TELA Bio Inc (TELA) 2024 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen. And welcome to the TELA Bio second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們、先生們，午安。歡迎參加 TELA Bio 2024 年第二季財報電話會議。（操作員說明）謹此提醒，本次電話會議正在錄音。

I would now like to turn the conference call over to Louisa Smith from Gilmartin Group.

我現在想將電話會議轉給吉爾馬丁集團的路易莎史密斯。

Thank you, Marvin. And good afternoon, everyone. Earlier today, TELA Bio released financial results for the second quarter of 2024. A copy of the press release is available on the company's website. Joining me on today's call are Tony Koblish, President and Chief Executive Officer; and Roberto Cuca, Chief Operating Officer and Chief Financial Officer.

謝謝你，馬文。大家下午好。今天早些時候，TELA Bio 發布了 2024 年第二季財務業績。該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還有總裁兼執行長 Tony Koblish；營運長兼財務長 Roberto Cuca。

Before we begin, I'd like to remind you that during this conference call, the company may 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-Qs, which identify the 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，公司可能會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，這些報告確定了可能導致實際結果或事件發生變化的具體因素。

These factors may include, without limitation, statements regarding product development and pipeline opportunities, product potential, the impact of various macroeconomic conditions identified in our filings, changes in surgical procedure volumes, the regulatory environment, sales and marketing strategies, capital resources, or operating performance.

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、我們的文件中確定的各種宏觀經濟條件的影響、外科手術量的變化、監管環境、銷售和營銷策略、資本資源或運營的陳述。

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

有了這個，我現在想把電話轉給托尼。

Thanks, Louisa. And good afternoon, everyone. Thank you for joining TELA Bio second-quarter 2024 earnings call. During the call, I'll provide updates on our business and strategic initiatives, after which Roberto will elaborate further on Q2 results before we open the call up for questions.

謝謝，路易莎。大家下午好。感謝您參加 TELA Bio 2024 年第二季財報電話會議。在電話會議期間，我將提供有關我們業務和戰略計劃的最新信息，之後羅伯托將在我們開始提問之前進一步詳細說明第二季度的業績。

During the quarter, TELA faced some transient challenges that we were able to manage through and still grow revenue 11% to $16.1 million. Demand for our products remained strong in the second quarter, and we do not expect these adverse issues to persist into the second half of 2024.

本季度，TELA 面臨一些暫時的挑戰，我們能夠應對這些挑戰，並且收入仍成長 11% 至 1,610 萬美元。第二季對我們產品的需求依然強勁，我們預期這些不利問題不會持續到 2024 年下半年。

The biggest challenge in the quarter was a ransomware attack at our most recently added and consequently fastest-growing GPO customer that consists of approximately 150 separate hospitals. The customer detected the attack in the second week of May and resolved it two weeks later, but it appears that the return to normal operations may have taken a couple of additional weeks. As a result, this customer has substantially reduced surgeries for about a month of the quarter affecting usage of both our hernia and PRS products. We estimate that this negatively affected our revenues by $1.25 million to $1.75 million during the quarter.

本季最大的挑戰是我們最近新增的、因此成長最快的 GPO 客戶遭受勒索軟體攻擊，該客戶由大約 150 家獨立醫院組成。該客戶在 5 月的第二週檢測到了攻擊，並在兩週後解決了該問題，但恢復正常運作似乎可能還需要幾週的時間。因此，該客戶在本季度大約一個月內大幅減少了手術次數，影響了我們疝氣和 PRS 產品的使用。我們估計這對我們本季的收入產生了 125 萬至 175 萬美元的負面影響。

Separately, one of our largest single hospital customers in our most successful territory also experienced a similar but independent cybersecurity event during the quarter, which we believe reduced surgical volumes and adversely affected our sales by at least 250,000.

另外，我們最成功的地區最大的單一醫院客戶之一在本季度也經歷了類似但獨立的網路安全事件，我們認為這減少了手術量，並對我們的銷售額產生了至少25 萬例的不利影響。

Finally, like some other market participants, we saw some lightness in procedure volumes in the second quarter which was exacerbated in our case by the departure via retirement or in one case, a death of several surgeons who are reliable users of our PRS product.

最後，與其他一些市場參與者一樣，我們看到第二季度的手術量有所減少，在我們的案例中，由於退休離職或在一個案例中，幾位外科醫生是我們PRS 產品的可靠用戶的死亡，這種情況加劇了。

We believe that these challenges were confined to the second quarter and sales in July bolstered this conclusion. We have a number of initiatives ongoing that I'll describe shortly. And based on current Q3 revenue trends, and the implementation of those initiatives within our sales organization, we continue to expect to deliver sales of $74.5 million to $76 4 million for the year, reflecting growth of 27.5 over -- or 27.5% over 2023 at the bottom end of the range. Essentially, we expect the second quarter headwinds to affect the timing but not overall delivery of revenues in 2024.

我們認為這些挑戰僅限於第二季度，7 月的銷售支持了這個結論。我們正在實施多項舉措，我將很快對此進行描述。根據目前第三季的收入趨勢以及我們銷售組織內這些舉措的實施情況，我們繼續預計今年的銷售額將達到 7,450 萬美元至 7,640 萬美元，較 2023 年增長 27.5%，即 27.5%。端。從本質上講，我們預計第二季的不利因素將影響 2024 年收入的時間安排，但不會影響整體收入交付。

As it relates to our product portfolio, we continue to receive positive feedback from surgeons who have utilized the two products we launched in March and April, LIQUIFIX, the only FDA-approved liquid adhesive for internal use in hernia surgery and OviTex IHR, a trocar compatible next-generation soft tissue repair platform designed for inguinal hernias, specifically for use in laparoscopic and robotic assisted procedures. IHR is available in three configurations and complements our existing product portfolio and allows for further penetration into the inguinal market, which has historically been dominated by permanent synthetic meshes.

由於與我們的產品組合相關，我們繼續收到外科醫生的積極反饋，他們使用了我們在3 月和4 月推出的兩款產品：LIQUIFIX（唯一經FDA 批准的用於疝氣手術內部使用的液體粘合劑）和OviTex IHR（一種套管針）專為腹股溝疝氣設計的兼容的下一代軟組織修復平台，專門用於腹腔鏡和機器人輔助手術。IHR 提供三種配置，補充了我們現有的產品組合，並允許進一步滲透到腹股溝市場，該市場歷來由永久性合成網片主導。

Across the market, we're seeing a deliberate shift away from permanent synthetic mesh and our inguinal product is poised to capture share as part of that underlying market trend. Very few players in the space are as well positioned as TELA to be an alternative to the plastics predominantly used in inguinal repairs. In the second quarter, OviTex units grew 29% year-over-year with a greater share of growth among the smaller units that are employed for inguinal hernia repairs, including in robotic and laparoscopic procedures. We expect to see continued adoption of OviTex IFR -- IHR as we educate surgeons on the benefits of this product and create greater product awareness in the market, particularly around its ease of use within robotic cases.

在整個市場上，我們看到了永久性合成網布的有意轉變，而我們的腹股溝產品準備作為潛在市場趨勢的一部分來佔領市場份額。該領域很少有廠商能夠像 TELA 一樣成為主要用於腹股溝修復的塑膠的替代品。第二季度，OviTex 設備年增 29%，其中用於腹股溝疝氣修復（包括機器人和腹腔鏡手術）的小型設備成長份額更大。我們期望看到 OviTex IFR - IHR 的持續採用，因為我們教育外科醫生該產品的優點並在市場上提高產品知名度，特別是圍繞其在機器人病例中的易用性。

Outside the US, we are experiencing significant momentum in Europe, where OviTex was launched in 2019. As a reminder, OviTex PRS has not yet received CE certification. The hernia portfolio is now sold in seven countries, Great Britain, Austria, Germany, the Netherlands, Switzerland, Spain, and Italy. In June, we secured a long-term agreement with the group purchasing organization, Sana Einkauf, Logistik GmbH of Ismaning, Germany. Sana is the largest GPO in Germany, and this contract provides OviTex access to Sana's 350 corporate partners in the country. We achieved $2.4 million in sales in Europe in Q2 versus $1.5 million in 2023, with year-to-date unit growth of 87%.

在美國以外，我們在歐洲也經歷了巨大的發展勢頭，OviTex 於 2019 年在歐洲推出。提醒一下，OviTex PRS 尚未獲得 CE 認證。該疝氣產品組合現已銷往七個國家：英國、奧地利、德國、荷蘭、瑞士、西班牙和義大利。6月，我們與德國伊斯馬寧的集團採購組織 Sana Einkauf, Logistik GmbH 簽訂了長期協議。Sana 是德國最大的 GPO，該合約使 OviTex 能夠接觸到 Sana 在德國的 350 家企業合作夥伴。第二季我們在歐洲的銷售額為 240 萬美元，而 2023 年為 150 萬美元，年初至今銷量成長了 87%。

In the second quarter, EU revenues were 15% of our total revenue with the same gross margin as in the US given the structure of our agreement with our manufacturer. As a more recently launched product market, we expect continued strong growth from our EU colleagues. We look forward to updating you soon on a collaboration with the National Health Service in England regarding OviTex so stay tuned for that.

考慮到我們與製造商的協議結構，第二季歐盟收入占我們總收入的 15%，毛利率與美國相同。作為一個最近推出的產品市場，我們預計歐盟同事將繼續強勁成長。我們期待盡快向您通報與英國國家衛生服務局就 OviTex 進行合作的最新情況，敬請關注。

We have continued to make significant strides with our education efforts. In Q2, we educated over 300 surgeons globally through TELA Bio labs and various peer-to-peer training programs with a strong focus on using OviTex in minimally invasive and robotic procedures. These programs include comprehensive VIP visits to our Malvern headquarters, cadaver labs in both the US and EU, and various other educational sections. One standout event was the abdominal wall reconstruction symposium in Las Vegas in May which saw our largest attendance to date with 68 health care professionals engaging with our products.

我們的教育工作持續取得重大進展。第二季度，我們透過 TELA Bio 實驗室和各種同儕培訓計畫對全球 300 多名外科醫生進行了培訓，重點是在微創和機器人手術中使用 OviTex。這些計劃包括對我們的馬爾文總部、美國和歐盟的屍體實驗室以及其他各種教育部門進行全面的 VIP 訪問。一項引人注目的活動是 5 月在拉斯維加斯舉行的腹壁重建研討會，該研討會是迄今為止我們出席人數最多的活動，有 68 名醫療保健專業人員參與我們的產品。

Additionally, we participated in several national and regional conferences with exposure to thousands of surgeons and attended two exclusive meetings hosted by Intuitive Surgical. Intuitive Connect, which hosted more than 1,000 general surgeons who use the da Vinci robot and women in da Vinci surgery, a smaller but equally impactful opportunity for TELA. Given OviTex's unique compatibility for robotic hernia repair, we are excited to deepen this relationship and look forward to attending Intuitive 360 in September.

此外，我們還參加了多個國家和地區會議，與數千名外科醫生進行了接觸，並參加了由 Intuitive Surgical 主辦的兩次獨家會議。Intuitive Connect 接待了 1,000 多名使用達文西機器人的普通外科醫生和參與達文西手術的女性，這對 TELA 來說是一個規模較小但同樣具有影響力的機會。鑑於 OviTex 對機器人疝氣修復的獨特兼容性，我們很高興能夠加深這種關係，並期待參加 9 月的 Intuitive 360​​。

We are also gaining momentum on the podium of key industry meetings globally and in medical journals. TELA is now up to 43 published or presented works on OviTex. We see these events and publications as a key driver behind surgeon education and adoption within the context of the transition away from permanent synthetic mesh. As we continue to gather evidence about the clinical efficacy and low recurrence rates associated with OviTex, the market feedback remains positive, even among surgeons who tend to be slower or more conservative adopters. We are driving awareness and expanding market share with the breadth of our portfolio and are committed to offering premier products for hernia repair and plastic reconstructive surgery, both of which are serving preference-driven markets.

我們也在全球重要產業會議和醫學期刊的講台上獲得動力。TELA 目前在 OviTex 上發表或展示的作品多達 43 件。我們將這些活動和出版物視為在從永久合成網片過渡的背景下外科醫生教育和採用背後的關鍵驅動力。隨著我們繼續收集與 OviTex 相關的臨床療效和低復發率的證據，市場反饋仍然積極，即使在採用速度較慢或較保守的外科醫生中也是如此。我們透過廣泛的產品組合提高知名度並擴大市場份額，並致力於為疝氣修復和整形重建手術提供一流的產品，這兩者都服務於偏好驅動的市場。

On the commercial side, we have a maturing sales organization now led by Greg Firestone. In May, we appointed Greg as Chief Commercial Officer to drive our next phase of growth by refocusing the US sales force on balanced, data-driven selling. Greg has been pivotal to the TELA story since 2017, supporting our commercial strategy and securing contracts with key GPOs and IDNs. He has experience navigating GPO and IDN contracting and will be instrumental as we secure further access to new organizations. Greg is already enhancing sales rep training, increasing operational efficiency, and refining productivity metrics across the organization. He and we are committed to having one of the best trained sales forces in the marketplace.

在商業方面，我們擁有一個成熟的銷售組織，目前由 Greg Firestone 領導。5 月份，我們任命 Greg 為首席商務官，透過將美國銷售團隊的重點重新放在平衡的、數據驅動的銷售上，推動我們下一階段的成長。自 2017 年以來，Greg 一直在 TELA 的故事中發揮關鍵作用，支持我們的商業策略並與主要 GPO 和 IDN 簽訂合約。他擁有處理 GPO 和 IDN 合約的經驗，並將在我們確保進一步訪問新組織時發揮重要作用。格雷格已經在加強整個組織的銷售代表培訓、提高營運效率並完善生產力指標。他和我們致力於打造市場上訓練有素的銷售團隊之一。

I am pleased with the progress we made in the second quarter. We have a mature sales team in place. We are driving operational leverage. We have our eye on profitability in the near future. And our guidance points to our expectation of another year of very strong growth for TELA.

我對第二季的進展感到滿意。我們擁有成熟的銷售團隊。我們正在推動營運槓桿。我們著眼於不久的將來的獲利能力。我們的指引顯示我們預計 TELA 又將迎來強勁成長。

With that, I'll turn the call over to Roberto to provide more specifics on our financial results.

這樣，我會將電話轉給羅伯托，以提供有關我們財務表現的更多細節。

Thanks, Tony. Revenue for the second quarter of 2024 grew 11% year-over-year to $16.1 million, with revenue from OviTex growing 11% and OviTex PRS growing 9% in the period. The double-digit growth was primarily driven by an increase in unit sales of products due to the addition of new customers, increased penetration within existing customer accounts and growing international sales under our expanded commercial organization. This was partially offset by a decrease in average selling prices caused by a shift in product mix as our strategy to more broadly penetrate the inguinal and minimally invasive hernia repair markets showed success.

謝謝，托尼。2024 年第二季營收年增 11% 至 1,610 萬美元，其中 OviTex 營收成長 11%，OviTex PRS 營收成長 9%。兩位數的成長主要是由於新客戶的增加、現有客戶帳戶滲透率的提高以及我們擴大的商業組織下國際銷售額的成長而導致產品單位銷售的成長。由於我們更廣泛地滲透腹股溝和微創疝氣修復市場的策略取得了成功，產品結構的轉變導致平均售價下降，部分抵消了這一影響。

As Tony mentioned, there was one larger and a couple of smaller adverse dynamics effect in the quarter, but we do not expect to meaningfully affect revenue in the second half of 2024. Growth for the first half of 2024 was up 24% over the first half of 2023, reflecting more general commercial performance before the customer-focused adoptions in the second quarter.

正如托尼所提到的，本季度存在一個較大和幾個較小的不利動態影響，但我們預計不會對 2024 年下半年的收入產生重大影響。2024 年上半年的成長率比 2023 年上半年成長 24%，反映了第二季以客戶為中心的採用之前更普遍的商業表現。

Gross margin was 69% for the second quarter compared to 70% in the prior year period. The decrease was primarily due to higher charges for excess and obsolete inventory as a percentage of revenue as a result of inventory purchases during the quarter.

第二季毛利率為 69%，去年同期毛利率為 70%。下降的主要原因是由於本季庫存採購導致過剩和過時庫存的費用佔收入的百分比增加。

Sales and marketing expense was $16.7 million in the second quarter of 2024 compared to $14.6 million in the same period in 2023. This increase was mainly due to higher compensation costs as a result of our expanded commercial organization, increased travel expenses and a marketing distribution fee, which offset lower marketing expense.

2024 年第二季的銷售和行銷費用為 1,670 萬美元，而 2023 年同期為 1,460 萬美元。這一增長主要是由於我們擴大商業組織、增加差旅費用和行銷分銷費用而導致補償成本增加，抵消了行銷費用的下降。

General and administrative expense was $3.6 million compared to $3.5 million in the same period of 2023. R&D expense was $2.3 million in the second quarter compared to $2.5 million in the prior year. The decrease is primarily due to lower study and development costs, which offset higher compensation and benefits.

一般及管理費用為 360 萬美元，而 2023 年同期為 350 萬美元。第二季研發費用為 230 萬美元，去年同期為 250 萬美元。下降的主要原因是研究和開發成本降低，抵消了薪酬和福利的提高。

Loss from operations was $11.6 million in the second quarter of 2024 compared to $10.4 million in the prior year period. Net loss was $12.6 million in the second quarter of 2024 compared to $10.8 million in the same period in 2023. We ended the first quarter with $26.5 million in cash and cash equivalents.

2024 年第二季營運虧損為 1,160 萬美元，而上年同期為 1,040 萬美元。2024 年第二季淨虧損為 1,260 萬美元，而 2023 年同期淨虧損為 1,080 萬美元。第一季結束時，我們擁有 2,650 萬美元的現金和現金等價物。

Turning to the outlook for 2024. We continue to project revenue for the full year to be in the range of $74.5 million to $76.5 million, representing growth of 27% to 31% from the prior year. Additionally, we continue to expect operating loss and net loss to be less in 2024 than in 2023, even excluding the contribution from the divestiture of NIVIS.

轉向 2024 年的展望。我們繼續預計全年營收在 7,450 萬美元至 7,650 萬美元之間，較上年增長 27% 至 31%。此外，我們仍預期 2024 年的營運虧損和淨虧損將低於 2023 年，即使不包括剝離 NIVIS 的貢獻。

Operating expenses will remain steady or slightly lower sequentially over the course of the year so that both operating loss and net loss declined from quarter-to-quarter over the course of 2024, again, even excluding the contribution from the divestiture of NIVIS. Relatedly, cash consumption should be meaningfully lower in the second half of the year.

全年營運費用將保持穩定或略有下降，因此 2024 年營運虧損和淨虧損環比下降，甚至不包括剝離 NIVIS 的貢獻。與此相關的是，今年下半年的現金消費量應該會大幅下降。

Added to this, in the third quarter, we will begin to receive revenue share payments related to the divestiture of NIVIS. Over the course of the next eight quarters, these payments will sum to at least $3 million and could be as much as $7 million. With this combination of growing revenue, improving operating leverage, and incremental NIVIS payments, we continue to expect that our cash and cash equivalents will be sufficient to fund us to profitability.

除此之外，在第三季度，我們將開始收到與 NIVIS 剝離相關的收入分成付款。在接下來的八個季度中，這些付款將至少達到 300 萬美元，最多可能達到 700 萬美元。隨著收入的成長、營運槓桿的提高以及 NIVIS 付款的增加，我們繼續預計我們的現金和現金等價物將足以為我們獲利提供資金。

With that, I'll hand the call back to Tony for closing remarks.

接下來，我會將電話轉回給東尼，讓他作結語。

Thanks, Roberto. I'm pleased by the company's progress and resilience in the second quarter, and I'm excited by the enormous opportunity in front of us. I believe that TELA Bio has never been better positioned for success for several reasons.

謝謝，羅伯托。我對公司第二季的進步和韌性感到高興，並對我們面前的巨大機會感到興奮。我相信 TELA Bio 處於前所未有的成功地位，原因有幾個。

First, I've been very impressed by Greg's leadership of our seasoned commercial team so far, and I'm confident that he will do an excellent job in driving adoption of our portfolio of products. Second, we possess broad GPO coverage and have products that position us well for the ongoing shift to robotic hernia repair. Finally, and most importantly, our products offer patients and surgeons unparalleled clinical outcomes at a competitive price. We are confident that this combination of essential factors for success can drive solid growth for TELA for years to come.

首先，到目前為止，格雷格對我們經​​驗豐富的商業團隊的領導給我留下了深刻的印象，我相信他將在推動我們產品組合的採用方面做得非常出色。其次，我們擁有廣泛的 GPO 覆蓋範圍，並擁有使我們能夠很好地向機器人疝氣修復轉變的產品。最後，也是最重要的是，我們的產品以具有競爭力的價格為患者和外科醫生提供無與倫比的臨床結果。我們相信，成功的這些重要因素的結合能夠推動 TELA 在未來幾年的穩健成長。

So with that, I'll now ask Marvin to open the line for your questions. Please go ahead.

因此，我現在請馬文開通您的提問熱線。請繼續。

(Operator Instructions) Frank Takkinen, Lake Street Capital.

（操作員說明）Frank Takkinen，Lake Street Capital。

Great. Thanks for taking the questions. I was hoping to start with a follow-up on some of the cyberattack commentary. Can you just help us understand a little bit better of what's really occurring at the account level when these cyberattacks occurred? And really what I'm trying to understand is when this occurred, are these procedures in backlog? Were the physicians able to use a different mesh? Were they using no mesh? And kind of how does that lead into the confidence behind the guide and backlog and those types of things to think about the second half of the year?

偉大的。感謝您提出問題。我希望從一些網路攻擊評論的後續行動開始。您能否幫助我們更了解這些網路攻擊發生時帳戶層級到底發生了什麼事？我真正想了解的是，當這種情況發生時，這些程序是否處於積壓狀態？醫生能夠使用不同的篩網嗎？他們沒有使用網格嗎？這如何帶來指南和積壓工作以及下半年需要考慮的此類事情背後的信心？

Yeah, Frank, I'll start that off. So to the best of our understanding, what was happening is the patient records are basically getting held hostage. So what that does is it creates a situation where to treat the patient, a lot of things that are done on the EMR are done by hand now. So prescriptions, note dictation. I mean, you name it, every aspect of a surgical procedure is impacted. So it makes the hospitals think deeply about which procedures they have to do and which procedures they don't have to do.

是的，弗蘭克，我就開始吧。據我們所知，所發生的情況是患者記錄基本上被劫持了。因此，這創造了一種情況，在治療患者時，電子病歷上所做的許多事情現在都是手動完成的。所以開藥方，注意聽寫。我的意思是，凡是你能想到的，外科手術的各個方面都會受到影響。所以這讓醫院深刻思考哪些手術是必須做的，哪些手術是不必做的。

From what we've heard, they've shipped patients off to other facilities. That's not great for us if we don't have those other facilities up and running yet, right, as part of our implementation. So to the best of our knowledge, the attacks -- even the secondary attack outside of the GPO system that there may have been others, but that's the one -- those are the ones that affected us the most, were primarily tied to the patient medical records and sort of just locking up the hospital and their ability to function day in and day out.

據我們所知，他們已將患者轉移到其他設施。如果我們還沒有啟動並運行其他設施，作為我們實施的一部分，這對我們來說不太好。因此，據我們所知，這些攻擊——甚至是 GPO 系統之外的二次攻擊，可能還有其他攻擊，但僅此而已——這些是對我們影響最大的攻擊，主要與患者有關醫療記錄和某種程度的鎖定醫院及其日復一日運作的能力。

Yeah. And so Frank, what I'd add is if you do some research, you'll see some accounts where the affected hospital system was redirecting ambulances to alternative hospitals so as not to have them arrive at their emergency departments. So for at least two weeks, they were doing very, very few procedures, if any.

是的。因此，弗蘭克，我要補充的是，如果您進行一些研究，您會看到一些帳戶，其中受影響的醫院系統將救護車重定向到其他醫院，以免它們到達急診室。所以至少兩週來，他們做的手術（如果有的話）非常非常少。

When they were able to lift the ransomware attack and regain access to their systems, they began getting up to speed somewhat slowly. It sounds like it took another couple of weeks before they were back where they were before. And so the procedures that we are involved in were either delayed or redirected to other locations.

當他們能夠解除勒索軟體攻擊並重新獲得對其係統的存取權限時，他們開始有點緩慢地加快速度。聽起來他們又花了幾週才回到原來的位置。因此，我們參與的程序要么被推遲，要么被重定向到其他地點。

As in the COVID-19 experience, we expect that probably the PRS type procedures were sent to other hospitals, they are difficult to reschedule, but that the hernia surgeries were simply delayed. We don't think there's going to be a big backlog. It's about a month worth of surgery and hernia repairs in particular, are rescheduled, one approach other than to the biggest eventual hernia repairs is watchful waiting. So you can't delay those for a month.

與 COVID-19 的經歷一樣，我們預計 PRS 類型的手術可能會被發送到其他醫院，很難重新安排，但疝氣手術只是被推遲了。我們認為不會有大量積壓。大約需要一個月的手術時間，尤其是疝氣修復手術，已經重新安排，除了最終最大的疝氣修復手術之外，另一種方法是觀察等待。所以你不能把這些推遲一個月。

Our expectation though is that as the hospital system gets up to speed as to the hospitals in COVID-19, they want to prioritize more remunerative surgeries before the less remunerated ones, which means that premium may take a little bit longer to get up to speed at those hospitals.

不過，我們的預期是，隨著醫院系統跟上COVID-19 醫院的步伐，他們希望優先考慮報酬較高的手術，而不是報酬較低的手術，這意味著保費可能需要更長的時間才能跟上步伐在那些醫院。

All that said, we do have indications, particularly from the performance in July that this is something that's been isolated to the second quarter and that things are pretty close to back to normal. And added to that, the initiatives that Greg has kicked off and the morale that we see in our sales force as a result of all that work, we feel very strongly about being able to perform in the second half and recoup the lost procedures that we got in the second quarter.

儘管如此，我們確實有跡象表明，特別是從 7 月的表現來看，這是第二季所特有的情況，而且情況已經非常接近恢復正常了。除此之外，格雷格啟動的舉措以及我們在銷售隊伍中看到的所有這些工作所帶來的士氣，我們非常強烈地認為能夠在下半年執行並彌補我們失去的程序。

I'm just going to add a little bit more, Frank, to that color. I mean, keep in mind, or if you recall, this GPO is super important to us, right? It's not the biggest, that's for sure. But the structure of the contract is the most favorable to us, right? Dual-source contract, us and another player and that other player was not the market leader, right? So the contract had not annualized yet over the year, and so it's also our fastest growing. So acutely painful for us.

弗蘭克，我只是要在那種顏色上再添加一點點。我的意思是，請記住，或者如果您還記得的話，這個 GPO 對我們來說非常重要，對嗎？這不是最大的，這是肯定的。但合約的結構是對我們最有利的，對嗎？雙源合同，我們和另一個玩家，而另一個玩家不是市場領導者，對吧？因此，該合約在這一年中尚未年化，因此它也是我們成長最快的。對我們來說是如此劇烈的痛苦。

Okay. That's helpful color. And I'll -- maybe I'll sneak two in, and I'll ask them both at the same time. How should we think about the split of revenue in Q3 versus Q4 to get to the guided range of $74.5 million to $76.5 million. And then, how should we think about kind of a blended OviTex ASP with IHR now in the mix?

好的。這是有用的顏色。我會——也許我會偷偷帶兩個人進來，我會同時問他們兩個。我們應該如何考慮第三季與第四季的收入分配，以達到 7,450 萬美元至 7,650 萬美元的指導範圍。然後，我們應該如何考慮 OviTex ASP 與 IHR 的混合？

So I'll start with the first question. So we expect more of the revenue to be in the fourth quarter. If you think about the way -- what we think will be driving it, our ability to regain it is the initiatives that Greg is kicking off, and those have some ramping effects. So you'll see more of an effect in the fourth quarter than the third quarter, although we expect to see it in both.

那麼我將從第一個問題開始。因此，我們預計第四季將有更多收入。如果你考慮一下方式——我們認為將推動它的因素，我們重新獲得它的能力就是格雷格正在啟動的舉措，而這些舉措會產生一些漸進效應。因此，您將在第四季度看到比第三季度更多的影響，儘管我們預計在這兩個季度都會看到這種影響。

As regards ASP, we do expect ASP to begin to average down as we get more volume in the IHR space. As a general matter, we've always expected that our ASPs will on average be lower in the longer term because we entered the market at the larger end of the hernia repair spectrum. So with the large ventral repairs with big pieces. And we've always expected that we'd be moving into the rest of the markets by entering with smaller pieces. So we don't view this as a bad thing. It's an outcome of gaining greater share across the range of different repairs.

至於平均售價，我們確實預期隨著 IHR 領域交易量的增加，平均售價將開始下降。一般來說，我們一直預計，從長遠來看，我們的平均售價會較低，因為我們是在疝氣修復領域的較大端進入市場的。因此，用大塊修復大腹面。我們一直期望透過較小的產品進入其他市場。所以我們不認為這是一件壞事。這是在不同維修領域獲得更大份額的結果。

And it might be a little choppy, Frank, as we sort out the mix between the large complex cases with large pieces and the slope of the ramp rate of the IHR. Both products should grow, but it may be out of sync every now and then. But I think definitely, what Roberto said is correct. We want the volume at some point.

弗蘭克，當我們整理大型複雜案件與大件之間的混合以及《國際衛生條例》斜坡率的斜率時，這可能會有點不穩定。這兩種產品都應該成長，但有時可能會不同步。但我認為羅伯託說的絕對是正確的。我們希望在某個時刻達到成交量。

Got it. All right. I'll stop there. Thanks for questions.

知道了。好的。我就到此為止。感謝您的提問。

Thanks, Frank.

謝謝，弗蘭克。

Caitlin Cronin, Canaccord Genuity.

凱特琳·克羅寧，Canaccord Genuity。

Hey, guys. Thank you for taking my question. Cash burn was still pretty high this quarter. Was this mostly just due to not getting the leverage lost to revenue growth or anything else to really call out here?

嘿，夥計們。感謝您回答我的問題。本季現金消耗仍然相當高。這主要是因為沒有失去收入成長的槓桿作用，還是有其他真正值得關注的因素？

Sure. That's exactly it. If you think about the revenue having been higher -- had it been higher, we learned of the disruption partway through May towards the end of May, even though it began earlier in May. So there was not much opportunity to adjust expense within the second quarter. We did make some small, minor changes in timing of expenses to try and offset it and give ourselves more flexibility as we were doing the analysis to determine exactly what was happening during the quarter. But had -- we had additional revenue on top of the OpEx that you saw in the second quarter that should have all dropped to the bottom line, but we expect to get back on track with that as we indicated with the guidance.

當然。就是這樣。如果你考慮一下收入是否更高——如果更高的話，我們是在五月中旬到五月底才得知中斷的，儘管它是在五月初開始的。因此第二季調整費用的機會不多。我們確實在支出時間上做了一些微小的改變，以試圖抵消它，並在我們進行分析以確定本季度到底發生了什麼時給予自己更大的靈活性。但是，除了您在第二季度看到的營運支出之外，我們還有額外的收入，這些收入本應全部降至底線，但我們預計將回到正軌，正如我們在指導中指出的那樣。

And then, one thing that we believe investors may not be as sensitized to in the third quarter, we'll start getting that revenue share payment, which will be equivalent to 100% gross margin depending on how quickly that ramps. It could be more or less front-loaded over the coming eight months and -- eight quarters, excuse me. And that will obviously contribute to our cash position.

然後，我們認為投資者在第三季可能不會那麼敏感的一件事是，我們將開始獲得收入分成付款，這將相當於 100% 的毛利率，具體取決於毛利率上升的速度。在接下來的八個月和八個季度中，它可能會或多或少地提前加載，對不起。這顯然將有助於我們的現金狀況。

Great. And then, just on gross margins, what are your expectations really going forward given the IHR launch more broadly?

偉大的。然後，就毛利率而言，鑑於《國際衛生條例》更廣泛地推出，您對未來的真正期望是什麼？

So IHR, the way we pay for the product that we manufacture from our manufacturers with a revenue share. So we give them 27% of the revenue. That's true across our portfolio with very minor adjustments in certain cases. So even though those products are lower ASP, they should be fairly close to that standard 27% revenue share. We split the cost of shipping. So that takes about a percentage point or two off. And so the long-term goal of gross margin is about 70%, plus or minus a little bit.

因此，IHR 是我們透過收入分成向製造商生產的產品付款的方式。所以我們給他們27%的收入。我們的投資組合都是如此，在某些情況下進行了非常小的調整。因此，即使這些產品的平均售價較低，它們也應該相當接近標準的 27% 收入份額。我們分攤運費。因此，這大約需要一兩個百分點。所以毛利率的長期目標是70%左右，上下浮動一點。

Awesome. And then, just a quick one. What was the split this quarter between OviTex and PRS?

驚人的。然後，快速一點。本季 OviTex 和 PRS 之間的分配情況如何？

So this quarter, PRS was 30% of the total revenue.

因此本季 PRS 佔總營收的 30%。

Right. A little bit down.

正確的。有點低了。

Got it. Thanks.

知道了。謝謝。

Matthew O'Brien, Piper Sandler.

馬修·奧布萊恩，派珀·桑德勒。

Good afternoon. Thanks for taking the question. Just one clarification question. What was the split US versus OUS? Did I hear you right? OUS was $2.4 million in the quarter, up about 60%?

午安.感謝您提出問題。只是一個澄清問題。美國與海外的分歧是什麼？我沒聽錯吧？本季 OUS 為 240 萬美元，成長約 60%？

Correct. Yes.

正確的。是的。

Okay. Got it. And then -- and I'm sorry to push you guys, but I'm looking at the guide for the year and the low end of the range assumes about $42 million for the rest of the year, so $21 million on average per quarter. Obviously, Q3 is going to be slower than Q4. It's just hard to get the model all the way up to that level. So what did you see in July from a growth rate, I don't know what you can share?

好的。知道了。然後，我很抱歉催促你們，但我正在查看今年的指南，該範圍的低端假設今年剩餘時間約為 4200 萬美元，因此平均每季 2100 萬美元。顯然，第三季將慢於第四季。很難讓模型一直達到那個水準。那麼您從7月的成長率中看到了什麼，我不知道您可以分享什麼？

And then, why is even the low end of the range, the right number, it seems like we should probably go a little bit below that, just given the disruptions that you saw and the fact that some of those cases, you're not going to be able to get now because they went to other hospitals. So again, why is even the bottom end of the range the right number?

然後，為什麼即使是範圍的低端，正確的數字，似乎我們應該稍微低於這個數字，只是考慮到你看到的中斷以及其中一些情況，你不是因為他們去了其他醫院所以現在就能得到。那麼，為什麼範圍的底端也是正確的數字呢？

Sure. So thanks for the question. So first, let me start with July. So as you know, our quarters tend to be slightly backloaded. So the first quarter -- first month of the quarter tends to be the lowest of the quarter, below 33% of the quarter. So one of the things we look at on a quarterly basis is how that first month of the quarter looks compared to other first months of the quarters. So what I can tell you is that July was the highest first month of a quarter that we've had in our history. So that suggests that we are back on track for growth and that, in particular, because it had the disruption that you've seen in the second quarter lasted into the third quarter that should have suppressed the July, you wouldn't have seen that kind of performance in the first month of the quarter.

當然。謝謝你的提問。首先，讓我從七月開始。如您所知，我們的宿舍往往會出現輕微的積壓。因此，第一季——該季度的第一個月往往是該季度最低的，低於該季度的 33%。因此，我們每季關注的一件事是該季度第一個月與該季度其他第一個月相比的情況。所以我可以告訴你的是，七月是我們歷史上季度最高的第一個月。因此，這表明我們已回到增長軌道，特別是，因為您在第二季度看到的干擾持續到了第三季度，本應抑制 7 月份的增長，但您不會看到這種情況該季度第一個月的表現。

The second thing that makes us comfortable about achieving the amount over the second half that we need to, to hit our guidance, is the plans that we had in place even at the beginning of the year, which we felt strongly about. And then, what Greg has been doing since he took over a little bit less than three months ago. So he was one of that -- he was instrumental in structuring our response to our disruption in the third quarter of last year in which we revamped our education of our sales forces, in which we retargeted our compensation system and has extended that into this year and then took over in May -- at the end of this May, and has extended that and expanded it. And so what we're seeing with our sales force and how they're responding to it and the morale they're exhibiting as a result, gives us a lot of confidence about being able to make up the shortfall that we saw in the second quarter.

第二件事讓我們對在下半年實現我們需要達到的目標感到滿意，以達到我們的指導，是我們甚至在年初就制定了計劃，我們對此有強烈的感受。然後，格雷格自從不到三個月前接任以來一直在做什麼。所以他就是其中之一- 他在我們對去年第三季度的混亂做出反應的過程中發揮了重要作用，其中我們改進了對銷售人員的教育，重新調整了我們的薪酬體系並將其延續到今年然後在五月——今年五月底——接管，並延長並擴大了它。And so what we're seeing with our sales force and how they're responding to it and the morale they're exhibiting as a result, gives us a lot of confidence about being able to make up the shortfall that we saw in the second四分之一.

Yeah. That said, I think, Matt, it's going to be weighted a little bit more towards the fourth quarter once all the programs and all the training and all the elements kick in.

是的。也就是說，我認為，馬特，一旦所有的計劃、所有的培訓和所有的要素開始發揮作用，第四季的權重將會更大一些。

Okay. I guess how much wiggle room did you really factor in? Does everything have to go perfectly for you to get to the low end? And -- or are there some other factors that were decisive to considering to get you all the way there?

好的。我猜你真正考慮了多少迴旋餘地？是否一切都必須完美才能達到低端？或者還有其他一些決定性的因素讓你考慮讓你一路走來？

Yeah. So as we've been describing over the course of this year, we view this guidance range as a commitment to investors. So we placed it in a place where we felt comfortable that we had all the resources to hit it. And what we did going through the years said if we learn over the course of the year to performance in any one of the quarters that there's additional upside, we would adjust that guidance number later rather than trying to express the full amount of what could be achieved early on before we had some data points. So we feel very confident with that range, and we will be expending considerable efforts to make sure we hit not just the bottom at the end of the range but get pretty close to the top end of the range.

是的。因此，正如我們今年以來一直在描述的那樣，我們將這一指導範圍視為對投資者的承諾。所以我們把它放在一個讓我們感到舒服的地方，因為我們擁有所有資源來實現它。我們多年來所做的事情表明，如果我們在一年中了解到任何一個季度的表現還有額外的上升空間，我們會稍後調整該指導數字，而不是試圖表達可能的全部金額在我們獲得一些數據點之前就已經實現了。因此，我們對這個範圍非常有信心，我們將付出相當大的努力，以確保我們不僅達到該範圍的底部，而且非常接近該範圍的上限。

Got it. Thanks so much.

知道了。非常感謝。

Thanks, Matt.

謝謝，馬特。

Michael Sarcone, Jefferies.

邁克爾·薩爾科內，杰弗里斯。

Thanks. Good afternoon. And thanks for taking my question. I guess, could you give us a little more color? You talked about bringing on Greg Firestone and then you mentioned he's refining some of the training processes and the productivity metrics. Can you give us a little more color on what specifically Greg is doing in terms of making changes and how that's going to drive incremental productivity?

謝謝。午安.感謝您提出我的問題。我想，你能給我們多一點顏色嗎？您談到了聘請格雷格·費爾斯通（Greg Firestone），然後您提到他正在改進一些培訓流程和生產力指標。您能否向我們詳細介紹 Greg 在做出改變方面具體做了什麼以及這將如何提高生產力？

Absolutely. So Greg has been with us for seven years, as you know. He's really been one of our top commercial guys along the way, but more focused on GPO contracting, et cetera. So I feel like we made a lot of progress in getting the GPOs. And now we've got to transition towards synthesizing that attainment with implementation into the GPOs.

絕對地。如您所知，格雷格已經在我們這裡工作了七年。他確實是我們一路走來的頂級商業人士之一，但更專注於 GPO 承包等。所以我覺得我們在獲得 GPO 方面取得了很大進展。現在我們必須轉向將這項成就與 GPO 的實施相結合。

So one of the things that Greg is deeply focused on is talk track and messaging and training, right? So there are subtle differences in talk track when you talk to supply chain, right, at a contract, at a hospital, at a GPO. There's competitive dynamics with competitors, certainly. There's pricing and strategic dynamics, but the messaging is different. And I think the messaging is going to be inordinately important at the supply chain level as we go through this transition away from polypropylene, right?

所以格雷格非常關注的事情之一就是談話追蹤、訊息和培訓，對嗎？因此，當你在合約中、在醫院、在 GPO 與供應鏈交談時，談話軌跡存在著細微的差異。當然，與競爭對手之間存在著競爭動態。有定價和策略動態，但資訊不同。我認為，當我們經歷遠離聚丙烯的轉變時，資訊在供應鏈層面將變得異常重要，對嗎？

So polypropylene mesh has been the subject of these litigations. It's going to settle at some point in the future. And we're seeing lots of activity at the GPO level in transitioning for those companies that have polypropylene mesh towards other more natural repair products. So having Greg in the middle of this allows us to be strong when we need to be strong with GPO and contracting messaging, right? It's with supply chain.

因此聚丙烯網一直是這些訴訟的主題。它會在未來的某個時刻得到解決。我們看到 GPO 層面進行了大量活動，幫助那些擁有聚丙烯網的公司轉向其他更天然的修復產品。因此，當我們需要加強 GPO 和合約訊息傳遞時，讓 Greg 參與其中可以使我們變得強大，對吧？與供應鏈有關。

The other factor is, Greg has been around for a long time. He's run sales organizations. He has a gravitas and credibility about him, which is very, very good for a young organization like ourselves. So he is commanding and is going to demand accountability. And that's going to drive efficiency, leverage and part of that is training, right?

另一個因素是，格雷格已經存在很久了。他經營銷售組織。他有一種莊嚴和可信度，這對像我們這樣的年輕組織來說非常非常好。因此，他正在發號施令，並將要求問責。這將提高效率、影響力，其中一部分就是培訓，對吧？

So one of the brilliant things that he's done since he started, he's moving very fast, is rather than thinking in terms of broad brush with the whole sales force in terms of training and education, and talk track and messaging, we did benchmark testing for everybody in the organization, whether they're sales leadership or territory managers, everybody. And we got a strength and weakness profile for everybody individually. And it allows us to really customize and develop our people on an individual basis, which is going to strengthen their talk track around GPOs and continue to strengthening talk track their way around the surgeons.

因此，自從他開始工作以來，他所做的一件出色的事情之一就是，他的行動非常快，而不是在培訓和教育、談話跟踪和消息傳遞方面廣泛考慮整個銷售隊伍，我們為組織中的每個人，無論是銷售領導層還是區域經理，每個人。我們得到了每個人的優點和缺點概況。它使我們能夠真正根據個人情況定制和培養我們的員工，這將加強他們圍繞 GPO 的談話軌跡，並繼續加強圍繞外科醫生的談話軌跡。

The other thing that we've done that he's doing a great job is he's implementing our two surgeons that we have on staff. So we've had Bruce Friedman, general surgeon on staff now for a year or two. He's been instrumental in helping us do training and peer-to-peer discussions on the hernia side. But Howard Langstein has joined us as well. One of the unfortunate losses in PRS business. He was a big customer of ours up until recently, but he's retired. He was the Chief of Plastic Surgery at the University of Rochester. Very sophisticated man, awesome presenter and teacher and educator, and he's being deployed as part of our PRS surgeon peer-to-peer educational programs and also supply chain as well.

我們所做的另一件事是他做得很好，他正在實施我們現有的兩名外科醫生。因此，普通外科醫生布魯斯·弗里德曼（Bruce Friedman）已經在我們的工作人員中工作了一兩年了。他在幫助我們進行疝氣方面的訓練和同儕討論方面發揮了重要作用。但霍華德·蘭斯坦也加入了我們。PRS 業務的不幸損失之一。直到最近他還是我們的大客戶，但他已經退休了。他是羅徹斯特大學整形外科主任。他是一位非常老練的人、出色的主持人、教師和教育家，他被部署為我們 PRS 外科醫生點對點教育計劃和供應鏈的一部分。

So Greg has been looking after the sales force as a co for the last several months, and it was just evident to us that he had the right stuff for all of these elements to take us to the next level. Thank you for that question. It was good for me to explain that.

因此，格雷格在過去的幾個月裡一直作為一名同事照顧銷售隊伍，對我們來說很明顯，他擁有適合所有這些要素的合適的東西，可以將我們帶到一個新的水平。謝謝你提出這個問題。對我來說解釋這一點很有好處。

Got it. Thanks a lot, Tony. And maybe one for Roberto. I think you did mention in the prepared commentary, you've got your eye on profitability in the near future. So maybe you can elaborate more on that. What kind of profitability are you talking about and timing and what we need to see to really get there?

知道了。非常感謝，托尼。也許是羅伯託的一個。我認為您在準備好的評論中確實提到，您著眼於不久的將來的盈利能力。所以也許你可以詳細說明這一點。您談論的是哪種盈利能力、時機以及我們需要看到什麼才能真正實現這一目標？

Sure. So the goal is to keep OpEx flattish to declining over the course of this year, with revenue growing on top of that, obviously, that drops to the bottom line and reduces sequentially our cash consumption, although there is some seasonality to our cash usage. But we expect that even next year, we should be able to hold OpEx flat potentially even to declining next year such that with additional year-on-year revenue growth next year on top of that OpEx savings, and then combined with the contribution from the NIVIS revenue share that can range from $3 million to $7 million that, that together should get us to profitability. So cash flow breakeven.

當然。因此，我們的目標是在今年保持營運支出持平甚至下降，而收入在此基礎上增長，顯然，這會下降到底線並依次減少我們的現金消耗，儘管我們的現金使用存在一些季節性。但我們預計，即使是明年，我們也應該能夠保持營運支出持平，甚至可能下降，這樣，除了營運支出節省之外，明年的收入還會實現同比額外增長，然後再加上營運支出的貢獻NIVIS 的收入份額可以從300 萬美元到700 萬美元不等，加起來應該能讓我們獲利。所以現金流收支平衡。

Great. Thanks, Roberto.

偉大的。謝謝，羅伯托。

Thanks, Mike.

謝謝，麥克。

David Turkaly, Citizen JMP.

David Turkaly，公民 JMP。

Good afternoon. Tony, did you have a CCO, that position in the past?

午安.托尼，您過去有過 CCO 職位嗎？

Yes, we did. Yeah, he was more of a traditional VP of sales type of guy. Greg is a more senior executive who has more of a strategic fulsome set of experiences.

是的，我們做到了。是的，他更像是傳統的銷售副總裁。格雷格是一位更高階的管理人員，擁有更多豐富的策略經驗。

And Chris Smith is still there?

克里斯史密斯還在嗎？

No. VP of Sales has moved on. We focused the business around Greg and the senior leadership that's been in place now for the last couple of years. We have a group of area directors that report in to Greg, that are our most talented, most senior folks, they've been with us for years. So it's a very tenured organization.

不。銷售副總裁已調任。我們的業務重點圍繞著格雷格和過去幾年一直就任的高階領導層。我們有一組向格雷格報告的區域總監，他們是我們最有才華、最資深的人，他們已經和我們在一起很多年了。所以這是一個非常有任期的組織。

And one last one, just as we think about this NIVIS revenue share, I'm just trying to think about even just the back half of the year. I know it's over eight quarters, but I mean could that be $1 million a quarter? Is that a possibility? Or is that too much?

最後一點，正如我們思考 NIVIS 收入份額一樣，我只是想思考今年下半年的情況。我知道已經超過八個季度了，但我的意思是每個季度可以達到 100 萬美元嗎？有這種可能嗎？還是太多了？

Yes. So the structure of it is that we -- for the first four quarters, we get 50% of -- in each quarter of what the new owner sells for NIVIS. And then in the second four quarters, we get 25%. So depending on how quickly the new owner is able to ramp it, they could potentially sell $2 million in the third or fourth quarters, and then we would get half of that, which would be $1 million.

是的。因此，它的結構是，在前四個季度，我們每個季度都會獲得新所有者為 NIVIS 出售的產品的 50%。然後在第二個四個季度，我們獲得了 25%。因此，根據新所有者的提升速度，他們可能會在第三或第四季出售 200 萬美元，然後我們將獲得其中的一半，即 100 萬美元。

Yes, CEO has been quite optimistic in the past on the product uptake but it's just launching a month or so ago.

是的，執行長過去對產品的採用率非常樂觀，但它剛剛推出一個月左右。

Yes. So it launched in the second quarter, that triggered since the way it -- right, this agreement is structured is that it triggers for the first full quarter of launch, the revenues.

是的。因此，它在第二季度推出，從它的方式觸發 - 正確的，該協議的結構是它觸發了發布的第一個完整季度的收入。

Thank you.

謝謝。

Thanks, Dave.

謝謝，戴夫。

I'm showing no further questions at this time. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

我目前沒有提出任何進一步的問題。感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。