SmileDirectClub Inc (SDC) 2023 Q2 法說會逐字稿

Greetings, and welcome to the SmileDirectClub Second Quarter 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 SmileDirectClub 2023 年第二季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Mr. Jonathan Fleetwood, Director of Investor Relations. Thank you, Mr. Fleetwood. You may begin.

現在我很高興向您介紹主持人，投資者關係總監喬納森·弗利特伍德先生。謝謝你，弗利特伍德先生。你可以開始了。

Thank you, operator. Good morning. Before we begin, let me remind you that this conference call includes forward-looking statements. For additional information on SmileDirectClub, please refer to the company's SEC filings, including the risk factors described therein. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today. I refer you to our Q2 2023 earnings presentation for a description of certain forward-looking statements. We undertake no obligation to update such information, except as required by applicable law.

謝謝你，接線生。早安.在開始之前，讓我提醒您，本次電話會議包含前瞻性陳述。有關 SmileDirectClub 的更多信息，請參閱該公司向 SEC 提交的文件，包括其中描述的風險因素。您不應依賴我們的前瞻性陳述作為未來事件的預測。我們在本次電話會議中所做的所有前瞻性陳述均基於截至目前為止的假設和信念。請參閱我們的 2023 年第二季財報報告，以了解某些前瞻性陳述的描述。除非適用法律要求，否則我們不承擔更新此類資訊的義務。

In this conference call, we also have a discussion of certain non-GAAP financial measures, including adjusted EBITDA and free cash flow. Information required by Regulation G of the Exchange Act with respect to such non-GAAP financial measures is included in the presentation slides for this call, which can be obtained on our website. We also refer you to this presentation for a reconciliation of certain non-GAAP financial measures to the appropriate GAAP measures.

在本次電話會議中，我們也討論了某些非公認會計準則財務指標，包括調整後的 EBITDA 和自由現金流。本次電話會議的簡報中包含了《交易法》G 條例所要求的有關此類非 GAAP 財務措施的信息，您可以在我們的網站上獲取這些資訊。我們也建議您參閱本簡報，以了解某些非 GAAP 財務指標與對應 GAAP 指標的調整。

I'm joined on the call today by Chief Executive Officer and Chairman, David Katzman; and Chief Financial Officer, Troy Crawford.

執行長兼董事長 David Katzman 也參加了今天的電話會議。財務長特洛伊·克勞福德。

Let me now turn the call over to David.

現在讓我把電話轉給大衛。

Thanks, Jonathan, and good morning, everyone. Thank you for joining us today. I want to begin my comments by congratulating the entire SDC team for delivering on both of our 2 key 2023 strategic initiatives by expanding the launch of our mobile scanning SmileMaker Platform from Australia to now include the U.S. market and leveraging our growing SmileShop footprint to drive upsells for our CarePlus offering.

謝謝喬納森，大家早安。感謝您今天加入我們。首先，我想祝賀整個SDC 團隊實現了我們2023 年的兩項關鍵策略舉措，將我們的行動掃描SmileMaker 平台的推出範圍從澳洲擴大到現在的美國市場，並利用我們不斷增長的SmileShop 足跡來推動追加銷售了解我們的 CarePlus 產品。

Our innovative technology-driven solutions, combined with disciplined cost management, allowed us to deliver solid results despite the continuing challenging economic backdrop impacting our core customer. Our Q2 revenue of $102 million decreased $24 million from the prior year period. However, adjusted EBITDA improved by $10 million and free cash flow by $8 million compared to the prior year. This marks the fourth straight quarter of year-over-year adjusted EBITDA improvement and fifth straight quarter of year-over-year free cash flow improvement.

儘管持續充滿挑戰的經濟背景影響著我們的核心客戶，我們創新的技術驅動解決方案與嚴格的成本管理相結合，使我們能夠取得紮實的成果。我們第二季的營收為 1.02 億美元，比去年同期減少了 2,400 萬美元。然而，與前一年相比，調整後的 EBITDA 增加了 1000 萬美元，自由現金流增加了 800 萬美元。這標誌著調整後 EBITDA 連續第四個季度同比改善，以及自由現金流連續第五個季度同比改善。

Let me provide more insights regarding our 2 key transformative initiatives that have started to show how they can drive meaningful efficiencies and growth. First, I'll start with our SmileMaker Platform or SMP. SMP is our mobile 3D scanning technology that allows customers to begin their teeth straightening journey by digitally capturing 2D images of their existing smile on a mobile device and submitting the images to our enhanced artificial intelligence engine to develop an automated 3D draft treatment plan.

讓我為我們的兩項關鍵變革舉措提供更多見解，這些舉措已開始展示它們如何能夠推動有意義的效率和成長。首先，我將從我們的 SmileMaker 平台或 SMP 開始。 SMP 是我們的行動3D 掃描技術，讓客戶透過在行動裝置上以數位方式捕捉現有微笑的2D 影像並將影像提交到我們的增強型人工智慧引擎以開發自動化3D 草案治療計畫來開始牙齒矯正之旅。

After our pilot launch of SMP in Australia at the end of November, we made a number of enhancements and modifications and launched our latest updated version in the U.S. on a limited basis for the first time in late May on the iOS platform. Android is still being worked on, but we expect to fast follow later this month. Since the U.S. launch, the app has consistently been in the top 10 in the Apple Store medical category. We will continue to get learnings from different uses for SMP as we test different marketing channels and customer demographics.

11月底在澳洲試點推出SMP後，我們進行了一些增強和修改，並於5月下旬在美國首次在iOS平台上限量推出了最新的更新版本。 Android 仍在開發中，但我們預計將在本月稍後快速跟進。自在美國推出以來，該應用程式一直位居 Apple Store 醫療類別前十名。當我們測試不同的行銷管道和客戶人口統計資料時，我們將繼續從 SMP 的不同用途中學習。

An exciting enhancement that we have now developed to be used with SMP is the launch of our new AI capability that creates photorealistic after rendering showing the new alignment of the teeth in the consumer's mouth. This provides customers with a more enhanced visualization of what the final result will look like in their mouth. Additionally, our draft custom smile plans are sent via text to SMP users, which promotes viral sharing to the customers' potential new smiles, providing the opportunity for consumers to drive additional SMP referrals. Leveraging all of the benefits of SMP together drives improved financial performance on top of our core business. SMP is showing signs of driving stronger marketing efficiencies through tangible benefits by reducing our cost per lead.

我們現在開發的與 SMP 一起使用的一項令人興奮的增強功能是推出新的 AI 功能，該功能在渲染後創建逼真的效果，顯示消費者口腔中牙齒的新排列。這為客戶提供了更直觀的結果，讓他們清楚地看到最終結果在他們嘴裡的樣子。此外，我們的客製化微笑計畫草案透過簡訊發送給 SMP 用戶，這促進了客戶潛在的新微笑的病毒式分享，為消費者提供了推動更多 SMP 推薦的機會。綜合利用 SMP 的所有優勢，可以在我們的核心業務基礎上提高財務績效。有跡象表明，SMP 正在透過降低每位銷售線索的成本來帶來實際的效益，從而提高行銷效率。

Now turning to our second growth initiative, we are excited about developments with our premium service CarePlus priced at $3,900. This elevated service model allows both dentists and orthodontists and specifically the underpenetrated general practitioners market to utilize SDC aligners and our robust telehealth platform to meet the demands of the more traditional orthodontic customers, higher income households and parents of teens, who desire added access to in-person dental professionals but also want the convenience of telehealth for follow-up care.

現在轉向我們的第二個成長計劃，我們對定價 3,900 美元的優質服務 CarePlus 的發展感到興奮。這種提升的服務模式使牙醫和正畸醫生，特別是滲透率較低的全科醫生市場能夠利用SDC 矯正器和我們強大的遠距醫療平台來滿足更傳統的正畸客戶、高收入家庭和青少年父母的需求，他們希望獲得更多的機會- 牙科專業人士，但也希望遠距醫療能夠方便地進行後續護理。

We believe that this offering will position SDC to capture a larger piece of a higher income consumer and teen market as well as provide a premium option for our existing customers who want the option of both virtual and in-person care, along with other CarePlus-only benefits. From our private launch learnings in the U.S., we identified and have implemented a go-to-market strategy that leverages our growing SmileShop footprint to expand the CarePlus offering to consumers. In our pilot SmileShops, we have seen a meaningful take rate by our existing customers who opt into CarePlus with the added benefits despite the higher price point.

我們相信，這項服務將使 SDC 能夠佔領高收入消費者和青少年市場的更大份額，並為希望選擇虛擬和麵對面護理以及其他 CarePlus 的現有客戶提供優質選擇。只有好處。根據我們在美國私人推出的經驗，我們確定並實施了一項進入市場策略，利用我們不斷成長的 SmileShop 足跡，向消費者擴展 CarePlus 產品。在我們的試點 SmileShops 中，我們發現現有客戶的接受率很高，儘管價格較高，但他們還是選擇了 CarePlus，享受額外的好處。

By the end of August, our team members at all U.S. SmileShop locations will have the ability to provide our customers with a dual journey and their appointment educating consumers and driving awareness and insights for both our traditional care offerings as well as our premium CarePlus offering. This provides an upsell opportunity to consumers for our CarePlus solution from our trained SmileShop team members who can then refer customers to a nearby partner network location for their CarePlus journey.

到 8 月底，我們在美國所有 SmileShop 地點的團隊成員將能夠為我們的客戶提供雙重旅程和預約，教育消費者並提高對我們的傳統護理產品和優質 CarePlus 產品的認識和見解。這為我們訓練有素的 SmileShop 團隊成員提供了向消費者追加銷售我們的 CarePlus 解決方案的機會，然後他們可以將客戶推薦到附近的合作夥伴網絡位置以進行 CarePlus 之旅。

Feedback has been positive from dental practitioners as this provides a steady referral of CarePlus customers to drive additional revenue streams to the practice, but with the bulk of the sales process being completed by SmileShop team members. We also plan on piloting CarePlus in the U.K. in the back half of the year. As we scale our CarePlus offering from our pilot launch, we also continue to make progress in growing our partner network programs, the exclusive channel through which our customers will be able to receive our CarePlus offering.

牙醫的回饋非常積極，因為這可以穩定地推薦 CarePlus 客戶，從而為診所帶來額外的收入來源，而且大部分銷售流程是由 SmileShop 團隊成員完成的。我們也計劃於今年下半年在英國試行 CarePlus。隨著我們從試點啟動中擴大 CarePlus 產品範圍，我們還在發展合作夥伴網路計畫方面不斷取得進展，這是我們的客戶能夠獲得我們的 CarePlus 產品的獨家管道。

We ended the quarter with 1,156 active locations compared to 1,095 locations last quarter, continuing to build our coverage for a foundational presence in all key markets to support our CarePlus solutions by providing the customer with a short commute for in-person visit. This is a strong value proposition for our partner network by leveraging the sales efforts of SmileShops to drive CarePlus consumers to their practices and benefit from the full sales and marketing firepower of SDC.

本季末，我們擁有 1,156 個活躍地點，而上季度為 1,095 個，繼續擴大我們在所有主要市場的基礎覆蓋範圍，透過為客戶提供短途通勤的親自訪問來支持我們的 CarePlus 解決方案。這對我們的合作夥伴網路來說是一個強大的價值主張，透過利用 SmileShops 的銷售努力來推動 CarePlus 消費者採取行動，並從 SDC 的全面銷售和行銷火力中受益。

We continue to manage our business with our commitment to rigorous financial discipline with the benefits of the discipline paying off. Although the second quarter top line results followed our typical seasonal downward Q1 to Q2 revenue trends, we were able to deliver stronger bottom line and improved cash flow results based on our continued focus on our underlying cost structure. As I mentioned in my opening remarks, this marks the fourth straight quarter of year-over-year adjusted EBITDA improvement and fifth straight quarter of year-over-year free cash flow improvement.

我們繼續以嚴格的財務紀律承諾來管理我們的業務，並取得了回報。儘管第二季的營收結果遵循了我們典型的第一季到第二季營收季節性下降的趨勢，但基於我們對基本成本結構的持續關注，我們能夠提供更強勁的利潤並改善現金流結果。正如我在開場白中提到的，這標誌著調整後 EBITDA 連續第四個季度同比改善，以及自由現金流連續第五個季度同比改善。

We continue to have discussions with interested parties to improve our liquidity position by expanding our ABL facility backed by our successful SmilePay collateral as well as other interested investors who see the value in SDC as the leader in affordable teeth straightening, especially with the successful launch of our 2 key initiatives.

我們繼續與有興趣的各方討論，透過擴大由我們成功的SmilePay 抵押品支持的ABL 設施來改善我們的流動性狀況，以及其他有興趣的投資者，他們認為SDC 作為負擔得起的牙齒矯正領域的領導者的價值，特別是在成功推出我們的兩項關鍵措施。

I want to thank all of our team members who have worked long hours to bring these 2 important initiatives to the market. It's been a long road, but worth the sacrifice as SMP and CarePlus begins to pay off. Every single one of you is responsible for bringing over 2 million new smiles to customers and saving them collectively over $6 billion. While we continue to face a difficult and unpredictable macroeconomic environment for our core business, our dedication to maintaining financial discipline through our cost controls and cash deployments, and the addition and the initial success of our new initiatives will enable us to manage our business throughout 2023. We have the solutions, technology platforms, team members, business strategies and financial discipline to achieve our operational and financial targets.

我要感謝我們所有團隊成員，他們長時間工作，將這兩項重要措施推向市場。這是一條漫長的道路，但隨著 SMP 和 CarePlus 開始獲得回報，犧牲是值得的。你們每一個人都有責任為客戶帶來超過 200 萬個新的微笑，並為他們總共節省超過 60 億美元。雖然我們的核心業務繼續面臨困難且不可預測的宏觀經濟環境，但我們致力於透過成本控制和現金部署來維持財務紀律，以及新舉措的增加和初步成功將使我們能夠在 2023 年管理我們的業務.我們擁有實現營運和財務目標的解決方案、技術平台、團隊成員、業務策略和財務紀律。

And now I'll turn the call over to Troy, who will provide more detail on our Q2 results. Troy?

現在我將把電話轉給特洛伊，他將提供有關我們第二季業績的更多詳細資訊。特洛伊？

Thank you, David. I will cover our financial results for the quarter. Please be sure to review our supplemental materials posted to our investor website, which provides additional details on everything I will cover.

謝謝你，大衛。我將介紹本季的財務業績。請務必查看我們發佈在投資者網站上的補充資料，其中提供了我將介紹的所有內容的更多詳細資訊。

Let me begin by thanking the entire SDC team for maintaining cost focus, which keeps us on track to hit our target of positive adjusted EBITDA next quarter and positive free cash flow in the fourth quarter this year. While the quarter's results reflect the impact of the continued macroeconomic headwinds affecting our core customers, our restructuring plans show meaningful improvements in our cost structure and free cash flow.

首先，我要感謝整個 SDC 團隊對成本的關注，這使我們能夠實現下季度調整後 EBITDA 為正值以及今年第四季為正自由現金流的目標。雖然本季的業績反映了影響我們核心客戶的持續宏觀經濟逆風的影響，但我們的重組計劃表明我們的成本結構和自由現金流得到了有意義的改善。

As David mentioned, for the last 4 consecutive quarters, we have improved year-over-year EBITDA. In the current quarter, we improved adjusted EBITDA by $10 million and improved free cash flow by $8 million despite a $24 million year-over-year decline in revenue from the second quarter of 2022 compared to the current quarter.

正如 David 所提到的，在過去連續 4 個季度中，我們的 EBITDA 年比有所改善。儘管 2022 年第二季營收較本季同比下降 2,400 萬美元，但本季調整後 EBITDA 提高了 1,000 萬美元，自由現金流提高了 800 萬美元。

Revenue for the second quarter was $102 million, which is a decrease of 15% sequentially and a decrease of 19% on a year-over-year basis. The sequential decline was within our guidance range and was driven by the typical seasonal trend coming off of the new year, new you effect from Q1. The sequential decline improved compared to the last year despite our Q1 results overperforming our expectations.

第二季營收為1.02億美元，季減15%，年減19%。環比下降在我們的指導範圍之內，並且是由新年的典型季節性趨勢以及第一季的新效應推動的。儘管我們第一季的業績超出了我們的預期，但與去年相比，環比下降有所改善。

Aligner revenue was driven by our shipment of over 46,750 initial aligners in the quarter at an ASP of $19.76. We've been focused on reduced discounting and other efficiencies in our revenue processes, which has driven our ASP to an all-time high. As a result of the introduction of the CarePlus initiative as well as price increases that were launched in late July, we expect the ASP to continue to increase.

本季我們以 19.76 美元的平均售價交付了超過 46,750 個初始矯正器，推動了矯正器收入的成長。我們一直專注於減少折扣和提高收入流程的其他效率，這使我們的平均售價達到歷史最高水準。由於 CarePlus 計劃的推出以及 7 月下旬推出的價格上漲，我們預計平均售價將繼續上漲。

Providing some details on the other revenue items. Implicit price concessions were 10% of gross aligner revenue, down from 11% in the first quarter. The percentage recognized in the current quarter is in line with our historical performance with some improvements since the first quarter. The consistency we have seen in the IPC continues to show that we have not seen any material change in the quality of our receivables despite challenging macroeconomic conditions. Reserves and other adjustments, which include impression kit revenue, refunds and sales tax, came in at 10% of grosser aligner revenue compared to 9% in the first quarter.

提供其他收入項目的一些詳細資訊。隱性價格優惠佔矯正器總收入的 10%，低於第一季的 11%。本季確認的百分比與我們的歷史業績一致，自第一季以來有所改善。我們在 IPC 中看到的一致性繼續表明，儘管宏觀經濟條件充滿挑戰，但我們的應收帳款品質並未發生任何重大變化。儲備金和其他調整（包括印模套件收入、退款和銷售稅）佔矯正器總收入的 10%，而第一季為 9%。

Financing revenue, which is interest associated with our SmilePay program, came in at approximately $7 million, which is consistent with Q1 2023 and down approximately $2 million year-over-year due to the lower accounts receivable balance. Other revenue and adjustments, which includes net revenue related to retainers, whitening and other ancillary products, came in at $19 million, an increase of approximately $1 million over both the first quarter of 2023 and the prior year quarter. The increase in other revenue was primarily driven by an increase in retainer sales, which as we grow our customer base is becoming a larger percentage of overall revenue.

融資收入（即與我們的 SmilePay 計畫相關的利息）約為 700 萬美元，與 2023 年第一季一致，但由於應收帳款餘額較低，年比減少約 200 萬美元。其他收入和調整（包括與固定器、美白和其他輔助產品相關的淨收入）為 1,900 萬美元，比 2023 年第一季和去年同期增加了約 100 萬美元。其他收入的成長主要是由保留銷售的成長所推動的，隨著我們客戶群的成長，保留銷售在總收入中所佔的比例越來越大。

Now turning to SmilePay. In Q2, the share of initial aligner purchases financed through our SmilePay program came in at 66.4%, which is above the historical levels of approximately 60% and is reflective of the impact of the difficult macroeconomic environment is having on our core customer. Our SmilePay program is an important component to drive affordability with our customer base. And overall, the program has continued to perform well with our delinquency rates in Q2 consistent with historical levels. The fact that we keep a credit card on file and have a low monthly payment gives us the confidence that SmilePay will continue to perform well.

現在轉向 SmilePay。第二季度，透過我們的 SmilePay 計畫融資的初始矯正器購買份額達到 66.4%，高於約 60% 的歷史水平，反映了困難的宏觀經濟環境對我們核心客戶的影響。我們的 SmilePay 計畫是提高客戶群負擔能力的重要組成部分。總體而言，該計劃繼續表現良好，第二季的拖欠率與歷史水準一致。事實上，我們保留了一張信用卡並每月支付較低的費用，這讓我們有信心 SmilePay 將繼續表現良好。

Turning to the results on the cost side of the business. Gross margin for the quarter was 71.6%, which was down from 72.5% in the first quarter. The lower gross margin rate was driven primarily by the deleveraging of fixed costs in our manufacturing process on lower sales. Marketing and selling expenses came in at $50 million or 49% of net revenue in the quarter compared to $71 million or 57% of net revenue in the second quarter of 2022. The $21 million and 800 basis point year-over-year decreases in terms of both dollars and rate represent improvements in marketing efficiency across the business, largely driven by advanced media targeting.

轉向業務成本方面的成果。本季毛利率為 71.6%，低於第一季的 72.5%。毛利率下降主要是由於銷售額下降導致我們的製造過程中固定成本去槓桿化所致。行銷和銷售費用為 5,000 萬美元，佔本季淨收入的 49%，而 2022 年第二季為 7,100 萬美元，佔淨收入的 57%。年減 2,100 萬美元，年減 800 個基點美元和費率的提高代表了整個企業行銷效率的提高，這主要是由先進的媒體定位所推動的。

With these improvements, we are continuing to drive lower customer acquisition costs for our legacy business. In addition, with the soft launch of our SmileMaker app, we are seeing significant improvements in cost per lead and cost per app download. With a focus on efficiency and reduced lead costs, we are continuing to optimize spend across multiple channels to achieve the right balance of high funnel leads and bottom funnel aligner sales.

透過這些改進，我們將持續降低傳統業務的客戶獲取成本。此外，隨著 SmileMaker 應用程式的軟啟動，我們發現每個線索的成本和每次應用程式下載的成本有了顯著改善。我們專注於效率和降低銷售線索成本，繼續優化多個管道的支出，以實現高漏斗銷售線索和底部漏斗對齊銷售的適當平衡。

On SmileShops, we had 128 permanent locations as of quarter end, which is an increase of 20 shops since the first quarter of 2023. And we held 58 pop-up events over the course of the quarter for a total of 186 location sites. The new SmileShops will allow the company to efficiently expand its reach without cannibalizing existing outlets and to service incremental customer demand generated by the new channels like the AI-powered SmileMaker Platform as well as our CarePlus initiative.

截至季末，我們在 SmileShops 上擁有 128 家永久門市，自 2023 年第一季以來增加了 20 家商店。本季我們舉辦了 58 場快閃活動，門市總數達到 186 家。新的 SmileShops 將使公司能夠在不蠶食現有門市的情況下有效地擴大其業務範圍，並滿足由人工智慧驅動的 SmileMaker 平台以及我們的 CarePlus 計劃等新管道產生的增量客戶需求。

We will continue to analyze our store portfolio for expansion opportunities to support our CarePlus growth, leveraging our dual journey strategy that provides our SmileShop team members the opportunity to upsell our CarePlus offering. Our end goal is to increase customer access to our solutions through the scaling of our partner network channel, expansion of our SmileShop footprint and the market adoption of our SmileMaker app.

我們將繼續分析我們的商店組合，尋找擴張機會，以支持我們的 CarePlus 成長，利用我們的雙重旅程策略，為我們的 SmileShop 團隊成員提供追加銷售我們的 CarePlus 產品的機會。我們的最終目標是透過擴展我們的合作夥伴網路管道、擴大我們的 SmileShop 覆蓋範圍以及市場對 SmileMaker 應用程式的採用，增加客戶對我們解決方案的存取。

We now have 1,156 North America partner network locations that are active or pending training. The partner network team has been focused on optimizing productivity and preparing for our broader CarePlus solution launch based on the learnings from our test launch in 4 markets beginning in February. Our partner network footprint will both scale our operations for our traditional care business, but will also serve as the key channel as our CarePlus premium service offering is rolled out to all U.S. SmileShop markets this month.

我們現在有 1,156 個北美合作夥伴網路地點正在接受或正在接受培訓。合作夥伴網路團隊一直專注於優化生產力，並根據從 2 月開始在 4 個市場進行測試發布的經驗教訓，為更廣泛的 CarePlus 解決方案發布做好準備。我們的合作夥伴網路足跡不僅將擴大我們傳統護理業務的運營，而且還將作為我們本月向所有美國 SmileShop 市場推出的 CarePlus 優質服務產品的關鍵管道。

General and administrative expenses were $60 million in the quarter compared to $72 million in the second quarter of 2022 and $65 million in the first quarter of 2023. The decrease from the prior year quarter and last quarter was driven by the cost savings initiatives we put in place at the beginning of the year as well as a continued focus on cost control. As of the end of the second quarter, most of the G&A cost control initiatives have been completed. However, you will see the full effect of the savings in Q3 and Q4 2023 as the execution of the initiatives took place throughout Q2 '23. This will result in lower G&A costs throughout the rest of the year and maintain our focus on rightsizing our overall operating expenses based on core revenue expectations.

本季的一般和管理費用為6,000 萬美元，而2022 年第二季為7,200 萬美元，2023 年第一季為6,500 萬美元。與去年同期和上一季相比下降的原因是我們採取了成本節約舉措年初，我們持續關注成本控制。截至第二季末，大部分G&A成本控制措施已完成。然而，隨著這些計劃在 2023 年第二季的執行，您將在 2023 年第三季和第四季看到節省的全部效果。這將導致今年剩餘時間的一般管理費用降低，並繼續專注於根據核心收入預期調整整體營運支出。

Other expenses include interest expense of $8.5 million, of which $7.1 million is related to the secured debt facility issued in April 2022 and $1.4 million is related to the deferred loan cost associated with the convert we issued in 2021. Additionally, onetime costs related to lease abandonment, impairment and other store and restructuring costs were $8.5 million, consisting primarily of costs related to our restructuring actions, including severance as well as store and facility closure costs. In other expenses, we recognized losses of $0.3 million primarily due to unrealized foreign currency translation adjustments recorded in the quarter.

其他費用包括850 萬美元的利息費用，其中710 萬美元與2022 年4 月發行的擔保債務融資相關，140 萬美元與我們在2021 年發行的轉換相關的遞延貸款成本相關。此外，與租賃相關的一次性成本廢棄、減損以及其他商店和重組成本為 850 萬美元，主要包括與我們的重組行動相關的成本，包括遣散費以及商店和設施關閉成本。在其他費用中，我們確認了 30 萬美元的損失，主要是由於本季記錄的未實現的外幣換算調整。

All of the above produced adjusted EBITDA of negative $14 million in the [first] quarter, which is a $10 million improvement over the second quarter of 2022 despite a $24 million decrease in revenue. For the full year, adjusted EBITDA has improved by $18 million compared to the prior year. This quarter represents our fourth consecutive quarter of reporting improving year-over-year adjusted EBITDA results and as we are on track for continued improvement in delivering positive adjusted EBITDA in the third quarter.

上述所有因素在第一季的調整後 EBITDA 為負 1,400 萬美元，儘管收入減少了 2,400 萬美元，但比 2022 年第二季增加了 1,000 萬美元。全年調整後 EBITDA 較上年增加 1,800 萬美元。本季是我們連續第四個季度報告調整後 EBITDA 年比業績改善，並且我們預計在第三季度實現正調整 EBITDA 方面持續改善。

Our second quarter net loss was $54 million, which is an $11 million improvement over the prior year period. Breaking out adjusted EBITDA regionally for the second quarter, the U.S. and Canada came in at negative $6 million and Rest of World adjusted EBITDA was negative $8 million.

我們第二季的淨虧損為 5,400 萬美元，比去年同期減少了 1,100 萬美元。按地區劃分，第二季調整後 EBITDA 為負 600 萬美元，世界其他地區調整後 EBITDA 為負 800 萬美元。

Moving to the balance sheet. We ended the second quarter with $58 million in cash and cash equivalents, $179 million in net accounts receivable and $137 million drawn on our $255 million debt facility with HPS. Cash from operations for the second quarter was negative $18 million, while cash spent on investing for the quarter was negative $10 million. Free cash flow for the second quarter defined as cash from operations less cash from investing was negative $28 million, which is an $8 million improvement over the second quarter of 2022.

轉向資產負債表。第二季末，我們的現金和現金等價物為 5,800 萬美元，應收帳款淨額為 1.79 億美元，HPS 的 2.55 億美元債務融資中提取了 1.37 億美元。第二季營運現金為負 1,800 萬美元，而本季投資支出現金為負 1,000 萬美元。第二季自由現金流（定義為營運現金減去投資現金）為負 2,800 萬美元，比 2022 年第二季增加 800 萬美元。

On a year-to-date basis, our free cash flow has improved by over $43 million as our focus on rigorous financial discipline has improved our efficiency. Our free cash flows continue to consistently improve as we have progressed through the year, and we just posted our fifth consecutive quarter of improving year-over-year free cash flow.

今年迄今為止，我們的自由現金流已增加超過 4,300 萬美元，因為我們對嚴格財務紀律的關注提高了我們的效率。隨著這一年的進步，我們的自由現金流繼續持續改善，我們剛剛公佈了連續第五個季度自由現金流同比改善。

We are also maintaining our financial goals for the year as the cost changes we have put in place continue to drive us towards positive adjusted EBITDA in the third quarter of 2023 and positive free cash flow by the fourth quarter. We recognize that in this difficult sales environment, we needed to realign our cost structure to attain EBITDA profitability on our core business and any upside that we see from our initiative launches will be additive to the results at a very high efficiency level.

我們也將維持今年的財務目標，因為我們實施的成本變化繼續推動我們在 2023 年第三季度實現正調整 EBITDA，並在第四季度實現正向自由現金流。我們認識到，在這種困難的銷售環境下，我們需要重新調整我們的成本結構，以實現我們核心業務的EBITDA 盈利能力，並且我們從我們的計劃推出中看到的任何好處都將以非常高的效率水準增加結果。

As noted in our earnings press release, we have updated our 2023 guidance that we originally provided on February 28, 2023. The changes in guidance relate primarily to the new initiatives, SMP and CarePlus, which have launched and while not fully available across our network until later this quarter, they will begin to impact our overall volume expectations as we progress throughout the back half of the year. As a result, we are adding the new initiatives to our core guidance and adjusting our sales guidance up for the year. The new initiatives were somewhat delayed this year compared to the original expectations due to our continued focus on launching in a way that was best for our customers while meeting our efficiency goals.

正如我們的收益新聞稿中所述，我們更新了最初於2023 年2 月28 日提供的2023 年指引。指引的變化主要與新舉措SMP 和CarePlus 相關，這些舉措已經推出，但尚未在我們的網絡中完全可用直到本季末，隨著我們下半年的進展，它們將開始影響我們的整體銷售預期。因此，我們將新舉措添加到我們的核心指導中，並調整了今年的銷售指引。與最初的預期相比，今年的新措施有所延遲，因為我們繼續專注於以最適合客戶的方式推出，同時滿足我們的效率目標。

At the same time, challenges to the consumer spending and sustained high inflation continue to impact our overall expected demand in 2023 as to our core business. We started the year with an expectation that the inflationary environment would somewhat improve, and we have not seen that play out so far. We have also invested in additional SmileShops as they are a key component in returning to growth and driving our SmileMaker and CarePlus initiatives. As a result, these added costs as well as the sales impact from a cautionary environment offset the margin added for the new initiatives.

同時，消費者支出面臨的挑戰和持續的高通膨持續影響我們核心業務2023年的整體預期需求。今年伊始，我們預計通膨環境將有所改善，但迄今為止我們尚未看到這種情況的發生。我們還投資了更多的 SmileShops，因為它們是恢復成長和推動我們的 SmileMaker 和 CarePlus 計劃的關鍵組成部分。因此，這些增加的成本以及謹慎環境對銷售的影響抵消了新措施增加的利潤。

However, we still expect to deliver positive EBITDA in Q3 of '23 and positive free cash flow in Q4 of '23 based on our original guidance. For full year 2023, revenue and costs and the investment outlook now include contributions from the 2023 rollout of the SmileMaker Platform and the launch of the CarePlus solution, which we continue to scale and expect to contribute to revenue and adjusted EBITDA in the back half of the year.

然而，根據我們最初的指導，我們仍然預計在 23 年第三季實現正 EBITDA，並在 23 年第四季實現正向自由現金流。對於 2023 年全年，收入和成本以及投資前景現在包括 2023 年推出 SmileMaker 平台和推出 CarePlus 解決方案的貢獻，我們將繼續擴大規模，並預計將在 2023 年下半年為收入和調整後 EBITDA 做出貢獻那一年。

For our full year 2023 guidance, we expect to deliver revenue between $425 million and $475 million; gross margin between 73% and 76%; adjusted EBITDA between negative $40 million and negative $10 million, driven largely by the top line revenue results with positive adjusted EBITDA achieved by the third quarter; CapEx between $30 million and $35 million; and our onetime costs from our reorganization action in January of 2023 between $12 million and $15 million.

對於 2023 年全年指導，我們預計營收在 4.25 億美元至 4.75 億美元之間；毛利率在73%至76%之間；調整後 EBITDA 介於負 4,000 萬美元至負 1,000 萬美元之間，這主要是由於第三季實現正調整 EBITDA 後的營收業績推動的；資本支出在 3,000 萬至 3,500 萬美元之間； 2023 年 1 月重組行動的一次性成本在 1,200 萬至 1,500 萬美元之間。

Related to our balance sheet and general liquidity, the founders of SDC entered into a revolving credit agreement in the amount of $10 million to provide working capital to help fund the newly launched SMP and CarePlus growth initiatives as the company continues to work toward restructuring its balance sheet. As we have discussed previously, the goal of any future financing transaction the company would enter into will be focused on improving our capital structure by bringing in additional funding while lowering our overall debt.

與我們的資產負債表和一般流動性相關，SDC 的創始人簽訂了一份金額為1000 萬美元的循環信貸協議，以提供營運資金，以幫助為新推出的SMP 和CarePlus 增長計劃提供資金，同時公司繼續努力重組其餘額床單。正如我們之前所討論的，公司未來進行的任何融資交易的目標都將集中在透過引入額外資金同時降低整體債務來改善我們的資本結構。

With that, I would like to turn the call back over to David for some closing remarks.

至此，我想將電話轉回給大衛，讓他發表一些結束語。

Thanks, Troy. We look forward to continued market adoption of our SmileMaker platform and fully rolling out our CarePlus offering to all U.S. SmileShop locations this month and launching in the U.K. in the back half of the year. We will continue delivering on our mission to democratize access to a smile each and every person loves.

謝謝，特洛伊。我們期待市場繼續採用我們的 SmileMaker 平台，並於本月在美國所有 SmileShop 門市全面推出我們的 CarePlus 產品，並於今年下半年在英國推出。我們將繼續履行我們的使命，讓每個人都能獲得喜愛的微笑。

I'm proud of our team's long-term focus on developing and making these innovations a reality. And now we are at the exciting stage in bringing these solutions to the market through multiple channel options convenient to each customer's unique preference. We will continue to update the market with additional insights regarding these initiatives, along with any of our other innovations, achievements and key milestones.

我為我們團隊長期專注於開發並使這些創新成為現實感到自豪。現在，我們正處於一個令人興奮的階段，透過方便每個客戶獨特偏好的多種管道選項，將這些解決方案推向市場。我們將繼續向市場提供有關這些舉措的更多見解以及我們的任何其他創新、成就和關鍵里程碑。

Thank you for joining today. With that, I'll turn the call back over to the operator for Q&A.

感謝您今天加入。這樣，我會將電話轉回接線生進行問答。

(Operator Instructions) And our first question comes from the line of Michael Ryskin with Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的邁克爾·里斯金（Michael Ryskin）。

This is Peter on for Mike. Can you discuss the contribution embedded in the second half guide from SmileMaker and CarePlus in terms of dollars and volume? And can you kind of discuss the confidence that you have that you're not cannibalizing the prior existing business there?

這是彼得替麥克發言。您能否討論一下 SmileMaker 和 CarePlus 下半年指南中的貢獻（美元和數量）？您能否談談您對不會蠶食那裡現有業務的信心？

Yes, I can cover that. While we typically don't break out what SmileMaker and CarePlus can contribute in the back half of the year, we are modeling some of that now. But with those 2 initiatives just in the early launch phase to not quite launched, I think it's too early to give that guidance just yet. And quite frankly, with SMP, they can almost morph into an order coming from 2 different ways, through both our typical smile assessment or through the app itself. So there's a little bit of mix there, too, which we're working through to understand if you started on the app, you could finish in a different way and vice versa as well, especially in these early stages.

是的，我可以介紹這一點。雖然我們通常不會透露 SmileMaker 和 CarePlus 在下半年可以做出什麼貢獻，但我們現在正在對其中的一些進行建模。但由於這兩項措施還處於早期啟動階段，尚未完全啟動，我認為現在給予指導還為時過早。坦白說，透過 SMP，它們幾乎可以變成來自兩種不同方式的訂單，透過我們典型的微笑評估或透過應用程式本身。因此，這裡也有一些混合，我們正在努力了解如果您開始使用該應用程序，您可以以不同的方式完成，反之亦然，特別是在這些早期階段。

So we haven't broken out the impact of those yet for the back half of the year. As we get there, we'll start to provide more color on what each of those initiatives is actually contributing to the bottom line. I mean one of the things you'll see is that from an ASP standpoint, you'll see our ASP increasing in the back half of the year. We actually had a record during this quarter. And with the price increases we put in place on the whole aligner business as well as what CarePlus can contribute in the back half of the year, we'll see higher ASPs associated with that.

因此，我們尚未詳細分析這些因素對今年下半年的影響。當我們到達那裡時，我們將開始提供更多的資訊來說明每項舉措實際上對盈利有何貢獻。我的意思是，您將看到的一件事是，從 ASP 的角度來看，您將看到我們的 ASP 在今年下半年有所成長。實際上，我們在本季度創下了記錄。隨著我們對整個矯正器業務的漲價以及 CarePlus 在今年下半年的貢獻，我們將看到與之相關的更高的平均價格。

But we do expect that those initiatives will contribute to the back half of the year. The extent to which that happens and how we break those out, I think, is a little bit yet to be determined just based on what we see with the actual results as we go throughout the back half of the year.

但我們確實預計這些措施將為今年下半年做出貢獻。我認為，這種情況發生的程度以及我們如何解決這些問題，還需要根據我們在今年下半年看到的實際結果來確定。

Okay. And then I guess on the path to profitability and cash flow, is the $10 million credit agreement, is that enough to bridge you to becoming fully cash flow positive even if OpEx cuts maybe lead to further revenue declines? Or kind of what's the next option or 2 that could be available if you need more financing beyond that?

好的。然後我想在盈利和現金流的道路上，1000萬美元的信貸協議是否足以讓你的現金流完全為正，即使營運支出削減可能導致收入進一步下降？或者，如果您需要更多融資，那麼下一個或兩個可用選項是什麼？

Yes. So we are very focused on liquidity improvement. Definitely, the reason we entered into the $10 million founder-funded line of credit was to provide that bridge. There's opportunities for that to be increased as well. We have to work through our ABL agreement to do that. But we are focused on those things as well.

是的。所以我們非常注重流動性的改善。當然，我們接受創辦人資助的 1000 萬美元信貸額度的原因就是為了提供這座橋樑。這也有機會增加。我們必須透過 ABL 協議來做到這一點。但我們也關注這些事情。

As you know, I think what we've released previously, we've got a process going on right now. We've been working closely with bankers on finding additional liquidity and kind of restructuring the balance sheet. Those discussions have continued on and are very productive. There are a lot of interested parties out there. I think it's up to us really to find that optimal financing transaction out there. As we've announced previously, one of the goals of that future financing transaction would be to improve the capital structure while lowering our overall debt. And I think we have lots of options out there to us, including working with current investors as well as others.

如您所知，我認為我們之前發布的內容現在正在進行中。我們一直在與銀行家密切合作，尋找額外的流動性並重組資產負債表。這些討論仍在繼續，並且非常富有成效。有很多感興趣的團體。我認為我們真正需要找到最佳的融資交易。正如我們之前宣布的，未來融資交易的目標之一是改善資本結構，同時降低我們的整體債務。我認為我們有很多選擇，包括與現有投資者以及其他人合作。

So we've been able to manage the cash flow and the capital. Some of the mitigating things we have out there, I think you had mentioned is that, we've been on a cost-cutting initiative to make sure that our G&A expenses are consistent with kind of our core revenue guidance. And we've got the new initiatives that are launching that will start to contribute to the profitability in the back half of the year. And then I think as we've also announced, we've got [3] positive EBITDA. So we've been on kind of a long path towards this -- towards getting back to positive EBITDA and growth. And we're focused on Q4 as well to try to reduce that overall cash burn kind of consistent with working on the overall capital structure as well.

所以我們能夠管理現金流和資本。我想您已經提到過，我們採取的一些緩解措施是，我們一直在採取削減成本的舉措，以確保我們的一般管理費用與我們的核心收入指導保持一致。我們正在推出新舉措，這些舉措將開始為今年下半年的獲利做出貢獻。然後我認為正如我們也宣布的那樣，我們[3] 實現了正 EBITDA。因此，我們已經走了很長一段路，以恢復正的 EBITDA 和增長。我們也關注第四季度，試圖減少整體現金消耗，這與整體資本結構的工作一致。

And our next question comes from the line of Robbie Marcus with JPMorgan.

我們的下一個問題來自摩根大通的羅比馬庫斯 (Robbie Marcus)。

Maybe to follow up on the first question. From our end, it looks like you were pretty much in line with consensus numbers and then ended up raising sales guidance for the year. I appreciate there are some new efforts coming in the back half. But any kind of tangible commentary you could put around how much is ascribed to that? And then to get to the middle and high end of the guidance range implies a pretty big step up in third and fourth quarter. What are some of the assumptions underlying the middle and top end of the guidance versus the low end?

也許是為了跟進第一個問題。從我們的角度來看，您似乎與共識數字非常一致，然後最終提高了今年的銷售指導。我很欣賞後半段出現的一些新的努力。但你能給出任何具體的評論來說明這在多大程度上歸因於此嗎？然後，達到指導範圍的中高端意味著第三季和第四季將出現相當大的進步。與低端相比，指導的中端和高端有哪些假設？

Yes, it was a little bit of a mix definitely when we looked at the back half of the year. As we're launching these new initiatives, we felt like it was the right time to start including those new initiatives in our results. Like I've said previously, there's a little bit of a mix there and the fact that you could be impacting as a customer, our sales results, either coming through SMP, the SmileMaker app or coming through our traditional online, what we call, a smile assessment coming to our webpage. And there's a little bit of mix there when we first initially do this because it takes sometimes months for a customer to ultimately convert and they could have started with us on a smile assessment and then end up using the SmileMaker to actually convert. So there's a little bit of mix going in there, and that's why we're hesitant to kind of break it out now, but wait until we see how some of these metrics start to play out, and then we can provide more guidance.

是的，當我們回顧今年下半年時，情況確實有點複雜。當我們啟動這些新措施時，我們覺得現在是開始將這些新措施納入我們的結果的正確時機。就像我之前說過的，這裡有一點混合，事實上，作為客戶，您可能會影響我們的銷售結果，無論是透過 SMP、SmileMaker 應用程式還是透過我們傳統的線上方式，我們稱之為，我們的網頁上將出現微笑評估。當我們最初這樣做時，會有一些混合，因為客戶有時需要幾個月的時間才能最終轉化，他們可能會先與我們一起進行微笑評估，然後最終使用 SmileMaker 進行實際轉化。因此，其中存在一些混合因素，這就是為什麼我們現在猶豫是否要打破它，但要等到我們看到其中一些指標如何開始發揮作用，然後我們才能提供更多指導。

As far as how we break out the new initiatives and the sales associated with those, we effectively added in the new initiatives, and then we actually reduced kind of the core guidance in the back half of the year. We assumed in our original plan at the beginning of the year, that the economy would somewhat improve in the back half. We had a very challenging fourth quarter last year. We don't expect that to repeat this year.

至於我們如何分解新舉措以及與之相關的銷售，我們有效地增加了新舉措，然後我們實際上在下半年減少了核心指導。我們在年初的原計劃中就預計下半年經濟會有所改善。去年第四季我們經歷了非常具有挑戰性的時期。我們預計今年不會重演這種情況。

And so as you look at the kind of Q3 and Q4, we did see a little bit of weakness. So we effectively took down our core guidance, but much of that was offset certainly by the new initiatives. And when you talk about looking at Q2 to Q3 to Q4, there is a little bit of a step up there, most of that being driven by the SmileMaker app as well as CarePlus. We've also got price increases that we've got in the marketplace right now as well. So those things help to do -- help to drive those sales in the back half as well.

因此，當你看看第三季和第四季的情況時，我們確實看到了一些弱點。因此，我們有效地取消了核心指導，但其中大部分肯定被新舉措所抵消。當你談論第二季到第三季到第四季時，有一點進步，其中大部分是由 SmileMaker 應用程式和 CarePlus 驅動的。我們現在市場上的價格也上漲了。因此，這些事情也有助於推動下半年的銷售。

If you think about from Q2 to Q3, I don't expect a lot of drop-off from Q2 to Q3. And I think we would see a little bit of an increase as well throughout the year as the initiatives kind of take hold.

如果你考慮從第二季到第三季度，我預計從第二季到第三季不會有很大的下降。我認為，隨著這些措施的實施，我們全年都會看到一點點成長。

Great. I appreciate that. And then maybe a -- one follow-up for me. I think pretty much since the IPO and you went public, I've seen referrals as a percentage of sales or new patients at about 20%. Why do you think that metric hasn't ticked up higher over time?

偉大的。我很感激。然後也許是我一個後續的行動。我認為自從 IPO 和你們上市以來，我發現轉診佔銷售額或新患者的比例約為 20%。您認為為什麼該指標沒有隨著時間的推移而上升？

Yes, I can take that one, Robbie. It's been consistent, right? So it's based on our legacy business and how people are able to refer. I think what's exciting is what we are seeing, and I mentioned in my prepared remarks, is that we're getting a lot of sharing of the app, especially when someone gets their new smile, if they take the app or go through the app, you come out the other side with a treatment plan and now we actually have an image of your mouth with your new smile, your actual teeth showing how they're going to move and see the actual positioning. And that's what people are excited about.

是的，我可以接受，羅比。一直是一致的，對吧？因此，它基於我們的傳統業務以及人們如何進行推薦。我認為令人興奮的是我們所看到的，我在準備好的發言中提到的是，我們得到了很多應用程式的分享，特別是當有人獲得新的微笑時，如果他們使用該應用程序或瀏覽該應用程序，您帶著治療計劃從另一側出來，現在我們實際上有了您的嘴部圖像和新的微笑，您的實際牙齒顯示了它們將如何移動並看到實際的位置。這就是人們興奮的地方。

And so I think you're going to start to see that number tick up based on what we're seeing from people getting excited and sharing on social media, sharing across their platforms, whether it's showing a friend, a spouse, their parents, how excited they are about the new smile. And I think that will start to drive this 20% number up.

所以我認為你會開始看到這個數字上升，因為我們看到人們在社交媒體上興奮地分享，在他們的平台上分享，無論是向朋友、配偶、他們的父母、他們對新的笑容感到多麼興奮。我認為這將開始推動這 20% 的數字上升。

But I agree with you, it's been steady. It's something that will really help with CAC and our overall acquisition costs, if we can get our customers and our champions out there. And I think we have the tool to do it with SmileMaker.

但我同意你的觀點，它一直很穩定。如果我們能夠吸引我們的客戶和支持者，這將真正有助於降低 CAC 和我們的整體採購成本。我認為我們有 SmileMaker 的工具來做到這一點。

(Operator Instructions) Our next question comes from the line of Jon Block with Stifel.

（操作員說明）我們的下一個問題來自 Jon Block 和 Stifel 的線路。

Troy, I believe you said $137 million of the $250 million HPS is drawn, but what are the remaining -- if I got that right, what $113 million can be drawn, call it, per ARs and covenants? And then just a quick look through your file in your 10-Q, the ongoing litigation with Align, it states that you're now in the hook for a pretty material payment. I think its $63 million to Align. I know that's not, call it, final-final, but it seems pretty far down the road. So maybe you can talk about the next steps there and what happens with the balance sheet, if that were to be finalized.

特洛伊，我相信你說過 2.5 億美元 HPS 中的 1.37 億美元已被提取，但剩下的是什麼——如果我沒說錯的話，根據 AR 和契約，可以提取多少 1.13 億美元？然後快速瀏覽一下 10-Q 中的文件，即與 Align 正在進行的訴訟，它表明您現在需要支付相當可觀的材料付款。我認為 Align 的投資額為 6,300 萬美元。我知道這不是最終的決賽，但這似乎還很遙遠。因此，也許您可以談談接下來的步驟以及資產負債表（如果最終確定的話）會發生什麼。

Well, to answer -- take the first part of that question. The -- related to our ABL, it is somewhat limited. It's a complicated calculation on how we get to what the actual borrowing base is. But it is somewhat limited on the upside. It's linked to accounts receivable. So to the extent that accounts receivable is not growing, it limits our ability to draw more on the ABL itself.

好吧，回答這個問題的第一部分。與我們的 ABL 相關，它是有一定限制的。我們如何得出實際的借貸基礎是一個複雜的計算。但其上行空間有些有限。它與應收帳款相關。因此，如果應收帳款沒有成長，就會限制我們更多地利用 ABL 本身的能力。

That being said, again, I think we've been able to manage liquidity pretty well. And this additional funding that's coming from the line of credit from the founders, the intent is that, that could be expanded as well. So that's kind of our path towards what we would consider a bigger transaction that could be in the future as we look to restructure the balance sheet long term.

話雖這麼說，我認為我們已經能夠很好地管理流動性。這筆額外資金來自創辦人的信貸額度，其目的是，也可以擴大。因此，當我們尋求長期重組資產負債表時，這就是我們認為未來可能進行的更大交易的路徑。

Related to Align itself, there's not a final award yet. It's not been confirmed and it's not payable at this time. We filed petitions to vacate that award. We continue to vigorously defend against that. There's some work remaining to be done. We've had some oral arguments last week, and there's additional oral arguments that are possible. We're kind of waiting for the judge to get through much of that in the California state court. But we continue to look at that as something that we feel like is an incorrect judgment. But we'll see how that plays out. Long term, we could fund that in multiple ways, but ultimately it probably wouldn't be due for quite some time as we continue to defend against it.

與Align本身相關，目前還沒有最終獎項。尚未得到確認，目前尚未付款。我們提交了撤銷該獎項的請願書。我們將繼續積極捍衛這一點。還有一些工作要做。上週我們進行了一些口頭辯論，也可能進行其他口頭辯論。我們正在等待加州法院的法官完成大部分工作。但我們仍然認為這是一個錯誤的判斷。但我們會看看結果如何。從長遠來看，我們可以透過多種方式提供資金，但最終可能在相當長的時間內不會到期，因為我們將繼續防禦它。

I'll just add, Troy, that -- I'm sorry, Jon. Also, there's appeal rights. We're in state court right now. We expect a good outcome. But if not, there is the option for us to appeal that judgment, which we will do.

我只是補充一點，特洛伊，對不起，喬恩。此外，還有上訴權。我們現在在州法院。我們期待一個好的結果。但如果沒有，我們可以選擇對該判決提出上訴，我們將會這樣做。

Also going back to the HPS facility, we have been in conversations with HPS to expand that, but also other ABL facilities. We have been in negotiations or conversations, I would say, with other ABL facilities that are looking at providing an expansion to what we currently have with HPS. So there's lots of options out there. I think with our initiatives in market now, and it's not conceptual anymore, it's actually happening. Like we said, all 100-plus U.S. SmileShops will be able to offer the dual journey to our customers, which is a really nice upsell at $3,900 and you guys will start to see that in our AOV as it increases quarter-over-quarter and also the efficiencies of SmileMaker.

同樣回到 HPS 設施，我們一直在與 HPS 進行對話，以擴大該設施以及其他 ABL 設施。我想說，我們一直在與其他 ABL 設施進行談判或對話，這些設施正在考慮對我們目前的 HPS 設施進行擴展。所以有很多選擇。我認為，隨著我們現在在市場上的舉措，它不再是概念性的，它實際上正在發生。就像我們所說的，所有100 多家美國SmileShops 都將能夠為我們的客戶提供雙重旅程，這是一個非常好的追加銷售，價格為3,900 美元，你們將開始在我們的AOV 中看到這一點，因為它逐季增加，還有 SmileMaker 的效率。

What we're seeing with SmileMaker, and we had talked about in previous conference calls, while it's a good conversion driver, it also is showing us that for dollars spent in market, more customers are interacting with the brand. So our lead cost is down versus our typical smile assessment approach. So we spent $1 in the market and the number of people that are downloading the app is much greater than the people that we're interacting with the smile assessment. So either way you get there, whether you increase conversion or you lower your lead cost, it improves your cash.

我們在SmileMaker 上看到的，我們在之前的電話會議中已經討論過，雖然它是一個很好的轉化驅動因素，但它也向我們表明，對於在市場上花費的資金，更多的客戶正在與該品牌互動。因此，與我們典型的微笑評估方法相比，我們的領先成本有所下降。因此，我們在市場上花費了 1 美元，下載該應用程式的人數遠遠多於我們與微笑評估互動的人數。因此，無論採用哪種方式，無論是提高轉換率還是降低潛在客戶成本，都會增加您的現金。

Thanks for that, David. And that's actually a really good segue to my second question. What you said answered it. But the 1H [res] were roughly $222 million. The implied 2H at the midpoint of your guide is about the same as 1H. The gross margin should go a bit higher per the guide, but can you elaborate on how you, call it, get enough efficiency on OpEx to turn the corner on EBITDA, the guidance sort of implies you'd generate $15 million of positive EBITDA in 2H to get to the midpoint of the guidance. Is it all sort of that sales and marketing? Because you've done a great job on G&A, but it does seem to be sort of run rating per the slide, like that 55-ish, mid-50s over the past 2 to 3 quarters. So what's the biggest lever to pull? And is it the S&M due to the better conversion rates that you just alluded to?

謝謝你，大衛。這實際上是我的第二個問題的一個很好的延續。你說的已經回答了。但 1H [res] 約為 2.22 億美元。指引中點處隱含的 2H 與 1H 大致相同。根據指南，毛利率應該會更高一些，但是您能否詳細說明如何在營運支出上獲得足夠的效率以扭轉 EBITDA，該指南暗示您將在 2017 年產生 1500 萬美元的正 EBITDA 2小時到達引導的中點。是銷售和行銷的全部嗎？因為你在 G&A 方面做得很好，但它似乎確實是每張幻燈片的運行評級，就像過去 2 到 3 個季度的 55 左右、50 年代中期。那麼最大的槓桿是什麼呢？您剛才提到的 S&M 是因為轉換率更高嗎？

Yes, I can take that. It's a combination of a lot of things. Again, it's been somewhat of a journey for us to get from where we announced in Q1, what these initiatives were and what the cost savings initiatives that we put in place as well. So it's been a little bit of a journey for us. But -- so I think it's a combination of things. So you're right that the new initiatives will start to drive more sales. They're very efficient. So if you think about things like CarePlus, the additional dollars that we get from CarePlus at $3,900 versus our $2,250 product, those flow through to EBITDA at a very high efficiency rate. So the additional dollars that we drive with CarePlus flow through at about 60%.

是的，我可以接受。這是很多事情的組合。同樣，從我們在第一季宣布的情況來看，這些舉措是什麼以及我們實施的成本節約舉措是什麼，這對我們來說是一段旅程。所以這對我們來說是一段旅程。但是——所以我認為這是多種因素的結合。所以你說得對，新措施將開始推動更多銷售。他們非常有效率。因此，如果你考慮像 CarePlus 這樣的事情，我們從 CarePlus 獲得的額外收入為 3,900 美元，而我們的產品為 2,250 美元，這些資金以非常高的效率流入 EBITDA。因此，我們透過 CarePlus 獲得的額外資金流動率約為 60%。

We don't expect that we have to spend a lot more marketing to drive these new initiatives. It's really fed by what our store associates can sell in market to our customers and kind of that upsell opportunity there. So not only are we seeing what David explained is lower lead acquisition costs coming from SMP, but we're also able to drive additional sales through stores themselves without the additional marketing. So it flows through there. And we do expect to see lower selling and marketing costs in the future as we drive that efficiency. We've kind of driven down to a certain level, and I kind of consider that efficiency that we've driven thus far to kind of be more consistent throughout the end of the year.

我們預計不需要花費更多的行銷費用來推動這些新措施。它實際上是由我們的商店員工可以在市場上向我們的客戶銷售的產品以及那裡的追加銷售機會提供的。因此，我們不僅看到 David 所解釋的 SMP 帶來的潛在客戶獲取成本較低，而且我們還能夠透過商店本身推動額外銷售，而無需額外的行銷。所以它流經那裡。隨著我們提高效率，我們確實預計未來銷售和行銷成本將會降低。我們已經降低到了一定水平，我認為我們迄今為止所提高的效率在今年年底會更加一致。

We will spend a little bit more money on SmileShops. We've opened up some additional SmileShops. But again, we consider that profitable investment because that additional spend we have there will drive higher conversion in our stores, and it's just a better experience overall for our customer.

我們會在 SmileShops 上多花一點錢。我們又開設了一些微笑商店。但我們再次認為這是有利可圖的投資，因為我們在那裡的額外支出將推動我們商店的更高轉換率，而這對我們的客戶來說是一種更好的整體體驗。

And then from a G&A perspective, we did -- we've driven G&A down from last year. Certainly, Q1 was lower. Q2 was lower than that. But all of the initiatives that we talked about at the beginning of the year were still in process in Q2. So we continue to believe we'll have savings from a run rate standpoint from Q2 into Q3 and Q4 as well. So it's a combination of all those things that are driving the higher EBITDA in Q3 and Q4 as well.

然後從一般管理費用的角度來看，我們確實做到了——我們已經將一般管理費用比去年下降了。當然，第一季較低。第二季低於該水準。但我們在年初討論的所有舉措在第二季仍在進行中。因此，我們仍然相信，從運行率的角度來看，從第二季到第三季和第四季我們也將節省成本。因此，所有這些因素的結合也推動了第三季和第四季更高的 EBITDA。

We have reached the end of our question-and-answer session. And with that, this will conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

我們的問答環節已經結束。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。