Venus Concept Inc (VERO) 2023 Q1 法說會逐字稿

Please stand by. Good day, ladies and gentlemen, and welcome to the first quarter 2023 earnings conference call for Venus Concept Inc. (Operator Instructions) Please note that this conference call is being recorded and that the recording will be available on the company's website for replay.

請稍候。女士們先生們，大家好，歡迎參加 Venus Concept Inc. 2023 年第一季度收益電話會議（操作員說明）請注意，本次電話會議正在錄音，錄音將在公司網站上提供重播。

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the risk factors section of our most recent 10-Q and our annual report on Form 10-K filed with the Securities and Exchange Commission.

在開始之前，我想提醒大家，我們今天的評論和對你們問題的答复可能包含基於管理層當前預期的前瞻性陳述，並涉及可能導致實際結果與所示結果存在重大差異的固有風險和不確定性，包括我們最近向美國證券交易委員會提交的 10-Q 表格和 10-K 表格年度報告中確定的風險因素部分中確定的風險和不確定性。

Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, a future event, or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with the generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures.

這些因素可能會在我們向 SEC 提交的文件中不時更新，這些文件可在我們的網站上找到。我們沒有義務因新信息、未來事件或其他情況而公開更新或修改我們的前瞻性陳述。此次電話會議還將提及某些未按照公認會計原則（GAAP）計算的財務指標。我們通常將這些稱為非公認會計準則財務指標。

Reconciliations of those non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP are available in our earnings press release issued today on the Investor Relations portion of our website.

這些非公認會計原則財務指標與根據公認會計原則計算和呈現的最具可比性的指標的對賬可在我們今天在我們網站的投資者關係部分發布的收益新聞稿中找到。

I would now like to turn the call over to Mr. Rajiv De Silva, Chief Executive Officer of Venus Concept. Please go ahead, sir.

我現在想將電話轉給 Venus Concept 首席執行官拉吉夫·德席爾瓦 (Rajiv De Silva) 先生。請繼續，先生。

Thank you, operator, and welcome everyone to Venus Concept's first quarter 2023 earnings conference call. I'm joined on the call today by our Chief Financial Officer, Domenic Della Penna; and by our President and Chief Innovation and Business Officer, Dr. Hemanth Varghese.

謝謝運營商，歡迎大家參加 Venus Concept 2023 年第一季度財報電話會議。我們的首席財務官 Domenic Della Penna 也參加了今天的電話會議。以及我們的總裁兼首席創新和業務官 Hemanth Varghese 博士。

Let me start with an agenda of what we will cover during our prepared remarks. I will begin with a brief review of our Q1 revenue results and notable developments in recent weeks. Hemanth will then provide a summary of our recent progress in implementing our strategic plan unveiled at our last earning call, including how we intend to evolve by intermediate term strategy as we look to accelerate our path to cash flow breakeven.

讓我首先列出我們將在準備好的發言中討論的內容的議程。我將首先簡要回顧我們第一季度的收入結果和最近幾週的顯著發展。然後，赫曼斯將總結我們在執行上次財報電話會議上公佈的戰略計劃方面的最新進展，包括我們打算如何通過中期戰略發展，以加快實現現金流收支平衡。

Domenic will then provide you with an in-depth review of our first quarter financial results, our balance sheet, and financial condition at year end, as well as a review of our 2023 financial guidance, which we reaffirmed in today's press release. Then we will open the call for your questions.

然後，多梅尼克將為您提供對我們第一季度財務業績、資產負債表和年底財務狀況的深入審查，以及對我們在今天的新聞稿中重申的 2023 年財務指導的審查。然後我們將打開電話詢問您的問題。

With that agenda in mind, let's get started. As you would have seen in our press release issued this morning, in the first quarter of 2023, we delivered total revenues of $20.5 million. These results exceeded the expectations we provided on our Q4 earnings call, driven by stronger-than-expected demand in the US market.

考慮到該議程，讓我們開始吧。正如您在今天早上發布的新聞稿中看到的那樣，2023 年第一季度我們的總收入為 2050 萬美元。在美國市場需求強於預期的推動下，這些結果超出了我們在第四季度財報電話會議上提供的預期。

To be clear, while our first quarter revenue results reflect notable declines versus the prior year and prior quarter, this is a direct result of the strategic initiatives we outlined on our fourth-quarter call.

需要明確的是，雖然我們第一季度的收入結果與去年和上一季度相比顯著下降，但這是我們在第四季度電話會議中概述的戰略舉措的直接結果。

Our team is executing well, and we are encouraged by the early signs of evidence that our transformational strategy is well founded. We are transitioning the company to higher quality cash revenues, exiting unprofitable direct operations in certain international markets, and implementing a series of restructuring activities, which, together, are expected to enhance the cash flow profile of the business and to accelerate the path to long term sustainable profitability and growth.

我們的團隊執行良好，早期跡象表明我們的轉型戰略是有根據的，這讓我們感到鼓舞。我們正在將公司轉型為更高質量的現金收入，退出某些國際市場上無利可圖的直接業務，並實施一系列重組活動，這些活動預計將改善業務的現金流狀況，並加速實現長期可持續盈利和增長的道路。

To that end, we believe there is evidence of early progress towards these key strategic initiatives in Q1. First, we are pleased to report that cash system sales represented 66% of total systems and subscription sales compared to 53% in the prior-year period. Our progress towards this initiative even more evident, when looking at the mix of cash system sales in the US, which represented 79% of total US systems and subscription sales in Q1 compared to 42% in the prior-year period.

為此，我們相信有證據表明第一季度這些關鍵戰略舉措取得了早期進展。首先，我們很高興地報告，現金系統銷售額佔系統和訂閱總銷售額的 66%，而去年同期為 53%。從美國現金系統銷售的組合來看，我們在這一舉措方面取得的進展更加明顯，第一季度，現金系統銷售占美國系統和訂閱銷售總額的 79%，而去年同期為 42%。

Cash system sales to US customers increased 68% year over year in Q1. And as expected, this growth fueled significant improvements in our cash generation given the higher quality of revenue cash system sales represent. Our efforts to improve our quality of revenue are also impacting our reported revenue results for international markets as well.

第一季度美國客戶的現金系統銷售額同比增長 68%。正如預期的那樣，鑑於現金系統銷售收入的質量更高，這種增長推動了我們現金生成的顯著改善。我們為提高收入質量所做的努力也影響了我們報告的國際市場收入結果。

As discussed on our Q4 call, while our customers outside the United States will continue to be important to the company, we are transitioning our less profitable international markets to partner with distributors going forward. We believe that divesting our interests in smaller and less profitable international markets and reinvesting those resources in higher opportunity markets like the US represent a key driver of profitability improvement in the future.

正如我們在第四季度電話會議上所討論的，雖然美國以外的客戶對公司仍然很重要，但我們正在將利潤較低的國際市場轉變為與分銷商合作。我們相信，剝離我們在規模較小、利潤較低的國際市場的利益，並將這些資源重新投資於美國等機遇更高的市場，是未來盈利能力改善的關鍵驅動力。

Finally, our restructuring activities continue to progress. We are rightsizing the business, reducing costs, and simplifying the organization. We delivered a 17% reduction in our non-GAAP operating expenses, representing more than $4 million in savings year over year. Our progress in each of these areas in Q1 drove a 53% reduction in cash used in operations, which we believe represents the clearest evidence that we are on the right track towards our goal of enhancing the cash flow profile of the business and accelerating the path to long-term sustainable profitability and growth.

最後，我們的重組活動繼續取得進展。我們正在調整業務規模、降低成本並簡化組織。我們的非 GAAP 運營費用減少了 17%，相當於同比節省了超過 400 萬美元。第一季度我們在這些領域取得的進展推動了運營中使用的現金減少了 53%，我們認為這最清楚地表明我們正朝著改善業務現金流狀況和加速實現長期可持續盈利和增長的目標走在正確的軌道上。

There are two other important developments that I wanted to briefly discuss. First, we announced via press release on May 11 that the annual and special meeting of the company's shareholders held on May 10, the company's shareholders granted the Board of Directors discretionary authority to implement a reverse stock split-based on a 1-for-15 consolidation ratio.

我想簡單討論一下另外兩個重要的進展。首先，我們在5月11日的新聞稿中宣布，公司於5月10日召開的年度股東大會及臨時股東大會上，公司股東授權董事會按照1比15的合併比例實施反向股票分割。

The company's common shares began trading on the Nasdaq Capital Market on a split-adjusted basis under the company's existing trade symbol, VERO, at the opening of the market on May 12, 2023. The reason for the reverse stock split was to increase the bid price of our common stock to regain compliance with the continued listing requirements of the Nasdaq Capital Market.

該公司的普通股於2023年5月12日開市時開始在納斯達克資本市場進行分割調整後的交易，其交易代碼為VERO。反向股票分割的原因是提高我們普通股的買入價，以重新符合納斯達克資本市場的繼續上市要求。

Second, despite a difficult financing environment in recent months, we were pleased to announce via press release this morning that we have entered into a stock price -- stock purchase agreement with EW Healthcare Partners for a private placement of voting convertible preferred stock for maximum gross proceeds of up to $9 million. EW Healthcare Partners is the company's largest equity investor and one of the original institutional investors in Venus Concept.

其次，儘管近幾個月融資環境困難，但我們今天早上很高興地通過新聞稿宣布，我們已與 EW Healthcare Partners 簽訂了股票價格購買協議，以私募方式配售投票可轉換優先股，總收益最高可達 900 萬美元。 EW Healthcare Partners是該公司最大的股權投資者，也是Venus Concept的原始機構投資者之一。

This private placement provides us with valuable capital to execute our near-to-intermediate-term strategic objectives. We appreciate their continued confidence in the company. While securing this equity capital is a positive for the company, we remain highly focused on maximizing our capital resources as we work to manage our near-to-intermediate-term debt obligations and to further enhance the company's foundation for achieving our longer-term goals.

此次私募為我們提供了寶貴的資本來執行我們的中短期戰略目標。我們感謝他們對公司的持續信任。雖然獲得這些股權資本對公司來說是積極的，但我們仍然高度專注於最大限度地利用我們的資本資源，努力管理我們的中短期債務，並進一步增強公司實現長期目標的基礎。

As outlined on our Q4 call, our strategic plan originally targeted a reduction in the company's cost structure by a total of annual pre-tax savings of $13 million to $15 million beginning in 2024 and achieving cash flow breakeven in the second half of 2024. We are evaluating a series of incremental initiatives to accelerate our path to cash flow breakeven in 2024 without impacting our 2023 objectives.

正如我們在第四季度電話會議中概述的那樣，我們的戰略計劃最初的目標是從 2024 年開始，減少公司的成本結構，每年節省稅前總額 1300 萬至 1500 萬美元，並在 2024 年下半年實現現金流收支平衡。我們正在評估一系列漸進舉措，以加快我們在 2024 年實現現金流收支平衡的道路，同時不影響我們 2023 年的目標。

I would now like to turn the call over to Dr. Hemanth Varghese, who will share an update on our recent progress in the early implementation of our new strategic plan introduced on our Q4 call, as well as some of the potential initiatives we are evaluating to accelerate our path to cash flow breakeven in 2024. Hemanth?

我現在想將電話轉給 Hemanth Varghese 博士，他將分享我們在第四季度電話會議上推出的新戰略計劃的早期實施方面的最新進展，以及我們正在評估的一些潛在舉措，以加快我們在 2024 年實現現金流收支平衡的道路。Hemanth？

Thanks, Rajiv. As discussed on our Q4 call, we've begun implementing a transformational strategic plan that has six main pillars. First, rightsizing the business, by rationalizing our international infrastructure, reducing costs, and simplifying the organization. Second, we've been significantly reducing reliance on the use of our subscription sales model.

謝謝，拉吉夫。正如我們在第四季度電話會議中所討論的，我們已經開始實施一項具有六個主要支柱的轉型戰略計劃。首先，通過合理化我們的國際基礎設施、降低成本和簡化組織來調整業務規模。其次，我們大大減少了對訂閱銷售模式的依賴。

Third, focusing on the US as our primary market, and maintaining an optimal mix of direct presence and distributors in international markets. Fourth, leveraging our broad portfolio of energy-based devices and robotic systems with better customer segmentation and a more robust customer centric approach to support market building in key core and non-core segment.

第三，專注於美國作為我們的主要市場，並在國際市場上保持直營和分銷商的最佳組合。第四，利用我們廣泛的能源設備和機器人系統產品組合，以及更好的客戶細分和更強大的以客戶為中心的方法，支持關鍵核心和非核心領域的市場建設。

Fifth, targeted investment in R&D with a primary focus on robotics and artificial intelligence technologies as the key future growth driver and a phased development strategy to continue to rejuvenate our energy-based product portfolio over time with new innovations and features that will also support a more stable recurring revenue profile.

第五，有針對性的研發投資，主要關注機器人和人工智能技術，將其作為未來的關鍵增長動力，並採取分階段的發展戰略，通過新的創新和功能，隨著時間的推移繼續振興我們的能源產品組合，這也將支持更穩定的經常性收入狀況。

Six, exploring strategic business development and M&A opportunities by leveraging our innovative R&D pipeline, intellectual property, and development expertise in medical robotics development to provide a platform for strategic partnerships and aesthetic robotics, as well as position the business for future inorganic growth and consolidation through M&A.

第六，利用我們在醫療機器人開發方面的創新研發管線、知識產權和開發專業知識，探索戰略業務發展和併購機會，為戰略合作夥伴關係和美容機器人提供平台，並通過併購為未來的無機增長和整合定位業務。

As Rajiv described earlier, we've already made considerable progress against several key initiatives of our corporate transformation strategy, including a sustained improvement in our quality of revenues through prioritizing cash over subscription sales, transitioning operational focus on our US business performance, and dramatically reducing our operating expenses and cash burn through rightsizing of our infrastructure and operations.

正如拉吉夫之前所描述的，我們已經在企業轉型戰略的幾項關鍵舉措方面取得了相當大的進展，包括通過優先考慮現金而不是訂閱銷售來持續提高我們的收入質量，將運營重點轉向我們的美國業務績效，以及通過調整我們的基礎設施和運營規模來大幅減少我們的運營費用和現金消耗。

In addition, I'd like to provide a brief update on R&D and product pipeline priorities. Since joining Venus Concept this past October, I continue to be impressed with the high caliber of talented employees we have in our R&D organization. We're committed to advancing aesthetic practices by bringing innovative new technologies to market and supporting our customers with new tools and services to improve treatment outcomes for the patients.

此外，我想提供有關研發和產品管道優先事項的簡要更新。自從去年十月加入 Venus Concept 以來，我們研發組織中高素質的人才給我留下了深刻的印象。我們致力於通過將創新的新技術推向市場並通過新工具和服務支持我們的客戶來改善患者的治療結果，從而推進美容實踐。

We remain committed to our strategy of sustained value creation through technology leadership and continuous innovation. And going forward, our new product development strategy will be an essential component of our long-term revenue growth.

我們仍然致力於通過技術領先和持續創新來持續創造價值的戰略。展望未來，我們的新產品開發戰略將成為我們長期收入增長的重要組成部分。

As we've discussed previously, our current development plan is to introduce two new products to market in 2024. A brand-new body contouring product called Astera; and Aime, our next generation aesthetic robotics platform, which received 510-K clearance this past December for fractional skin resurfacing.

正如我們之前討論的，我們目前的發展計劃是在 2024 年向市場推出兩款新產品。一種是全新的塑身產品 Astera；一款是 Astera。 Aime 是我們的下一代美容機器人平台，該平台於去年 12 月獲得了 510-K 的局部皮膚重修許可。

We continue to believe that our Aime robotics platform has the potential to revolutionize aesthetic medical treatment paradigms. The Aime technology will be critical to maximizing the synergy between our well-established medical aesthetics business and our pioneering robotics R&D capability. We are in the final process of establishing a medical advisory board of leading physician partners that will support our preparation for full commercial launch.

我們仍然相信我們的 Aime 機器人平台有潛力徹底改變美容醫療模式。 Aime 技術對於最大限度地發揮我們成熟的醫學美容業務與我們領先的機器人研發能力之間的協同作用至關重要。我們正處於建立由領先醫生合作夥伴組成的醫療諮詢委員會的最後階段，該委員會將支持我們為全面商業啟動做準備。

At this time, and in response to a difficult financing environment, we're also focused on accelerating our plan to bring the business to cash flow breakeven and sustaining operations, thereby providing both financial security and investment flexibility for our long-term growth. As such, we have evolved our thinking on the scope of concurrent R&D programs that we can fully support and exploring our options to phase some of our R&D investment in energy-based devices and robotics programs to better stabilize core business performance and profitability before further leveraging the business with an expanded R&D program strategy.

目前，為了應對困難的融資環境，我們還專注於加快我們的計劃，使業務實現現金流收支平衡並維持運營，從而為我們的長期增長提供財務安全和投資靈活性。因此，我們已經發展了對並行研發計劃範圍的思考，我們可以全力支持這些計劃，並探索我們的選擇，以分階段對能源設備和機器人計劃進行部分研發投資，以更好地穩定核心業務績效和盈利能力，然後通過擴大的研發計劃戰略進一步利用業務。

We remain very excited by the option value provided by our current R&D programs, and we'll continue to explore opportunities to expand our capacity for growth investment. In addition, we're actively engaging in R&D partnering discussions with potential parties interested in leveraging our robotics and artificial intelligence team and development expertise for a range of exciting new programs, potentially providing a valuable source of non-dilutive growth funding. We look forward to sharing more updates on our progress in future calls.

我們對當前研發計劃提供的期權價值仍然感到非常興奮，我們將繼續探索擴大增長投資能力的機會。此外，我們還積極與有興趣利用我們的機器人和人工智能團隊以及開發專業知識來開展一系列令人興奮的新項目的潛在各方進行研發合作討論，這可能會提供寶貴的非稀釋性增長資金來源。我們期待在未來的電話會議中分享更多有關我們進展的最新信息。

With that, let me turn the call over to Dominic for a review of our first quarter financial results and balance sheet as of March 31. Dominic?

接下來，讓我將電話轉給多米尼克，以審查截至 3 月 31 日的第一季度財務業績和資產負債表。多米尼克？

Thanks, Hemanth. For the avoidance of doubt, unless otherwise noted, my prepared remarks will focus on the company's reported results for the first quarter of 2023 on a GAAP basis, and all growth-related items are on a year-over-year basis.

謝謝，赫曼斯。為避免疑義，除非另有說明，我準備的發言將重點關注公司按 GAAP 計算的 2023 年第一季度報告的業績，所有與增長相關的項目均按同比計算。

We reported GAAP revenue of $20.5 million down 22% year over year. The decrease in total revenue by region was driven by a 26% decrease year over year in international revenue, and an 18% decrease year over year in United States revenue. The decrease in total revenue by product category was driven by a 40% decrease in lease revenue, a 7% decrease in systems revenue, a 16% decrease in products revenue, offset partially by a 24% increase in services revenue.

我們公佈的 GAAP 收入為 2050 萬美元，同比下降 22%。各地區總收入下降的原因是國際收入同比下降 26%，美國收入同比下降 18%。按產品類別劃分的總收入下降是由於租賃收入下降 40%、系統收入下降 7%、產品收入下降 16%，但被服務收入增長 24% 部分抵消。

Turning to a review of our first quarter financial results across the rest of the P&L. Gross profit decreased $4.1 million, or 23%, to $13.7 million. The change in gross profit was driven primarily by the year-over-year decline in revenue in the United States and international markets, driven by the strategic decision to focus on quality of revenue by deemphasizing subscription sales and exiting and/or rightsizing unprofitable direct markets.

轉向對損益表其餘部分的第一季度財務業績的回顧。毛利潤減少 410 萬美元，即 23%，至 1,370 萬美元。毛利潤的變化主要是由於美國和國際市場的收入同比下降所致，而這一戰略決策是通過不再強調訂閱銷售以及退出和/或調整無利可圖的直接市場來關注收入質量。

Gross margin was 66.7% compared to 67.3% of revenue in the first quarter of 2022. The change in gross margin was primarily due to a $0.4 million foreign exchange headwind as a result of most currencies depreciating relative to the US dollar. Adjusting for these factors, our gross margins are slightly above the prior-year period.

毛利率為 66.7%，而 2022 年第一季度的收入為 67.3%。毛利率的變化主要是由於大多數貨幣相對於美元貶值導致 40 萬美元的外匯逆風所致。調整這些因素後，我們的毛利率略高於去年同期。

Total operating expenses decreased $3.3 million, or 13%, to $21.9 million. The change in total operating expenses was driven by a decrease of $3.1 million, or 28%, in sales and marketing expenses; and a decrease of $0.3 million, or 3%, in general and administrative expenses.

總運營費用減少 330 萬美元，即 13%，至 2,190 萬美元。總運營費用的變化是由於銷售和營銷費用減少了 310 萬美元，即 28%；一般及管理費用減少 30 萬美元，即 3%。

First quarter of 2023 GAAP general and administrative expenses include cost related to restructuring activities designed to improve the company's operations and cost structure. Excluding the costs related to restructuring activities, our non-GAAP operating expenses declined $4.3 million, or 17% year over year. The total operating loss was $8.2 million compared to $7.4 million in the first quarter of 2022.

2023 年第一季度 GAAP 一般和管理費用包括與旨在改善公司運營和成本結構的重組活動相關的成本。不包括與重組活動相關的成本，我們的非 GAAP 運營費用同比下降 430 萬美元，即 17%。總運營虧損為 820 萬美元，而 2022 年第一季度為 740 萬美元。

Net interest and other expenses were $1.2 million compared to $0.9 million in the first quarter of 2022. Other expenses in the first quarter of 2023 includes $77,000 of loss on disposal of subsidiaries related to a write-down of a balance owing from the prior sale of our Venus Russia subsidiary.

淨利息和其他費用為 120 萬美元，而 2022 年第一季度為 90 萬美元。2023 年第一季度的其他費用包括處置子公司造成的 77,000 美元損失，該損失與之前出售我們的 Venus Russia 子公司所欠餘額有關。

Net loss attributable to stockholders for the first quarter of 2023 was $9.6 million, or $1.85 per share, compared to $8.6 million, or $2.02 per share for the first quarter of 2022. Note, our net loss per share calculations in the current and prior-year periods reflect the 1 to 15 reverse stock split.

2023 年第一季度股東應占淨虧損為 960 萬美元，即每股 1.85 美元，而 2022 年第一季度股東應占淨虧損為 860 萬美元，即每股 2.02 美元。請注意，我們在當期和上一年期間的每股淨虧損計算反映了 1 至 15 次反向股票分割。

Adjusted EBITDA loss for the first quarter of 2023 was $5.7 million compared to $5.9 million for the first quarter of 2022. As a reminder, we have provided a full reconciliation of our GAAP net loss to adjusted EBITDA loss in our earnings press release. As of March 31, 2023, the company had cash and cash equivalents of $6.4 million and total debt obligations of approximately $77.8 million compared to $11.6 million and $77.7 million respectively, as of December 31, 2022.

2023 年第一季度調整後 EBITDA 虧損為 570 萬美元，而 2022 年第一季度為 590 萬美元。提醒一下，我們在收益新聞稿中提供了 GAAP 淨虧損與調整後 EBITDA 虧損的全面調節表。截至2023年3月31日，該公司擁有現金和現金等價物為640萬美元，債務總額約為7780萬美元，而截至2022年12月31日分別為1160萬美元和7770萬美元。

Cash used in operations for the three months ended March 31 was $5.9 million, a 53% decrease and cash used year over year. The improvement in cash used in operations was driven by our restructuring plan efforts, improvements in working capital, and the benefits to our cash flow generation as a result of our initiative to focus on cash system sales, including a significant reduction in bad debt expense tracing to tighten credit screening practices and an otherwise challenged credit market.

截至 3 月 31 日的三個月運營現金使用量為 590 萬美元，同比減少 53%。運營中現金使用量的改善是由我們的重組計劃努力、營運資金的改善以及我們專注於現金系統銷售的舉措所帶來的現金流生成的好處所推動的，包括大幅減少壞賬費用追踪以加強信用審查實踐和應對信貸市場的挑戰。

Cash used in operating and investing activities during the first quarter of 2023 was partially offset by $0.8 million of cash from financing activities in the period driven by proceeds from the issuance and sale of common stock pursuant to our equity purchase agreement with Lincoln Park Capital.

2023 年第一季度運營和投資活動使用的現金被該期間融資活動產生的 80 萬美元現金部分抵消，這些現金是根據我們與 Lincoln Park Capital 的股權購買協議發行和出售普通股的收益推動的。

Turning to a review of our guidance. As detailed in our press release, we reaffirmed our revenue guidance for the full year 2023 period. The company continues to expect total revenue for the 12 months ending December 31, 2023 in the range of $90 million to $95 million, representing a decrease in the range approximately 9.5% to 4.5% year over year. While we are not providing formal profitability guidance for the full year 2023, we are providing the following modeling considerations for use in evaluating our outlook for 2023.

轉向對我們的指導的審查。正如我們的新聞稿中詳述的，我們重申了 2023 年全年的收入指引。該公司仍然預計截至2023年12月31日的12個月總收入在9000萬美元至9500萬美元之間，同比下降約9.5%至4.5%。雖然我們沒有提供 2023 年全年的正式盈利能力指引，但我們提供以下建模注意事項，用於評估 2023 年的前景。

First, the 9.5% decline in revenue at the low end of our full-year guidance range continues to assume total revenue growth in the second half of 2023, offset by year-over-year declines in revenue in the first half of 2023, as we complete the transition to quality of revenues. We expect cash system sales to represent more than 70% of total subscription and system sales for full-year 2023 compared to approximately 58% for full-year 2022. This revenue mix shift is expected to result in a decline in lease revenue of approximately $16 million, offset partially by the expected growth in sales of cash systems, which we expect will increase in the high teens year over year.

首先，我們全年指導範圍下限的收入下降 9.5% 繼續假設 2023 年下半年總收入增長，但隨著我們完成向收入質量的過渡，2023 年上半年收入同比下降所抵消。我們預計現金系統銷售額將佔 2023 年全年訂閱和系統總銷售額的 70% 以上，而 2022 年全年約為 58%。這種收入結構的轉變預計將導致租賃收入下降約 1600 萬美元，部分被現金系統銷售額的預期增長所抵消，我們預計現金系統銷售額將同比增長十幾個百分點。

Despite the expected net decline in total subscription and systems revenue, we expect an improvement in cash generation. Our total revenue guidance for 2023 also reflects approximately $8 million of year-over-year revenue impact related to the aforementioned strategic changes we are implementing in our international business this year.

儘管訂閱總數和系統收入預計將出現淨下降，但我們預計現金生成能力將有所改善。我們 2023 年的總收入指引還反映了與我們今年在國際業務中實施的上述戰略變革相關的約 800 萬美元的同比收入影響。

Excluding the impacts from prioritizing cash system sales and the strategic changes in certain international markets this year, we believe our total revenue growth would be 15% year over year on a normalized basis.

剔除現金系統銷售優先和今年部分國際市場戰略變化的影響，我們認為在正常化基礎上，我們的總收入同比增長將達到15%。

Second, our full-year 2023 revenue guidance includes the assumption that our second quarter total revenue will be in the range of $20 million to $22 million.

其次，我們的 2023 年全年收入指引包括第二季度總收入將在 2000 萬美元至 2200 萬美元範圍內的假設。

Third, at the low end of our full year 2023 revenue range, we continue to expect relatively flat gross margins. Based on better-than-expected expense performance in Q1, we now expect the GAAP operating expenses in the range of approximately $89 million to $91 million compared to our prior guidance of $91 million to $93 million. Note, this updated GAAP operating expense guidance range includes approximately $1.8 million of restructuring severance and other non-operating expenses.

第三，在我們 2023 年全年收入範圍的低端，我們仍然預計毛利率將相對持平。基於第一季度好於預期的費用表現，我們現在預計 GAAP 運營費用約為 8900 萬美元至 9100 萬美元，而我們之前的指導為 9100 萬美元至 9300 萬美元。請注意，更新後的 GAAP 運營費用指導範圍包括約 180 萬美元的重組遣散費和其他非運營費用。

The updated GAAP operating expense guidance range also includes approximately $9 million of non-cash expenses compared to approximately $10 million in our prior guidance range, with the largest driver of change coming from better-than-expected bad debt expense.

更新後的 GAAP 運營費用指導範圍還包括約 900 萬美元的非現金費用，而我們之前的指導範圍約為 1000 萬美元，其中最大的變化驅動力來自好於預期的壞賬費用。

Excluding the aforementioned non-operating items and non-cash expenses, we now expect our cash operating expense target is approximately $78 million to $80 million for 2023, down $2 million from our prior-guidance range. This cash expense target reflects a reduction of $6 million to $8 million, or 7% to 9% year over year, driven by the initial benefits from the restructuring activities announced in our press release in early February, offset partially by strategic investments in R&D initiatives.

不包括上述非運營項目和非現金支出，我們現在預計 2023 年現金運營支出目標約為 7800 萬至 8000 萬美元，比之前的指導範圍減少 200 萬美元。這一現金支出目標反映了減少 600 萬美元至 800 萬美元，即同比減少 7% 至 9%，這是由於我們 2 月初新聞稿中宣布的重組活動帶來的初步效益，但部分被研發計劃的戰略投資所抵消。

Fourth, we continue to expect interest expense of approximately $6 million. And finally, our total revenue guidance for 2023 and our supporting modeling assumptions across the P&L are now expected to result in a reduction in our cash used from operations of more than 40% year over year.

第四，我們仍然預計利息支出約為 600 萬美元。最後，我們對 2023 年的總收入指引以及我們對損益表的支持性建模假設預計將導致我們運營所用現金同比減少 40% 以上。

With that, operator, we will now open the call to your questions. Operator?

接線員，我們現在將開始電話詢問您的問題。操作員？

(Operator Instructions) Jeff Cohen, Ladenburg.

（操作員說明）Jeff Cohen，拉登堡。

Hey. This is actually Destiny on for Jeff. Thank you for taking our questions. Just a few quick ones here. Can you talk a bit more about some of the drivers that you saw that resulted in the higher demand in the US that you commented on at the beginning of the call?

嘿。這實際上是傑夫的命運。感謝您接受我們的提問。這裡只是一些快速的。您能否多談談您在電話會議開始時評論過的導緻美國需求增加的一些驅動因素？

Yes. Hi, Destiny. This is Rajiv. Yeah, thank you for the question. It's really a high demand versus expectation. As you can imagine, we have a lot of moving parts with our consummation strategy, a primary one being the push for higher cash system sales, right? So what we found was that we were more successful than we had previously anticipated in the US. And you saw from our results, our cash versus subscription ratio in the US was higher than expected. So that was the driver of our success.

是的。嗨，命運。這是拉吉夫。是的，謝謝你的提問。這確實是一個很高的要求與期望。正如您可以想像的那樣，我們的完善戰略有很多變化，其中一個主要因素是推動更高的現金系統銷售額，對嗎？所以我們發現我們在美國比我們之前預期的更成功。從我們的業績中可以看出，我們在美國的現金與認購比率高於預期。這就是我們成功的驅動力。

Got it. Okay. Thank you. And then I also heard you mentioned some potential M&A efforts there. What does that look like and what kind of partner or acquisition, et cetera, are you evaluating at the moment, at a high level, of course. I know you can't give too much detail.

知道了。好的。謝謝。然後我還聽到你提到了一些潛在的併購努力。當然，您目前正在高水平評估這是什麼樣的以及什麼樣的合作夥伴或收購等等。我知道你不能提供太多細節。

Sure. Yeah, Destiny. Just to be clear, I think that's a forward-looking aspiration that we have as we continue the transformation effort. So realistically, right now, our priorities for 2023 are to reset the business, right? And I think we are really encouraged by the early results we're having.

當然。是的，命運。需要澄清的是，我認為這是我們在繼續轉型努力時所抱有的前瞻性願望。所以實際上，現在我們 2023 年的首要任務是重新調整業務，對嗎？我認為我們對我們所取得的早期成果感到非常鼓舞。

Now, the one element of business development that is high on our minds is partnering, particularly around our R&D program. So that's likely what you're going to see from us, not large-scale M&A.

現在，我們最重視的業務發展要素之一是合作，特別是圍繞我們的研發計劃。所以這很可能就是你從我們身上看到的，而不是大規模的併購。

Now, that being said, we're a public company. We're always open minded. If ideas come our way, but that's not something that we foresee in the very near term unless some great opportunities present themselves.

話雖如此，我們是一家上市公司。我們始終保持開放的態度。如果我們有想法，但這不是我們在短期內預見到的事情，除非出現一些很好的機會。

Okay. Got it. So we're partnering in the R&D area. Okay. I'm clear.

好的。知道了。因此，我們正在研發領域進行合作。好的。我很清楚。

And then last one, okay. And then last one for us. The development status of what you call the Astera. Can you talk a little bit more about where it is in the development and clinical pipeline? And then, in terms of timing, you mentioned 2024, and I'm wondering if you can give a little more granularity on timing, like, maybe first half, second half.

然後最後一張，好吧。然後是我們的最後一個。你們所說的Astera的開發狀況。您能多談談它在開發和臨床管道中的進展嗎？然後，就時間安排而言，您提到了 2024 年，我想知道您是否可以在時間安排上提供更詳細的信息，例如上半年、下半年。

I'm going to have Hemanth give you his perspective. I think one of the -- we, of course, remain very excited about both Astera, as well as Aime, both are in planning phase. And one of the things that we're trying to work through is the phasing of our investment in both of these projects. So there is still some uncertainty in terms of exactly what the timing looks like, but certainly we do stay remain committed to both programs. Hemanth, anything to add to that?

我會讓赫曼斯給你他的觀點。我認為其中之一 - 當然，我們對 Astera 和 Aime 仍然非常興奮，兩者都處於規劃階段。我們正在努力解決的問題之一是分階段投資這兩個項目。因此，具體時間安排仍然存在一些不確定性，但我們確實仍然致力於這兩個計劃。 Hemanth，還有什麼要補充的嗎？

No, I think you largely said it. We'll be able to provide more information as we go along, but as Rajiv said, both are still in planning phase and coming along very well. We both see them in '24. Can't give more guidance on timing of when that could occur, but they are moving along well in the development process.

不，我想你基本上已經說了。我們將能夠在進展過程中提供更多信息，但正如拉吉夫所說，兩者仍處於規劃階段並且進展順利。我們都在24年見過他們。無法就何時發生這種情況提供更多指導，但他們在開發過程中進展順利。

And we expect to be able to provide another update on our next earnings call on this topic.

我們希望能夠在下一次財報電話會議上提供有關該主題的最新信息。

Okay. Excellent. Then I'll just hang on until the next call. Thank you very much for taking our questions. I'll jump back in queue.

好的。出色的。然後我會等下一次電話。非常感謝您接受我們的提問。我會插回隊列。

Great. Thank you, Destiny.

偉大的。謝謝你，命運。

(Operator Instructions) We are currently showing no remaining questions in queue. And that does conclude our conference for today. Thank you for your participation and have a wonderful day.

（操作員說明）我們目前顯示隊列中沒有剩餘問題。我們今天的會議到此結束。感謝您的參與，祝您度過美好的一天。

Great. Thank you very much.

偉大的。非常感謝。