Inmode Ltd (INMD) 2022 Q1 法說會逐字稿

Hello, and welcome to the InMode Ltd. First Quarter 2022 Earnings Results Conference Call. (Operator Instructions) Please note, this event is being recorded.

您好，歡迎參加 InMode Ltd. 2022 年第一季度收益結果電話會議。 （操作員說明）請注意，此事件正在記錄中。

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

我現在想把會議交給 MS-IR 的首席執行官 Miri Segal。請繼續。

Thank you, operator and everyone, for joining us today. Welcome to InMode's first quarter 2022 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 InMode's website.

感謝運營商和大家今天加入我們。歡迎參加 InMode 2022 年第一季度財報電話會議。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，今天收益發布中概述的安全港聲明也與本次電話會議有關。如果您沒有收到新聞稿的副本，請訪問 InMode 網站的投資者關係部分。

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

業務、競爭、技術、監管和其他因素的變化可能導致實際結果與今天做出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，我們不能保證我們的前瞻性陳述的準確性，並且不承擔更新它們的義務，除非法律要求。

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

有了這個，我想把電話轉給董事長兼首席執行官 Moshe Mizrahy。莫舍，請繼續。

Thank you, Miri, and thanks to all of you for joining our first quarter 2022 earnings call. 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. We will all be available for Q&A session after our prepared remarks.

謝謝你，美里，感謝大家參加我們的 2022 年第一季度財報電話會議。今天和我在一起的是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；我們的首席醫療官 Spero Theodorou 博士；和我們的財務副總裁 Rafael Lickerman。在我們準備好的評論之後，我們都可以參加問答環節。

We are pleased to report first quarter revenue of $85.9 million, an increase of 31.1% compared to the same period last year. We continue to achieve strong profitable growth despite the continued uncertainty in the global market. Net income for the quarter on a GAAP basis was 31 and $34.1 million on the non-GAAP basis, reflecting year-over-year growth of 16%. As a result of our strategy of focusing on selling more systems on the global market, sales of capital equipment were strong, representing 84% of our total revenue in the first quarter.

我們很高興地報告第一季度收入為 8590 萬美元，與去年同期相比增長 31.1%。儘管全球市場持續存在不確定性，我們仍繼續實現強勁的盈利增長。按美國通用會計準則計算，本季度的淨收入為 31 美元，按非美國通用會計準則計算為 3410 萬美元，同比增長 16%。由於我們專注於在全球市場上銷售更多系統的戰略，資本設備的銷售強勁，佔第一季度總收入的 84%。

Sales of consumables and services accounted for 16% of the total revenue in the first quarter. By launching the new platforms and innovative modalities and by expanding our installed base in the U.S. and around the globe, we continue to look forward to consistent growth in revenue from consumables, which will over time, become a more significant portion of our revenue mix. Once again, our growth engine, our minimal invasive and ablative technologies, these platforms are the core competitive advantage and the main differentiator between InMode and other aesthetic companies.

消耗品和服務的銷售額佔第一季度總收入的16%。通過推出新平台和創新模式，並擴大我們在美國和全球的安裝基礎，我們繼續期待消耗品收入的持續增長，隨著時間的推移，這將成為我們收入組合中更重要的一部分。再一次，我們的增長引擎，我們的微創和燒蝕技術，這些平台是 InMode 與其他美容公司的核心競爭優勢和主要區別。

Our technology enabled patients to benefit from long-lasting results similar to the one achieved in plastic surgery, but with minimal downtime, local anesthesia and minimally invasive procedures. Minimally invasive and ablative platforms accounted for 80% of our Q1 revenue compared to 69% in Q1 of last year. We achieved this trend in the strong indication of the growing demand in our increasing brand recognition in the U.S. and globally. Hands-free devices generated 10% of our total revenue and noninvasive RF and laser platforms represented the remaining 10%.

我們的技術使患者能夠受益於與整形手術相似的持久效果，但需要最少的停機時間、局部麻醉和微創手術。微創和消融平台占我們第一季度收入的 80%，而去年第一季度為 69%。我們實現了這一趨勢，強烈表明我們在美國和全球範圍內不斷提高的品牌認知度需求不斷增長。免提設備占我們總收入的 10%，無創射頻和激光平台佔剩餘的 10%。

Looking at the international side of the business, first quarter sales outside the U.S. accounted for $32.3 million or 38% of total sales, a 50.6% increase compared to the same quarter last year. InMode currently operated -- operate in 77 countries. In the first quarter, we opened a subsidiary in Italy and we are very happy with the level of demand in this territory. We see most of the growth coming from region where we have already established our presence. Yet there remain opportunity in new territories and we will expect to keep expanding our presence outside the U.S. in the coming quarters.

從業務的國際方面來看，第一季度美國以外的銷售額佔總銷售額的 3230 萬美元，佔總銷售額的 38%，與去年同期相比增長了 50.6%。 InMode 目前在 77 個國家運營。第一季度，我們在意大利開設了一家子公司，我們對該地區的需求水平感到非常滿意。我們看到大部分增長來自我們已經建立業務的地區。然而，在新的地區仍有機會，我們預計在未來幾個季度將繼續擴大我們在美國以外的業務。

While we faced operational challenges due to global supply chain issue in the quarter and increased shipment -- and increased shipment prices. We were successfully in mitigating the impact of these challenges and we were able to meet the demand and ensure each platforms was delivered within 10 days. our high commitment to each physician or clinic that order our platforms is stronger than ever, and we have developed different methodologies and mechanisms to cope with the current supply chain challenges.

由於本季度全球供應鏈問題和出貨量增加以及出貨價格上漲，我們面臨運營挑戰。我們成功地減輕了這些挑戰的影響，我們能夠滿足需求並確保每個平台在 10 天內交付。我們對訂購我們平台的每位醫生或診所的高度承諾比以往任何時候都更加堅定，我們開發了不同的方法和機制來應對當前的供應鏈挑戰。

We anticipated that the supply chain challenges will continue, but we're monitoring the situation very closely and continue to proactively manage the process on a daily basis. As Yair will emphasize, we're maintaining our 2022 guidance, expecting total revenue to be between $415 million to $425 million. We will continue to update you as the year progresses.

我們預計供應鏈挑戰將繼續存在，但我們正在密切監控情況，並繼續每天主動管理流程。正如 Yair 將強調的那樣，我們將維持 2022 年的指導方針，預計總收入將在 4.15 億美元至 4.25 億美元之間。隨著時間的推移，我們將繼續為您更新。

Now I would like to turn the call over to Shakil, our President in North America. Shakil, please?

現在我想把電話轉給我們的北美總裁沙基爾。沙基爾，好嗎？

Thanks, Moshe, and everyone, for joining us. As Moshe indicated, InMode reported another strong quarter, especially for a quarter that is traditionally a slower one in terms of revenue industry-wide. We posted a record number for consumable revenue, which is a good indicator of our growing utilization rate, increased demand for our platforms and consistently growing installed base. We are happy to report another strong growth indicator. Over 30% of our customers in the U.S. have purchased a second device.

感謝 Moshe 和大家加入我們。正如 Moshe 指出的那樣，InMode 報告了另一個強勁的季度，特別是對於整個行業收入而言傳統上較慢的季度。我們發布了創紀錄的消耗品收入數字，這很好地表明了我們不斷增長的利用率、對我們平台的需求增加以及不斷增長的安裝基礎。我們很高興地報告另一個強勁的增長指標。超過 30% 的美國客戶購買了第二台設備。

The U.S. remains the leading market for InMode and was the biggest contributor to our top line with total first quarter sales amounting to $53.6 million compared to $44.1 million in the same quarter of 2021. We are optimistic about the overall demand for our platforms and unique technology. We anticipate the North American business will continue to grow and be the main revenue contributor for InMode. We are encouraged by the positive response to our EmpowerRF platform, and we believe that InMode's credibility and strong performance will support our expansion into the women's health space.

美國仍然是 InMode 的主要市場，並且是我們收入的最大貢獻者，第一季度總銷售額為 5360 萬美元，而 2021 年同期為 4410 萬美元。我們對平台和獨特技術的整體需求持樂觀態度.我們預計北美業務將繼續增長，並成為 InMode 的主要收入來源。我們對 EmpowerRF 平台的積極反應感到鼓舞，我們相信 InMode 的信譽和強勁的表現將支持我們進軍女性健康領域。

During the quarter, we noted marketing events and workshops attracting and growing audiences. More and more patients have shown they are eager to improve their well-being and InMode continues to be the leader in providing a wide array of aesthetic and wellness applications to help patients achieve their goals. We will continue hiring new sales personnel for the North American market, which we believe will boost top line growth just as in previous years. We are grateful to our team and their continued commitment to our consistent growth.

在本季度，我們注意到營銷活動和研討會吸引並增加了觀眾。越來越多的患者表現出他們渴望改善自己的健康狀況，而 InMode 繼續成為提供各種美學和健康應用以幫助患者實現目標的領導者。我們將繼續為北美市場招聘新的銷售人員，我們相信這將像往年一樣推動收入增長。我們感謝我們的團隊以及他們對我們持續增長的持續承諾。

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

我現在將致電 Yair，以更詳細地審查我們的財務業績。耶爾？

Thanks, Shakil, and good day, everyone. Now I'd like to review our quarterly financial results in greater detail. Total revenue in the first quarter of 2022 increased 31.1% year-over-year to $85.9 million with a gross margin of 83% on a GAAP basis. As of minimally invasive and subdermal ablative technologies in the first quarter grew 50% year-over-year to 80% of our quarterly revenues.

謝謝，Shakil，大家好。現在我想更詳細地回顧一下我們的季度財務業績。 2022 年第一季度的總收入同比增長 31.1% 至 8590 萬美元，按公認會計原則計算的毛利率為 83%。截至第一季度，微創和皮下消融技術同比增長 50%，占我們季度收入的 80%。

The geographical revenue mix in Q1 was 62% in the U.S. and 38% internationally compared to 67% and 33% for the same quarter in 2021. Revenues outside the U.S. represented 38% with Canada, Europe and Latin America being major contributors to the company's growth. Our Q1 non-GAAP gross margin remained strong at 83%. We reiterate our long-term gross margin model of 84% to 86%, but assume that in the short term, global supply chain challenges may continue to impact our gross margins.

第一季度的地域收入組合在美國為 62%，國際為 38%，而 2021 年同一季度為 67% 和 33%。美國以外的收入佔 38%，加拿大、歐洲和拉丁美洲是該公司的主要貢獻者生長。我們的第一季度非公認會計原則毛利率保持強勁，為 83%。我們重申我們 84% 至 86% 的長期毛利率模型，但假設在短期內，全球供應鏈挑戰可能會繼續影響我們的毛利率。

Capital equipment in the first quarter accounted for 84% of our revenue, while consumables and service revenues represented the remaining 16%. GAAP operating expenses in the first quarter were $36.1 million, a 26% increase year-over-year. Sales and marketing expenses increased at a similar rate of 26% in Q1 of 2022 compared to the first quarter of 2021. This is a result of an increase in in-sales related expenses, as well as improvement in the COVID status in most countries and regions around the world, especially in the U.S., where we saw a significant increase in in-person marketing events, as Shakil mentioned.

第一季度的固定設備占我們收入的 84%，而消耗品和服務收入佔剩餘的 16%。第一季度 GAAP 運營費用為 3610 萬美元，同比增長 26%。與 2021 年第一季度相比，2022 年第一季度的銷售和營銷費用以相似的 26% 的速度增長。這是由於銷售相關費用增加，以及大多數國家和地區的 COVID 狀況有所改善，以及正如 Shakil 所說，在世界各地，特別是在美國，我們看到現場營銷活動顯著增加。

Share-based compensation increased to $3.1 million in the first quarter of 2022 compared to $2.7 million in the first quarter of 2021. On a non-GAAP basis, operating expenses totaled approximately $33.4 million in Q1 of 2022 compared to operating expenses of $26.2 million in the same quarter of 2021, an increase of 27%. GAAP operating margin was 41% in the first quarter of 2022, the same as the first quarter of 2021. Non-GAAP operating margin for the first quarter of 2022 was 44% compared to operating margin of 45% in the first quarter of 2021. The decrease in non-GAAP operating margin is primarily attributable to the change in gross margin.

2022 年第一季度以股票為基礎的薪酬從 2021 年第一季度的 270 萬美元增加到 310 萬美元。按非公認會計原則計算，2022 年第一季度的運營費用總計約為 3340 萬美元，而 2022 年第一季度的運營費用為 2620 萬美元2021 年同一季度，增長了 27%。 2022 年第一季度 GAAP 營業利潤率為 41%，與 2021 年第一季度相同。2022 年第一季度非 GAAP 營業利潤率為 44%，而 2021 年第一季度營業利潤率為 45%。非美國通用會計準則營業利潤率的下降主要是由於毛利率的變化。

GAAP diluted earnings per share for Q1 2022 were $0.36 compared to $0.31 per diluted share in the first quarter of 2021. Non-GAAP diluted earnings per share for Q1 2022 were $0.40 compared to $0.34 per diluted share in the first quarter of 2021. We ended the first quarter with a very strong balance sheet. As of March 31, 2022, the company had cash and cash equivalents, marketable securities and deposits of $399.5 million. On the cash flow front, the company generated $31.9 million from operating activities in the first quarter of 2022. We are pleased to have announced another share repurchase program during the first quarter of this year of up to 1 million shares. We continue to evaluate different venues to use our cash and create shareholder value.

2022 年第一季度的 GAAP 攤薄後每股收益為 0.36 美元，而 2021 年第一季度的攤薄後每股收益為 0.31 美元。2022 年第一季度的非 GAAP 攤薄後每股收益為 0.40 美元，而 2021 年第一季度的攤薄後每股收益為 0.34 美元。我們結束了第一季度的資產負債表非常強勁。截至 2022 年 3 月 31 日，該公司擁有現金及現金等價物、有價證券和存款 3.995 億美元。在現金流方面，公司在 2022 年第一季度從經營活動中產生了 3190 萬美元。我們很高興在今年第一季度宣布了另一項高達 100 萬股的股票回購計劃。我們將繼續評估不同的場所以使用我們的現金並創造股東價值。

Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2022: revenues between 415 and $425 million, non-GAAP gross margin between 84% and 86%, non-GAAP income from operations between $199 million to $204 million, non-GAAP earnings per diluted share of between $2.06 and $2.11.

在我將電話轉回 Moshe 之前，我想重申我們對 2022 年的指導：收入在 415 到 4.25 億美元之間，非美國通用會計準則毛利率在 84% 到 86% 之間，非美國通用會計準則運營收入在 1.99 億美元到 204 美元之間百萬，非公認會計準則每股攤薄收益在 2.06 美元至 2.11 美元之間。

I will now turn over the call back to Moshe.

我現在將把電話轉回給 Moshe。

Thank you, Yair. Thank you, Shakil. Operator, we are ready for Q&A session.

謝謝你，亞爾。謝謝你，沙基爾。接線員，我們準備好進行問答環節了。

(Operator Instructions) The first question comes from Kyle Rose with Canaccord.

（操作員說明）第一個問題來自與 Canaccord 的 Kyle Rose。

Great. This is Gibran on for Kyle. And congrats on a strong quarter. Maybe to start, could you talk a little bit more about your China business? How that's being affected by the current resurgence of COVID and some of the scaling lockdowns in the major population centers? Maybe what are your thoughts for the remainder of 2022? And secondarily, do you think that the timeline for approval of your 2 platforms in China has maybe been pushed out?

偉大的。這是凱爾的紀伯倫。並祝賀一個強勁的季度。也許首先，您能多談談您的中國業務嗎？當前 COVID 的死灰復燃以及主要人口中心的一些擴大封鎖措施對這有什麼影響？也許您對 2022 年剩餘時間有什麼想法？其次，您認為您的兩個平台在中國的批准時間表可能已經推遲了嗎？

Yes. Okay. I will answer that. It's Moshe. Well, we are monitoring on a daily basis the situation in China. In China, right now, we cannot send people to do training because anybody who went to China need to go to a lockdown of 3 weeks in the hotel. So, no one from Israel and no one from other territories that usually we sent to China to do training to doctors will not accept such restriction. Certain area in China are in the lockdown, Shanghai was until this week and now they started to lock down Beijing as well. The area of Shenzhen is also locked down.

是的。好的。我會回答的。是摩西。嗯，我們每天都在監測中國的情況。在中國，目前我們不能派人去培訓，因為任何去中國的人都需要在酒店進行為期 3 週的封鎖。所以，以色列和其他地區的人，通常我們派到中國去培訓醫生，都不會接受這樣的限制。中國的某些地區處於封鎖狀態，上海直到本週才開始封鎖，現在他們也開始封鎖北京。深圳地區也被封鎖。

Our company -- our distributors in Beijing is trying to do as much as they can. They don't allow salespeople to travel from city to city. And as regard to the CFDA and regulation, the CFDA is now almost 100% occupied with the COVID and solution for the COVID. And as everybody knows, they do not have good vaccination and this is the reason why they continue to lockdown their cities and citizens. We sold less than 50% of what was in the budget in China in Q1. We don't know where the lockdown and the situation will get better. We're getting surprised every day.

我們公司——我們在北京的經銷商正在盡其所能。他們不允許銷售人員從一個城市到另一個城市旅行。至於 CFDA 和法規，CFDA 現在幾乎 100% 忙於 COVID 和 COVID 的解決方案。眾所周知，他們沒有很好的疫苗接種，這就是他們繼續封鎖城市和公民的原因。我們在第一季度在中國的銷售量不到預算的 50%。我們不知道封鎖在哪裡，情況會好轉。我們每天都感到驚訝。

Hopefully, towards the end of the second quarter, they will have -- we will have a better, I would say, view and better clearance on what's the growth in the market there. In addition to China, also Hong Kong, which is today part of China has the same restriction and other countries in Asia, Korea and Japan are getting better, but not -- are not fully opened yet. For example, to Japan, you need to get what they call a COVID visa in order to enter and they are making a lot of difficulties on people to come into the country. Yes, I mean, in the other part of the world, things are getting better, but as I described, Asia is the worst case.

希望到第二季度末，他們將擁有-我想說，我們將對那裡的市場增長有更好的看法和更清晰的認識。除了中國，香港，今天是中國的一部分，也有同樣的限制，亞洲其他國家，韓國和日本都在變好，但還沒有——還沒有完全開放。例如，去日本，你需要獲得他們所謂的 COVID 簽證才能進入，他們給人們進入這個國家帶來了很多困難。是的，我的意思是，在世界的其他地方，情況正在好轉，但正如我所描述的，亞洲是最糟糕的情況。

Understood. That's helpful, Moshe. And then if I could just follow up on Empower. Maybe -- when could we see some data for EmpowerRF in terms of efficacy for SUI? And then in terms of expectations, I know you had previously mentioned $20 million for 2022. Is that still relatively in line?

明白了。這很有幫助，摩西。然後，如果我可以跟進 Empower。也許——我們什麼時候才能看到 EmpowerRF 對 SUI 療效的一些數據？然後就預期而言，我知道您之前提到過 2022 年的 2000 萬美元。這仍然相對符合要求嗎？

Yes. I would say, yes, that the guidance that we gave for $20 million in 2022 is still valid. Spero, would you like to answer the question regarding the SUI results?

是的。我會說，是的，我們在 2022 年給出的 2000 萬美元的指導仍然有效。 Spero，您想回答有關 SUI 結果的問題嗎？

Sure. Gibran. We're already in the process of a -- couple of our studies are already in press. So, I'm happy to share those with you or Moshe can, to show you some preliminary results of our SUI. So the -- as I said, we said in previous calls, they're very, very encouraging. And the feedback we're getting from the field, more importantly, is giving us a huge base of data set where our doctors are going to push off of. So, we're collecting data not just from our studies alone that we're conducting, we've engaged with a couple of universities to start doing some prospective, big trials, which is great also based on these proof of concepts that we already established. So we can share with you, I think we have in the past, but we could share you these couple of publications that are impressed or hoping it comes out in the next 2 or 3 months, but we're happy to show that to you.

當然。紀伯倫。我們已經在進行——我們的一些研究已經在出版中。因此，我很高興與您或 Moshe 分享這些內容，向您展示我們 SUI 的一些初步結果。所以 - 正如我所說，我們在之前的電話會議中說過，他們非常非常鼓舞人心。我們從現場得到的反饋，更重要的是，為我們提供了一個龐大的數據集基礎，我們的醫生將在這些數據集基礎上開展工作。因此，我們不僅從我們正在進行的研究中收集數據，我們還與幾所大學合作開始進行一些前瞻性的大型試驗，這也基於我們已經進行的這些概念證明已確立的。所以我們可以和你分享，我想我們過去有過，但我們可以分享給你印象深刻或希望在未來 2 或 3 個月內出版的這幾本出版物，但我們很高興向你展示.

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

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

I guess I wanted to ask first about gross margin. So, you're maintaining the 84% to 86% guidance for the year. You did 83% in the first quarter. You mentioned kind of near-term pressure. So just from a modeling perspective, I assume we should kind of have it gradually ramp up through the year and probably end up more sort of at the lower end of that range. Is that a reasonable assumption?

我想我想先問一下毛利率。因此，您將維持今年 84% 至 86% 的指導。你在第一季度做了 83%。你提到了近期的壓力。因此，僅從建模的角度來看，我認為我們應該讓它在一年中逐漸增加，並且最終可能會更多地處於該範圍的低端。這是一個合理的假設嗎？

This is Moshe. You are here with me. I would say, yes. We lost 1.5% in the first quarter, mainly due to the supply chain challenges as I described. I'm sure everybody knows that right now electronic component prices went up dramatically and sometime we are struggling to get them. We are -- as we said before, we managed to develop a supply chain, which we have at least 3 suppliers on every component. So, we managed to get what we need. But sometimes, we need to use a replacement component and change the printed circuit board and do all kind of maneuvering in order to be able not to shut down the production line and we managed to achieve that.

這是摩西。你和我在一起。我會說，是的。我們在第一季度損失了 1.5%，主要是由於我所描述的供應鏈挑戰。我相信每個人都知道，現在電子元件的價格急劇上漲，有時我們很難買到它們。我們 - 正如我們之前所說，我們設法開發了一個供應鏈，我們在每個組件上至少有 3 個供應商。所以，我們設法得到了我們需要的東西。但有時，我們需要使用替換組件並更換印刷電路板並進行各種操作，以便能夠不關閉生產線，我們設法實現了這一點。

As I said before, I don't see -- we don't see the light at the end of the tunnel as regard to supply chain and of course, as regard to shipping cost. I can tell you that the 40-foot containers from Israel to the U.S. used to cost $3,500, now it's $13,000. So, this is also something. But eventually, I believe the market will get back to stabilization and things will be better. We believe that in the second quarter and the third quarter, we will do better. And therefore, we have maintained the guidance of 84% to 86%. If you want to be on the safe side, to use 84% is better than 86% for you model.

正如我之前所說，我沒有看到 - 關於供應鏈，當然還有運輸成本，我們沒有看到隧道盡頭的曙光。我可以告訴你，從以色列到美國的 40 英尺集裝箱過去要 3,500 美元，現在是 13,000 美元。所以，這也是一回事。但最終，我相信市場會恢復穩定，情況會更好。我們相信，在二季度和三季度，我們會做得更好。因此，我們維持 84% 至 86% 的指引。如果您想安全起見，對您的模型來說，使用 84% 比 86% 更好。

That's helpful. And then I want to ask Shakil mentioned that you've seen 30% of your -- I guess it was maybe U.S. customers buying a second device. Can you maybe talk about -- are they buying, it's the same type of device that they already had? Is it a different system? And then to what degree are these sort of replacements where they're not using the other one? Or are they continuing to use both devices?

這很有幫助。然後我想問 Shakil 提到你已經看到了 30% - 我猜可能是美國客戶購買了第二台設備。你能談談 - 他們是否購買，這是他們已經擁有的相同類型的設備？它是一個不同的系統嗎？那麼這些替代品在多大程度上沒有使用另一種替代品？還是他們繼續使用這兩種設備？

Sure, Mike. So actually, no, they're completely different devices. So, it's not because of anything other than the fact that they're actually successful with their first device, which is a big feather in our cap here. In order to get them a first device, have them successful with it, great -- the return on investment that we had promised them, kind of shows that they do well with one device just like any other investment, you do well with one thing, then you want to go in and invest in something else.

當然，邁克。所以實際上，不，它們是完全不同的設備。因此，這不是因為他們在第一台設備上實際上取得了成功，這是我們這裡的一大亮點。為了讓他們獲得第一台設備，讓他們在這方面取得成功，太好了——我們向他們承諾的投資回報，有點表明他們在一台設備上做得很好，就像任何其他投資一樣，你在一件事情上做得很好，然後你想進去投資別的東西。

So because of our broad product portfolio and offering, if we can get in there with one device, help them succeed and do well, then they come back in and do that. So, a big part of that is also our post-sales support team, which has been -- which have been very helpful for our customers, but also they're in there, kind of talking and they work alongside with our reps on the field level in order to get them generating these leads.

因此，由於我們廣泛的產品組合和產品，如果我們可以用一台設備進入那裡，幫助他們取得成功並做得很好，那麼他們就會回來並做到這一點。因此，其中很大一部分也是我們的售後支持團隊，這對我們的客戶非常有幫助，而且他們也在那裡，與我們的代表一起在現場級別，以便讓他們產生這些潛在客戶。

Okay. And just as far as the surgical or I guess the minimally invasive systems go, is there any reason that one of the surgeon customers would want to have multiple systems? Or is it just not feasible to need multiple -- the same type of system, I guess, for efficiency reasons or something like that?

好的。就外科手術或我猜是微創系統而言，是否有任何理由讓外科醫生的客戶想要擁有多個系統？或者，出於效率原因或類似原因，需要多個相同類型的系統是不可行的？

Yes. No, good question. So essentially, for the products that we do have, body type, for example, the surgeon has to obviously use that. For some of our hands-free technology or some of our other aesthetic applications, we're actually able to have them delegate some of these things depending on which state they're in or which province they're in Canada. So, essentially, they want to have their one device that they're using and that they can actually use the applications on and then at the same time, have something else that they can delegate. So they're generating double the revenue in that period of time. Does that make sense?

是的。不，好問題。所以本質上，對於我們擁有的產品，例如體型，外科醫生顯然必須使用它。對於我們的一些免提技術或其他一些美學應用，我們實際上可以讓他們根據他們所在的州或加拿大的哪個省委派其中一些事情。因此，從本質上講，他們希望擁有一個他們正在使用的設備，並且他們可以實際使用應用程序，然後同時擁有其他可以委託的東西。所以他們在那段時間裡創造了雙倍的收入。那有意義嗎？

Yes, it does.

是的，它確實。

And was there a follow-up, Mr. Matson.

有後續嗎，馬特森先生。

No, that's it.

不，就是這樣。

(Operator Instructions) The next question comes from Jeff Johnson with Baird.

（操作員說明）下一個問題來自 Jeff Johnson 和 Baird。

So Moshe, I just wanted to start Asia, China, obviously, as you mentioned, a lot of headwinds still in that market. What was maybe -- any way to quantify kind of the year-over-year impact of those markets? Did it drag growth down by X number of points or even for the full year kind of what were you anticipating China and Asia might contribute? And how much has come out of that even as you're still maintaining the full year guidance? Any insight there would be helpful.

所以Moshe，我只是想開始亞洲，中國，顯然，正如你提到的，那個市場仍然存在很多不利因素。可能是什麼 - 有什麼方法可以量化這些市場的同比影響？它是否拖累了 X 個點的增長，甚至是全年的增長，你預計中國和亞洲可能會做出什麼貢獻？即使您仍在維持全年指導，這也取得了多少成果？那裡的任何見解都會有所幫助。

Well, I believe China in 2021, we had the same situation with the COVID. In January until March, the country was totally closed. China right now in the first quarter of 2021, we did $1.9 million. And in the first quarter of 2022, we did $0.9 million -- excuse me, $1.1 million. So we went down a little bit in China because of the situation on the first quarter.

好吧，我相信在 2021 年的中國，我們也遇到了與 COVID 相同的情況。 1 月至 3 月，該國完全關閉。中國現在在 2021 年第一季度，我們做了 190 萬美元。在 2022 年第一季度，我們做了 90 萬美元——對不起，是 110 萬美元。因此，由於第一季度的情況，我們在中國的表現有所下降。

Your question, whether or not we will maintain the budget for China for the rest of the year. We hope so. So far, Q2, the first month, we don't see a major change. I mean, they just changed and instead of that, they released Shanghai and now they are putting restriction on Beijing. And therefore, I don't anticipate a big jump there. I would say that if we will do 50% to 60% of the regional budget, it will be good.

你的問題，我們是否會在今年剩餘時間內維持中國的預算。我們希望如此。到目前為止，第二季度，第一個月，我們沒有看到重大變化。我的意思是，他們只是改變了，而不是那樣，他們釋放了上海，現在他們對北京進行了限制。因此，我預計那裡不會有很大的飛躍。我想說的是，如果我們能完成 50% 到 60% 的地區預算，那就太好了。

We did that -- the regional budget for China on 2022 was between $12 million to $13 million. We're still waiting to get approval from the CFDA for the other 3 platforms that we applied for. We have not yet. Everything is slow because of the COVID. as regard to other countries in Asia, I believe that Korea is doing better than China and we will do something similar to what we did last year, which was in the range of $10 million to $12 million. Japan more difficult because of the COVID. Australia and India are open now. So, we hope that these 3 subsidiaries will contribute. We were not changing the guidance for 2022 because of that and we would like to -- we hope that we will be able to sell more in other territories in order to cover the shortage in Asia.

我們做到了——2022 年中國的地區預算在 1200 萬美元到 1300 萬美元之間。對於我們申請的其他 3 個平台，我們仍在等待獲得 CFDA 的批准。我們還沒有。由於COVID，一切都很慢。至於亞洲其他國家，我相信韓國比中國做得更好，我們會做類似去年的事情，在 1000 萬美元到 1200 萬美元之間。由於COVID，日本更加困難。澳大利亞和印度現已開放。所以，我們希望這三個子公司能夠做出貢獻。因此，我們沒有改變 2022 年的指導方針，我們希望——我們希望能夠在其他地區銷售更多產品，以彌補亞洲的短缺。

And that makes sense. And then just a follow-up on the system sales themselves. I think one thing that may be getting lost in your numbers today, the minimally-invasive RF number was strong. Again, I think it was up over 50% year-over-year and improved on even a stacked comp basis, that growth rate did. It's the hands-free stuff that was down. And obviously, hands-free was a fantastic product in the early days of COVID recovery. At $8 million a quarter, this quarter, is that kind of a new run rate for that hands-free? Does it still come down another few million dollars. But it seems like to me that hands-free, again, a great product for its time back when we were first recovering from COVID. But once we get through maybe some year-over-year headwinds on that, it starts to stabilize here and the whole company number then can improve a little bit once we get through some of the headwinds of that year-over-year at hands-free issue?

這是有道理的。然後只是對系統銷售本身的跟進。我認為今天你的數字可能會丟失一件事，微創射頻數字很強大。再一次，我認為它同比增長了 50% 以上，甚至在疊加的基礎上也有所改善，增長率確實如此。這是免提的東西。顯然，在 COVID 恢復初期，免提是一款出色的產品。本季度每季度 800 萬美元，這是免提設備的新運行率嗎？是否還會再降幾百萬美元。但在我看來，當我們第一次從 COVID 中恢復時，免提又是一款很棒的產品。但是，一旦我們克服了可能出現的一些逐年逆風，它就會開始穩定下來，一旦我們克服了當年同比的一些逆風，整個公司的數量就會有所改善-免費問題？

Okay. Let me expand what happened with the hand-free and why the hands-free went down a little bit. I mean, as you know, we came up with a new generation of the Evolve. We added a modality called Transform, which is a combination of EMS and RF and we believe that that's going well. We're doing the same with Evoke. We plan to launch a second-generation Evoke toward the end of this quarter or beginning of next quarter, the third quarter. And therefore, we decided not to continue to sell the Evoke on the first quarter. But mainly, we sold only the Evoke -- we sold only they Evolve. Hopefully, by launching the second-generation Evoke, within few months, numbers will go back again to the same level it used to be in between 17% to 18% of the total revenue.

好的。讓我擴展一下免提設備發生的情況以及免提設備下降的原因。我的意思是，如你所知，我們推出了新一代的 Evolve。我們添加了一種稱為 Transform 的模式，它是 EMS 和 RF 的組合，我們相信這進展順利。我們正在對 Evoke 做同樣的事情。我們計劃在本季度末或下個季度初第三季度推出第二代 Evoke。因此，我們決定在第一季度不再繼續銷售 Evoke。但主要是，我們只賣 Evoke——我們只賣 Evolve。希望通過推出第二代 Evoke，在幾個月內，數字將再次回到過去佔總收入 17% 至 18% 的水平。

Okay. So you're not seeing necessarily a fundamental fall off in interest for the hands-free stuff? It's more a just product timing at this point?

好的。所以你沒有看到人們對免提產品的興趣必然會下降嗎？在這一點上，它更像是一個公正的產品時機？

Exactly.

確切地。

Okay. And last question I have, sorry for a few here. I just -- I think when you and I spoke last, Moshe, you were not passing on some of those increased shipping costs, some of the increased subcomponent costs. I think you could, it feels like to me in aesthetics, there has been some pricing power for other companies. But just maybe talk about your rationale for not doing that. Does that improve your standing in the eyes of customers? Just your thoughts on why not passing through some of those added freight cost and/or system costs?

好的。我有最後一個問題，對不起這裡的一些人。我只是 - 我想當你和我上次談話時，Moshe，你並沒有轉嫁一些增加的運輸成本，一些增加的子組件成本。我想你可以，我覺得在美學方面，其他公司有一些定價權。但也許只是談談你不這樣做的理由。這會提高您在客戶眼中的地位嗎？只是您對為什麼不通過一些額外的運費和/或系統成本的想法？

Well, usually, we don't raise prices in the middle of the year. And we're trying to fight the supply chain challenges, not to fight, but try to overcome it. in order to go back to the same gross margin. I don't think it's necessary to raise prices of the platforms and the disposable just because we are having some -- I would call it temporarily, maybe it will take longer than that, challenges with the supply chain. We all believe that it will come back to normal. It cannot work like that forever. And therefore, we've decided that we do not raise prices of the platforms. We will reexamine our decision sometime at the end of the year towards 2023 and decide again whether we would like to do it or we would like to maintain the same price structure that we have today.

嗯，通常情況下，我們不會在年中提高價格。我們正在努力應對供應鏈挑戰，而不是戰鬥，而是努力克服它。為了回到相同的毛利率。我認為沒有必要僅僅因為我們有一些就提高平台和一次性用品的價格——我會暫時稱它為供應鏈的挑戰，也許需要更長的時間。我們都相信它會恢復正常。它不能永遠那樣工作。因此，我們決定不提高平台的價格。我們將在接近 2023 年的年底某個時候重新審視我們的決定，並再次決定我們是否願意這樣做，或者我們是否願意保持與今天相同的價格結構。

Okay. I think I remember you did not put even a freight surcharge in there. Is that correct? Just remind me on that? So you've been absorbing pretty much of everything and not passing anything on?

好的。我想我記得你甚至沒有把運費附加費放在那裡。那是對的嗎？只是提醒我一下？所以你一直在吸收幾乎所有的東西，而不是傳遞任何東西？

Correct. We didn't pass anything to our customers.

正確的。我們沒有向客戶傳遞任何東西。

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

我們的問答環節到此結束。我想把會議轉回給首席執行官 Moshe Mizrahy 做任何閉幕詞。

Thank you, operator. Thank you, Yair. Thank you, Shakil. Thank you, Spero. Thank you, Michael, and Miri, of course, for organizing this earning call. I'd like to thanks again to all of InMode employees. We worked very hard in the first quarter, overcoming all the challenges that we have described. We continue to work hard. We'll continue to service our customers in the best way and come up with new technologies and new platforms every year. Again, thank you all and looking forward to see you in the next earning call. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝你，接線員。謝謝你，亞爾。謝謝你，沙基爾。謝謝你，斯佩羅。當然，感謝 Michael 和 Miri 組織這次財報電話會議。我要再次感謝所有 InMode 員工。我們在第一季度非常努力，克服了我們所描述的所有挑戰。我們繼續努力。我們將繼續以最好的方式為我們的客戶服務，並且每年都會推出新技術和新平台。再次感謝大家，期待在下一次財報電話會議上見到你們。會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。