤率的增加主要是由於美國的營銷活動減少，例如由於 COVID-19 造成的限製而導致的活動和會議參與。

GAAP diluted earnings per share in the third quarter of 2020 were $0.57 compared to $0.42 per diluted share in the third quarter of 2019. Non-GAAP diluted earnings per share in the third quarter of 2020 was $0.63 compared to $0.42 per diluted share in the third quarter of 2019.

2020 年第三季度 GAAP 稀釋每股收益為 0.57 美元，而 2019 年第三季度為 0.42 美元。2020 年第三季度非 GAAP 稀釋每股收益為 0.63 美元，而第三季度為 0.42 美元。 2019 年四分之一。

We completed the third quarter with a strong balance sheet. As of September 30, 2020, the company had cash and cash equivalents, marketable securities and deposits of $234.3 million. Accounts receivables increased to $16.2 million as of September 30, driven by higher international sales volume and particularly from Asia, where payment cycles for our distributors are longer compared to the United States. During the quarter, we announced a share repurchase program of up to 1 million of InMode's ordinary shares. Our share repurchase program illustrates the confidence we have in InMode's future following the continued success of our new product introductions and growing cash position, even in the face of global uncertainty.

我們以強勁的資產負債表結束了第三季度。截至 2020 年 9 月 30 日，公司擁有現金及現金等價物、有價證券和存款 2.343 億美元。截至 9 月 30 日，應收賬款增加到 1620 萬美元，這是由於國際銷量增加，尤其是來自亞洲的銷量增加，與美國相比，我們經銷商的付款週期更長。本季度，我們宣布了一項最多 100 萬股 InMode 普通股的股票回購計劃。我們的股票回購計劃表明，即使面對全球不確定性，我們在新產品推出的持續成功和不斷增長的現金頭寸之後對 InMode 的未來充滿信心。

On the cash flow front, the company generated $30.2 million from operating activities for the third quarter of 2020, driven by the record sales volume.

在現金流方面，受創紀錄銷量的推動，該公司 2020 年第三季度的經營活動產生了 3020 萬美元的收入。

With that, I will turn the call back to Moshe.

有了這個，我會把電話轉回摩西。

Thank you, Yair. I believe now we need to go to the Q&A.

謝謝你，亞爾。我相信現在我們需要進入問答環節。

(Operator Instructions) The first question today comes from Matt Taylor of UBS.

（操作員說明）今天的第一個問題來自瑞銀的馬特泰勒。

Congrats on a good quarter. I wanted to ask you about a couple of things. So the first one is, you mentioned this decision that you made to continue investing and it seems like it's paid off for you. I was wondering if you could talk about the commercial organization, how you've added to that? How you plan to add to that over time, given you continue to have this really strong growth?

祝賀一個好的季度。我想問你幾件事。所以第一個是，你提到了你做出的繼續投資的決定，它似乎為你帶來了回報。我想知道您是否可以談談商業組織，您是如何加入其中的？鑑於您繼續保持這種非常強勁的增長，您打算如何隨著時間的推移增加它？

Well, Matt, this is Moshe. We continue -- I believe we continue to invest in all discipline. We continue to invest in R&D, and we have something like 5 main projects in R&D pipeline right now. We continue to invest in sales force. As you know, we started a subsidiary in France back in April. They stayed idled for 3 months, and now we're adding more salespeople there to increase our momentum in France and other countries in Europe. We are investing more in China and we see progress, nice progress since we got the first CFDA approval. We're investing in marketing activity all over, although we're doing it on Zoom. But for example, we had 2 conferences in South America, in Brazil. We did 2 in China. We also invest in a distributor meeting, also we'll do it virtual in Asia on the 3rd of December. So for us, Matt, business is usual. Although we have the restriction what we can do and what we cannot do compared to normal time. But from R&D point of view, we increased manufacturing capacity by at least 25%. We have produced more than 1,000 platforms in the last quarter, in the third quarter. So we see no signs of slowing down in any of our business activity. So -- and it also started in the fourth quarter. We see the same trend. So we don't see -- although the COVID is still there. And as you know, in Europe, they are experiencing now the second wave in countries like Italy. U.K. now is in lockdown for 4 weeks. Spain, the same. But we do as much as we can in order to maintain activity, of course, within the restriction and the local regulation.

嗯，馬特，這是摩西。我們繼續 - 我相信我們會繼續投資於所有紀律。我們繼續投資於研發，目前我們在研發管道中有大約 5 個主要項目。我們繼續投資於銷售隊伍。如您所知，我們於 4 月在法國成立了一家子公司。他們閒置了 3 個月，現在我們正在那裡增加更多的銷售人員，以增加我們在法國和歐洲其他國家的勢頭。我們在中國投資更多，我們看到了進步，自從我們獲得 CFDA 的第一個批准以來，取得了很好的進步。我們正在全面投資營銷活動，儘管我們是在 Zoom 上進行的。但是，例如，我們在南美洲巴西舉行了 2 場會議。我們在中國做了2次。我們還投資召開了一次經銷商會議，我們也將於 12 月 3 日在亞洲以虛擬方式進行。所以對我們來說，馬特，生意很平常。雖然和平時相比，我們有什麼能做，什麼不能做的限制。但從研發的角度來看，我們至少將製造能力提高了 25%。上一季度，第三季度，我們已經生產了 1000 多個平台。因此，我們沒有看到任何業務活動放緩的跡象。所以——它也是從第四季度開始的。我們看到了同樣的趨勢。所以我們看不到——儘管 COVID 仍然存在。如您所知，在歐洲，他們現在正在意大利等國家經歷第二波浪潮。英國現在處於封鎖狀態 4 週。西班牙，同理。但是，我們會盡我們所能來維持活動，當然是在限制和當地法規範圍內。

The other thing I wanted to ask about was the buyback that you announced. You now have over $200 million in cash and securities. And I was wondering how do you plan to use that? Do you see yourself as buying shares steadily? Is it something that you'd be more opportunistic about? What are your thoughts on capital allocation in general?

我想問的另一件事是你宣布的回購。您現在擁有超過 2 億美元的現金和證券。我想知道你打算如何使用它？你認為自己會穩步買入股票嗎？你會更投機取巧嗎？您對一般的資本配置有何看法？

Well, we have announced a program, which we have approved on the Board of Directors to repurchase 1 million shares. As of today, we did very limited. We have not yet used all the money to do that. We're not going to buy -- to repurchase shares for all the $234 million. But maybe you will do, first, the 1 million. And later on, maybe we will add more. Within the limitation that we have from a tax point of view and being an Israeli company, these are not the same rules apply to us as apply for American company. But to tell you today, if we have plan to allocate or invest the $230 million down to is no.

好吧，我們已經宣布了一項計劃，我們已經在董事會上批准了回購 100 萬股股票的計劃。截至今天，我們所做的非常有限。我們還沒有用完所有的錢來做到這一點。我們不會購買 - 回購所有 2.34 億美元的股票。但也許你會先做 100 萬。稍後，也許我們會添加更多。在我們從稅收角度和作為一家以色列公司的限制範圍內，這些適用於我們的規則與適用於美國公司的規則不同。但今天要告訴你，如果我們計劃分配或投資 2.3 億美元，那是不行的。

Okay. And then maybe last one for me. I'll just ask about you had a few recent studies that were published, peer-reviewed studies, looking at the safety and efficacy of some of your EMS treatments. And then there was this Plume study that came out recently looking at the difference between laser and RF and the importance of that in COVID. I guess I was wondering if you could just speak to the importance of those studies and how they could help you with marketing? How they could help shift behavior?

好的。然後也許是我的最後一個。我只想問問你最近發表的一些研究，同行評審的研究，看看你的一些 EMS 治療的安全性和有效性。然後是最近發表的這項 Plume 研究，研究了激光和射頻之間的區別以及它們在 COVID 中的重要性。我想我想知道您是否可以談談這些研究的重要性以及它們如何幫助您進行營銷？他們如何幫助改變行為？

Spero, could you please answer that?

斯佩羅，你能回答這個問題嗎？

Okay. Sure. Sure, Moshe. Thank you, Matt. Appreciate the question. The way -- the philosophy between -- behind organization as to most of our marketing, "marketing spend", is actually in backing up our sales force with proper studies, peer-reviewed studies in good journals that the doctors can read and adopt the technology. So this has been probably the biggest differentiator between us and all our competitors. So we make a very, very large effort with Moshe's support to get this body of work publishing out there. And especially if we're the leader in radio frequency, it's almost something that we have to do as leaders of the space. As far as COVID and the Plume study we did, it's very simple. It's out there now. It's basically comparing our radio frequency technology to our lasers. And we know with lasers, it's a very well-established factors, Plume and there's virus in that. Plume, now we don't know if COVID is in the skin. However, using Morpheus microneedling, this thing does not exist. The particles are not in the Plume or very, very little. So from a safety purpose, always have to consider as large number of aesthetic procedures being done right now, we also have to instruct the doctors that, not only are we a company that innovates, but we're also a company that takes safety very, very, very seriously. And putting a body of work behind that safety and how we do it and providing this literature to our doctors is probably the best and strongest marketing tool we have.

好的。當然。當然，摩西。謝謝你，馬特。感謝這個問題。關於我們大部分營銷的組織背後的方式 - 哲學，“營銷支出”，實際上是通過適當的研究支持我們的銷售隊伍，在醫生可以閱讀和採用的好期刊上進行同行評審研究技術。因此，這可能是我們與所有競爭對手之間最大的區別。因此，在 Moshe 的支持下，我們做出了非常、非常大的努力，以發布這些作品。特別是如果我們是射頻領域的領導者，這幾乎是我們作為該領域領導者必須做的事情。就 COVID 和我們所做的 Plume 研究而言，它非常簡單。它現在就在那裡。它基本上是將我們的射頻技術與我們的激光進行比較。我們知道對於激光，這是一個非常確定的因素，Plume 並且其中有病毒。 Plume，現在我們不知道 COVID 是否在皮膚中。但是，使用睡眠微針，這個東西就不存在了。這些粒子不在 Plume 中，或者非常非常少。所以從安全的角度出發，總是要考慮到現在做大量的美容手術，我們也要告訴醫生，我們不僅是一家創新的公司，我們也是一家非常重視安全的公司，非常非常認真。將大量工作放在安全性背後以及我們如何做到這一點並將這些文獻提供給我們的醫生可能是我們擁有的最好和最強大的營銷工具。

Does that answer your question, Matt?

這能回答你的問題嗎，馬特？

Next question comes from Kyle Rose of Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Kyle Rose。

Great. So I wanted to ask just a little bit more about what you're seeing in the marketplace. Obviously, a very strong quarter here. So congrats on that, given all of the COVID tailwind -- or headwinds. But maybe help us understand what your customers are seeing in the actual market? Obviously, you're placing a lot of systems, but maybe what utilization for the systems looks like? And then maybe with just overall market trends you're seeing there? I mean people are traveling less. They're spending less on vacations. Maybe they're going out to less dinners. Is there increased interest in pursuing aesthetic procedures? Are you seeing higher consumer demand? Just trying to understand what the recurring revenue trends look like in the business?

偉大的。所以我想多問一點關於你在市場上看到的東西。顯然，這是一個非常強勁的季度。因此，鑑於所有 COVID 順風或逆風，對此表示祝賀。但也許可以幫助我們了解您的客戶在實際市場中看到的是什麼？顯然，您放置了很多系統，但也許這些系統的利用率如何？然後也許你在那裡看到的只是整體市場趨勢？我的意思是人們旅行的次數減少了。他們在度假上的花費減少了。也許他們出去吃晚飯的次數減少了。人們對追求美學程序的興趣增加了嗎？您是否看到更高的消費者需求？只是想了解業務中的經常性收入趨勢是什麼樣的？

Shakil, why don't you start, and then I will add?

Shakil，你為什麼不開始，然後我會添加？

Yes, sure. Kyle, thanks for the question. So one of the things that we've definitely seen and we've kind of called this and suspected it, but we looked at some type of pent-up demand. So even if you look overall, if you look at retail sales for certain types of things that people wouldn't normally spend on going back to what you said, people aren't traveling. So I do think that people do have some excess disposable income and they're starting to reinvest in themselves. We thought maybe it might just be something short-term that we possibly would have seen a spike in, but we've actually seen that carry on since things have kind of returned back to normal, at least, to a certain degree or the new normal, Moshe calls it. So I do think that we've seen that a lot of our clinics have been busier than they've ever been right now. I'm not going to say all of them, but it is something that we're seeing across the board, at least in North America. And I think, in turn, it allows them to try and offer some of these new types of procedures. So our Hands-Free technology, our minimally invasive have been really, really strong and been very popular with some of the new kind of regulations in place that people are following.

是的，當然。凱爾，謝謝你的提問。因此，我們確實看到了其中一件事，我們稱之為並懷疑它，但我們研究了某種被壓抑的需求。因此，即使您從整體上看，如果您查看某些類型的東西的零售額，人們通常不會花錢回到您所說的東西上，那麼人們就不會去旅行。所以我確實認為人們確實有一些多餘的可支配收入，他們開始對自己進行再投資。我們認為這可能只是短期的，我們可能會看到峰值，但我們實際上已經看到這種情況持續存在，因為事情已經恢復正常，至少在某種程度上或新的正常，Moshe 稱之為。所以我確實認為我們已經看到我們的很多診所比以往任何時候都更加繁忙。我不會說所有這些，但這是我們在各個方面都看到的事情，至少在北美是這樣。我認為，反過來，它允許他們嘗試並提供其中一些新型程序。所以我們的免提技術，我們的微創技術非常非常強大，並且在人們正在遵循的一些新法規中非常受歡迎。

Spero, did you want to talk a little bit about what you're seeing in the clinics?

斯佩羅，你想談談你在診所看到的情況嗎？

Yes, so can you hear? Yes. Thank you, Shak. Absolutely. We're seeing a lot of demand. We thought -- can you hear me?

是的，所以你能聽到嗎？是的。謝謝你，沙克。絕對地。我們看到了很多需求。我們想——你能聽到我說話嗎？

Yes.

是的。

Yes.

是的。

Yes, so we're actually seeing a lot of demand. We thought the demand initially was compressed demand for back in the spring, and we kind of expected it to sort of taper off in the months of September, October. But these are unusual times and demand has continued. And exactly like Shak said, it's not necessarily everywhere the same, but the continued demand is an aberration because traditionally, in the aesthetic world, usually September, things typically drop off from more plastic surgery procedures. The mothers usually take the kids back to school. It's a large element of the practices. But we haven't seen that. This is continuing demand. I think it's because of people having what Shak said, definitely have more income than sitting around and not spending on other things, but we've continued to see this demand through this period of time, which is definitely unprecedented and grew up then, of course.

是的，所以我們實際上看到了很多需求。我們認為需求最初是春季回來的壓縮需求，我們有點預計它會在 9 月、10 月逐漸減少。但現在是不尋常的時期，需求仍在繼續。就像 Shak 所說的那樣，不一定到處都一樣，但持續的需求是一種反常現象，因為傳統上，在審美界，通常是九月，更多的整形手術通常會導致效果下降。媽媽們通常會把孩子們送回學校。這是實踐的重要組成部分。但我們還沒有看到。這是持續的需求。我認為這是因為人們擁有 Shak 所說的，肯定比坐在那里而不花錢的人有更多的收入，但我們在這段時間裡繼續看到這種需求，這絕對是前所未有的，而且是在當時成長起來的，課程。

I just want to add one thing. This is Moshe here, which will give you some more color to your question. The only way for us to measure the demand for procedurals is to check and measure how many disposables we are selling. As you know, in our surgical devices, minimal invasive, ablative, everything that penetrates the skin, there is onetime disposable per treatment. The last quarter, we had a record sales of disposable, and that's continued in the fourth quarter. This is a record. We have a 6,400 systems already installed worldwide, and we see increase every month. We see increased demand for disposables. So basically, that tell us that the doctor is using the system, and the doctors make money on the system, and they don't need much. If they do, even 2 treatments per week, they are paying back the system in less than 7, 8 months. I believe I did the calculation once, I will do it again, if necessary. But every month, we see continuation in the growth of disposable, and this is the best measure to measure how the system are being used. Does that answer your question?

我只想補充一件事。我是 Moshe，這將為您的問題增添色彩。我們衡量程序需求的唯一方法是檢查和衡量我們銷售的一次性用品數量。如您所知，在我們的手術設備中，無論是微創的、消融的，還是所有穿透皮膚的東西，每次治療都是一次性的。上個季度，我們的一次性用品銷售額創下歷史新高，而且這種情況在第四季度仍在繼續。這是一個記錄。我們已經在全球安裝了 6,400 個系統，而且每個月都在增加。我們看到對一次性用品的需求增加。所以基本上，這告訴我們醫生在使用這個系統，醫生在這個系統上賺錢，他們不需要太多。如果他們這樣做，即使每週進行 2 次治療，他們也會在不到 7、8 個月的時間內收回系統。我相信我計算過一次，如果有必要，我會再做一次。但每個月，我們都會看到一次性用品的持續增長，這是衡量系統使用情況的最佳衡量標準。這是否回答你的問題？

Yes, it absolutely does. I appreciate the color from everybody on that. That's very helpful. And then the other question, the last question I had, and then I'll hop back in the queue. It's just around the international markets and kind of the entrants you've had to China. So a two-part question. One is how has the launch into China progressed? And what are your expectations, I think, over -- maybe now through the end of 2021? And then also, we've seen rising case volumes and some pretty severe shutdowns of procedures and markets, again, in Europe. Maybe just help us understand how we should think about the international markets as we move into the Q4?

是的，絕對如此。我很欣賞每個人的顏色。這很有幫助。然後是另一個問題，我的最後一個問題，然後我會跳回到隊列中。它只是圍繞國際市場和你進入中國的那種進入者。所以一個分為兩部分的問題。一是進入中國的進展如何？我認為，您對過去的期望是什麼——也許是現在到 2021 年底？此外，我們還看到歐洲的案件數量不斷增加，程序和市場的一些相當嚴重的關閉。也許只是幫助我們了解進入第四季度時我們應該如何考慮國際市場？

Okay. Okay. Well, as we said, the international market, what we call outside U.S., double itself year-over-year in Q3. And this is because all the regulation processes that we have completed during the last 2 quarters. As you probably know, in the second quarter beginning, we started to sell in China after getting the approval for 2 out of the 9 platforms that we have, not everything is yet approved in China. And we start to sell. We have an office in Guangzhou, a subsidiary. We have a distributor in Beijing. We're doing a good job and introduction of the product and the technology into the Chinese market. And in the third quarter, we grew in China compared to the second quarter, and I believe on the fourth quarter, we continued the momentum.

好的。好的。好吧，正如我們所說，國際市場，我們稱之為美國以外的市場，在第三季度同比翻了一番。這是因為我們在過去兩個季度完成了所有監管流程。你可能知道，在第二季度開始，我們在獲得 9 個平台中的 2 個的批准後開始在中國銷售，並不是所有的平台都在中國獲得批准。我們開始銷售。我們在廣州有一個辦事處，一個子公司。我們在北京有一個經銷商。我們正在做好將產品和技術引入中國市場的工作。在第三季度，與第二季度相比，我們在中國實現了增長，我相信在第四季度，我們將繼續保持這種勢頭。

Other countries that we see some growth is Brazil. Although Brazil is under a difficult situation today because of the COVID-19, all of South America are in a terrible shape today, as everybody know, because the leaders in Brazil do not accept that there was a pandemic. But we managed to do a big introduction and virtual conference to many plastic surgeons, especially for the surgical procedure and the surgical platforms, and we start to sell there in the second quarter, and we see momentum growth in the third quarter as well in Mexico, as well in Korea, in Asia. India, although we have a subsidiary there, but the situation is just now getting some improvement from the COVID. Europe, you are right. We're experiencing the second wave in Europe, but third quarter was better than the second quarter. And I believe the fourth quarter, although right now, the situation is a little bit more difficult, we have commitment from our subsidiary and distributors to do everything they can, taking into consideration, of course, the situation and the restriction but we're not stopping there. Although the second wave is tough in Europe right now, and we follow it on a daily basis. But this is not the same as the first wave of the COVID because they managed to know how to control it a little bit better. So -- and what I'm saying is, we're not stopping the development and the activity in any country, not even in Israel where the situation is not the best. And the fourth quarter, I believe, will not be a slowdown on the contrary.

我們看到一些增長的其他國家是巴西。儘管由於 COVID-19，巴西今天處境艱難，但眾所周知，今天整個南美洲的情況都很糟糕，因為巴西領導人不接受大流行病的存在。但我們成功地向許多整形外科醫生進行了一次大型介紹和虛擬會議，特別是外科手術和手術平台，我們在第二季度開始在那裡銷售，我們看到第三季度在墨西哥也有增長勢頭，以及韓國，亞洲。印度，雖然我們在那裡有一家子公司，但情況剛剛從 COVID 中得到一些改善。歐洲，你是對的。我們正在經歷歐洲的第二波浪潮，但第三季度好於第二季度。我相信第四季度，雖然現在情況有點困難，但我們的子公司和分銷商承諾會盡其所能，當然，考慮到情況和限制，但我們不止於此。雖然現在歐洲的第二波疫情很艱難，但我們每天都在關注它。但這與第一波 COVID 不同，因為他們設法知道如何更好地控制它。所以——我要說的是，我們不會停止任何國家的發展和活動，即使是在情況不是最好的以色列。而第四季度，我相信，相反不會放緩。

The next question comes from Jeff Johnson of Baird.

下一個問題來自 Baird 的 Jeff Johnson。

Moshe, you mentioned the 6,400 installed base a few minutes ago. Could you give us the split U.S. versus OUS on that? And then maybe I'd be interested in hearing from you or maybe Shak, now that you've got the Morpheus8 Platform, you've obviously got the Evolve and Evoke is doing so well. You've got all the various Tite platforms and things like that. Is there increase happening in the number of platforms per office? So is the average platform for office going from 1.2 to 1.3 to 1.4, how do you expect that to trend over the next year or 2 as well?

Moshe，幾分鐘前你提到了 6,400 個安裝基數。你能告訴我們美國和美國的分歧嗎？然後也許我有興趣收到你或 Shak 的來信，既然你已經有了 Morpheus8 平台，你顯然已經有了 Evolve，Evoke 做得很好。你有各種各樣的 Tite 平台和類似的東西。每個辦公室的平台數量是否有所增加？那麼辦公室的平均平台是從 1.2 到 1.3 再到 1.4，您預計明年或 2 年的趨勢如何？

Shakil, would you answer that?

Shakil，你會回答嗎？

Yes, sure. So yes, we -- you're bang on, we're actually in the process of right now to further enable that. But we are seeing more 2, 3 system, what we call bundled deals that are going in. It's increased, but at the same time, what's nice about it is a lot of these technologies are technologies that they can delegate. That physicians can delegate. And so with that being said, it allows them to generate passive income versus, say, the minimally invasive where they have to be the ones actually performing the procedure. So when you combine the 2 of those together, it is a nice one-two punch. It's a nice return on investment for the physician. The patients get the results that they're very, very happy with. We've heard some great success on Morpheus8 Body so far. Obviously, Morpheus8 for quite some time. But we do see it overall that there are different areas, depending on what specialties that we go after. If it's, say, in OB/GYN, well, they can start treating people with the Votiva for women's health and wellness. But then at the same time, they might have certain patients that are going to be in a position where they want to have something done with skin tightening. So the Evoke or the Evolve kind of come into play. So our team has been very well versed and prepared in terms of how to actually take it to a certain degree where we ensure that the actual physician themselves, it's a good fit for them, where they're going to be doing well.

是的，當然。所以，是的，我們——你說得很成功，我們實際上正在進一步實現這一點。但是我們看到更多的 2、3 系統，我們稱之為捆綁交易。它在增加，但與此同時，它的好處是很多這些技術都是他們可以委託的技術。醫生可以委派。因此，話雖這麼說，它允許他們產生被動收入，而不是說，他們必須是實際執行程序的人的微創收入。因此，當您將其中的 2 個組合在一起時，這是一個很好的一二拳。這對醫生來說是一筆可觀的投資回報。患者得到了他們非常非常滿意的結果。到目前為止，我們已經聽說 Morpheus8 Body 取得了一些巨大的成功。顯然，Morpheus8 已經有一段時間了。但我們確實總體上看到存在不同的領域，這取決於我們追求的專業。如果是，比如說，在 OB/GYN 中，那麼，他們可以開始使用 Votiva 治療女性的健康和保健。但與此同時，他們可能會有某些患者想要做一些緊膚手術。因此，Evoke 或 Evolve 開始發揮作用。因此，我們的團隊已經非常精通並準備好如何將其實際應用到一定程度，我們確保實際的醫生自己，它非常適合他們，他們會做得很好。

And as Moshe said, utilization of consumables has been increasing, which is a very positive sign for us because they're using their devices and our default rates on leases have been minimal, which is extremely good.

正如 Moshe 所說，消耗品的利用率一直在增加，這對我們來說是一個非常積極的信號，因為他們正在使用他們的設備，而我們的租賃違約率一直很低，這非常好。

And I know you might not want to share numbers, but can you split that 6,400 installed base U.S. to OUS, if you could anyway or Shak, any kind of systems for office, is there a number?

我知道你可能不想分享數字，但你能不能把美國的 6,400 個安裝基礎分給 OUS，如果你可以的話，或者 Shak，任何類型的辦公系統，有數字嗎？

I'll let Moshe handle that one.

我會讓 Moshe 處理那個。

Yes. Yes, we can. Yes, we can. In the presentation that we shared with everybody on the IR section. We gave this information. 6,400 systems installed worldwide, out of which 3,500 in the U.S.

是的。我們可以。我們可以。在我們與 IR 部分的每個人分享的演示文稿中。我們提供了這些信息。全球安裝了 6,400 個系統，其中 3,500 個在美國

I guess I missed that, I apologize. And then, Moshe, my last question is if I look now over the last 3 years, each of the last 3 years, assuming guidance here is fairly accurate for 2020, you've increased revenue about $40 million to $50 million per year on an absolute basis. I know you're not providing 2021 guidance, but is that how we should think about kind of what the market can absorb each year? And then kind of how absolute revenue trends should maintain into 2021, just the typical $40 million to $50 million increase each year?

我想我錯過了，我道歉。然後，Moshe，我的最後一個問題是，如果我現在回顧過去 3 年，過去 3 年的每一年，假設這裡的指導對 2020 年相當準確，你每年增加收入約 4000 萬至 5000 萬美元絕對依據。我知道你沒有提供 2021 年的指導，但我們應該如何考慮市場每年可以吸收的東西？然後，絕對收入趨勢應該如何保持到 2021 年，即典型的每年 4000 萬至 5000 萬美元的增長？

Well, we have not yet gave the guidance for 2021. We will give the guidance for 2021 in the next earnings call, which will take place in February, which will be in February next year. But yes, you can follow the same growth that we had in the last 3 years or even 4 years, from $50 million to $100 million to $150 million to close to $200 million this year and probably will be the same in the next years. Yes, we are introducing the same amount of new product every year or new platform. And I believe your estimate is right.

好吧，我們還沒有給出 2021 年的指導。我們將在下一次財報電話會議上給出 2021 年的指導，該電話會議將於 2 月舉行，也就是明年 2 月。但是，是的，你可以遵循我們在過去 3 年甚至 4 年的相同增長，從今年的 5000 萬美元到 1 億美元到 1.5 億美元到接近 2 億美元，並且在未來幾年可能會相同。是的，我們每年都會推出相同數量的新產品或新平台。我相信你的估計是正確的。

(Operator Instructions) The next question comes from Asaf Barel Chandali of Oppenheimer.

（操作員說明）下一個問題來自 Oppenheimer 的 Asaf Barel Chandali。

First of all, again, congratulations on really an exceptional quarter and a strong full year guidance. Just a couple of questions here. Most of them have been asked. On the pipeline, is there any further color you can give us on either the timing or maybe further color on the use cases for the 2021 launches? And then where we should be looking in terms of use cases for 2022 onwards?

首先，再次祝賀一個非常出色的季度和強勁的全年指導。這裡只有幾個問題。他們中的大多數人都被問到了。在管道中，您是否可以就 2021 年發布的用例的時間或用例提供更多顏色？然後我們應該從 2022 年開始的用例方面尋找什麼？

Well, we cannot give the exact timing of the new product launch because of regulatory issue, not because it's -- we cannot say it's because, as you know, we are not launching any product before we completed a full study to prove safety and efficacy, before we file submission with the FDA and the CE in Europe in order to get clearance. This is a medical equipment. We cannot market them without approval for the specific medical indication that we request. Sometime it take a little bit longer than what we estimate in the beginning because the FDA might have more questions or they ask us to do a little bit more clinical work in order to ensure that this is safe and efficacy -- high efficacy for what we want to claim. But just as a guideline, usually, we bring one product sometime in the first quarter, if everything goes well and the last -- and the second one -- second platform before at the end of the third quarter toward Christmas and the fourth quarter.

好吧，由於監管問題，我們無法給出新產品發布的確切時間，不是因為它 - 我們不能說是因為，如您所知，我們在完成全面研究以證明安全性和有效性之前不會發布任何產品，在我們向歐洲的 FDA 和 CE 提交申請以獲得許可之前。這是醫療器械。未經我們要求的特定醫學適應症批准，我們不能銷售它們。有時它比我們一開始估計的要長一點，因為 FDA 可能會有更多問題，或者他們要求我們做更多的臨床工作，以確保這是安全和有效的——對我們的高效要索賠。但作為指導原則，通常情況下，如果一切順利，我們會在第一季度的某個時候推出一個產品，最後一個——也是第二個——第二個平台將在第三季度末到聖誕節和第四季度推出。

Okay. Great. That's helpful. And then just a couple of maybe more technical questions. First, on the tax rate, should we continue to be thinking about the effective tax rate next year moving up somewhere towards 11%? So if there are any updates on that front? That would be helpful. And then second, on the accounts receivable, maybe it's a bit of a minor issue, but given the fact that international revenues are now a bigger part of the business, and it's expected to be a bigger part of the business on a go-forward basis because of kind of the higher growth levels. Should we be thinking about accounts receivables being closer to the current levels, which are up pretty -- maybe -- it's still an absolutely low number, but on a relative basis, it's a little bit higher.

好的。偉大的。這很有幫助。然後是幾個可能更技術性的問題。首先，關於稅率，我們是否應該繼續考慮明年的有效稅率將升至 11%？那麼在這方面是否有任何更新？那會很有幫助。其次，關於應收賬款，這可能是一個小問題，但考慮到國際收入現在在業務中所佔的比重更大，而且預計在未來的業務中所佔的比重會更大由於增長水平較高的基礎。我們是否應該考慮應收賬款接近當前水平，這個水平已經上升了——也許——它仍然是一個絕對低的數字，但相對而言，它有點高。

Yair, can you answer that?

Yair，你能回答嗎？

Yes, I'll take this question. So as for the tax rate, in 2021, we believe the tax is going to stay pretty much similar to what we've seen in 2020. As our tax exemption expires only at the end of 2021. So only starting 2022, we will go up to the maybe 11%, 12% that you've mentioned.

是的，我會回答這個問題。因此，至於稅率，到 2021 年，我們認為稅收將與我們在 2020 年看到的情況非常相似。由於我們的免稅政策僅在 2021 年底到期。因此，從 2022 年開始，我們將繼續最多可達您提到的 11%、12%。

Regarding the accounts receivables. Yes, it's probably now that international markets start doing much better. It will probably go up. And yes, it might be reasonable to assume that it will remain in pretty much the same level.

關於應收賬款。是的，可能是現在國際市場開始變得更好了。它可能會上升。是的，假設它將保持在幾乎相同的水平可能是合理的。

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

這確實結束了我們的問答環節。我想將會議轉回給首席執行官 Moshe Mizrahy，聽取任何閉幕詞。

Okay. Thank you, operator. Thank you, everybody, for joining us to the third quarter 2020 financial results. Hope to see you in the next conference call. Stay healthy and be safe. Thank you all.

好的。謝謝你，運營商。感謝大家與我們一起了解 2020 年第三季度的財務業績。希望在下一次電話會議上見到你。保持健康和安全。謝謝你們。

The conference has now concluded. Thank you.

會議現已結束。謝謝。