Sientra Inc (SIEN) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to the Sientra Third Quarter 2023 Financial Results Conference Call. My name is Dave. (Operator Instructions) After Sientra executives provide their business updates, we will open the floor for a question-and-answer session. Today's conference call is being recorded.

下午好，歡迎參加 Sientra 2023 年第三季財務業績電話會議。我叫戴夫。 （操作員指示）Sientra 主管介紹完業務更新後，我們將進入問答環節。今天的電話會議正在錄音中。

I would like to turn the conference call over to your host, Oliver Bennett, Sientra's Chief Legal, Compliance, and Corporate Development Officer. Mr. Bennett, you may begin.

我想將電話會議交給主持人 Oliver Bennett，Sientra 的首席法律、合規和企業發展長。 Bennett 先生，您可以開始。

Welcome, and thank you for joining us on today's call to discuss Sientra's third quarter 2023 financial results. On our call today, we have Ron Menezes, Sientra's President and Chief Executive Officer; Denise Dajles, Sientra's Chief Technology Officer; and Andy Schmidt, Sientra's Chief Financial Officer.

歡迎，感謝您參加今天的電話會議，討論 Sientra 2023 年第三季的財務表現。今天的電話會議參與者有 Sientra 總裁兼執行長 Ron Menezes、Sientra 首席技術長 Denise Dajles 和 Sientra 財務長 Andy Schmidt。

Before I turn the call over to Ron, I must remind everyone that we will include forward-looking statements in our prepared remarks and in response to any questions you may ask. These forward-looking statements are based on management's current assumptions and expectations of future events and trends. Our actual results may differ materially from those expressed in or implied by the forward-looking statements. The company undertakes no obligation to update or review any estimate, projection or forward-looking statements. For a more detailed discussion of the company's risks and uncertainties, I would refer you to our SEC filings, including our Form 10-K and Form 10-Q to be filed later this month available on the company's website.

在我將電話轉給羅恩之前，我必須提醒大家，我們將在準備好的評論和回答你們的任何問題時包括前瞻性陳述。這些前瞻性陳述是基於管理階層目前對未來事件和趨勢的假設和預期。我們的實際結果可能與前瞻性陳述中表達或暗示的結果有重大差異。本公司不承擔更新或審查任何估計、預測或前瞻性陳述的義務。有關公司風險和不確定性的更詳細討論，請參考我們向美國證券交易委員會提交的文件，包括將於本月稍後提交的 10-K 表和 10-Q 表，可在公司網站上查閱。

With that, I'll ask Ron to comment on our third quarter results.

因此，我將請羅恩對我們的第三季業績發表評論。

Thank you, Oliver. The third quarter was a challenging quarter for Sientra as we experienced a much larger impact from seasonality during the summer months than we had in prior years. This impact was most pronounced in our augmentation business, which is more prone to seasonality and changes in consumer spending. Our reconstruction business, which is less vulnerable to these trends, was less impacted by seasonality this quarter. Importantly, these trends are not unique to Sientra but to breast implants. There has been a broad trend across aesthetics companies reporting lower-than-expected procedural volumes during the third quarter. This has been reflected in our discussions with surgeons. We have reported lower-than-average surgical cases during the third quarter, driven by consumer uncertainty over macroeconomic trends as well as an increase in physician and patient leisure travel during the summer.

謝謝你，Oliver。第三季度對 Sientra 來說是一個充滿挑戰的一個季度，因為我們在夏季受到的季節性影響比往年大得多。這種影響在我們的隆乳業務中最為明顯，該業務更容易受到季節性和消費者支出變化的影響。我們的重建業務不太容易受到這些趨勢的影響，本季受季節性的影響較小。重要的是，這些趨勢並非 Sientra 獨有，而是乳房植入物獨有。美容公司普遍報告第三季手術量低於預期。這在我們與外科醫師的討論中有所體現。我們報告的第三季度手術例數低於平均水平，原因是消費者對宏觀經濟趨勢的不確定性以及夏季醫生和患者休閒旅行的增加。

We believe that those trends are cyclical and short term and there remains a durable market for breast procedures. The American Society of Plastic Surgeons, for example, recently reported that breast augmentation procedural volumes had returned to pre-pandemic levels, while also seeing an increase in other breast procedures such as breast lifts. This highlights the importance of Sientra's strategy of having a diversified portfolio of products designed to meet the needs of plastic surgeons in both augmentation and reconstruction procedures. We're encouraged by the fact that over half of our total revenue in Q3 came from reconstruction. This supports our growth strategy of portfolio diversification, which we believe will give us a competitive edge by allowing surgeons, hospitals, and accounts to source all the breast procedures' products from us.

我們認為這些趨勢是週期性的和短期的，乳房手術市場仍然存在持久的。例如，美國整形外科醫師協會最近報告稱，隆乳手術量已恢復到疫情前的水平，同時乳房提升等其他乳房手術也有所增加。這凸顯了 Sientra 策略的重要性，即擁有多元化產品組合，以滿足整形外科醫生在隆乳和重建手術中的需求。令我們感到鼓舞的是，我們第三季超過一半的總收入來自重建手術。這支持了我們投資組合多元化的成長策略，我們相信，這將使我們具有競爭優勢，因為外科醫生、醫院和客戶都可以從我們這裡購買所有乳房手術產品。

It is early Q4, but we're seeing some recovery in seasonality so far. We're also encouraged by the customer response to Viality and SimpliDerm as we are in initial stages of our controlled launches of those products. As a reminder, with the launch of those 2 new products, Sientra has more than doubled its total addressable market and set up the platform for growth. We're now 1 of only 2 companies that offers the full suite of products for breast reconstruction procedures. Given the early stages of those launches, however, the macroeconomic uncertainty, specific to aesthetics and economy more broadly, we felt it prudent to withdraw our guidance at this time. In the meantime, we'll continue to take steps to improve our cost structure and we're focusing on cash flow and profitability goals, which will position us well when demand rebounds.

現在是第四季初期，但到目前為止，我們看到季節性因素有所回升。客戶對 Viality 和 SimpliDerm 的反應也令我們感到鼓舞，因為我們正處於這些產品的控制發布初期。提醒一下，隨著這兩款新產品的推出，Sientra 的總目標市場擴大了一倍多，並為成長奠定了基礎。我們現在是僅有的兩家提供全套乳房重建產品的公司之一。然而，考慮到這些產品發布還處於早期階段，宏觀經濟的不確定性，特別是對美學和更廣泛的經濟而言，我們認為此時撤回我們的指導是明智之舉。同時，我們將繼續採取措施改善我們的成本結構，並專注於現金流和獲利目標，這將使我們在需求反彈時處於有利地位。

I'll now turn the call over to Denise to review the impressive clinical data on our Viality fat transfer system that we presented last month at the Plastic Surgery: The Meeting in Austin, Texas. Denise?

我現在將電話轉給丹尼斯，讓她回顧我們上個月在德克薩斯州奧斯汀的整形外科會議上展示的 Viality 脂肪轉移系統的令人印象深刻的臨床數據。丹尼斯？

Thank you, Ron. Viality is setting a new standard in fat transfer. At Plastic Surgery: The Meeting, we were pleased to present interim data from our ongoing fat retention study with up to 102 patients at the 3-, 6- and 12-month time points. This first-of-its-kind study is the largest ever multicenter prospective study looking at retention after fat grafting to the breast. The results of our study are showing unparalleled fat retention. As we reported at the meeting, Viality is achieving over 80% fat retention with a high degree of predictability. Importantly, this is across all patient types, all procedures, including fat with implants, fat alone, and autologous reconstruction at all time points. This is an incredible result, making this technology a game changer for fat transfer procedures that surgeons can now, for the first time, confidently relocate a patient's fat, knowing that what that -- what they -- sorry, excuse me, knowing that what they see on the operating table is what the end result will look like.

謝謝你，Ron。 Viality 正在為脂肪轉移設立新標準。在整形外科會議上，我們很高興地展示了我們正在進行的脂肪保留研究的中期數據，該研究涉及多達 102 名患者，分別在第 3、6 和 12 個月的時間點。這項史無前例的研究是迄今為止規模最大的多中心前瞻性研究，研究的是乳房脂肪移植後的保留。我們的研究結果顯示了無與倫比的脂肪保留率。正如我們在會議上報告的那樣，Viality 的脂肪保留率超過 80%，並且具有高度的可預測性。重要的是，這適用於所有患者類型、所有程序，包括脂肪植入、單獨脂肪和自體重建，在所有時間點都是如此。這是一個令人難以置信的結果，使這項技術成為脂肪轉移手術的顛覆性技術，外科醫生現在第一次可以自信地重新定位患者的脂肪，知道那是——他們——抱歉，打擾一下，知道他們在手術台上看到的就是最終的結果。

This sets Viality apart from the other alternatives. We believe that this presents a unique opportunity for Sientra in the rapidly growing fat transfer market, opening up procedure opportunities in augmentation and reconstruction as it offers the first truly minimally invasive way for patients to confidentially increase their breast size even without the need for an implant. We also saw great excitement at the meeting around our new MRI-compatible tissue expander, AlloX2 Pro. As a reminder, this was the first tissue expander to be cleared as MRI-compatible in the United States and is the only dual-port MRI-compatible tissue expander. This next-generation expander adds to our comprehensive portfolio as we are the only company to offer the full suite of tissue expander options, including extremity expanders, single port, dual port, and now MRI-compatible breast expanders.

這使得 Viality 有別於其他選擇。我們相信，這為 Sientra 在快速成長的脂肪轉移市場中提供了一個獨特的機會，為增大和重建領域開闢了手術機會，因為它為患者提供了第一種真正微創的方式，讓他們可以保密地增加乳房尺寸，甚至無需植入物。我們在會議上也看到了圍繞我們新的 MRI 相容組織擴張器 AlloX2 Pro 的巨大興奮。提醒一下，這是第一個在美國被批准為 MRI 相容的組織擴張器，也是唯一雙埠 MRI 相容組織擴張器。這種下一代擴張器擴充了我們的綜合產品組合，因為我們是唯一一家提供全套組織擴張器選項的公司，包括肢體擴張器、單端口、雙端口以及現在的 MRI 兼容乳房擴張器。

Our AlloX2 Pro uses a revolutionary dual port AlloX2 design to allow access to the periprosthetic space. And builds up on this platform with additional benefits, supported by peer-reviewed publications. Once on the market next year, this will truly be the most innovative tissue expander available since it includes dual ports, MRI conditional labeling, a negligible interference with radiotherapy planning, and less dose disturbance. And 4x faster peeling. We look forward to updating you on this unique new technology as we prepare to launch it in 2024.

我們的 AlloX2 Pro 採用革命性的雙埠 AlloX2 設計，方便進入假體周圍空間。此外，我們還在此平台上建立了其他優勢，並得到了同行評審出版物的支持。一旦明年上市，它將成為市場上最具創新性的組織擴張器，因為它具有雙端口、MRI 條件標記、對放射治療計劃的干擾可忽略不計以及更少的劑量幹擾。剝離速度提高了 4 倍。我們期待在 2024 年推出這項獨特的新技術之際，向您介紹它的最新進展。

And now, I will turn the call over to Andy to review Sientra’s financial results of the quarter.

現在，我將把電話交給安迪來回顧 Sientra 本季的財務表現。

Thanks, Denise. As Ron mentioned earlier, our Q3 2023 financial results included seasonally challenged revenue results. However, we continue to realize favorable year-over-year EBITDA and free cash flow results. Our Q3 2023 financial results include revenue of $19.5 million as compared with $22.6 million for the prior year period, a decrease of 13.7%. Non-GAAP operating expense of $17.8 million as compared to $21.7 million for the prior year period, an 18% reduction. Non-GAAP EBITDA was a $6.4 million loss as compared to an $8.6 million loss for the prior year period, representing a 25.6% improvement. Free cash flow usage was $3.6 million as compared to free cash flow usage of $3.7 million for the prior year period. Our revenue sector mix continues to favor the reconstruction space. However, our current period revenue does not reflect the full launch and expected revenue contribution from SimpliDerm and includes only a small contribution from Viality as we continue our controlled launch of Viality to our hospital and cosmetic customers.

謝謝，丹妮絲。正如羅恩之前提到的，我們2023年第三季的財務表現包含季節性收入挑戰。然而，我們繼續實現同比良好的EBITDA和自由現金流業績。我們2023年第三季的財務表現包括營收1,950萬美元，去年同期為2,260萬美元，下降了13.7%。非公認會計準則下的營運費用為1,780萬美元，而去年同期為2,170萬美元，下降了18%。非公認會計準則下的EBITDA虧損640萬美元，而去年同期虧損860萬美元，改善了25.6%。自由現金流使用量為360萬美元，去年同期自由現金流使用量為370萬美元。我們的收入產業結構持續有利於重建領域。然而，我們目前期間的收入並未反映 SimpliDerm 的全部發布和預期收入貢獻，並且僅包括 Viality 的一小部分貢獻，因為我們將繼續向我們的醫院和化妝品客戶控制 Viality 的發布。

Our free cash flow performance continues a favorable trend as our operating expense discipline, combined with efficient working capital management provide for strong results. This is the fifth consecutive quarter of improved free cash flow performance. During the past 5 quarters, we saw free cash flow usage decrease from $56.5 million to $18.4 million from a year-over-year perspective, a $38.1 million improvement or 67%. This trend is the result of the hard work we have been communicating to the street over the past year, and we expect continued favorable free cash flow results going forward.

我們的自由現金流表現持續保持良好趨勢，這得益於我們嚴格的營運費用控制和高效的營運資本管理，從而帶來了強勁的業績。這已是自由現金流表現連續第五個季度改善。在過去五個季度中，我們的自由現金流使用量年從5,650萬美元下降至1,840萬美元，減少了3,810萬美元，降幅達67%。這一趨勢是我們過去一年努力與華爾街溝通的結果，我們預計未來自由現金流表現將繼續保持良好。

Completing the P&L view, our pro forma gross margin for Q3 '23 was 58.4%, which compares to 57.9% for the same period last year. The current period's performance includes Viality launch costs, which will decrease as the launch matures. Additionally, our year-over-year decline in revenue has a negative effect on current period gross margins as certain expenses, such as the costs of running our distribution center or fixed costs. GAAP gross margins of 51.3% was negatively affected by a non-cash depreciation and amortization charge of $1.4 million. This charge is primarily due to the inclusion of non-cash amortization of Viality manufacturing know-how and developed technology in cost of sales. This cost is fixed in nature; hence it will not impact GAAP gross margins as significantly in future periods as Viality sales continue to increase.

從損益表中可以看出，我們 23 年第三季的預測毛利率為 58.4%，而去年同期為 57.9%。本期業績包括 Viality 的發布成本，隨著產品的成熟，該成本將會降低。此外，我們收入的年減對本期毛利率產生了負面影響，因為某些費用，例如營運配送中心的成本或固定成本。 140 萬美元的非現金折舊和攤銷費用對 51.3% 的 GAAP 毛利率產生了負面影響。這筆費用主要是由於在銷售成本中包含了 Viality 製造專有技術和開發技術的非現金攤提。這筆成本本質上是固定的；因此，隨著 Viality 銷售額的持續增長，它不會在未來期間對 GAAP 毛利率產生重大影響。

Total GAAP operating expense for Q3 '23 was $19.4 million compared to $25.3 million in Q3 '22, a $5.9 million or 23.3% decrease. Total GAAP loss from continuing operations for Q3 '23 was $14.8 million, however, it includes a $3.2 million non-cash charge for change in fair value of derivative liability and compares to a $14.9 million loss for the previous year period.

2023年第三季度，GAAP總營運費用為1,940萬美元，而2022年第三季為2,530萬美元，減少了590萬美元，降幅為23.3%。 2023年第三季度，GAAP持續經營業務總虧損為1,480萬美元，但其中包含了320萬美元的衍生負債公允價值變動非現金費用，而去年同期的虧損為1,490萬美元。

Switching to key balance sheet items. Cash at September 30, 2023, was $15 million, a decrease of $3.6 million from the previous quarter. We continue to focus on working capital efficiencies. We see consistent strong performance in our inventory management with ending inventories at September 30, 2023, up $39.3 million, down from year-end December 31, 2022, of $42.7 million. This performance includes building Viality inventories. Accounts receivable also is performing well. At September 30, 2023, our AR balance was $29.6 million, down from $36.9 million at year-end 2022. Finally, we received amended -- finally -- excuse me, we recently amended our agreement with our convertible debt provider, Deerfield, to provide a temporary waiver of a September 30, 2023 revenue covenant breach. The amendment, which has been filed under Form 8-K with the SEC requires us to revalue our convertible loan facility.

前往關鍵資產負債表項目。 2023 年 9 月 30 日的現金為 1,500 萬美元，比上一季減少 360 萬美元。我們持續關注營運資本效率。我們的庫存管理表現持續強勁，2023 年 9 月 30 日的期末庫存增加了 3,930 萬美元，低於 2022 年 12 月 31 日年底的 4,270 萬美元。這一表現包括建立 Viality 庫存。應收帳款也表現良好。截至 2023 年 9 月 30 日，我們的應收帳款餘額為 2,960 萬美元，低於 2022 年底的 3,690 萬美元。最後，我們收到了修訂——最後——對不起，我們最近修改了與可轉換債務提供者 Deerfield 的協議，以暫時豁免 2023 年 9 月 30 日的收入契約違約。該修正案已根據 8-K 表格向美國證券交易委員會提交，要求我們重新評估我們的可轉換貸款工具。

The effect was a non-cash expense charge to the P&L, change in fair value of derivative liability of $3.2 million. Regarding the balance sheet, you will see a $3.2 million charge to derivative liability as well as reclassification of $58.8 million of long-term debt to short-term debt.

結果是，非現金費用計入損益表，衍生負債的公允價值變動320萬美元。在資產負債表中，您會看到320萬美元的衍生負債費用，以及5,880萬美元的長期債務重新分類為短期債務。

At this time, I'll turn the call back to Ron.

這時，我會把電話轉回給羅恩。

Thank you, Andy. While Q3 revenue performance was disappointing, we are pleased with the continued improvement on operating results in the quarter as we execute on our path to free cash flow positive performance. We're also encouraged by the early trends in October as well as the early feedback from our control launches of Viality and SimpliDerm. As the market for breast procedures normalizes and Viality and SimpliDerm reach full product launch, we believe that 2024 will be a critical inflection point for our company.

謝謝你，安迪。雖然第三季的營收表現令人失望，但我們對本季營運表現的持續改善感到滿意，因為我們正朝著實現自由現金流正成長的目標邁進。 10月份的早期趨勢以及Viality和SimpliDerm對照產品上市後的早期回饋也令我們感到鼓舞。隨著乳房手術市場的正常化以及Viality和SimpliDerm產品的全面上市，我們相信2024年將成為公司的關鍵轉捩點。

I'll now turn the call over to the operator for Q&A.

我現在將電話轉給接線員進行問答。

(Operator Instructions) Our first question comes from Jonathan Block with Stifel.

（操作員指示）我們的第一個問題來自 Stifel 的 Jonathan Block。

It's Jordan on for Jon actually. I have 2 questions. I'll ask them both upfront. I guess on the Viality front, can you give us an update on the U.S. hospital contracting process? How has that process been ongoing? And maybe what level of retention there's been with your current existing accounts? And then I did hear you say some favorable free cash flow trends moving forward given some of the positive momentum you've had there. But is there any update on the specific goal of reaching free cash flow positively by year-end? And then maybe the confidence in that sustainability of that positivity into next year.

實際上，現在輪到喬丹代替喬恩了。我有兩個問題，我會提前問。關於Viality，您能否介紹一下美國醫院簽約流程的最新情況？這個過程進展如何？目前現有客戶的留存率是多少？另外，我確實聽到您說過，鑑於您目前取得的一些積極進展，未來的自由現金流趨勢會比較好。但是，關於年底實現自由現金流為正的具體目標，您有什麼新的進展嗎？以及您對這種積極勢頭在明年的可持續性的信心如何？

Yes. I'll start and then I'll move it over to Andy for the second question. We started the controlled launch in the summer, and we're seeing really nice adoption by some of the hospitals. It does take somewhere between 9 to 12 months to review because it's not the right timing for RFPs. So you want to make sure you're submitting the RFPs, you also make sure it's happening with support from the right surgeons. So this takes a little longer than we had anticipated. But what I've seen is an acceleration in the last 2 or 3 months of adoption by some of the hospitals. We're also very encouraged by their reorder rates by those number of hospitals is at par with our tissue expanders and implants.

是的，我先開始，然後交給 Andy 回答第二個問題。我們在夏天開始了有控制的發布，我們看到一些醫院的採用情況非常好。審核需要 9 到 12 個月的時間，因為現在不是提交 RFP 的最佳時機。所以你要確保你提交了 RFP，也要確保它得到合適的外科醫生的支持。所以這比我們預期的要長一點。但我看到的是，在過去的 2 或 3 個月裡，一些醫院的採用速度有所加快。我們對他們的重新訂購率也感到非常鼓舞，因為這些醫院的數量與我們的組織擴張器和植入物相當。

So once they adopt a Viality, they're already at the same rate, same percentage of our tissue expanders and implants. We have a long ways to go. The majority of our hospitals are still way to go, and that's going to be part of a full launch plan for next year. It's accelerating access to hospitals. We continue to get more GPO access as well. So we're very encouraged by the beginning, the first 4, 5 months of this controlled launch. Andy?

所以，一旦他們採用了 Viality，他們就已經達到了與我們相同的速度和比例，使用我們的組織擴張器和植入物。我們還有很長的路要走。我們大多數醫院還有很長的路要走，這將是明年全面發布計畫​​的一部分。這將加速進入醫院的速度。我們也持續獲得更多的 GPO 管道。因此，我們對這次受控發布的前 4、5 個月感到非常鼓舞。安迪？

Sure. And so Jordan, in terms of our free cash flow performance, we have our expense structure in place and exactly where we want it. We've shown consistent improvement and our Q3 results are, again, a record for us in terms of non-GAAP and actually GAAP operating expense. Now as we look forward, as we said before, we're targeting year-end free cash flow positive performance. The recent change that's going to affect that particular timing is that as we commented to both, myself and Ron, the seasonally challenged performance here in Q3 in terms of revenue. And again, looking forward to Q4, there's uncertainty in the markets in terms of how long this seasonally challenged dynamic is going to continue throughout not just our business, but the whole industry.

當然。喬丹，就我們的自由現金流表現而言，我們的費用結構已經到位，並且完全符合我們的預期。我們持續改善，第三季的業績再次創下了非公認會計準則（Non-GAAP）和實際公認會計準則（GAAP）營運費用的新高。展望未來，正如我們之前所說，我們的目標是年底實現自由現金流為正。最近將影響這一特定時間點的變化是，正如我們之前向我和羅恩提到的，第三季的收入表現受到了季節性因素的影響。展望第四季度，市場仍存在不確定性，不確定這種季節性因素將持續多久，不僅在我們業務中，而是在整個行業中。

And really when that rebounds back to expected results. So because of that, we're going to -- again, it's hard to really forecast free cash flow positive performance in Q4 but we don't expect that to push out any number of quarters going forward. It's just the seasonal nature of what we're seeing in revenue right now. The second other element that's one-time in nature that we're looking at in Q4 that we don't have a perfect forecast on, but we'll see the results as we allow here in Q4 is really the use by the company of third-party advisers in terms of working with our key lender Deerfield as we work through our covenant breach dynamic going into the first start here in Q1 of 2024. We don't think that's going to be significant over a period of time, but it is an additional expense that we're going to be monitoring here in Q4.

當它真正反彈回預期結果時。因此，我們將——再次強調，很難真正預測第四季度的自由現金流為正表現，但我們預計這不會推遲未來幾季。這只是我們現在看到的收入的季節性特徵。我們在第四季度關注的第二個一次性因素，我們對其沒有完美的預測，但我們會在第四季度看到結果，實際上是公司在與我們的主要貸款方 Deerfield 合作方面使用第三方顧問，以解決我們在 2024 年第一季度首次啟動時違反契約的問題。我們認為這在一段時間內不會變得顯著，但這是我們將在第四季度監控的額外費用。

(Operator Instructions) Our next question comes from Anthony Vendetti with Maxim Group.

（操作員指示）我們的下一個問題來自 Maxim Group 的 Anthony Vendetti。

This is actually Jeremy on the line for Anthony. So also two questions from our end. The first one also on the Viality and the SimpliDerm rollout. Based on the current macro environment, have you changed the strategy of that rollout at all or is it just business as usual? And then maybe if the conditions continue and you have to change that in the future, you'll adapt then?

我是 Jeremy，接 Anthony 的電話。我們這邊還有兩個問題。第一個問題也與 Viality 和 SimpliDerm 的推出有關。基於目前的宏觀環境，你們是否改變了這兩項計畫的推廣策略，還是一切照舊？如果情況持續下去，你們將來不得不做出改變，到時候你們會調整策略嗎？

Yes. So the impact of macroeconomic is really more on the augmentation side. What we saw in the reconstruction in the summer is really the impact of just as stated before, potentially leisure travel by patients, delay in some of the surgeries and reconstruction and also travel by surgeons. We have not seen any impact at all for both Viality and SimpliDerm. It's just the process of going through the hospital, R3 process, the VAC committees, the GPOs. So that's progressing extremely well for both brands. That's really -- it's falling right within our current strategy of a controlled launch for both brands. So we're seeing a really nice pace for both products.

是的。所以宏觀經濟的影響其實更在增強方面。正如之前所說，我們在夏季重建中看到的實際上是患者潛在的休閒旅行、一些手術和重建的延遲以及外科醫生的旅行的影響。對於 Viality 和 SimpliDerm，我們都沒有看到任何影響。這只是經過醫院、R3 流程、VAC 委員會和 GPO 的過程。所以這兩個品牌的進展都非常順利。這真的——這完全符合我們目前對兩個品牌進行控制發布的策略。所以我們看到這兩種產品都進展得非常好。

And Jeremy, just to add, we talked earlier in the year, as we're looking forward to these launches, suggesting that when you consider both launches, we would exit the year at 5% to 10% of our revenue coming from these new products. We still feel confident with that performance. And so it's going quite well, and we look forward to this performance.

傑里米，補充一下，我們今年早些時候談過，因為我們期待這些新產品的發布，我們當時就表示，如果把這兩款新產品都算上，到年底時，這些新產品將貢獻我們5%到10%的收入。我們仍然對這個業績充滿信心。所以現在一切進展順利，我們期待著這個業績。

Yes, I was going to follow up with that. That's still applied because I know you mentioned that on earlier calls. And then just my other question, just back to the base, the core business, augmentation reconstruction. So I know it's really that diversification is great. You haven't seen really a fall off on reconstruction due to the headwinds, macro headwinds. Just if these -- obviously, there's we don't have a crystal ball, but if these headwinds do continue, is there a way that your corporate strategy, your business strategy could shift and to focus more of your sales reps or maybe focus more on the reconstruction side to try and make up the difference?

是的，我本來想繼續追問。這仍然適用，因為我知道您在之前的電話會議上提到過。然後我的另一個問題，回到基礎業務，核心業務，增強重建業務。我知道多元化確實很棒。您還沒有看到由於宏觀經濟逆風而導致的重建業務下滑。如果這些——顯然，我們沒有水晶球，但如果這些逆風持續下去，您的公司策略和業務策略是否可以轉變，將更多精力放在銷售代表或重建業務上，以彌補損失？

Yes. We started that actually, interestingly enough, in early '21. The really -- the shift into reconstruction, which is a weird time to do it because in 2021, the cosmetic breast augmentation market went absolutely crazy. And you saw that year, we grew almost 50% of revenues, driven mostly by reconstruction. At that time, close to 60% of revenues came from the augmentation side. What we saw this past quarter and the last couple of quarters is that well over half of our revenues are coming from reconstruction and the idea of adding fat grafting for Viality and adding an ADM with SimpliDerm is really to add more products. And as I stated before, there are only 2 companies in the market right now that have the full portfolio of products for breast reconstruction. We're one of them, and the other one, they're not a big company. And that makes it really nice for us to have a portfolio strategy as we negotiate contracts with both hospitals, GPOs, and different institutions that prefer to deal with one vendor.

是的。有趣的是，我們實際上是在 2021 年初開始的。我們轉向乳房重建，這是一個奇怪的時機，因為 2021 年，美容隆乳市場一片瘋狂。正如你所看到的，那一年，我們的收入增加了近 50%，主要得益於乳房重建。當時，近 60% 的收入來自隆乳業務。我們看到，在過去的一個季度和最近幾個季度，我們超過一半的收入來自乳房重建，而為 Viality 添加脂肪移植和為 SimpliDerm 添加 ADM 的想法實際上是為了增加更多產品。正如我之前所說，目前市場上只有兩家公司擁有乳房重建的完整產品組合。我們是其中之一，另一家公司規模不大。這使得我們在與醫院、GPO 以及傾向於與同一家供應商打交道的不同機構談判合約時，能夠制定一個產品組合策略。

This concludes our question-and-answer session. I would like to turn the conference over to Ron Menezes for any closing remarks.

我們的問答環節到此結束。我想將會議交給 Ron Menezes 做最後發言。

All right. Well, thank you very much for -- everyone for joining us. We look forward for a great finish into 2023, and we look forward to start '24 extremely well. In the meantime, I hope everyone has an upcoming wonderful Thanksgiving. Thank you.

好的。非常感謝大家的參與。我們期待2023年圓滿結束，也期待2024年有一個非常好的開始。同時，也祝福大家即將到來的感恩節快樂。謝謝大家。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您可以斷開連線了。