TELA Bio Inc (TELA) 2023 Q3 法說會逐字稿

Good day and thank you for standing by, and welcome to TELA bio third quarter earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to introduce your host for today's call Greg Chodaczek, you may begin.

美好的一天，感謝您的支持，歡迎參加 TELA bio 第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。現在我想介紹一下今天電話會議的主持人格雷格·喬達切克（Greg Chodaczek），請您開始。

Thank you, Justin, and good afternoon, everyone. Earlier today, TELA Bio released financial results for the third quarter 2023. A copy of the press release is available on the company's website. Joining me today on today's call are Antony Koblish, President and Chief Executive Officer, and Roberto Cuca, Chief Operating Officer and Chief Financial Officer.

謝謝賈斯汀，大家下午好。今天早些時候，TELA Bio 發布了 2023 年第三季的財務業績。新聞稿的副本可在該公司網站上取得。與我一起參加今天電話會議的有總裁兼首席執行官安東尼·科布里什 (Antony Koblish) 和首席營運官兼首席財務官羅伯托·庫卡 (Roberto Cuca)。

Before we begin, I'd like to remind you that during this conference call, the company will make projections and forward-looking statements regarding future events. We encourage you to review the company's past and future filings with the SEC, including without limitation, the company's annual report on Form 10-K and quarterly reports on Form 10-Q, which identify specific factors that may cause actual results or events to differ materially from those described in these forward-looking statements.

在我們開始之前，我想提醒您，在本次電話會議期間，本公司將對未來事件做出預測和前瞻性陳述。我們鼓勵您查看公司過去和未來向SEC 提交的文件，包括但不限於公司10-K 表中的年度報告和10-Q 表中的季度報告，其中確定了可能導致實際結果或事件出現差異的具體因素實質上來自這些前瞻性陳述中所描述的內容。

These factors may include without limitation, statements regarding product development and pipeline opportunities, product potential, the impact of various macro-economic conditions, including the COVID-19 pandemic, recessionary concerns, banking instability and inflammatory -- inflationary pressures, regulatory environment, the introduction of new products or product enhancements by us or others.

這些因素可能包括但不限於有關產品開發和管道機會、產品潛力、各種宏觀經濟條件（包括 COVID-19 大流行）的影響、衰退擔憂、銀行業不穩定和發炎（通膨壓力、監管環境、我們或其他人推出新產品或產品改良。

Including those which may be perceived to negatively impact the demand of our products now or in the future sales and marketing strategies, capital resources or operating performance. With that, I will now turn the call over to Tony.

包括那些可能被認為會對我們現在或未來的產品需求、銷售和行銷策略、資本資源或經營業績產生負面影響的因素。這樣，我現在將把電話轉給托尼。

Thank you, Greg. Good afternoon, everyone, and thanks for joining us today for our third quarter 2023 earnings call. We are pleased to report another quarter of strong financial results and operational execution. Revenue in the third quarter was $15.1 million, growing 35% year over year. Notably, this was the 11th successive quarter of 35% growth or greater, driven by continued market share gains and increased surgeon adoption of the OviTex product portfolio.

謝謝你，格雷格。大家下午好，感謝您今天參加我們的 2023 年第三季財報電話會議。我們很高興地報告又一個季度強勁的財務業績和營運執行力。第三季營收為1510萬美元，年增35%。值得注意的是，在市場佔有率持續成長和外科醫生對 OviTex 產品組合採用率增加的推動下，這是連續 11 個季度實現 35% 或更高的成長。

PRS growth was especially strong, up 46% year-over-year, notably driven by the launch of the long-term resorbable version of OviTex PRS, which includes specific design features aimed at enhancing the clinical utility of OviTex PRS for surgeons and patients in plastic and reconstructive surgery.

PRS 的成長尤其強勁，年成長 46%，這主要是由於 OviTex PRS 的長期可吸收版本的推出，其中包括旨在增強 OviTex PRS 對外科醫生和患者的臨床實用性的特定設計功能。整形和重建手術。

In addition, our hernia portfolio continues to perform with OviTex recently becoming the most implanted biologic hernia repair mesh in the United States reflecting the growth recognition of the clinical utility of the product for this application.

此外，我們的疝氣產品組合繼續表現出色，OviTex 最近成為美國植入最多的生物疝氣修復網，反映了對該產品在該應用中的臨床效用的日益認可。

Today, I'll review with you the progress we've made on the five factors that combined to drive our growth. Roberto will provide a more detailed review of our financial results, and then I'll make closing remarks before opening the line for your questions.

今天，我將與您一起回顧我們在推動我們成長的五個因素方面取得的進展。羅伯托將對我們的財務表現進行更詳細的審查，然後我將在開始提問之前作結束語。

I'll start by discussing sales force size and individual sales representative productivity together as they had a joint impact on our Q2 rep -- Q3 revenue. As of today, we have 79 commissioned sales reps with our goal being to end the year with 75 to 80 filled positions. On these 79, 55 have been in their roles for at least six months.

我將首先討論銷售隊伍規模和個人銷售代表的生產力，因為它們對我們第二季的代表 - 第三季的收入產生共同影響。截至今天，我們有 79 位委託銷售代表，我們的目標是到年底填補 75 至 80 個職位。在這 79 名員工中，有 55 名已經就職至少六個月。

During our second quarter earnings call, we had 75 reps of which 50 had at least six months' tenure. The newness of a third of our reps at our last call was the result of turnover in the second quarter affected by new regional managers who we have hired at the end of last year and who identified opportunities for upgrading talent in certain territories.

在第二季的財報電話會議上，我們有 75 位代表，其中 50 位的任期至少為六個月。在上次電話會議中，我們有三分之一的代表是新的，這是第二季度營業額受到我們去年年底聘用的新區域經理影響的結果，他們發現了某些地區人才升級的機會。

While 35% organic growth is outstanding we believe it would have been even higher, but for the transition of territory responsibilities in the second quarter. That said, I am pleased to report that the newer reps are quickly progressing along the learning curve and their productivity ramp is consistent with our standard six months to breakeven profitability metrics.

雖然 35% 的有機成長非常出色，但我們相信，如果不是第二季區域責任的轉移，這個數字還會更高。也就是說，我很高興地報告說，新代表正在沿著學習曲線快速進步，他們的生產力提升與我們標準的六個月盈虧平衡盈利指標一致。

Therefore, we anticipate the impact of reps turnovers to be meaningfully lower in Q4. Additionally, we have taken the following steps to accelerate the productivity of our newer reps and our sales performance in general.

因此，我們預期第四季度銷售代表流動率的影響將顯著降低。此外，我們也採取了以下措施來提高新代表的生產力和整體銷售表現。

First, we rolled out intensive PRS sales training to ensure that all our reps are comfortable selling the product compliantly and effectively. This additional training added to the availability of the OviTex PRS long-term resorbable should help all our reps, particularly those with less than six months experience on the job.

首先，我們推出了密集 PRS 銷售培訓，以確保我們所有的銷售代表都能輕鬆、合規、有效地銷售產品。這種額外的培訓增加了 OviTex PRS 長期可吸收性的可用性，應該對我們所有的銷售代表有所幫助，特別是那些工作經驗不足六個月的銷售代表。

Second, we've implemented two supplemental incentive programs in the fourth quarter, further to drive increased performance through the remainder of this year and into next, the first incentivizes those reps already on track to achieve their quotas to further outperform. Second provides a boost to those reps who might be short of quota, but who have the potential to contribute incrementally more. These steps are already helping us to properly return to over 35% growth as anticipated and should set us up for a strong 2020 for performance.

其次，我們在第四季度實施了兩項補充激勵計劃，進一步推動今年剩餘時間和明年的績效提高，第一個激勵計劃激勵那些已經步入正軌的銷售代表，以實現其配額，進一步超越業績。其次，為那些可能缺少配額但有潛力貢獻更多的代表提供動力。這些步驟已經幫助我們正確恢復了 35% 以上的預期成長，並為我們在 2020 年取得強勁的業績奠定了基礎。

Moving onto the third factor, driving revenue growth. GPO access expansion within existing GPO contracts is on track and efforts to add additional GPOs and IDNs are going well. TELA health contracts with three national group purchasing organizations that enable enhanced and more efficient access to hospitals and surgeons throughout the country.

轉向第三個因素，推動營收成長。現有 GPO 合約中的 GPO 訪問擴展正在按計劃進行，並且添加其他 GPO 和 IDN 的工作進展順利。 TELA 健康與三個國家集團採購組織簽訂了合同，使全國各地的醫院和外科醫生能夠更方便、更有效率地獲得服務。

These GPO contracts are critical to TELA's commercial strategy and provide the opportunity for surgeons to use OviTex product right off the hospital's storeroom shelf without requiring approval from hospital administrations.

這些 GPO 合約對於 TELA 的商業策略至關重要，並為外科醫生提供了直接使用醫院儲藏室貨架上的 OviTex 產品的機會，而無需獲得醫院管理部門的批准。

The first of our three GPO contracts is our long-standing relationship with Health Trust with whom we re-signed a four year renewal. The second contract is with Premier with whom we've now had a full year of implementation as it became effective on October 1, 2022. Premier is the second largest GPO in the country, giving us access to over 44 hundred hospitals within its extended network.

我們三份 GPO 合約中的第一份是我們與 Health Trust 的長期合作關係，我們與該公司重新簽訂了為期四年的續約合約。第二份合約是與Premier 簽訂的，自2022 年10 月1 日起生效以來，我們已經與該公司進行了一整年的實施。Premier 是該國第二大GPO，使我們能夠訪問其擴展網絡內的4400 多家醫院。

Lastly, our most recent GPO relationship offers us a dual source contract in the bio synthetics category. There's tremendous upside opportunity for TELA within these three contracts as well as from new contract opportunities, and we look forward to providing updates as our access further expands.

最後，我們最近的 GPO 關係為我們提供了生物合成品類別的雙源合約。這三份合約以及新合約機會為 TELA 帶來了巨大的上升機會，我們期待隨著我們的訪問範圍進一步擴大而提供最新資訊。

Our first factor is the range of complementary products in our portfolio that enables us to leverage the existing sales force and call points across the soft tissue reconstructive space. We have launched four products so far in 2023. The first to the large size OviTex LPR for use in minimally invasive surgeries and inhibits fibular collagen pack are gaining market share with different levels of surgeon familiarity to leverage by our sales force.

我們的第一個因素是我們產品組合中的一系列互補產品，使我們能夠利用整個軟組織重建領域的現有銷售隊伍和呼叫點。 2023 年到目前為止，我們已推出四種產品。第一個用於微創手術並抑制腓骨膠原蛋白堆積的大尺寸OviTex LPR 正在獲得不同程度的外科醫生熟悉程度的市場份額，可供我們的銷售人員利用。

The third OviTex PRS long-term resorbable launched in the third quarter, and it's taken off quickly given surgeons prior knowledge of the product line and interest in the new performance characteristics.

第三款 OviTex PRS 長期可吸收產品於第三季推出，鑑於外科醫生對該產品線的事先了解以及對新性能特徵的興趣，該產品很快就取得了成功。

Finally, and most recently we are in the process of launching the LiquiFix hernia mesh fixation devices, LiquiFix8 and LiquiFix precision. These products, which are indicated to fix mesh to tissue inside the body and to close the peritoneum the membrane surrounding the abdominal cavity have been marketed in Europe under the brand like LiquiBandFix8 and represent the first product of its kind to be approved for sale in the US.

最後，最近我們正在推出 LiquiFix 疝氣網固定裝置、LiquiFix8 和 LiquiFix precision。這些產品旨在將網固定在體內組織上，並閉合腹膜（腹腔周圍的膜），已在歐洲以 LiquiBandFix8 等品牌銷售，是第一個在歐洲批准銷售的同類產品。我們。

We believe that this product line allows our sales force to call on surgeons in a technology space where they are comfortable and will increase access to additional surgeons, eventually opening opportunities to also discuss the benefits of OviTex in other areas of their hernia practice.

我們相信，該產品線使我們的銷售人員能夠在一個他們感到舒適的技術空間中拜訪外科醫生，並將增加接觸更多外科醫生的機會，最終為討論OviTex 在疝氣治療其他領域的好處提供了機會。

Regarding our fifth factor clinical data, we continued to collect data, both prospectively and retrospectively for our hernia and PRS products, respectively. We're proud of the performance of our products and will expand our datasets through for example, our BRAVO-II study, which measures the effectiveness of OviTex products when implanted robotically.

關於我們的第五因素臨床數據，我們繼續分別收集我們的疝氣和 PRS 產品的前瞻性和回顧性數據。我們對我們產品的性能感到自豪，並將透過我們的 BRAVO-II 研究等擴展我們的數據集，該研究衡量 OviTex 產品在機器人植入時的有效性。

I'd like to now address the question that has been top of mind with investors. That is what is the potential negative impact of GLP-1 Agonist drugs on the markets that tell us serves. Specifically if patients lose weight on these medicines, how might that affect the rate of hernia repair and plastic and reconstructive surgeries.

我現在想談談投資者最關心的問題。這就是 GLP-1 激動劑藥物對市場的潛在負面影響。具體來說，如果患者服用這些藥物後體重減輕，這可能會如何影響疝氣修復以及整形和重建手術的速度。

With regards to the latter, much PRS is used in plastic and reconstructive procedures that we believe are both unrelated to weight loss and on account of weight loss. With regards to hernia, we have consulted with general surgeons in this space from collectively have identified for potential ways in which GLP-1 may, in their opinion, actually increase the need for hernia repairs.

對於後者，許多 PRS 用於整形和重建手術，我們認為這些手術既與減肥無關，又是為了減肥。關於疝氣，我們諮詢了該領域的普通外科醫生，他們認為 GLP-1 可能實際上增加了疝氣修復的需求。

First, an important contra indication for surgery in general and hernia repair specifically is morbid obesity. Patients who lose weight could become newly eligible for repairs that a surgeon might previously have advised against.

首先，一般手術和疝氣修補手術的一個重要禁忌症是病態肥胖。體重減輕的患者可能會重新有資格接受外科醫生以前可能建議不要進行的修復手術。

Second a risk factor for hernia it's physical activity. And to that extent, it would be reasonable to expect more need for hernia repairs with weight loss. Third obesity can conceal existing hernias in particular, umbilical hernias and weight loss can reveal the need for these repairs.

疝氣的第二個危險因子是體力活動。從這個意義上說，可以合理地預期在減肥的同時進行疝氣修復的需求會增加。第三，肥胖可以掩蓋現有的疝氣，特別是臍疝氣和體重減輕可以揭示這些修復的需要。

Finally, GLP-1's are apparently associated with acid reflux conditions, which could necessitate hiatal hernia repairs in response, although these examples indicate the potential for GLP-1's to increase the need for hernia repair, the real takeaway is that we do not expect GLP-1 to meaningfully reduce hernia repair rates in any reasonable scenario. With that, I'll now turn the call over to Roberto to review our financial results and outlook.

最後，GLP-1 顯然與胃酸逆流狀況有關，這可能需要進行食道裂孔疝氣修補術，儘管這些例子表明 GLP-1 可能會增加疝氣修補的需要，但真正的結論是我們並不期望 GLP -1在任何合理情況下顯著降低疝氣修復率。現在，我將把電話轉給羅伯托，以審查我們的財務表現和前景。

Thanks, Tony. Third quarter revenues grew 35% year over year to $15.1 million with OviTex and OviTex PRS growing 30% and 46%, respectively. These increases are attributable to the ongoing expansion of our commercial organization, leading to new customers, increased existing customer penetration and a growing international sales presence.

謝謝，托尼。第三季營收年增 35%，達到 1,510 萬美元，其中 OviTex 和 OviTex PRS 分別成長 30% 和 46%。這些成長歸因於我們商業組織的持續擴張，帶來了新客戶、現有客戶滲透率的提高以及國際銷售業務的不斷成長。

Tony mentioned that revenues and growth would have been even higher absent the disruption of second quarter sales rep turnover and describe the steps we are taking to quickly regain previously planned performance levels. It's worth noting, those territories that were continuously filled, that is -- those not affected by turnover, performance was consistent with the higher level of revenue growth we had expected.

東尼提到，如果沒有第二季銷售代表營業額的中斷，收入和成長將會更高，並描述了我們為快速恢復先前計劃的績效水準所採取的步驟。值得注意的是，那些不斷被填補的領域，即那些不受營業額影響的領域，業績與我們預期的較高收入成長水準一致。

This validates that our underlying forecast assumptions other than turnover were robust and reliable. Gross margin for the quarter was 69% compared to 66% in the same period of 2022. The margin improvement was driven primarily by more efficient inventory management practices, which resulted in a decrease of obsolete and excessive inventory as a percentage of revenue year over year. We expect our gross margins to continue at or around this level as we operate using more rigorous inventory practices.

這證實了我們除營業額之外的基本預測假設是穩健可靠的。本季的毛利率為 69%，而 2022 年同期為 66%。利潤率的改善主要是由於更高效的庫存管理實踐推動的，這導致過時和過多庫存佔收入的百分比同比下降。隨著我們採用更嚴格的庫存做法進行運營，我們預計我們的毛利率將繼續保持在這一水平或附近。

Operating expenses were $20.6 million in the third quarter compared to $16.8 million in the prior year period. This increase was a result of additional headcount as we continue to expand our organization, consequent higher compensation and employee related expenses, increased travel expense as well as an increase in consulting fees and higher study costs. Loss from operations was 10.2 million in the third quarter of 2023 compared to $9.5 million in the prior year period.

第三季營運費用為 2,060 萬美元，而去年同期營運費用為 1,680 萬美元。這一增長是由於我們繼續擴大組織規模而增加了員工人數，隨之而來的是薪酬和員工相關費用的增加、差旅費用的增加以及諮詢費和學習成本的增加。 2023 年第三季營運虧損為 1,020 萬美元，而上年同期為 950 萬美元。

Turning to our outlook for full year 2023, we now expect revenues to range from $57 million to $60 million reflected growth of 38% to 45% over the full year 2022 and implying revenue for the fourth quarter ranging from $15.5 million to $18.5 million compared to $11.6 million in the fourth quarter of 2022.

談到我們對2023 年全年的展望，我們現在預計收入將在5,700 萬美元至6,000 萬美元之間，反映出2022 年全年增長38% 至45%，這意味著第四季度的收入將在1,550 萬美元至1,850 萬美元之間。2022 年第四季為 1,160 萬美元。

Although both the third and fourth quarters have come down from our prior expectations, we anticipate that the steps Tony outlined that we're taking to address the sales force turnover disruption will allow us to return to subsequent growth -- sequential growth, more similar to that reflected in our prior guidance.

儘管第三季和第四季都低於我們先前的預期，但我們預計托尼概述的我們正在採取的解決銷售人員流動中斷問題的步驟將使我們能夠恢復隨後的成長——連續成長，更類似於這反映在我們先前的指導中。

Or said another way, we believe the sales rep disruption is largely behind us and that our sales growth rate from Q3 to Q4 is on track with our prior expectations, but from a lower base due to the impact of the turnover in the second quarter. We ended the third quarter with $58 million in cash and cash equivalents compared to $65 million at the end of the second quarter, meaning that we used $7 million in the quarter.

或者換句話說，我們相信銷售代表的中斷很大程度上已經過去，我們從第三季到第四季的銷售成長率符合我們先前的預期，但由於第二季營業額的影響，基數較低。第三季末，我們的現金和現金等價物為 5,800 萬美元，而第二季末為 6,500 萬美元，這意味著我們本季使用了 700 萬美元。

As our revenues continue to grow and as OpEx is held to a much lower growth rate, we expect cash usage to decline. We'll have more to say about this on our fourth quarter earnings call when we announce revenue guidance for 2024. But for the moment know that we remain confident in our cash position and continue to believe it will be sufficient to fund us to profitability. I'll now turn the call back to Tony for closing remarks.

隨著我們的收入持續成長，並且營運支出的成長率保持在較低水平，我們預計現金使用量將會下降。當我們宣布 2024 年收入指引時，我們將在第四季度財報電話會議上對此進行更多討論。但目前我們對我們的現金狀況仍然充滿信心，並繼續相信這足以為我們盈利提供資金。現在我將把電話轉回給托尼，讓他作結束語。

Excellent. Thank you, Roberto. I'd like to reiterate my excitement for the success that TELA Bio has achieved to date. On September 30, we completed our 11th consecutive quarter of 35% or more year on year growth. This was driven by our continued focus on developing and expanding each of the five factors in parallel to achieve consistent share capture.

出色的。謝謝你，羅伯托。我想重申我對 TELA Bio 迄今為止所取得的成功感到興奮。 9 月 30 日，我們連續第 11 個季度實現 35% 或以上的同比增長。這是由於我們持續關注並行開發和擴展五個因素中的每一個以實現一致的份額捕獲而推動的。

Notwithstanding our exceptional performance so far TELA represents only a small part of the hernia market on a unit basis with plenty more room to expand and the possibility of a material growth inflection in the future. We are focused on taking full advantage of this opportunity to improve patients' lives with our products.

儘管我們迄今為止表現出色，但以單位計算，TELA 僅佔疝氣市場的一小部分，還有很大的擴展空間以及未來實質成長轉折點的可能性。我們致力於充分利用這個機會，透過我們的產品改善患者的生活。

I want to thank the TELA team for their achievements this quarter. Especially those would help us efficiently expedite the impact of the sales transition. As a result, we remain on track for continued strong growth. We are confident about our future prospects.

我要感謝 TELA 團隊在本季所取得的成就。尤其是那些將幫助我們有效地加速銷售轉型的影響。因此，我們仍然走在持續強勁成長的軌道上。我們對未來的前景充滿信心。

As we believe we have the key pieces in place to continue to take share, including extensive GPO coverage, broad sales coverage in high volume markets, industry-leading product performance data, a robust R&D pipeline that continues to deliver new products, an experienced management team and a path to profitability with our current balance sheet. And even though we keep growing our market share each quarter, most of the market is still there for the taken and we plan to do just that. With that, I'll now ask Justin to open the line for your questions. Justin, go ahead.

我們相信，我們擁有繼續佔據市場份額的關鍵要素，包括廣泛的 GPO 覆蓋範圍、大批量市場的廣泛銷售覆蓋範圍、行業領先的產品性能數據、持續交付新產品的強大研發管道、經驗豐富的管理層團隊以及我們目前資產負債表的獲利之路。儘管我們每個季度的市場份額都在不斷增長，但大部分市場仍然存在，我們計劃這樣做。現在，我將請賈斯汀開通您的提問熱線。賈斯汀，繼續吧。

(Operator Instructions) Frank Takkinen, Lake Street Capital Markets.

（操作員指示）Frank Takkinen，湖街資本市場。

Great. Thanks taking the question. Hey, Tony, Roberto, just wanted to follow up on some of the sales force commentary. I was hoping you could take us a little bit deeper into maybe the reasoning behind some of that turnover and why it was higher than expected. I don't know if there is a certain background or characteristic associated with those less effective in the sales force are essentially getting at? What's the -- What are you doing differently now to ensure a more stable sales organization that can grow per rep, productivity more effectively and consistently?

偉大的。謝謝提出問題。嘿，托尼，羅伯托，只是想跟進一些銷售人員的評論。我希望您能帶我們更深入地了解一些營業額背後的原因以及為什麼營業額高於預期。我不知道銷售隊伍中那些效率較低的人是否有某種背景或特徵？是什麼—您現在採取了哪些不同的做法來確保銷售組織更加穩定，能夠更有效、更持續地提高每位銷售代表的生產力和生產力？

Sure. Thanks for the question, Frank. I'll start and Tony can jump in. So as we've discussed before, we have revitalized our RM team. So that's the regional managers who sit above the territory managers, which is what we call sales reps. In the fourth quarter of last year to the tune of about 12 new RM's. And those RM's came in, in the first quarter and evaluated their teams of approximately seven reps a piece.

當然。謝謝你的提問，弗蘭克。我先開始，托尼也可以加入。正如我們之前討論過的，我們已經重振了 RM 團隊。這就是位於區域經理之上的區域經理，也就是我們所說的銷售代表。去年第四季約有 12 款新 RM。這些 RM 在第一季就進來了，對他們的團隊進行了評估，每個團隊大約有 7 名代表。

And over the course of the first quarter, roughly one of each of those RMs identified the territory manager that they felt could be upgraded. The territory might be at above breakeven levels of revenue, but the growth was not where we wanted to be getting to $200 million in the short term that we're hoping to get.

在第一季中，大約每位客戶經理都確定了他們認為可以升級的區域經理。該地區的收入可能高於盈虧平衡水平，但成長並不是我們希望在短期內達到 2 億美元的目標。

So over the course of the second quarter, those RMs independently proposed and then followed through on replacing those TMs, the territory managers. So that happened starting at the end of the first quarter, extended through the second quarter and was complete by the second quarter such that, as Tony mentioned on our second quarter earnings call.

因此，在第二季度，這些 RM 獨立提出並隨後落實了更換 TM（區域經理）的事宜。因此，這種情況從第一季末開始，一直延續到第二季​​度，並在第二季度完成，正如托尼在我們第二季度財報電話會議上提到的那樣。

We mentioned that we had 75 reps of which 50 have been with us for six months or more suggesting or indicating that 25 have been with us for six months or less. So those were the turnover reps of roughly 13. And then the remainder were new hires to expand our sales force.

我們提到，我們有 75 名代表，其中 50 名代表已經在我們工作了 6 個月或更長時間，建議或表明 25 名代表已經在我們工作了 6 個月或更短時間。這些是大約 13 名營業額代表。剩下的則是新員工，以擴大我們的銷售團隊。

So essentially what we're doing is reaching higher up into the organization from the perspective of lower performers and replacing reps that might be hitting greater than breakeven numbers, but whose growth had become a bit slower and that RM had determined that could be upgraded.

因此，從本質上講，我們正在做的就是從績效較低的人的角度進入組織的更高層，並替換那些可能達到盈虧平衡數字的代表，但他們的成長變得有點慢，RM 已經確定可以升級。

So that also took place in the second quarter. We entered the third quarter on the 1st month, believing that we are on track to hit numbers, notwithstanding. But saw some that peter off in the latter part of the third quarter.

第二季也發生了這種情況。儘管如此，我們在第一個月就進入了第三季度，相信我們有望達到目標。但看到一些在第三季後半段逐漸消失。

And so what we're doing to answer the second part of your question, which is -- what are we doing to make sure that we get back on track and that we have the right reps in place and that they're growing at the rate --growth rates. We have a couple of programs in place for the fourth quarter to both address the fourth quarter in the longer term.

因此，我們正在做什麼來回答你問題的第二部分，即——我們正在做什麼來確保我們回到正軌，並確保我們擁有合適的代表，並且他們正在不斷成長率——增長率。我們為第四季度製定了幾個計劃，以解決第四季度的長期問題。

So the first is we have two new training sessions in place. So our new sales reps have gone to a longer introductory training session. And then all reps are going through deeper PRS training. One of the things we found is that new reps tend to be a little slower on the uptake of PRS sales, and that's a greater potential source of sales and growth.

首先是我們舉辦了兩次新的訓練課程。因此，我們的新銷售代表接受了更長的入門培訓。然後所有代表都將接受更深入的 PRS 培訓。我們發現的一件事是，新銷售代表在接受 PRS 銷售方面往往會慢一些，而這是銷售和成長的更大潛在來源。

And then second, we put in place two incremental IC plants, one for those reps that are on track to exceed their quotas for the fourth quarter to incentivize them to further then they already are well beyond the quotas. And then for those reps that might be short of their quarters. That is I mean, -- forecast to be sure their quotas and additional incentive plan to give them additional motivation to sell and not just wait for the reset of their quotas in the next quarter?

其次，我們建立了兩個增量 IC 工廠，其中一個是為那些預計在第四季度超出配額的代表提供的，以激勵他們進一步超越配額。然後是那些可能缺少宿舍的代表。我的意思是，預測確定他們的配額和額外的激勵計劃，以給予他們額外的銷售動力，而不僅僅是等待下個季度配額的重置？

Yes, Frank, I think philosophically, right, we've run the business with an eye towards long term, durable, sustainable growth. And quality, right? So we did a massive upgrade in talent with our regional manager team, and we gave them the task of figuring out where we had some stagnation or slower growers and they did just that.

是的，弗蘭克，我認為從哲學角度來說，我們經營業務著眼於長期、持久、可持續的成長。還有質量，對吧？因此，我們與區域經理團隊一起對人才進行了大規模升級，我們給他們的任務是找出我們哪些地方有一些停滯或緩慢的種植者，他們就是這麼做的。

And we made the decision to do it again to have the strongest team in place at the end of this year. This year is going to be -- what this year is going to be, but we're already thinking about next year. And if you just look at the key metric, which is we drove this type of growth with only about 50 or 55 reps that were even on board for six months.

我們決定再次這樣做，以便在今年年底組建最強大的團隊。今年將會是——今年將會是什麼，但我們已經在考慮明年了。如果你只看關鍵指標，那就是我們只用大約 50 或 55 名代表（甚至在船上待了六個月）就推動了這種類型的成長。

We've got a bolus of 25, 25-plus reps that are right now getting trained, seasoned and matured, and we want them to be passing through that six month point of productivity, higher talent by the way, right, as we start next year. So we're thinking ahead, not just to triage what Roberto mentioned for the rest of this year. But really the focus is 6, 12 months after that and the 12 months after that, our goal remains $200 million company as efficiently and effectively as possible.

我們有 25 名、超過 25 名的代表，他們現在正在接受培訓、經驗豐富、成熟，我們希望他們能夠通過六個月的生產力點，順便說一句，在我們開始時，他們有更高的才能。明年。因此，我們正在提前思考，而不僅僅是對羅伯托提到的今年剩餘時間的內容進行分類。但實際上，重點是在那之後的 6 個月、12 個月，以及在那之後的 12 個月，我們的目標仍然是盡可能高效地實現 2 億美元的公司收入。

Okay. That's good color. And then maybe just for my second one, can you just talk to some of the factors between the low end and the high end of guidance.

好的。這顏色真好啊然後，也許只是我的第二個問題，您能否談談指導的低端和高端之間的一些因素。

So just the rate at which we're able to get our reps up to speed unpredictable things in the economy, we'd expect to see as we normally do that the fourth quarter is the strongest of the year. We tend to see a strong push in December as both physicians and our sales reps push to hit their numbers. But exactly how that all comes together is really something that's a little bit variable. And so the range just accounts for that variability.

因此，只要我們能夠讓我們的代表加快經濟中不可預測的事情的速度，我們預計會像往常一樣看到第四季度是今年最強勁的季度。我們傾向於在 12 月看到強勁的推動力，因為醫生和我們的銷售代表都在努力達到他們的數字。但具體如何將所有這些結合在一起確實有點可變。所以這個範圍只是解釋了這個變化。

We kind of take a run at end of quarter right. Thanks Frank together at the end of quarters, right? So we want to make sure that we have this thing maturing and peaking at the right moment, not just in a year, but during each quarter as well. So timing. Thanks Frank.

我們在季度末採取了正確的做法。在季度末一起感謝弗蘭克，對吧？因此，我們希望確保我們的產品在正確的時刻成熟並達到頂峰，不僅在一年內，而且在每個季度也是如此。所以時機。謝謝弗蘭克。

Got it. That good, Thanks for question.

知道了。那就好，謝謝提問。

Caitlin Cronin, Canaccord Genuity.

凱特琳·克羅寧，Canaccord Genuity。

Hi. Thanks for taking the questions.

你好。感謝您提出問題。

Hi Caitlin

嗨凱特琳

Hey, what's up? I know you talked a little bit in the last question about how you saw little bit of weakness kind of coming out of the Q3. What have you seen, coming into October and November, for Q4 in terms of the business environment and just kind of rep productivity?

嘿，怎麼了？我知道您在上一個問題中談到了您如何看待第三季度出現的一些弱點。進入 10 月和 11 月，您對第四季度的業務環境和代表性生產力有何看法？

Sure. So one of the ways we analyze the quarters is we measure the ratio of the 1st month of the quarter to the actual fully achieved quarter. So we have historical data on that, obviously, ever since post COVID, we have -- even pre-COVID, but it's useful post COVID. And what we see is that the ratio of our actually achieved October sales to what we forecast for the fourth quarter is right in line with our historical data what actually occurs.

當然。因此，我們分析季度的方法之一是衡量該季度第一個月與實際完全實現的季度的比率。因此，我們顯然有這方面的歷史數據，自從新冠疫情之後，甚至在新冠疫情之前，我們都有這方面的歷史數據，但在新冠疫情之後，這些數據很有用。我們看到的是，我們 10 月實際實現的銷售額與我們對第四季度的預測的比率與我們實際發生的歷史數據相符。

So we feel pretty comfortable based on that and then based on the activities, the tactics that we've put in place to get our reps back up to speed that we're on track, we're hitting the quarter.

因此，基於此，我們感覺非常舒服，然後基於我們為讓我們的代表恢復正常速度而採取的活動和策略，我們正在進入季度。

Yeah, and to back up what Roberto said, Caitlin, if you looked at July right in Q3, that metric that Roberto mentioned as a percent the first month was not was not in line, right? So there was a difference.

是的，為了支持羅伯託所說的，凱特琳，如果你看看第三季的 7 月份，羅伯托提到的第一個月的百分比指標並不符合，對吧？所以這是有差別的。

Got it. Makes sense. Okay. And then just for my second question, any thoughts on 2020 for growth or at least maybe comment on thoughts of where the street is right now for 2024 for a little bit over $80 million.

知道了。說得通。好的。接下來是我的第二個問題，關於 2020 年增長的任何想法，或者至少可以評論一下 2024 年街道現在的位置，價格略高於 8000 萬美元。

So, we're still on process of putting together our budget right now, and that includes the revenue budget. I think that half of the prior street numbers, the growth rate was probably on the lower end of a reasonable range. But given the new numbers that we could be coming out of the year with that number might be on track, we think a bit more about the growth rate than the actual single number.

因此，我們現在仍在製定預算，其中包括收入預算。我認為之前街道數字的一半，成長率可能處於合理範圍的下限。但考慮到今年我們可能會得出的新數據，而且這個數字可能步入正軌，我們更多地考慮的是成長率，而不是實際的單一數字。

But we're digging into that and as Tony said, one of the things about what we've just done is we've put in place a sales force that as of today, we have 79 sales reps in place of whom 55 have been loose for six months, or more and then by the first quarter of next year, that should be much closer to the full complement of 79 being at that six month mark, with some additional hires between now and then.

但我們正在深入研究這個問題，正如托尼所說，我們剛剛所做的事情之一是，我們已經組建了一支銷售隊伍，截至今天，我們有79 名銷售代表，其中55 名已被任命為銷售代表。寬鬆期為六個月或更長時間，然後到明年第一季度，這應該更接近六個月時的 79 名員工總數，並且從現在到那時還會有一些額外的招聘。

Yeah, I mean give you -- to give you a feel, Caitlin, we're running a week-long sales school right now. I think we have 35 attendees, five or six new regional managers and the rest are all reps. And I think it's by far the strongest, our best pedigreed group that I've ever seen, right.

是的，我的意思是給你 - 讓你感覺一下，凱特琳，我們現在正在舉辦為期一周的銷售學校。我想我們有 35 位與會者，五、六名新區域經理，其餘都是代表。我認為這是迄今為止我所見過的最強大、最純正的團體，對吧。

So things are just getting better and better and better, which reduces your tolerance for decent performance, mediocre performance coupled with stagnation, as Roberto said, this is about growth, right. and next year will be about efficient growth holding our infrastructure as solid as possible absent the sales force and customer facing. But we're going to-- we basically have the infrastructure to drive that growth and attract that talent pool and now we're going to take advantage of it. So, yeah.

所以事情變得越來越好，越來越好，這降低了你對體面表現、平庸表現加上停滯的容忍度，正如羅伯託所說，這與增長有關，對吧。明年將是在沒有銷售人員和客戶的情況下實現高效增長，使我們的基礎設施盡可能堅固。但我們基本上擁有推動成長並吸引人才庫的基礎設施，現在我們將利用它。嗯是的。

Awesome. Thanks for taking the questions.

驚人的。感謝您提出問題。

Thanks Caitlin.

謝謝凱特琳。

Thanks.

謝謝。

Matt O'Brien, Piper Sandler.

馬特·奧布萊恩，派珀·桑德勒。

Afternoon. Thanks for taking the questions. And --

下午。感謝您提出問題。和 -

Hey Matt.

嘿馬特。

And sorry to harp -- sorry to harp too much on Q4. But two months ago, you guys were talking about a midpoint at 62.5 and now we're about 58.5 that's down about $4 million for the back half of the year alone over the last two months.

抱歉，我在第四季喋喋不休。但兩個月前，你們談論的中間點是 62.5，現在我們大約是 58.5，光是在過去兩個月裡，今年下半年就減少了約 400 萬美元。

So it just seems pretty significant as far as that debt and that drop goes. And I'd just love to hear a little bit more about that specifically. I mean, I don't know if there was like 10 or 15 people that were doing, tons and tons of revenue that you lost or you moved down from or how that works.

因此，就債務和下降而言，這似乎相當重要。我只是想聽聽更多關於這一點的具體資訊。我的意思是，我不知道是否有大約 10 或 15 個人在做，你損失了大量的收入，或者你從中離職，也不知道這是如何運作的。

And then the bump from Q3 to Q4 in absolute dollars is the biggest bump as far as the midpoint of the range goes that the company has seen actually much more than the company has ever seen. So just again, a comfort level on that, what bridges you to get that extra revenue in Q4 as you have a third of the reps that are still pretty junior?

然後，從第三季到第四季的絕對美元漲幅是最大的漲幅，就該範圍的中點而言，該公司所看到的實際上比該公司所見過的要多得多。那麼，再次強調一下，當您有三分之一的代表仍然相當初級時，是什麼讓您能夠在第四季度獲得額外收入？

Sure. So let me start with the bump question first, so as I mentioned on a prior question, one of the ways we analyze our thinking about the quarters and the year is we take a look at what we've achieved in the quarter to date [comp]. And the rough way to do that is the first month of the quarter and then how that measures up against what we are hoping to do for the full quarter and then how that ratio compares to historical achievements in prior quarters and in the prior year's quarter. So the seasonalized quarters.

當然。因此，讓我首先從衝擊問題開始，正如我在上一個問題中提到的，我們分析對季度和年度的想法的方法之一是我們看看我們在本季度迄今為止所取得的成就[比較] 。做到這一點的粗略方法是本季度的第一個月，然後如何衡量我們希望在整個季度中做的事情，然後將該比率與前幾季和去年季度的歷史成就進行比較。所以季節性季度。

So based on what we've seen in October revenues and comparing that to what we expect to see at the midpoint of the range for the quarter, that's right in line with what the historical average is for achievement the first month to full quarter.

因此，根據我們在 10 月看到的收入，並將其與我們預期在本季度範圍中點看到的收入進行比較，這與第一個月到整個季度的歷史平均成績是一致的。

So on that data point and then on the initiatives that we put in place to incentivize the reps to close the gap from the upfronts we had in the third quarter, we feel comfortable about hitting those numbers. And again, that's a series of training and then some incremental incentive plans as far as Q4 and the reduction of approximately $4 million from the midpoints of the prior year's guidance range to the currents in that $4 million impact on the second half of the year.

因此，根據該數據點，以及我們為激勵銷售代表縮小與第三季前期差距所採取的舉措，我們對達到這些數字感到放心。再說一遍，這是一系列培訓，然後是一些增量激勵計劃，截至第四季度，從上一年指導範圍的中點減少約 400 萬美元，到今年下半年的 400 萬美元影響。

The turnover in the sales reps that occurred largely in the second quarter is what drove that. So as Tony mentioned on the last earnings call, we had 75 reps of those a third have less than six months tenure. And so that was a bit more turnover than we had initially budgeted.

銷售代表的流動主要發生在第二季度，這是造成這種情況的原因。正如托尼在上次財報電話會議上提到的那樣，我們有 75 名代表，其中三分之一的任期不到六個月。因此，營業額比我們最初的預算要多一些。

We thought it was the right thing to do based on the analysis of the RMs, we believe it puts us in the best place for continued significant growth. Our goal being to grow the best company we can as quickly as possible. And we put in place some steps to make sure that we get back to the growth rates that we had previously planned for as quickly as possible.

根據客戶經理的分析，我們認為這是正確的做法，我們相信這使我們處於持續顯著成長的最佳位置。我們的目標是盡快發展成為最好的公司。我們採取了一些措施，以確保我們盡快恢復到先前計劃的成長率。

Yeah, Matt. Also something to consider is, given where we are in our development stage and our growth, a lot of the usage of our product is based on rep presence right. So if we were a bigger, more established, bigger market share player, you might just have natural momentum more of it. We have some of that, certainly, but it's a presence thing, right?

是的，馬特。另外要考慮的是，考慮到我們所處的開發階段和成長階段，我們產品的許多使用都是基於代表的存在權。因此，如果我們是一個更大、更成熟、市場份額更大的參與者，你可能會有更多的自然動力。當然，我們有一些這樣的東西，但這是一種存在的東西，對吧？

So when you do that transition, you tend to dip. So even though we had stagnation or mediocre performance in some of these territories, likely those went down. But now they're filled with stronger talent and we should start to see that move.

所以當你進行這種轉變時，你往往會下降。因此，儘管我們在其中一些地區表現停滯或表現平庸，但這些地區很可能會下降。但現在他們充滿了更強大的人才，我們應該開始看到這一舉動。

The other factor to consider is the PRS LPR product, right. We did a soft launch of that around August or so, and it's well over 2 million, 2.5 million or so probably 50% of that is new business. So that is going to be a superb driver for us over the next 24 months. And it's just warm enough. It's not even in everyone's hands yet.

另一個要考慮的因素是 PRS LPR 產品，對吧。我們在 8 月左右進行了試運行，遠超過 200 萬、250 萬左右，其中可能 50% 是新業務。因此，這將成為我們未來 24 個月的出色驅動程式。而且溫度剛剛好。它甚至還沒有在每個人的手中。

So from a timing perspective, we feel very good about where we are, over the next six months. And again, like I said, focusing really hard on the start of next year and continuing to drive that stronger growth rate next year.

因此，從時間角度來看，我們對未來六個月的狀況感到非常滿意。再次，就像我說的，非常努力地關註明年初，並繼續推動明年更強勁的成長率。

Got it. And then maybe just as a kind of a follow-up to that, Tony, how much did it cost? Do you think this transition of these, I think sounds like I don't know 15 or 20 reps --

知道了。然後也許只是作為一種後續行動，東尼，它花了多少錢？你認為這些的轉變嗎？我覺得聽起來我不知道 15 或 20 次——

Yeah.

是的。

Or the 8 to 10 reps. How much of that cost during Q3 do you estimate? And then how productive are those? --

或重複 8 到 10 次。您估計第三季的成本是多少？那麼這些的生產力如何呢？ --

From revenue perspective?

從收入角度？

Yeah --

是的 -

Yeah. I mean I think --

是的。我的意思是我認為——

Yeah, how productive, sorry just real quick. How productive were those remaining reps? It seems like the remaining reps did an unbelievable job in Q3 given this period of time?

是的，多麼高效，對不起，很快。剩下的代表的生產力如何？考慮到這段時間，剩下的代表在第三季的工作似乎令人難以置信？

Well, even Roberto is going to jump into the meat of your question, but I'm glad you brought that up. That's superb observation Matt. I think you got to focus on the fact that we drove the revenue bulk and growth with 55 reps with a chunk of those six months, right certainly there's longer tenured reps.

好吧，即使羅伯託也會直接討論你的問題，但我很高興你提出這個問題。馬特的觀察力真是太棒了。我認為你必須專注於這樣一個事實，即我們透過 55 名代表推動了收入成長和成長，其中大部分是這六個月的時間，當然還有任期更長的代表。

But that's a pretty powerful impact, right? So we got 25 new ones idling and we lost probably 13 or so 14 or so in this upgrade process. So I think you can just see that this thing is set up right to have the full complement of 79 or 80 reps now being at the level of the previous 55 again as we start next year right so.

但這是一個非常強大的影響，對吧？因此，我們獲得了 25 台新機閒置，在升級過程中我們損失了大約 13 台、14 台左右。所以我認為你可以看到這個東西設置正確，讓 79 或 80 次代表的完整補充現在再次達到之前 55 次的水平，我們明年開始就是這樣。

An d Matt, I realize I didn't hit the first part of your first question squarely, which were assumed did we lose a lot of high performing reps, we didn't. So we retained all of our highest-performing reps. You might think about it as us reaching up higher from the lowest performing reps and taking out reps that were not obvious underperformance cases, or maybe at higher than breakeven revenues, but were not on the growth trajectory that we needed.

馬特，我意識到我沒有直接回答你第一個問題的第一部分，我們假設我們失去了很多表現出色的代表，但我們沒有。因此，我們保留了所有表現最好的代表。您可能會認為，我們從績效最低的代表處晉升，並剔除表現不明顯的代表，或者收入可能高於盈虧平衡點，但不符合我們需要的成長軌蹟的代表。

And to your question about the cost of making these changes. So of the 25 reps that we within -- with us for less than six months, about 13 of those were turnover reps and the remainder were new hires to fulfill our growth goals for the year. The -- in the turnover category, we typically provide severance of about three months.

關於你關於進行這些改變的成本的問題。因此，在我們任職時間不到 6 個月的 25 名代表中，大約有 13 名是流動代表，其餘的是新員工，以實現我們今年的成長目標。 - 在人員流動類別中，我們通常會提供約三個月的遣散費。

And so the cost the incremental cost should be how much overlap there is when we get the new reps in and given that we did end the second quarter with 75 reps, there's probably some overlap. But, that base pay amount of overlap is not going to be a huge amount affecting our P&L.

因此，增量成本應該是當我們引入新代表時有多少重疊，並且考慮到我們在第二季結束時確實有 75 名代表，可能會有一些重疊。但是，基本工資的重疊金額不會對我們的損益產生很大影響。

Yeah, I mean one more comment Matt, since this is the strong heavy topic here is of those 55 tenured reps. They did an excellent job of attaining forecast, right? And if you look at the of the underserved or turnover territories, right, most of that shortfall was due to the vacancies, due to the transition, and we had a target that was higher than consensus. So the loss was probably a smidge higher than consensus, right? So there's a powerful productive sales forces coming together here. I'd say this is a timing dislocation, our growing pain.

是的，我的意思是馬特還有一個評論，因為這是關於 55 名終身代表的重要主題。他們在實現預測方面做得非常出色，對嗎？如果你看看服務不足或人員流動地區，對吧，大部分短缺是由於職位空缺、過渡造成的，而我們的目標高於共識。所以損失可能比共識高一點，對嗎？因此，這裡聚集了一支強大的、富有成效的銷售力量。我想說這是一個時間錯位，是我們成長的痛苦。

Okay. And I'm sorry, Tony. That keep harping on this and monopolize everything here.

好的。我很抱歉，東尼。他們總是喋喋不休，壟斷這裡的一切。

Bring it. We love it.

帶上它。我們喜歡它。

Once the productivity of this group that 55 up double digits from Q2 to Q3 because that's what I'm getting in the model, in a seasonally soft quarter.

一旦這個群體的生產力從第二季到第三季增加了 55 兩位數，因為這就是我在模型中得到的結果，在季節性疲軟的季度。

Yeah, we'll have to think about that.

是的，我們必須考慮一下。

And so we had, yes, very strong performance in the existing reps. One thing to note is in the turnover territories, the new reps were coming into territories that previously had revenues. So it's not like they achieved zero, --

所以，是的，我們現有代表的表現非常出色。值得注意的一件事是，在營業額區域，新的銷售代表正在進入以前有收入的區域。所以他們並不是取得了零成績——

Yeah that we constituted, yeah.

是的，我們組成了，是的。

Yes. So there was continuity in some of those territories. But yeah, our existing reps had very high performance levels.

是的。因此，其中一些領域具有連續性。但是，是的，我們現有的代表具有非常高的績效水準。

Okay. Thank you.

好的。謝謝。

Thanks Matt.

謝謝馬特。

Michael Sarcone, Jefferies.

邁克爾·薩爾科內，杰弗里斯。

Good afternoon and thanks for taking the question.

下午好，感謝您提出問題。

Thanks Michael.

謝謝邁克爾。

This is a follow up on that question about the sales reps. So you just mentioned, your internal targets were maybe a little higher than consensus, which was at little over $16 million. So I guess that's around a $1 million shortfall in 3Q and you took guide down by $4 million at the midpoint. Does that mean, the original expectation for 4Q was just kind of midpoint of the 4Q guide plus that $3 million. Is that a is that a fair way to think about it?

這是有關銷售代表的問題的後續內容。所以你剛才提到，你的內部目標可能比共識略高一點，即略高於 1600 萬美元。所以我猜第三季大約有 100 萬美元的缺口，而你在中點將指引值減少了 400 萬美元。這是否意味著，對第四季度的最初預期只是第四季度指南的中點加上 300 萬美元。這是一個公平的思考方式嗎？

No. So I think kind of didn't specify exactly what our internal expectations were.

不，所以我認為沒有具體說明我們的內在期望是什麼。

Okay.

好的。

So yeah. So we had very high-performing reps as I said, we had to turnover that we didn't expect at the beginning of the year. We did it for the right reasons. We reset the sales force. We have reasons to believe that the newly recruited RM's who come in who are very high quality, had good enough eyes to bring in new reps who are going to perform even better than the reps that we already have.

嗯是的。因此，正如我所說，我們擁有表現非常出色的銷售代表，但我們不得不進行年初未預期的人員流動。我們這樣做是出於正確的理由。我們重新調整了銷售團隊。我們有理由相信，新招募的 RM 的素質非常高，他們有足夠好的眼光來引進新的代表，他們的表現甚至會比我們現有的代表更好。

The reps that were onboard continuously in our territories, as was pointed out in the prior question, did perform at a very high level to achieve what was achieved in the third quarter. And I think it's worth reiterating at least one more time that we had 35% growth in the third quarter.

正如上一個問題所指出的那樣，持續在我們地區工作的代表確實表現出了非常高的水平，以實現第三季度所取得的成就。我認為至少值得再重申一次，我們第三季的成長率為 35%。

Yes.

是的。

So yes, we had high expectations. There was a disruption to them. We believe we fixed that and we continue to have high expectations --

所以，是的，我們抱持著很高的期望。他們受到了乾擾。我們相信我們已經解決了這個問題，並且我們仍然抱有很高的期望——

Yeah. We set a high bar, we push ourselves and we're constantly focused on analyzing continuous improvement and doing the right things. But Michael, I want to point out some qualitative thoughts, right. The qualitative positive indicators for the company right now are through the roof. They've never been better, right?

是的。我們設定了很高的標準，鞭策自己，並不斷專注於分析、持續改進和做正確的事情。但是邁克爾，我想指出一些定性的想法，對吧。目前公司的定性正面指標已經達到頂峰。他們從來沒有這麼好過，對吧？

I already talked about the LPR and its uptake, but we just came out of the American Hernia Society meeting. We sponsored a lunch and learn which are really usually pretty sparsely attended. We had well over 200 surgeons packed. Every seat was filled. They were standing room only against the back wall. That to me is a massive signal of interest in the company, interest in the product. And that's been our biggest challenge is getting the visibility and the validation.

我已經談到了 LPR 及其採用情況，但我們剛結束美國疝氣協會會議。我們贊助了一次午餐和學習活動，通常參加人數很少。我們有超過 200 位外科醫生。每個座位都坐滿了。他們只能靠著後牆站立。對我來說，這是對公司、對產品感興趣的巨大訊號。我們最大的挑戰是獲得可見度和驗證。

And we are running a super aggressive and sophisticated medical education program. Our target was to train and educate 1,000 HCPs this year, we're already over 1,100, right. So that's both on the plastic side and the hernia side, so the exposure and interest in what we're doing is huge and the message is being promulgated in a big way.

我們正在運行一個非常積極和複雜的醫學教育計劃。我們的目標是今年培訓和教育 1,000 名 HCP，目前我們已經超過 1,100 名，對吧。因此，無論是在塑膠方面還是在疝氣方面，我們所做的事情的曝光度和興趣都是巨大的，而且訊息正在大規模傳播。

Well we just came out of the AFPs meeting in Austin and again, we had a huge showing there. We had hundreds upon hundreds of docs and participants in some of our sponsored events. Booth traffic was super high, we ran two ad boards. I think we had something like 30 different surgeons through those ad boards.

好吧，我們剛結束在奧斯汀舉行的法新社會議，我們在那裡再次進行了盛大的表演。我們有數百名文件和參與者參加了我們贊助的一些活動。展位人流非常大，我們投放了兩個廣告看板。我想我們透過這些廣告板找到了大約 30 位不同的外科醫生。

So again, the validation and getting to know us is huge but I'm really excited about the fact that we are accelerating our penetration and relationships with robotic surgeons that are KOL trainers and proctors for the major robotics company.

再說一遍，驗證和了解我們是巨大的，但我真的很興奮，因為我們正在加速我們的滲透和與機器人外科醫生的關係，這些機器人外科醫生是大型機器人公司的 KOL 培訓師和監考人員。

So we're starting to set up case observation sites now, every time one of these educators, mentors or surgeons they're going to be exposed to our product. So I kind of think that if we can get into that robotic platform from the grassroots ground up through surgeons, that's a huge footprint and opportunity. And we're just starting that out, but we've made a tremendous amount of progress in the last quarter. So I offer that up is as some ancillary qualitative assessments there through the roof all those metrics have never been higher.

因此，我們現在開始建立病例觀察站點，每次這些教育工作者、導師或外科醫生都會接觸到我們的產品。所以我認為，如果我們能夠從基層到外科醫生進入這個機器人平台，那將是一個巨大的足跡和機會。我們才剛開始，但我們在上個季度取得了巨大進展。所以我提出，作為一些輔助定性評估，所有這些指標都從未如此高過。

Got it. Thank you for that. That is really helpful. And forgive me on this one because I know Roberto did give us a little teaser and said, hold down for the questions, but I'm just curious because I do get a both, I get a lot of inbounds on the consensus right now models, continued cash burn in the $25 million to $30 million range for the next few years. I was wondering if you could give us any incremental color or tidbits on your ability to drive leverage in the model?

知道了。謝謝你。這真的很有幫助。請原諒我這一點，因為我知道羅伯托確實給了我們一個小預告，並說，請按住問題，但我只是很好奇，因為我確實得到了兩者，我現在對共識模型有很多限制，未來幾年持續燒錢2500 萬至3000 萬美元。我想知道您能否向我們提供有關您在模型中推動槓桿作用的能力的任何增量資訊或花絮？

Absolutely. So I'm glad you asked that question. The one thing that I think we do feel comfortable with talking about next year versus this year is we expect growth in OpEx to go down considerably and our goal is to constrain it to single digits. We burned $7 million of cash in the third quarter that cash burn can be a little seasonal. We ended the quarter with $58 million of cash.

絕對地。所以我很高興你問了這個問題。我認為與今年相比，我們確實願意談論明年的一件事是，我們預計營運支出的成長將大幅下降，我們的目標是將其限制在個位數。第三季我們燒掉了 700 萬美元的現金，燒錢可能有點季節性。本季結束時，我們擁有 5,800 萬美元現金。

If you divide that by seven or by that by something higher, you can see that even straight-lined, we have a pretty long pathway, but that doesn't factor in the improvement to cash burn as our revenues grow at considerably higher rates than our OpEx. Thus, there's still room to for our gross margin to improve even from the levels that we've currently been achieving.

如果你將其除以七或除以更高的值，你可以看到，即使是直線，我們也有一條相當長的道路，但這並沒有考慮到現金消耗的改善，因為我們的收入增長速度遠遠高於我們的營運支出。因此，即使我們目前達到的水平，我們的毛利率仍有改善的空間。

Yes, we understand where we are. We understand the job for next year and we are on track, as Roberto said, to constrain that OpEx at a lower level and to start to drive leverage, we have the infrastructure in place to make the growth happen.

是的，我們了解自己的處境。我們了解明年的工作，正如羅伯託所說，我們正在走上正軌，將營運支出限制在較低水平並開始提高槓桿率，我們擁有實現成長的基礎設施。

Okay. Thank you.

好的。謝謝。

Thanks, Michael.

謝謝，麥可。

David Turkaly, JMP Securities.

David Turkaly，JMP 證券。

Hey, good evening, guys. I just want to clarify one point that I'm not trying to beat a dead horse here, but the 12 new regional managers that you hired in 1Q were those replacements or you did not have them before?

嘿，晚上好，夥計們。我只是想澄清一點，我並不是想在這裡打敗一匹馬，但是你們在第一季度僱用的 12 名新區域經理是這些替代者還是你們之前沒有？

We had seven regional managers and we basically upgraded each one of those and added if you get to 12,

我們有 7 名區域經理，我們基本上升級了其中的每一位，如果達到 12 名，我們就會添加，

One of them was promoted to become an Area Manager.

其中一人被提升為區域經理。

That's right.

這是正確的。

And the remainders were upgraded and that was in the fourth quarter.

其餘的都進行了升級，那是在第四季度。

Yes. I mean, this is a massive push for continuous improvement and upgrade right to set ourselves up from the $50million, $60 million business, we are now to have the talent in place to go beyond $100 million to $200 million.

是的。我的意思是，這是對持續改進和升級的巨大推動，使我們的業務從 5000 萬美元、6000 萬美元的業務發展到現在，我們要擁有的人才能夠超越 1 億美元到 2 億美元。

Got it. And then your comments about the incremental programs, I'd love to get color, if you would -- if you could give it to us how many of your folks are above quota and how many are not a broad percentage stroke, if you can give it to us.

知道了。然後你對增量計劃的評論，如果你願意的話，我很樂意得到顏色 - 如果你可以告訴我們，你們中有多少人超過了配額，有多少人不是一個廣泛的百分比行程，如果可以的話把它給我們。

So quotas, not by month, by quarter so it's projections of likelihood of hitting quota and the majority of them would be above quota. So the Tony mentioned that as of today, we have 79 reps and 55% of them have been with us for at least six months. It would be very unlikely for any of the 55 to be expected to be below quota.

因此，配額不是按月、按季度，而是對達到配額的可能性的預測，其中大多數將超出配額。所以東尼提到，截至今天，我們有 79 名代表，其中 55% 已經在我們這裡工作了至少六個月。 55 個國家中任何一個都不太可能低於配額。

Yeah.

是的。

And of the shorter tenured reps, some of them are going to be in their first quarter in which the quota is essentially nominal, but the remainder should be on track are being helped considerably. So I'd say the large majority of our reps are on track for at least hitting quota.

對於任期較短的代表來說，其中一些人將在第一季工作，其中配額基本上是名義上的，但其餘的人應該走上正軌，並得到了相當大的幫助。所以我想說，我們絕大多數代表至少都有望達到配額。

Great. Thank you for that.

偉大的。謝謝你。

Thanks Dave.

謝謝戴夫。

And thank you. And I'm showing no further questions. I would now like to turn the call back over to Tony Koblish to close the call out.

謝謝你。我沒有再提出任何問題。我現在想將通話轉回托尼·科布里什 (Tony Koblish) 以結束通話。

Alright. Thanks, Justin. And thank you, everyone, for joining us. We appreciate your continued interest in TELA Bio. Have a great rest of the evening, and we look forward to talking to you again next time. Thank you.

好吧。謝謝，賈斯汀。感謝大家加入我們。我們感謝您對 TELA Bio 的持續關注。晚上好好休息，我們期待下次再與您交談。謝謝。

This concludes today's conference call and thank you for participating. You may now disconnect.

今天的電話會議到此結束，感謝您的參與。您現在可以斷開連線。