Envista Holdings Corp (NVST) 2021 Q3 法說會逐字稿

My name is Catherine, and I will be your conference call facilitator this afternoon. At this time, I would like to welcome everyone to Envista Holdings Corporation's Third Quarter 2021 Earnings Results Conference Call. (Operator Instructions)

我叫凱瑟琳，今天下午我將擔任你們的電話會議主持人。此時，歡迎大家參加 Envista Holdings Corporation 2021 年第三季度財報電話會議。 （操作員說明）

I will now turn the call over to Mr. Stephen Keller, Vice President of Investor Relations of Envista Holdings. Mr. Keller, you may begin your conference call.

我現在將把電話轉給 Envista Holdings 投資者關係副總裁 Stephen Keller 先生。凱勒先生，您可以開始電話會議了。

Hello, and thanks for joining us on the call. With us today are Amir Aghdaei, our President and Chief Executive Officer; and Howard Yu, our Chief Financial Officer. I want to point out that our earnings release, the slide presentation supplementing today's call and the reconciliations and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call are all available on the Investors section of our website, www.envistaco.com. The audio portion of this call will be archived on the Investors section of our website later today under the heading Events and Presentations. It will remain archived until our next quarterly call.

您好，感謝您加入我們的電話會議。今天和我們在一起的是我們的總裁兼首席執行官 Amir Aghdaei；和我們的首席財務官 Howard Yu。我想指出的是，我們的收益發布、補充今天電話會議的幻燈片演示以及 SEC 法規 G 要求的與電話會議期間提供的任何非 GAAP 財務措施相關的調節和其他信息都可以在我們網站的投資者部分找到， www.envistaco.com。本次電話會議的音頻部分將於今天晚些時候在我們網站的“投資者”部分的“活動和演示”標題下存檔。在我們下一次季度電話會議之前，它將一直存檔。

As announced on September 7, 2021, we reached an agreement to sell our KaVo Treatment Units and Instrument business. For the current quarter, the results of this business are reflected as discontinued operations in our financial statements as required by generally accepting accounting principles. Additionally, the financial statements included in our third quarter 10-Q and to be included in our 10-K for the fiscal 2021 will reflect the KaVo Treatment Unit and Instrument business as discontinued operations as required by GAAP. All references in these remarks and accompanying presentation to earnings, revenues and other company-specific financial metrics relate only to the continuing operation of Envista's business except for cash flow measures.

正如 2021 年 9 月 7 日宣布的那樣，我們達成了出售 KaVo 治療裝置和儀器業務的協議。對於本季度，該業務的結果按照公認會計原則的要求在我們的財務報表中反映為已終止經營。此外，包含在我們第三季度 10-Q 和將包含在我們 2021 財年 10-K 中的財務報表將反映 KaVo 處理裝置和儀器業務作為 GAAP 要求的停產業務。這些評論和隨附的對收益、收入和其他公司特定財務指標的所有引用僅與 Envista 業務的持續運營有關，現金流量指標除外。

During the presentation, we will describe some of the more significant factors that impacted year-over-year performance. The supplemental materials describe additional factors that impacted year-over-year performance. Unless otherwise noted, all references in these remarks and supplemental materials to company-specific financial metrics relate to the third quarter of 2021 and all references to period-to-period increases or decreases in financial metrics are year-over-year. We may also describe certain products and devices that have applications submitted and pending certain regulatory approvals or are available only in certain markets.

在演示過程中，我們將描述影響同比表現的一些更重要的因素。補充材料描述了影響年度業績的其他因素。除非另有說明，否則這些評論和補充材料中對公司特定財務指標的所有引用均與 2021 年第三季度相關，並且所有對財務指標的同期增減均與去年同期相比。我們還可能會描述某些產品和設備，這些產品和設備已提交申請並正在等待某些監管部門的批准，或者僅在某些市場可用。

During the call, we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we believe, anticipate or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings, and actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements, except as required by law.

在電話會議期間，我們將做出聯邦證券法含義內的前瞻性陳述，包括關於我們認為、預期或可能在未來發生的事件或發展的陳述。這些前瞻性陳述受到許多風險和不確定性的影響，包括我們在 SEC 文件中提出的風險和不確定性，實際結果可能與我們今天做出的任何前瞻性陳述存在重大差異。這些前瞻性陳述僅在作出之日有效，除法律要求外，我們不承擔任何更新任何前瞻性陳述的義務。

With that, I'd like to turn the call over to Amir.

有了這個，我想把電話轉給阿米爾。

Thank you, Stephen, and welcome, everyone, to Envista's Third Quarter 2021 Earnings Call. I want to begin by thanking our employees for delivering another outstanding quarter. Every day, our employees, partner with dental professionals to improve lives and expand access to oral care. The dedication and passion of our employees is what will drive our long-term success.

謝謝斯蒂芬，歡迎大家參加 Envista 2021 年第三季度財報電話會議。首先，我要感謝我們的員工交付了另一個出色的季度。每一天，我們的員工都與牙科專業人士合作，以改善生活並擴大獲得口腔護理的機會。我們員工的奉獻精神和熱情將推動我們取得長期成功。

In the third quarter, our continuing operations delivered core revenue growth of 10.2% compared to the third quarter of 2020. We grew significantly above pre-pandemic levels and continue to benefit from the repositioning of our portfolio, our improved commercial execution and our long-term investments in innovation.

與 2020 年第三季度相比，我們的持續經營業務在第三季度實現了 10.2% 的核心收入增長。我們的增長顯著高於大流行前的水平，並繼續受益於我們投資組合的重新定位、我們改進的商業執行力以及我們的長期對創新的長期投資。

Our Q3 adjusted EBITDA margin was 19.6%. Taking a longer view, our year-to-date adjusted EBITDA margin is 20%, reflecting the underlying profitability of our business.

我們第三季度調整後的 EBITDA 利潤率為 19.6%。從長遠來看，我們年初至今調整後的 EBITDA 利潤率為 20%，反映了我們業務的潛在盈利能力。

Before I turn it over to Howard to discuss our third quarter results in more detail, I want to provide more color on our progress toward our long-term priorities of accelerating growth, expanding our operating margin and transforming our portfolio.

在我轉交給霍華德更詳細地討論我們第三季度的業績之前，我想就我們在加速增長、擴大營業利潤率和轉變我們的投資組合等長期優先事項方面取得的進展提供更多的色彩。

Since our September 2019 IPO, we are focused on accelerating our growth through organic investment in innovation and commercial execution. We continue to make meaningful progress across our businesses. With a uniquely differentiated portfolio, our orthodontic business continues to deliver strong results. We're the only company who offers clinicians a full range of orthodontic treatment, options enabling them to provide better, more personalized treatment plans to more patients.

自 2019 年 9 月首次公開募股以來，我們專注於通過對創新和商業執行的有機投資來加速我們的增長。我們繼續在我們的業務中取得有意義的進展。憑藉獨特的差異化產品組合，我們的正畸業務繼續取得強勁業績。我們是唯一一家為臨床醫生提供全方位正畸治療的公司，這些選擇使他們能夠為更多患者提供更好、更個性化的治療計劃。

Our clear aligners business continues to grow rapidly with sales expanding over 130% versus the third quarter 2020. We're expanding our geographic footprint, increasing our active user base and further penetrating DSOs. Envista business system provides the tools and processes to deliver this rapid growth while ensuring an unparalleled customer experience.

我們的透明對準器業務繼續快速增長，銷售額比 2020 年第三季度增長超過 130%。我們正在擴大我們的地理足跡，增加我們的活躍用戶群並進一步滲透 DSO。 Envista 業務系統提供了實現這種快速增長的工具和流程，同時確保無與倫比的客戶體驗。

So far in 2021, we have reduced the time from initial scan to case shipment by 40% and continue to improve our customer onboarding experience. Since launching Spark in 2018, we're on track to start a total of 100,000 new cases by end of the year and further, we are well on our way to achieving $100 million run rate in early 2020 -- 2022.

到 2021 年為止，我們已將從初始掃描到案例發貨的時間縮短了 40%，並繼續改善我們的客戶入職體驗。自 2018 年推出 Spark 以來，我們有望在年底前啟動總共 100,000 個新案例，而且我們有望在 2020 年初 - 2022 年實現 1 億美元的運行率。

Our premium implant business continues to accelerate, delivering double-digit core growth versus the third quarter 2020. Our innovative TiUltra and Xeal surfaces continue to perform well and are driving our growth with 30% of our implants sold globally now featuring our new best-in-class surfaces. Our commercial execution is further driving share gain in global premium implant segment. We're focused on supporting our customers in Q3, providing over 300 training and education opportunities reaching over 7,000 clinicians globally.

我們的優質植入物業務繼續加速發展，與 2020 年第三季度相比實現了兩位數的核心增長。我們創新的 TiUltra 和 Xeal 表面繼續表現良好並推動我們的增長，我們在全球銷售的植入物中有 30% 現在採用了我們最新的最佳產品-級表面。我們的商業執行進一步推動了全球優質植入物領域的份額增長。我們專注於在第三季度為我們的客戶提供支持，為全球 7,000 多名臨床醫生提供 300 多個培訓和教育機會。

Our imaging business performed exceptionally well in the quarter, delivering core growth of over 20%. Dental professionals remain confident in the outlook for their practices and remain focused on investing for the long term. Our imaging offerings, combined with our DTX Studio chronic software solution provides our customers with a seamless imaging workflow and integrated digital experience. This September, we were honored to win Cellerant's best-class award for our DTX solution. This is an example of how we are transforming the dental industry into the next phase of technology, expanding access for patients and delivering a seamless and productive workflow for clinicians.

我們的影像業務在本季度表現異常出色，實現了超過 20% 的核心增長。牙科專業人士對他們的實踐前景充滿信心，並繼續專注於長期投資。我們的成像產品與我們的 DTX Studio 長期軟件解決方案相結合，為我們的客戶提供了無縫的成像工作流程和集成的數字體驗。今年 9 月，我們很榮幸地憑藉我們的 DTX 解決方案贏得了 Cellerant 的最佳獎項。這是一個例子，說明我們如何將牙科行業轉變為技術的下一階段，擴大患者的訪問範圍並為臨床醫生提供無縫且高效的工作流程。

The Envista Business System and our focus on continuous improvement is a foundation that delivers both our short- and long-term profitability. Our team leverages our EBS toolkit to reduce structural cost, consolidate our footprint, improve productivity and drive operational improvements. Across our businesses, gross margins improved 230 basis points in the third quarter versus Q3 2020. This is despite some of the inflationary headwinds we have seen in shipping costs as well as in petroleum-based supplies and chemicals.

Envista 業務系統和我們對持續改進的關注是我們實現短期和長期盈利能力的基礎。我們的團隊利用我們的 EBS 工具包來降低結構成本、鞏固我們的足跡、提高生產力並推動運營改進。在我們的業務中，第三季度的毛利率比 2020 年第三季度提高了 230 個基點。儘管我們在運輸成本以及石油基供應和化學品方面看到了一些通貨膨脹的不利因素。

To date, our daily management and focus on execution allowed us to mitigate many of the significant supply chain disruption that the world is increasingly experiencing. Since the start of the pandemic, we have taken aggressive actions to transform our business. We took over $100 million in structural cost by delayering our organization and consolidating our operating profit -- our operating footprint.

迄今為止，我們的日常管理和對執行的關注使我們能夠減輕世界上越來越多的許多重大供應鏈中斷。自大流行開始以來，我們採取了積極的行動來轉變我們的業務。通過延遲我們的組織並鞏固我們的營業利潤——我們的營業足跡，我們獲得了超過 1 億美元的結構性成本。

We invested significantly in our long-term growth by utilizing our EBS tools across our portfolio to drive commercial execution, and we continue to build sustainable competitive advantage through innovation. With the announced sale of our KaVo Treatment Unit and Instrument businesses, we also made material progress towards our long-term goal of reorienting our portfolio to higher growth and higher-margin segments. Divestiture shifts our portfolio from a 50-50 split between our 2 segments to a 60-40 mix in favor of the faster growth and higher-margin Specialty Products & Technologies segment.

我們通過在我們的產品組合中利用我們的 EBS 工具來推動商業執行，對我們的長期增長進行了大量投資，並且我們繼續通過創新建立可持續的競爭優勢。隨著我們宣佈出售我們的 KaVo 治療裝置和儀器業務，我們在實現我們的長期目標方面也取得了重大進展，該目標將我們的產品組合重新定位到更高增長和更高利潤的細分市場。資產剝離將我們的投資組合從 2 個部門之間的 50-50 拆分轉變為 60-40 的組合，以支持增長更快、利潤率更高的特種產品和技術部門。

As a business, we are now more focused on high value and higher-margin consumables, imaging and digital workflow solutions with over 60% of our business now sold directly to clinicians. By exiting the treatment unit and instrument business, we expect to increase our core growth trajectory by 50 to 100 basis points, while expanding our long-term operating margins by 30 to 50 basis points. We plan to use the net proceeds from the sale to accelerate our portfolio transformation through an aggressive but disciplined approach to capital deployment. We utilize our EBS driven standard M&A and market work to manage a robust pipeline of inorganic partnership and investment opportunities, and we are actively cultivating new opportunities.

作為一家企業，我們現在更專注於高價值和高利潤的耗材、成像和數字工作流程解決方案，我們 60% 以上的業務現在直接銷售給臨床醫生。通過退出治療單元和儀器業務，我們預計我們的核心增長軌跡將增加 50 至 100 個基點，同時將我們的長期營業利潤率擴大 30 至 50 個基點。我們計劃使用出售所得的淨收益，通過積極但有紀律的資本部署方法來加速我們的投資組合轉型。我們利用我們的 EBS 驅動的標準併購和市場工作來管理一個強大的無機合作夥伴關係和投資機會管道，我們正在積極培育新的機會。

I will now turn the call over to Howard to go through our third quarter financials and segment performance in more detail.

我現在將電話轉給霍華德，以更詳細地了解我們第三季度的財務和部門業績。

Thanks, Amir. Before we begin, I would like to remind you that our third quarter results are based on continuing operations, reflecting the pending sale of our KaVo Treatment Unit and Instrument business. Accordingly, the quarterly results of the KaVo Treatment Unit and Instrument Business are now reported as discontinued operations. Given this complexity, before diving into the results of our continuing operations, I would like to take a moment to level set and just confirm that our businesses are performing very well. Results for both continuing operations and discontinuing operations exceeded our expectations in the quarter. We are ahead of our guidance, and based on our performance, we have the confidence to raise our full year guidance while continuing to invest for the long term.

謝謝，阿米爾。在我們開始之前，我想提醒您，我們第三季度的業績是基於持續經營，反映了我們的 KaVo 處理裝置和儀器業務的待售。因此，KaVo Treatment Unit 和 Instrument Business 的季度業績現在報告為已終止經營。鑑於這種複雜性，在深入研究我們持續運營的結果之前，我想花點時間來調整一下水平，確認我們的業務表現非常好。本季度持續經營和非持續經營的業績都超出了我們的預期。我們領先於我們的指導，並且根據我們的表現，我們有信心在繼續長期投資的同時提高我們的全年指導。

Now moving to the results in the quarter. Third quarter sales increased 11% to $607.3 million. Reported sales were positively impacted 1.1% due to foreign currency exchange rates and negatively impacted 0.3% related to other discontinued products. Our core sales growth was 10.2% compared to the third quarter of 2020.

現在轉向本季度的結果。第三季度銷售額增長 11% 至 6.073 億美元。由於外幣匯率，報告的銷售額受到 1.1% 的正面影響，而與其他停產產品相關的銷售額受到 0.3% 的負面影響。與 2020 年第三季度相比，我們的核心銷售額增長了 10.2%。

As Amir discussed, our year-over-year growth reflects solid demand across the dental market and consistent execution across our portfolio. Geographically, North America and Western Europe's core sales growth was 8.2% and 9.1%, respectively, as business conditions continue to improve compared to the third quarter of 2020.

正如 Amir 所討論的那樣，我們的同比增長反映了牙科市場的強勁需求以及我們產品組合的一致執行。從地域上看，北美和西歐的核心銷售增長分別為 8.2% 和 9.1%，與 2020 年第三季度相比，業務狀況繼續改善。

Our emerging markets, including China, grew over 15% in the quarter. In China, we continue to see solid growth in both our strategically important implant business as well as our orthodontic solutions. Outside of China, our other emerging markets are clearly rebounding from pandemic lows. We expect to see the continued strengthening of demand as these markets -- in these markets as vaccinations continue to roll out and economies continue to reopen. Overall, we remain optimistic about demand for the balance of 2021. Barring any major pandemic-related disruptions to either patient volume or the overall supply chain, we believe that volumes will remain above pre-pandemic levels for the balance of 2021 and into 2022.

我們的新興市場，包括中國，在本季度增長了 15% 以上。在中國，我們繼續看到我們具有重要戰略意義的種植體業務和正畸解決方案的穩健增長。在中國之外，我們的其他新興市場顯然正在從大流行低點反彈。我們預計隨著這些市場的需求持續增強——在這些市場中，隨著疫苗接種的繼續推廣和經濟的繼續重新開放。總體而言，我們對 2021 年剩餘時間的需求仍然持樂觀態度。除非與大流行相關的患者數量或整個供應鏈出現任何重大中斷，否則我們認為 2021 年剩餘時間和 2022 年的數量將保持在大流行前水平之上。

Our third quarter gross margin from continuing operations was 58.7%, increasing by 230 basis points compared to the prior year due to higher volume, favorable product mix and productivity initiatives across our portfolio. The adjusted EBITDA margin of 19.6%, which was 80 basis points lower than Q3 of 2020.

我們第三季度來自持續經營業務的毛利率為 58.7%，與上年同期相比增長 230 個基點，這歸功於我們產品組合中更高的產量、有利的產品組合和生產力舉措。調整後的 EBITDA 利潤率為 19.6%，比 2020 年第三季度低 80 個基點。

As expected, in Q3 we continued to invest in our long-term innovation while increasing spending on travel and in-person customer-facing activities with the continued easing of pandemic-related lockdowns.

正如預期的那樣，在第三季度，我們繼續投資於我們的長期創新，同時隨著與大流行相關的封鎖的持續放鬆，增加了旅行和麵對面客戶活動的支出。

Our adjusted EBITDA was negatively impacted by approximately $3 million in stranded costs related to the expected sale of the KaVo Treatment Unit and Instrument business. We expect to begin addressing our approximately $10 million of annualized stranded costs in Q4.

我們調整後的 EBITDA 受到與預期出售 KaVo 治療裝置和儀器業務相關的約 300 萬美元擱淺成本的負面影響。我們預計在第四季度開始解決我們大約 1000 萬美元的年度擱淺成本。

Our third quarter adjusted EPS was $0.45 from continuing operations compared to $0.40 from the prior year. Our Specialty Products & Technologies segment core revenue increased by 13.3% compared to the third quarter of 2020, driven by strong growth in premium implants and continued growth from Spark. Compared to the third quarter of 2019, our Specialty Products & Technologies segment core growth was 11.7%. Our improving business execution and premium implant led to double-digit core growth versus 2020. We saw solid growth across most geographies and believe we are gaining share in the premium segment.

我們第三季度調整後的持續經營每股收益為 0.45 美元，而去年同期為 0.40 美元。與 2020 年第三季度相比，我們的特種產品和技術部門的核心收入增長了 13.3%，這得益於優質植入物的強勁增長和 Spark 的持續增長。與 2019 年第三季度相比，我們的特種產品和技術部門核心增長率為 11.7%。與 2020 年相比，我們不斷改進的業務執行力和保費植入帶來了兩位數的核心增長。我們在大多數地區都看到了穩健的增長，並相信我們正在增加保費市場的份額。

Our Specialty Products & Technologies segment adjusted operating profit margin at 23.3% was 180 basis points higher than our third quarter 2020 results. Our improved profitability was primarily driven by solid growth, favorable product mix and structural cost savings offset by increased spending on travel and customer-facing activities as well as long-term investments in innovation.

我們的特種產品和技術部門調整後的營業利潤率為 23.3%，比我們 2020 年第三季度的業績高出 180 個基點。我們提高的盈利能力主要是由穩健的增長、有利的產品組合和結構性成本節約所推動的，這些成本被增加的差旅和麵向客戶的活動支出以及對創新的長期投資所抵消。

Our third quarter Equipment & Consumables segment core sales from continuing operations increased 6% compared to 2020. Strong demand and solid execution in our imaging business drove the results in the segment with core growth of over 20% compared to the third quarter of 2020. As expected, Sales of our Infection Prevention solutions declined from peak pandemic demand. Despite the lower Q3 sales, inventory sellout trends reported by our distributors indicate that we are gaining market share in our core dental and medical markets.

與 2020 年相比，我們第三季度設備和耗材部門來自持續經營業務的核心銷售額增長了 6%。與 2020 年第三季度相比，我們成像業務的強勁需求和穩健的執行推動了該部門的業績，核心增長超過 20%。預計，我們的感染預防解決方案的銷售額因大流行病需求高峰而下降。儘管第三季度銷售額較低，但我們的分銷商報告的庫存銷售趨勢表明我們正在獲得核心牙科和醫療市場的市場份額。

Additionally, CaviWipes 2.0 has been well received in the market and should help us capture additional share. Overall, we continue to see enhanced safety protocols driving higher demand long term and expect this business to grow mid-single digits in the future. Equipment & Consumables adjusted operating profit margin was 20.8% from continuing operations in the third quarter of 2021 versus 20.8% in 2020.

此外，CaviWipes 2.0 在市場上廣受歡迎，應該會幫助我們獲得更多份額。總的來說，我們繼續看到增強的安全協議推動了更高的長期需求，並預計該業務未來將實現中等個位數的增長。 2021 年第三季度，設備和消耗品的調整後持續經營營業利潤率為 20.8%，而 2020 年為 20.8%。

Solid margin improvement in imaging and restorative solutions was offset by the slowdown in infection prevention. Further, we experienced some inflation-related chemical commodities that impacted our Infection Prevention business.

感染預防的放緩抵消了成像和修復解決方案的穩健邊際改善。此外，我們經歷了一些影響我們的感染預防業務的與通貨膨脹相關的化學商品。

As Amir noted, with the pending sale of KaVo Treatment Unit and Instrument Business, our equipment and consumables business will be faster growth and higher margin business over the long term.

正如 Amir 指出的那樣，隨著 KaVo 治療裝置和儀器業務的即將出售，我們的設備和耗材業務將在長期內實現更快的增長和更高的利潤率業務。

For the third quarter, we generated free cash flow of $82.3 million and ended the quarter with over $600 million in cash excluding the expected proceeds from the KaVo Treatment Unit and Instrument Business sale. Our balance sheet is very strong, and we have ample liquidity to pursue inorganic growth opportunities as they become available.

第三季度，我們產生了 8230 萬美元的自由現金流，並在本季度結束時擁有超過 6 億美元的現金，其中不包括出售 KaVo 處理單元和儀器業務的預期收益。我們的資產負債表非常強勁，我們有充足的流動性來尋求無機增長機會。

Looking forward to full year 2021, we are raising our guidance and are now expecting to deliver revenue from continuing operations between $2.475 billion and $2.5 billion. We further expect to deliver adjusted EBITDA between $480 million and $495 million. This includes a negative impact of approximately $10 million of full year stranded costs associated with the sale of KaVo Treatment Unit and Instrument Business. As mentioned, we expect to begin addressing these costs in Q4 and work to reduce the impact as we move through 2022.

展望 2021 年全年，我們正在提高我們的指引，現在預計持續經營業務的收入將在 24.75 億美元至 25 億美元之間。我們進一步預計調整後的 EBITDA 將在 4.8 億美元至 4.95 億美元之間。這包括與出售 KaVo 治療裝置和儀器業務相關的約 1000 萬美元的全年擱淺成本的負面影響。如前所述，我們希望在第四季度開始解決這些成本問題，並努力在 2022 年之前減少影響。

While it is too early to provide guidance for 2022, we remain committed to our long-term target of delivering mid-single-digit growth, increasing our operating margins by 50 to 75 basis points annually while funding our long-term growth initiatives.

雖然現在為 2022 年提供指導還為時過早，但我們仍致力於實現實現中個位數增長的長期目標，每年將營業利潤率提高 50 至 75 個基點，同時為我們的長期增長計劃提供資金。

I'll turn the call over to Amir for some closing comments.

我會把電話轉給阿米爾聽取一些結束語。

Thanks, Howard. We are very pleased with our third quarter results and remain optimistic about the future of the dental industry. Since our IPO, we have focused on accelerating our organic growth, improving our operating margins and transforming our business. We moved decisively to reshape our portfolio by exiting and divesting lower growth, lower-margin businesses where we were less differentiated. We invested in innovation across our portfolio, including the Spark, TiUltra, Damon Ultima and CaviWipes 2.0, and improved our commercial execution.

謝謝，霍華德。我們對第三季度的業績感到非常滿意，並對牙科行業的未來保持樂觀。自首次公開募股以來，我們一直專注於加速有機增長、提高營業利潤率和業務轉型。我們果斷地採取行動，通過退出和剝離差異化程度較低的低增長、低利潤業務來重塑我們的投資組合。我們投資於我們產品組合的創新，包括 Spark、TiUltra、Damon Ultima 和 CaviWipes 2.0，並改進了我們的商業執行。

Finally, we significantly improved our operating margins by reducing structural costs and improving productivity. As a result, we transformed our portfolio from a broad mix of equipment, consumable and specialty products to a focused dental company, providing highly differentiated consumables and specialty dental products underpinned by strong digital workflow solutions.

最後，我們通過降低結構成本和提高生產率顯著提高了營業利潤率。因此，我們將我們的產品組合從設備、耗材和專業產品的廣泛組合轉變為一家專注於牙科的公司，提供以強大的數字工作流程解決方案為基礎的高度差異化的耗材和專業牙科產品。

We're now focused on the fastest-growing, most attractive segments of the dental industry and continue to work with our clinical partners to streamline their operations and improve patient care. We are actively partnering with dental service organizations as they improve access to oral care. We are positioned as a partner of choice for this fast-growing customer segment.

我們現在專注於牙科行業中增長最快、最具吸引力的部分，並繼續與我們的臨床合作夥伴合作，以簡化他們的運營並改善患者護理。我們正在積極與牙科服務組織合作，因為它們可以改善獲得口腔護理的機會。我們被定位為這個快速增長的客戶群的首選合作夥伴。

Moving forward, our goal is to be a leader in orthodontics, providing a differentiated and integrated suite of treatment options, including bracket and wires and clear aligners. We will further accelerate our growth in implant by leveraging our premium implant franchise to provide full solutions across the implant workflow, including regenerative and prosthetic offerings. We will continue to grow and broaden access to our highly profitable and differentiated consumables business.

展望未來，我們的目標是成為正畸領域的領導者，提供一套差異化的綜合治療方案，包括托槽和線材以及隱形矯治器。我們將利用我們優質的種植體特許經營權，提供整個種植體工作流程的完整解決方案，包括再生和修復產品，從而進一步加快我們在種植體領域的增長。我們將繼續發展和拓寬我們高利潤和差異化的消耗品業務。

Finally, we leverage our strength in imaging and diagnostics to build digitally integrated workflows from diagnostics to treatment planning to execution for our clinical partners. We see significant opportunities to invest organically and inorganically, and we have the financial flexibility and management focus to further accelerate our growth trajectory via portfolio transformation.

最後，我們利用我們在成像和診斷方面的優勢，為我們的臨床合作夥伴構建從診斷到治療計劃再到執行的數字化集成工作流程。我們看到了有機和無機投資的重要機會，我們擁有財務靈活性和管理重點，可以通過投資組合轉型進一步加快我們的增長軌跡。

The progress we made this quarter is a direct reflection of our continuous improvement culture and our commitment to our customers in the dental industry. Our purpose is to partner with dental professionals and improve patients' lives by personalizing, digitizing and democratizing dental care. We look forward to our continued growth journey in 2021 and beyond.

我們本季度取得的進展直接反映了我們持續改進的文化和我們對牙科行業客戶的承諾。我們的目的是與牙科專業人士合作，通過個性化、數字化和民主化牙科護理來改善患者的生活。我們期待著 2021 年及以後的持續增長之旅。

Thanks, Amir. That concludes our formal comments. We are now ready for questions.

謝謝，阿米爾。我們的正式評論到此結束。我們現在準備好提問了。

(Operator Instructions) We will take our first question from Elizabeth Anderson with Evercore.

（操作員說明）我們將與 Evercore 一起回答伊麗莎白安德森的第一個問題。

Congrats on the next quarter. Despite the much tougher comps in the quarter, you saw obviously very nice growth in both Specialty and on Equipment & Consumables. Can you go into more detail about what you were seeing maybe from a patient volume perspective in some of the subsegments, notably maybe like ortho and implants on the Specialty side?

祝賀下個季度。儘管本季度的競爭更加艱難，但您顯然在專業和設備與消耗品方面看到了非常好的增長。您能否從某些子細分市場的患者數量角度更詳細地了解您所看到的情況，特別是專業方面的矯形器和植入物？

Yes. Thank you, Elizabeth. Broadly speaking, patient volume has improved and is above pre-pandemic levels in the developed markets in China. If you look at our business, almost 90% of our business is in Western Europe, North America and in China. While there remain pockets of weakness based on local outbreaks and shutdowns, overall, things are trending positively. Our emerging markets outside China are starting to see an uptick from pandemic loads. We remain very optimistic, but are mindful that there remains some risk about new variants as well as a slow vaccination rollout in certain areas.

是的。謝謝你，伊麗莎白。從廣義上講，中國發達市場的患者數量有所改善並高於大流行前的水平。如果你看看我們的業務，我們幾乎 90% 的業務都在西歐、北美和中國。儘管由於局部爆發和關閉而仍然存在一些弱點，但總體而言，情況呈積極趨勢。我們在中國以外的新興市場開始看到流行病負荷的增加。我們仍然非常樂觀，但注意到新變種仍然存在一些風險，並且某些地區的疫苗接種速度緩慢。

Answering your question about what we see on premium implant as well as clear aligners. Both of these segments are so underpenetrated, and we think there is significant runway. What we saw in the third quarter with continued double-digit sequential growth for Spark, driven by active doctors usage as well as new case submission growth. We continue to show -- demonstrate Spark, people see the value of it, they understand the differentiation between what we offer versus competitors, and they really acknowledge the level of support as well as the technical capabilities that we are offering in this space.

回答您關於我們在優質種植體和透明矯治器上看到的問題。這兩個細分市場的滲透率都非常低，我們認為存在重要的跑道。我們在第三季度看到 Spark 持續兩位數的環比增長，這主要得益於活躍醫生的使用以及新病例提交的增長。我們繼續展示 - 展示 Spark，人們看到它的價值，他們了解我們提供的產品與競爭對手之間的區別，並且他們真正認可我們在這個領域提供的支持水平和技術能力。

Our implant business continues -- our premium implant business continued to make progress, as we mentioned, a double-digit growth in Q3, and we are optimistic about the work that we have done in the past couple of years to see that trend to continue worldwide.

我們的種植體業務仍在繼續——我們的優質種植體業務繼續取得進展，正如我們提到的那樣，第三季度實現了兩位數的增長，我們對過去幾年為看到這一趨勢繼續下去所做的工作感到樂觀全世界。

That's super helpful. And sorry, just to clarify, you said double-digit sequential growth in Spark. Is that -- did I hear you correctly?

這非常有幫助。抱歉，澄清一下，你說的是 Spark 的兩位數連續增長。那是——我沒聽錯嗎？

Yes. Yes. absolutely.

是的。是的。絕對地。

Okay. Perfect. And then as far as 4Q, I know there is obviously some puts and takes with taking the numbers out, the KaVo numbers out of the results. Can you talk about what your core underlying assumptions are for the 4Q revenue guidance in terms of visits, any other types of things, it embed anything about N1 or anything like that, that you would call out?

好的。完美的。然後就 4Q 而言，我知道顯然有一些 puts 和 takes 從結果中取出數字，KaVo 數字。你能談談你對第四季度收入指導的核心基本假設是什麼，在訪問方面，任何其他類型的事情，它嵌入了關於 N1 的任何內容或類似的東西，你會大聲疾呼嗎？

Yes. I would say -- Elizabeth, this is Howard. Thanks for the question. I think that we feel quite good about where we're at, performance-wise year-to-date. And I think that we anticipate things to continue here in the fourth quarter as it relates to pre-pandemic demand and the like as it relates to customers and dental office visits. There are a couple of, I would say, uncertainties as it relates to Q4. I think given some of the disruptions from COVID, we're seeing slightly different seasonal patterns, particularly in our imaging business. And so we had, in Q3, our imaging business grew nearly 25%, and while we think that we'll have some strong growth here in the fourth quarter, that overperformance is likely to moderate a little bit there. And so that's 1 thing to keep in mind.

是的。我會說——伊麗莎白，這是霍華德。謝謝你的問題。我認為我們對我們所處的位置感覺很好，從年初至今的表現來看。而且我認為我們預計第四季度的情況會繼續下去，因為它與大流行前的需求等有關，因為它與客戶和牙科診所的訪問有關。我想說的是，與第四季度相關的不確定性有幾個。我認為鑑於 COVID 的一些中斷，我們看到季節性模式略有不同，特別是在我們的成像業務中。因此，在第三季度，我們的影像業務增長了近 25%，雖然我們認為第四季度我們將有一些強勁增長，但那裡的超額表現可能會有所緩和。所以這是要記住的一件事。

I also think that as it relates to the number of days, we have a bunch of clinicians that had really good year. And I think they're looking forward to taking some time off and so we're hearing from the field as well that there's some pent-up vacation demand. And so we need to just be thoughtful about that.

我還認為，由於它與天數有關，我們有一群臨床醫生今年過得非常好。而且我認為他們期待著休假，所以我們也從現場聽說有一些被壓抑的假期需求。因此，我們需要對此深思熟慮。

And then as it relates to maybe the margin side, we expect continued ramp up for us on the customer-facing commercial activities, and we are mindful a little bit, as Amir had talked about, too, around the inflation and some of those things that might come into play. I mean whether it's transitory or longer term, certainly, we're seeing a little bit of impact of that as well. And so that speaks to some of the margins as we anticipate for Q4.

然後，由於它可能與利潤方面有關，我們預計我們在面向客戶的商業活動中會繼續增加，我們會注意一點，正如阿米爾也談到的那樣，圍繞通貨膨脹和其中一些事情這可能會起作用。我的意思是，無論是暫時的還是長期的，當然，我們也看到了它的一些影響。因此，正如我們對第四季度的預期那樣，這說明了一些利潤率。

The next question comes from Jeff Johnson with Baird.

下一個問題來自 Jeff Johnson 和 Baird。

Howard, I was hoping on the guidance. Unless I'm missing it somewhere, I don't see kind of a crosswalk from what your guidance would have been excluding the divestiture prior to this update tonight. It would just be helpful, I think, to level set us all. You say you're raising the guidance. But if we could just kind of see what your guidance would have been last quarter without the divested products in there?

霍華德，我希望得到指導。除非我在某個地方遺漏了它，否則在今晚更新之前，我看不到您的指導將資產剝離排除在外的人行橫道。我認為，讓我們所有人保持水平會很有幫助。你說你在提高指導。但是，如果我們能看看你上個季度沒有剝離產品的指導是什麼？

Yes. Maybe the easiest way, Jeff, to think about this is we provided guidance historically that we would say our top line revenue, we anticipated somewhere between $2.8 billion and $2.9 billion. That was all up. So if we think about continuing operations and the discontinuing operations, I would say the way to think about it now is in light of our Q3 performance, we would be taking up that entire number up to the very high end of that guide. And so instead of the $2.8 billion to $2.9 billion, we'd be closer to the 2.9. And so because of the overage and the better performance that we see both in continuing ops as well as the discontinuing ops coming in a bit stronger.

是的。傑夫，考慮這個問題的最簡單方法可能是我們在歷史上提供了指導，我們會說我們的頂線收入，我們預計在 28 億美元到 29 億美元之間。一切都結束了。因此，如果我們考慮持續運營和停止運營，我想說現在考慮它的方式是根據我們第三季度的表現，我們將佔用整個數字，直到該指南的最高端。因此，我們更接近 2.9，而不是 28 億美元到 29 億美元。因此，由於超齡和更好的表現，我們在持續運營和停止運營中都看到了更強的表現。

As it relates to the bottom line or the adjusted EBITDA guidance. We have historically provided high teens is what we said. And in light of the performance that we've had year-to-date and particularly in the third quarter, we would take that up to the very high teens. And so that may be helpful as it relates to being able to see apples and apples comparison from what we've historically provided.

因為它與底線或調整後的 EBITDA 指南有關。從歷史上看，我們所說的是高青少年。鑑於我們今年迄今的表現，尤其是第三季度的表現，我們會將其提升至非常高的青少年。因此，這可能會有所幫助，因為它與能夠從我們過去提供的內容中看到同類比較有關。

Yes. No, that's exactly what I was looking for. And then, Amir, I'm trying to piece together kind of comments you've made over the last couple of few quarters on the implant business, especially the premium implant business. And with the double-digit growth in premium this quarter, it seems to me as if that Nobel Biocare business has kind of strengthened each quarter on a year-over-year basis, even on a 2-year basis. However, we want to kind of normalize for the noise of COVID last quarter -- or last year, and I guess even into this year. But just talk about your Nobel Biocare premium business, if you would, and kind of what you've been seeing those trends kind of over the last few quarters? Have they been strengthening each and every quarter, that would be helpful?

是的。不，這正是我要找的。然後，Amir，我正在嘗試拼湊你在過去幾個季度對植入物業務，尤其是優質植入物業務發表的評論。隨著本季度保費兩位數的增長，在我看來，Nobel Biocare 業務似乎每個季度都在同比增長，甚至在 2 年的基礎上也是如此。然而，我們希望對上個季度或去年的 COVID 噪音進行標準化，我想甚至到今年。但是，如果您願意，請談談您的 Nobel Biocare 優質業務，以及您在過去幾個季度看到的這些趨勢是什麼？他們是否每個季度都在加強，這會有幫助嗎？

Yes. Thanks, Jeff. In third quarter, premium implant grew double digit versus 2020, Q3 2020, 12.1% was a number, the exact number. And we grew high single digits when you compare it to 2019. So compared to 2019, Q3, we grew 8.4%. So if you look at it, almost every quarter, we have seen an uptick on a premium implant performing a lot better than what we did pre-pandemic and recovery that we have seen post-pandemic has continued. And you take a step back, so what have we done differently in here and why do we feel comfortable moving forward?

是的。謝謝，傑夫。在第三季度，優質植入物與 2020 年相比增長了兩位數，即 2020 年第三季度，12.1% 是一個數字，確切的數字。與 2019 年相比，我們實現了高個位數增長。因此，與 2019 年第三季度相比，我們增長了 8.4%。因此，如果你看一下，幾乎每個季度，我們都會看到優質植入物的表現比我們在大流行前所做的要好得多，而我們在大流行後看到的複蘇仍在繼續。你退後一步，那麼我們在這裡做了什麼不同的事情，為什麼我們對前進感到自在？

Primarily, it has been because of the strong commercial execution. As you recall, we talked about some changes that we made in Europe. We did that in 2018 and beginning of 2019 we start seeing that transition to take place. We did the same thing in the U.S. And in the past 3 quarters, we continue to see every quarter better performance in North America than what we had before.

這主要是因為強大的商業執行力。您還記得，我們談到了我們在歐洲所做的一些改變。我們在 2018 年和 2019 年初做到了這一點，我們開始看到這種轉變正在發生。我們在美國做了同樣的事情。在過去的 3 個季度中，我們繼續看到北美每個季度的表現都比以前更好。

And just to add to that, October, we have seen that trend to continue. We are pretty optimistic with the core and existing portfolio and some of the new innovation that we have put in place, the new surfaces are doing extremely well. And with the upcoming N1, we think the commercial execution plus innovation will really put this business in high single digit and over time, get us to a double-digit growth, which is where we aim to do in the coming quarters and coming years. So commercial execution is the foundation of what we have seen in here and that trend to continue, and customers are beginning to respond to it and see the customer experience that they expected from the Nobel coming back, and we are really pleased with what team has been able to do.

更重要的是，在 10 月份，我們看到這種趨勢還在繼續。我們對核心和現有產品組合以及我們已經實施的一些新創新非常樂觀，新表面表現非常出色。隨著即將推出的 N1，我們認為商業執行加上創新將使這項業務真正實現高個位數增長，隨著時間的推移，我們將實現兩位數的增長，這是我們在未來幾個季度和未來幾年的目標。因此，商業執行是我們在這裡所看到的以及這種趨勢繼續下去的基礎，客戶開始對此做出回應，並看到他們期望諾貝爾回來的客戶體驗，我們對團隊所擁有的感到非常滿意能夠做到。

The next question comes from Jon Block with Stifel.

下一個問題來自 Stifel 的 Jon Block。

I know you didn't give official '22 guidance, but I think you did talk about 50 to 75 bps of OM expansion. And I guess this is sort of just a clarity question. Is that inclusive, the 50 to 75 bps -- is that inclusive of the $10 million in stranded costs that I think you called out that you'll try to start working through in 4Q, but I'm guessing there's going to be a stub into '22. So does it reflect that? And maybe just as a tack on from overall acquisitions and divestitures. Just broadly speaking, do you guys feel the portfolio is where you want it to be in terms of pruning?

我知道你沒有給出 22 年的官方指導，但我認為你確實談到了 50 到 75 個基點的 OM 擴展。我想這只是一個清晰度問題。這是否包括在內，50 到 75 個基點 - 是否包括 1000 萬美元的擱淺成本，我認為你提到你將嘗試在第四季度開始工作，但我猜會有一個存根進入'22。那麼它反映了這一點嗎？也許只是作為對整體收購和資產剝離的補充。從廣義上講，你們覺得投資組合在修剪方面是你想要的嗎？

You've discussed your desire to flex M&A, but are there any other product lines that you guys feel are noncore to the entity that might still be out there. Thanks and then I'll ask a follow-up.

你已經討論了你對靈活併購的渴望，但是你們是否認為還有其他產品線對實體來說是非核心的，而這些產品線可能仍然存在。謝謝，然後我會要求跟進。

Sure. No problem. Jon, thanks for the questions. Yes, I mean, I think as it relates to expectations on 2022, I mean we're not providing formal guidance, but I think we do feel comfortable with that 50 to 75 basis point improvement overall. We have a team that has done well in terms of being able to reduce structural costs. And so as part of these stranded costs, we're going to start attacking those here in the fourth quarter, and we think that we'll see that the progress throughout 2022. And that does get us up to 20% adjusted EBITDA margin in 2022. And so we feel good about that. Let me go ahead and hand it over to Amir for the second piece there.

當然。沒問題。喬恩，謝謝你的提問。是的，我的意思是，我認為這與 2022 年的預期有關，我的意思是我們沒有提供正式的指導，但我認為我們確實對總體上 50 到 75 個基點的改善感到滿意。我們的團隊在降低結構成本方面做得很好。因此，作為這些擱淺成本的一部分，我們將在第四季度開始打擊這些成本，我們認為我們將在整個 2022 年看到進展。這確實使我們在2022. 所以我們對此感覺很好。讓我繼續，把它交給阿米爾，讓他在那裡做第二件。

Yes. So that 50 to 75 basis point is assuming that we're going to deal with that $10 million stranded cost, and this is on top of that. As far as what the portfolio looked like. Jon, as you know, last year, we exited about 5% of our portfolio basically recognized that it wasn't differentiated wasn't meeting the expectation had no impact on the margin. So we did that. With the exit of the KaVo Treatment Unit and Instrument, we now have created a portfolio that it is focused on 3 segments: In orthodontic segment, as you well know, that business is growing very rapidly, combination of bracket and wire as well as clear aligners really give us a competitive advantage, put us in a position that we are clearly differentiated. We feel very good about our portfolio, our execution, our operational capabilities. And we think that we have plenty of runway in performing double-digit -- continue to be major player, number one, on the pretty high end of that, which is on the professional segment of the orthodontics.

是的。因此，50 到 75 個基點假設我們要處理那 1000 萬美元的擱淺成本，而這是最重要的。至於投資組合的樣子。喬恩，如你所知，去年，我們退出了大約 5% 的投資組合，基本上認識到它沒有差異化，沒有達到預期，對利潤率沒有影響。所以我們就這麼做了。隨著 KaVo 治療裝置和儀器的退出，我們現在創建了一個專注於 3 個細分市場的產品組合：在正畸領域，正如您所知，該業務增長非常迅速，支架和線材的組合以及透明對準器確實給了我們競爭優勢，使我們處於明顯差異化的位置。我們對我們的投資組合、執行力和運營能力感到非常滿意。我們認為我們在兩位數的表現上有很多跑道 - 繼續成為主要參與者，第一名，在相當高端的正畸專業領域。

Our implant business has come together nicely. We have made significant investment there. We're adding to the portfolio organically, inorganically and prosthetic as well as on digital as well as on regenerative. We think that segment of the business is in a very good place and continue to operate. Our traditional consumable is a really high margin and differentiated. And by broadening access to that segment, I think we have an opportunity to set that up and continue to take share, and we have been taking share. We have a very good view of what is taking place on the sellout in various geographies. We have been taking share on a restorative and endo business, and we have set our CaviWipes to come out of this situation in a much better position as we go forward.

我們的種植體業務進展順利。我們在那裡進行了大量投資。我們正在有機地、無機地和假肢以及數字和再生方面增加產品組合。我們認為該業務部門處於非常好的位置並繼續運營。我們的傳統消耗品利潤率非常高且差異化。通過擴大對該細分市場的訪問，我認為我們有機會建立它並繼續分享，而且我們一直在分享。我們對不同地區的售罄情況有很好的了解。我們一直在修復和內科業務中佔有一席之地，並且我們已經將我們的 CaviWipes 設置為在我們前進的過程中以更好的位置擺脫這種情況。

And we are really proud of what the imaging team has done in the past several quarters, improving quality, improving access really put in differentiating ourselves over time. So you look at the portfolio, well positioned in these segments, and we think it's differentiated. Obviously, we're going to continue to look at our business mix. We're going to continue to optimize our portfolio in order to be differentiated. Our goal is now that we have reached a mid-single-digit growth and about a 20% EBITDA, we want to further improve our growth trajectory to mid-single-digit plus and high single-digit over time. But what we have today plus some of the opportunity firepower that we have in our hands, I think that goal is very achievable as we walk through 2022 and continue to make progress.

我們真的為成像團隊在過去幾個季度所做的事情感到自豪，提高質量，改善訪問，隨著時間的推移真正讓我們脫穎而出。所以你看看在這些細分市場中定位良好的投資組合，我們認為它是與眾不同的。顯然，我們將繼續關注我們的業務組合。我們將繼續優化我們的產品組合，以實現差異化。現在我們的目標是實現中個位數增長和約 20% 的 EBITDA，我們希望隨著時間的推移進一步將增長軌跡提高到中個位數以上和高個位數。但我們今天所擁有的加上我們手中的一些機會火力，我認為隨著我們走過 2022 年並繼續取得進展，這個目標是非常可以實現的。

Fair enough. And maybe just a tighter follow-up. Just seems to be some debate among some of the dental companies that have already reported on the current trends. And I think you guys talked above pre-pandemic in most of the areas. Did that persist into October and I hate to be a little bit myopic there, but just when we think about that dental market, September into October and we think about a global player like yourself, broadly speaking, did that trend line and the strength that you seem to be calling out was that -- did that continue throughout the month of October?

很公平。也許只是更嚴格的跟進。一些已經報告了當前趨勢的牙科公司之間似乎存在一些爭論。而且我認為你們在大多數地區都談到了大流行前的情況。這種情況是否一直持續到 10 月，我不想在那裡有點近視，但就在我們考慮牙科市場時，從 9 月到 10 月，我們考慮像您這樣的全球參與者，從廣義上講，趨勢線和力量你似乎在呼喚——這種情況是否持續到整個 10 月份？

Yes, absolutely, Jon. We haven't seen anything that causes us to be concerned about the trend. October now that it's behind us, a continuation of what we saw in Q3 momentum is there and feel fairly confident about what the guidance that Howard provided, we think that we can execute and deliver as we go forward. We talk to our DSO partners continuously they're not seeing anything that gives them an indication that there is a change in the horizon.

是的，絕對是，喬恩。我們還沒有看到任何讓我們擔心趨勢的事情。現在 10 月已經過去了，我們在第三季度看到的勢頭繼續存在，並且對霍華德提供的指導充滿信心，我們認為我們可以在前進的過程中執行和交付。我們不斷地與我們的 DSO 合作夥伴交談，他們沒有看到任何跡象表明地平線發生了變化。

Next question comes from Tycho Peterson with JPMorgan.

下一個問題來自摩根大通的第谷彼得森。

This is Casey on for Tycho. Just wondering around, you called it out in the prepared remarks there are supply chain headwind from the equipment business. Can you quantify any kind of headwinds baked into the margin guidance? And anything you're seeing on that side?

這是第谷的凱西。只是想知道，你在準備好的評論中指出，設備業務存在供應鏈逆風。您能否量化保證金指南中包含的任何不利因素？你在那一邊看到了什麼？

Yes. So Casey, I think that up to year-to-date, we've seen very modest impact associated with it. I mean as we talked about, it's around petroleum-based products and chemicals and so -- and some chips as well. And so the team has done an incredible job to date being able to countermeasure those types of risks. That said, we realize that as we go into Q4 that there continues to be more shortages and more concerns about this broadly. And so we have put in a little bit of a buffer in that as well.

是的。所以凱西，我認為到目前為止，我們已經看到與之相關的影響非常有限。我的意思是，正如我們所說，它是圍繞石油產品和化學品等 - 以及一些芯片。因此，迄今為止，該團隊已經完成了一項令人難以置信的工作，能夠應對這些類型的風險。也就是說，我們意識到，隨著我們進入第四季度，仍然存在更多的短缺和更多的擔憂。因此，我們也在其中加入了一些緩衝。

And to be clear, I mean, we've made some investments as it relates to our inventory balances to have enough buffer stock so that we can meet customer demands and not extend lead times and the like to our customers. And so we've been doing what we can to ensure that we mitigate those risks. The reality is, as we go into Q4 like everyone else in the world, we're certainly experiencing some of these pressures. And so we've contemplated that a little bit here in the guide as well.

明確地說，我的意思是，我們已經進行了一些投資，因為它與我們的庫存餘額有關，以擁有足夠的緩衝庫存，以便我們能夠滿足客戶的需求，而不是將交貨時間等延長給我們的客戶。因此，我們一直在盡我們所能來確保我們減輕這些風險。現實情況是，當我們像世界上其他所有人一樣進入第四季度時，我們肯定會遇到其中一些壓力。因此，我們也在指南中對此進行了一些考慮。

Got you. And then just following up on the premium implant question from earlier. A couple of your competitors have launched products in this space recently. Just wanted to get your take on your updated thoughts around the competitive environment, especially as you prepare to launch N1 in the U.S. kind of -- any kind of incremental thoughts there?

明白了然後只是跟進之前的高級植入問題。您的幾個競爭對手最近在這個領域推出了產品。只是想了解您對競爭環境的最新想法，尤其是當您準備在美國推出 N1 時——有什麼漸進的想法嗎？

Yes, happy to answer that. We've done a tremendous amount of work to look at. If you look at the strong growth that we are seeing on premium implant to launch -- as I answered before to Jeff's question was purely because of commercial execution. But also, we have launched some incredible products, specifically on the surfaces. We were lagging to some degree, and we have been able to close that gap very quickly. And those products are very well received. We are responding very well, 30% of the implant now, they have these new surfaces.

是的，很高興回答這個問題。我們已經做了大量的工作來研究。如果你看看我們看到的高級植入物的強勁增長——正如我之前回答 Jeff 的問題純粹是因為商業執行。而且，我們還推出了一些令人難以置信的產品，特別是在表面上。我們在某種程度上落後了，但我們已經能夠很快縮小差距。這些產品很受歡迎。我們的反應非常好，現在 30% 的植入物都有這些新表面。

We feel really good about the portfolio as it stands today. N1 has continued to make progress in Europe. We are working with the FDA going through the approval process. We are expecting to hear by end of the year, the response in here. And we think the N1 along with surface innovation, along with commercial execution, that is going to set us up to be in higher than market growth in 2022. That's what we expect to get into 2022, when you look at the market, what the trend look like? Our intention is to perform better than the market. And we are seeing that trend to continue, as we mentioned, in October, and we are hoping that the team is in a place to be able to embrace the new product categories and continue to execute on commercial applications that we have put in place.

我們對今天的投資組合感到非常滿意。 N1在歐洲繼續取得進展。我們正在與 FDA 合作完成批准程序。我們期待在今年年底聽到這裡的回應。我們認為 N1 以及表面創新和商業執行，將使我們在 2022 年實現高於市場的增長。這就是我們對 2022 年的預期，當你觀察市場時，趨勢是什麼樣的？我們的意圖是表現優於市場。正如我們在 10 月份提到的那樣，我們看到這種趨勢將繼續下去，我們希望團隊能夠接受新產品類別並繼續執行我們已經實施的商業應用程序。

We'll go ahead to the next question from Michael Cherny with Bank of America.

我們將繼續回答來自美國銀行的 Michael Cherny 的下一個問題。

I want to go back to an earlier question, just to make sure I heard everything correctly and you get all the moving pieces regarding the implied 4Q guidance. I get some of the comments that you made, Howard, about the imaging comp and some other pieces. That being said, I'm still surprised in terms of the midpoint of your implied guidance, that's roughly flat with your new recast 2Q number. I don't recall on any normal year, that being the case. So when you think through that, I guess, how do you risk weight that pressure in the dynamics that has those numbers basically at parity again at the midpoint of your implied guidance?

我想回到之前的一個問題，只是為了確保我聽到的一切都是正確的，並且你得到了關於隱含的 4Q 指南的所有移動部分。霍華德，我收到了一些關於圖像合成和其他一些作品的評論。話雖如此，我仍然對你隱含指導的中點感到驚訝，這與你新重鑄的第二季度數字大致持平。我不記得有哪一年是這樣的。因此，當你仔細考慮這一點時，我想，你如何冒險在你的隱含指導的中點再次平衡這些數字基本上處於平價的動態壓力？

Yes. So Michael, we feel good about where we're at, the year-to-date performance. I think that effectively, we -- just taking us up to the very, very high end of our guidance as a collective including both the continuing and discontinued ops. Bear in mind that we do put in a little bit of consideration here for -- we have a few -- 3 fewer days in the quarter here as well. And so that's something to be mindful of. And then as I've indicated earlier, I mean, we know that there's going to be significant amounts of likely pent-up vacation demand here in the end of the year, particularly in Europe. I mean, we're hearing that from our commercial teams.

是的。所以邁克爾，我們對我們所處的位置以及今年迄今為止的表現感到滿意。我認為實際上，我們 - 只是把我們作為一個集體，包括持續和停止的行動，帶到我們指導的非常非常高端。請記住，我們確實在這裡做了一些考慮——我們在這個季度也少了幾天——3 天。所以這是需要注意的事情。然後正如我之前指出的那樣，我的意思是，我們知道今年年底這裡可能會有大量被壓抑的假期需求，尤其是在歐洲。我的意思是，我們從我們的商業團隊那裡聽到了這一點。

And so we factored that in a little bit here as well. But -- and also keep in mind that we do have growth in Q4 of last year as well. So there's some comps there. Sequentially, we are growing our top line. It's an increase from Q3. And so collectively, we feel good about it.

所以我們在這裡也考慮了一點。但是——還要記住，我們在去年第四季度也確實有增長。所以那裡有一些補償。因此，我們正在增加我們的收入。這比第三季度有所增加。總的來說，我們對此感覺良好。

Got it. And then turning back to Spark and nice sequential performance again. As you think about the next 3 years of growth or however long, medium term you want to think about, what are the biggest opportunities in terms of continuing to further penetrate the market and take share? Is it more about product quality, more about orthodontic relationship, more about marketing spend? How should we think now that you're getting towards that critical mass at $100 million run rate? How do you think about the next ability to take the next leap beyond what you've already captured?

知道了。然後再次回到 Spark 和良好的順序性能。當您考慮未來 3 年的增長或您想要考慮的長期、中期時，在繼續進一步滲透市場和占據份額方面最大的機會是什麼？是更多關於產品質量，更多關於正畸關係，更多關於營銷支出？現在我們應該如何看待您以 1 億美元的運行率達到臨界質量？您如何看待下一個超越您已經捕獲的下一個飛躍的能力？

Yes. Happy to answer that. So we go back, say, we launched this in 2018 in Australia and New Zealand, and we brought it in the U.S., we're well on our way to do 100,000 cases by the end of this year. But if we break it down to pieces. So how did we get to this place? Step 1 was basically on core customers. These are Damon customers that we have great relationships with, and they were using clear aligners and they were looking for alternatives with the same company, same level of service, same relationship that they have in the past. So we started in that space and we started in North America, outside Australia and New Zealand.

是的。很高興回答這個問題。所以我們回去說，我們於 2018 年在澳大利亞和新西蘭推出了這個，我們把它帶到了美國，我們正在朝著今年年底完成 100,000 個案例的目標邁進。但是如果我們把它分解成碎片。那麼我們是如何到達這個地方的呢？第一步主要針對核心客戶。這些是與我們有良好關係的 Damon 客戶，他們正在使用透明矯正器，他們正在尋找同一家公司的替代品，同樣的服務水平，與他們過去的關係相同。所以我們從那個領域開始，我們從北美、澳大利亞和新西蘭以外的地區開始。

We have expanded that sphere lot larger, a lot bigger. And why they selected the product was due to 3 factors: product quality and price performance. So when they put it side by side of Spark versus what is available in the market, they feel really good about making that switch or starting using it. Second was about customer service and relationship and support that we are providing. We have given them the same level of service and support that they have experienced for decades through Ormco and Damon systems.

我們已經將該領域擴大了很多，擴大了很多。而他們選擇該產品的原因是 3 個因素：產品質量和性價比。因此，當他們將 Spark 與市場上可用的產品並排比較時，他們對進行轉換或開始使用它感覺非常好。其次是關於我們提供的客戶服務、關係和支持。我們通過 Ormco 和 Damon 系統為他們提供了與他們幾十年來所經歷的相同水平的服務和支持。

Last but not least, it's about the trajectory, the trend of what we are doing, a lot of new innovation that we are putting in place in the Spark. And what they are seeing, what they're telling us, I had anticipated, I wanted it and now I'm seeing that's coming out. Case after case after case, we are putting more and more product innovation capabilities with [door] systems, different material, better software.

最後但同樣重要的是，它是關於我們正在做的事情的軌跡、趨勢，以及我們在 Spark 中實施的許多新創新。他們所看到的，他們告訴我們的，我曾預料到，我想要它，現在我看到它正在出現。一個又一個案例，我們將越來越多的產品創新能力與[門]系統、不同的材料、更好的軟件結合起來。

So that's a starting point. What have we done since then. We have gone to different geographies in Europe, picking up very quickly, very fast. We have gone to DSOs. Now DSOs are becoming a major factor on growth for us. Next, we are registering the product and getting approval in every geography that we are in. Keep in mind, 70% of our current bracket and wire business is outside the United States, gives us an opportunity to really extend. Next after that, there are some general practitioners that they are really becoming really competent on providing orthodontics support. And these are the ones that we are kind of teaching, coaching, helping them to bring to this new domain and giving them alternatives that Spark can provide the best level of support to them.

所以這是一個起點。從那以後我們做了什麼。我們去了歐洲的不同地區，很快就開始了，非常快。我們去了 DSO。現在，DSO 正在成為我們增長的主要因素。接下來，我們將在我們所在的每個地區註冊產品並獲得批准。請記住，我們目前 70% 的支架和電線業務都在美國以外，這讓我們有機會真正擴展。接下來，有一些全科醫生表示他們在提供正畸支持方面真的變得非常有能力。這些是我們正在教授、指導、幫助他們進入這個新領域並為他們提供 Spark 可以為他們提供最佳支持水平的替代方案。

Combination of all of that, that's why we feel really comfortable at meeting that $100 million goal that we had put for ourselves. We think that beginning of next year, early stages, we're going to hit that mark on a run rate and this trend is going to just continue. There is no ceiling for us. We haven't put any deadline or goal to say we have to get to that point. We have the capacity now. We have the team, the marketing spend is there, product road map is there. We think that we can be a really cheap player in this space and a differentiated solution provider in auto as a whole and continue to be a factor on the growth of Envista for years to come.

所有這一切的結合，這就是為什麼我們對實現我們為自己設定的 1 億美元目標感到非常自在。我們認為，在明年年初，早期階段，我們將在運行率上達到這個目標，而且這種趨勢將繼續下去。我們沒有上限。我們沒有設定任何截止日期或目標來說明我們必須達到這一點。我們現在有能力。我們有團隊，有營銷支出，有產品路線圖。我們認為我們可以成為這個領域真正便宜的參與者和整個汽車領域的差異化解決方案提供商，並在未來幾年繼續成為 Envista 增長的一個因素。

We take the next question from John Kreger with William Blair.

我們接受 John Kreger 和 William Blair 的下一個問題。

Amir, maybe just a follow-up on Michael's question. That global rollout for Spark, that sounds interesting. Is that a '22 project? Or is that something we should think about over the next 3 or 4 years?

阿米爾，也許只是對邁克爾問題的跟進。 Spark 的全球推廣，聽起來很有趣。那是一個'22項目嗎？或者這是我們應該在未來 3 或 4 年內考慮的事情？

It has already started, John. We're in China, we're in Australia and New Zealand, as you know, we're in Europe, and the registration is taking place step by step from geography to geography. And a lot of that has to do with the local requirements. Some places, the registration takes a lot faster than others, but we are layering that in, and we think in 2022, we're going to see the outcome of some of this expansion. And as we step into 2023, we're hoping that we can provide best support and that level of capability to everywhere that we are currently present with our Ormco business. So we started that beginning of 2021, and we are rolling it as we go forward.

已經開始了，約翰。我們在中國，我們在澳大利亞和新西蘭，正如你所知，我們在歐洲，註冊正在從一個地理區域到另一個地理區域逐步進行。其中很多與當地要求有關。有些地方的註冊速度比其他地方快得多，但我們正在將其分層，我們認為在 2022 年，我們將看到這種擴展的一些結果。隨著我們步入 2023 年，我們希望我們能夠為我們目前在 Ormco 業務中所處的任何地方提供最好的支持和這種水平的能力。因此，我們從 2021 年初開始，並在前進的過程中不斷推進。

Sounds good. A quick follow-up question now on the implant business and N1. Are you at the point where you've got sort of unfettered access to the clinicians in Europe to do the demonstrations and the teaching that you want or is that still being constrained to some degree by the pandemic?

聽起來不錯。現在有一個關於植入物業務和 N1 的快速跟進問題。您是否已經可以不受限制地接觸歐洲的臨床醫生來進行您想要的演示和教學，或者仍然在某種程度上受到大流行的限制？

It's still a little bit of constraint, but a lot better than what we saw in like Q1 and Q2 of this year. So the way we are going about it, John, it's very similar to what we did with the Spark. We get a cohort of 5 to 10, we bring them in. We have a training, a couple of days of training, we'll let them place an N1 implant, and we stay with them for the first 3, 4, 5 to make sure that not only them, but the staff is in a really good place and they can use it. We ramp them up, then we sign the next cohort.

它仍然有一點限制，但比我們在今年第一季度和第二季度看到的要好得多。所以我們處理它的方式，約翰，它與我們對 Spark 所做的非常相似。我們有一個 5 到 10 人的隊列，我們把他們帶進來。我們有一個培訓，幾天的培訓，我們會讓他們植入 N1 植入物，我們在前 3、4、5 到確保不僅他們，而且工作人員都在一個非常好的地方，他們可以使用它。我們提高他們，然後我們簽下一個隊列。

Going -- following this process, similar to what we did with Spark, I think it starts in this format of phase approach and then that kind of expands rapidly. Some of the things that we have seen in Spark, we don't have to do that as much as we did a year ago because those -- think about it as a hub and spoke, those people that they are really capable, the best-in-class. Now they're teaching their network. We have an event in Europe recently that hundreds of people show up and majority of teaching and training took place, some of the Damon, some of the Spark key opinion leaders, expert in that area. What we expect with N1 to happen is after we go through this phase approach, hopefully, after we get that approval, a similar process would take place. We would do the first group, second group through this phase approach, and then it depends on individuals that they have really credibility, they have the followership that they are going to be -- they're going to expand that very quickly through their network, through the referral, and that's how we're going to see that momentum to take place over time.

繼續 - 遵循這個過程，類似於我們對 Spark 所做的，我認為它以這種階段方法的形式開始，然後迅速擴展。我們在 Spark 中看到的一些事情，我們不必像一年前那樣做，因為那些 - 將其視為中心和輻條，那些真正有能力的人，最好的-在班上。現在他們正在教授他們的網絡。我們最近在歐洲舉辦了一場活動，數百人出席，大部分教學和培訓都進行了，其中一些是 Damon，一些是 Spark 關鍵意見領袖，是該領域的專家。我們期望 N1 發生的是在我們通過這個階段方法之後，希望在我們獲得批准之後，類似的過程會發生。我們會通過這個階段的方法來做第一組、第二組，然後這取決於他們真正可信的個人，他們擁有他們將要成為的追隨者——他們將通過他們的網絡迅速擴大這一點，通過推薦，這就是我們將如何看到這種勢頭隨著時間的推移而發生。

We are really locked into the best-in-class orthodontists in U.S. and Europe. The same format works for us on the premium implant. And depending on this partnership really help expand N1 for years to come.

我們確實鎖定了美國和歐洲一流的正畸醫生。同樣的格式適用於我們的高級植入物。依靠這種夥伴關係，確實有助於在未來幾年擴大 N1。

We'll take our next question from Nathan Rich with Goldman Sachs.

我們將從高盛的 Nathan Rich 那裡回答下一個問題。

Amir, it sounds like the company has a pretty broad lens with respect to looking at opportunities for M&A. It'd be great to get your perspective on just how you're maybe thinking about kind of bolstering sort of the key pillars in specialty like implants and orthodontics versus maybe building out product categories or geographies where you may not have as large of a presence today but see an opportunity to get bigger?

阿米爾，聽起來該公司在尋找併購機會方面擁有相當廣泛的視角。很高興了解您的觀點，了解您可能如何考慮支持種植體和正畸等專業領域的關鍵支柱，而不是建立您可能沒有那麼大影響力的產品類別或地區今天卻看到了做大的機會？

Yes. Thank you, Nathan. One of the things that we brought with us as part of Danaher capabilities with this cadence of cultivation, market work. It is not a onetime shot. This is where EBS come in place. Howard, myself and the team, we have a monthly review of our entire funnel. And this is almost my year 7 in dental. And I've been doing that on an ongoing basis every month. So we have a really large funnel of cultivation, working with these companies, trying to make sure that we understand the market, the capabilities but also the cultural match between what we want to do versus the target that we are after.

是的。謝謝你，內森。作為丹納赫能力的一部分，我們帶著這種培養節奏、市場工作帶來的東西之一。這不是一次性的。這就是 EBS 的用武之地。霍華德、我自己和團隊，我們每月對整個漏斗進行一次審查。這幾乎是我在牙科專業的第 7 年。我每個月都在持續這樣做。所以我們有一個非常大的培養漏斗，與這些公司合作，試圖確保我們了解市場、能力以及我們想做的事情與我們追求的目標之間的文化匹配。

But now taking a step back, we are looking at investing in a specialty consumable and integrated workflow. What that means is we want to invest wherever there is an opportunity to improve the workflow that improves acceptance rate. So think about the DSOs in the United States and other geography, somehow they have 25% to 30% to 35% acceptance. So they do 4x, 3x more diagnostics than actually their perform procedures. Anything that we can do in here to improve confidence, to visualize it, to make sure that they do a better job on diagnostics to help them through the digital imaging diagnostic capabilities that, that acceptance rate to go up. There is better patient care, it's better productivity, and they can see the monetization aspect of it.

但現在退後一步，我們正在考慮投資專業耗材和集成工作流程。這意味著我們希望在有機會改善工作流程以提高接受率的任何地方進行投資。所以想想美國和其他地區的 DSO，不知何故，他們有 25% 到 30% 到 35% 的接受度。所以他們做的診斷比他們實際執行的程序多 4 倍、3 倍。我們可以在這裡做任何事情來提高信心，將其可視化，以確保他們在診斷方面做得更好，以幫助他們通過數字成像診斷能力提高接受率。有更好的病人護理，更高的生產力，他們可以看到它的貨幣化方面。

So where is that coming from an imaging and software that we can do and then continue to invest places that we are under-indexed, value implant, regenerative are the 2 areas that we can see significant opportunity for us to make investment as well as exactly what Nathan said, and geography. In some geographies, it's a lot easier for us to part there to acquire in order to poster our presence in those geographies rather than going about it organically.

那麼我們可以做的成像和軟件在哪裡，然後繼續投資我們指數不足的地方，價值植入，再生是我們可以看到投資的重要機會的兩個領域以及確切的投資機會內森說的，還有地理。在某些地區，為了在這些地區展示我們的存在而不是有機地進行，我們更容易離開那裡獲得。

We are pretty bullish about what we have in our funnel, and we think we can start executing this very rapidly throughout the rest of 2021 and in 2022 and for years to come. We want this to be an important pillar of our growth as we go forward. We don't want it to be a onetime, one shot. We want to have an organic business that is growing mid-single-digit plus high single digit, and we want acquisitions to be another element that increase performance and growth as well as our margin on top of what we are committed.

我們非常看好漏斗中的內容，我們認為我們可以在 2021 年剩餘時間和 2022 年以及未來幾年內非常迅速地開始執行此操作。我們希望這成為我們前進的重要支柱。我們不希望它是一次性的，一次性的。我們希望擁有一個以中個位數和高個位數增長的有機業務，我們希望收購成為提高業績和增長以及我們承諾的利潤率的另一個因素。

And maybe 2 quick follow-ups for Howard. Could you maybe talk about just the magnitude of inflation that you're seeing in commodities and freight costs that you referenced? And do you feel that you're able to pass those cost increases through? And then would you be able to give us the KaVo revenue in 4Q last year? I think that could maybe help especially given the equipment tends to be a more seasonal business that can maybe help give a clearer picture of the fourth quarter guidance?

也許對霍華德進行 2 次快速跟進。您能否談談您所參考的商品和運費中的通貨膨脹幅度？你覺得你能夠轉嫁這些成本增加嗎？然後你能告訴我們去年第四季度的 KaVo 收入嗎？我認為這可能會有所幫助，特別是考慮到設備往往是更具季節性的業務，這可能有助於更清楚地了解第四季度的指導意見？

Yes. So let me go ahead and answer that first 1 here for you. Yes, we are seeing some inflationary pressures. I would say that the most significant is around shipping costs. And so to the point as to are we able to pass along some of those things, we have actually instituted surcharges for freight. And so that's something that we've done. And for the first time this year, we've really had some pretty significant pricing that we've been able to pass through. I think in the quarter, we've had in excess of $4 million of pricing that we've been able to capture. That represents, I think, about 65 basis points and for the year, it represents -- pricing represents about 35 to 37 basis points as well. And so we're pleased about being able to pass some of those things along.

是的。因此，讓我繼續為您回答第一個問題。是的，我們看到了一些通脹壓力。我想說最重要的是運費。因此，就我們是否能夠傳遞其中一些東西而言，我們實際上已經對運費徵收了附加費。這就是我們所做的事情。今年第一次，我們真的有一些非常重要的定價，我們已經能夠通過。我認為在本季度，我們已經獲得了超過 400 萬美元的定價。我認為，這代表了大約 65 個基點，而今年，它代表了——定價也代表了大約 35 到 37 個基點。因此，我們很高興能夠傳遞其中的一些東西。

As it relates to your KaVo question specific to Q4, that business, I think, was about $110 million business thereabout.

由於它與您針對 Q4 的 KaVo 問題有關，我認為該業務約為 1.1 億美元。

$110 million in Q4 last year.

去年第四季度為 1.1 億美元。

That's right.

這是正確的。

We'll go now to Jason Bednar with Piper Sandler.

我們現在將與 Piper Sandler 一起去 Jason Bednar。

This is Korinne on for Jason. So first 1 from us. Once, approval in the U.S. for N1 comes. Can you touch on your plans to ramp and scale here? And how are you thinking about sales reps and balancing their time that's focused on N1 versus the continued momentum that exists for the current business.

這是傑森的 Korinne。所以第一個來自我們。有一次，美國批准了 N1。你能談談你在這裡擴大規模的計劃嗎？您如何看待銷售代表並平衡他們專注於 N1 的時間與當前業務存在的持續動力。

Yes. Happy to answer that. So we have been investing significantly -- I'm going to talk about investment that we made in 2020, even starting in 2019, 2020, 2021, we did a tremendous amount of capital capabilities, manufacturing our operational capabilities. Most of that investment went to Spark and N1 in order to make sure that we have the capacity to be able to ramp this up pretty quickly. So we don't have any operational issues at all.

是的。很高興回答這個問題。因此，我們一直在進行大量投資——我將談談我們在 2020 年進行的投資，甚至從 2019 年、2020 年、2021 年開始，我們進行了大量的資本能力建設，打造我們的運營能力。大部分投資都流向了 Spark 和 N1，以確保我們有能力快速提升它。所以我們根本沒有任何運營問題。

Now coming back to what sales are. The customer base that is going to use N1 is exactly the same customer base that uses current Nobel premium products. So that's the starting point. And the reps, for example, what we are seeing in Europe is now they are offering customers both options. And those that they see N1. They are transforming and transitioning their business step by step. And the reason for doing that ease of use, a lot easier to implement, put it in place. It's a differentiated protocol that is driving adoption. The training that we put in place and the prosthetic option that we are offering given on a competitive advantage. So the same reps, same compensation model, but those tools that they're using, they're able to place more implant because of the ease of use as an outcome, if I'm a rep, and I can sell more of them and more incented to be able to do N1 to make that transition.

現在回到銷售是什麼。將要使用 N1 的客戶群與使用當前 Nobel 優質產品的客戶群完全相同。這就是起點。例如，我們在歐洲看到的銷售代表現在正在為客戶提供兩種選擇。還有那些他們看到的 N1。他們正在逐步轉變和轉型他們的業務。之所以這樣做易於使用，更容易實施，把它放在適當的位置。這是一種正在推動採用的差異化協議。我們提供的培訓和我們提供的假肢選擇具有競爭優勢。所以同樣的銷售代表，同樣的補償模式，但是他們使用的那些工具，他們能夠植入更多的植入物，因為結果是易用性，如果我是銷售代表，我可以賣出更多並且更有動力能夠做 N1 來實現這一轉變。

So there is no change in their time, and we're not looking for anybody else to sell this product. We have a technical training and capability experts that they are helping pioneering this adoption. So they go through the training program, they stay in the sales rep, they stay with the customers in order to get them up to speed and get them going very quickly. And using -- that's the comment I made about the phased approach. After we get the first 5, the 10, we sign up another 10, we go through that process and then continue to move on forward and then it depends on expert to teach it to other people over time.

所以他們的時間沒有變化，我們也沒有找其他人來銷售這個產品。我們有技術培訓和能力專家，他們正在幫助開拓這種採用。所以他們完成了培訓計劃，他們留在了銷售代表中，他們留在了客戶身邊，以便讓他們跟上速度並讓他們快速行動。使用——這就是我對分階段方法的評論。在我們獲得前 5 個，即 10 個之後，我們又註冊了 10 個，我們經歷了這個過程，然後繼續前進，然後隨著時間的推移，這取決於專家將它教給其他人。

Great. And then just turning to Spark. Can you speak to the case mix you're seeing between adults and teens. Are you starting to see it skew a little bit more towards teens and more pickup in that younger age group? Or any insight on that you can provide yet?

偉大的。然後轉向 Spark。你能談談你在成人和青少年之間看到的案例組合嗎？您是否開始看到它更偏向於青少年，並且在更年輕的年齡組中有更多的搭訕？或者您可以提供任何見解？

So the traditional payment systems, I answered that -- traditional Damon system been very -- really tilted towards young adults and teens and a lot more complicated cases. The Spark, today is a good portion of it is with adults. But our traditional customers are orthodontists that have been using Ormco to begin with. Now they're beginning to offer both clear aligners as well as bracket and wire, and they're using it. Now they have option to use 1 versus the other or a combination of both. But today, if we can take a percentage of the clear aligner Spark that they're sold a good part of it is coming from adults, coming to those offices and getting Spark as a solution.

所以傳統的支付系統，我回答說 - 傳統的 Damon 系統非常 - 非常傾向於年輕人和青少年以及更複雜的情況。 The Spark，今天有很大一部分是和成年人在一起的。但我們的傳統客戶是開始使用 Ormco 的正畸醫生。現在他們開始提供透明對準器以及支架和線材，並且他們正在使用它。現在他們可以選擇使用 1 與其他或兩者的組合。但是今天，如果我們能從他們銷售的透明對準器 Spark 中抽取一定比例，那麼很大一部分來自成年人，他們來到這些辦公室並獲得 Spark 作為解決方案。

Thank you very much. I think we're at time. We really appreciate everyone's questions. We're obviously here to answer anything, any questions as they come up past through the rest of the week. So please reach out. But thank you very much for your time. See you next quarter.

非常感謝。我想我們來得正是時候。我們非常感謝大家的提問。我們顯然是來回答本週餘下時間出現的任何問題。所以請聯繫我們。但非常感謝您的寶貴時間。下個季度見。

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接。