Venus Concept Inc (VERO) 2023 Q2 法說會逐字稿

Please stand by. Good day, ladies and gentlemen. Welcome to the second-quarter 2023 earnings conference call for Venus Concept. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being recorded, and the recording will be available on the company's website for replay.

請稍候。美好的一天，女士們先生們。歡迎參加 Venus Concept 2023 年第二季財報電話會議。此時，所有參與者均已置於僅聽模式。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，我們今天的言論和你們問題的回答可能包含基於管理階層目前預期的前瞻性陳述。並且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，包括我們最近的10-Q 的風險因素部分以及向美國證券交易委員會提交的10-K 表格年度報告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, future events, or otherwise. This call will also include references to certain financial measures that are not calculated in accordance with 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。我們不承擔因新資訊、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的義務。這次電話會議也將提及某些未依公認會計原則或公認會計原則計算的財務指標。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帳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.

我現在想把電話轉給 Venus Concept 執行長拉吉夫·德席爾瓦 (Rajiv De Silva) 先生。請繼續，先生。

Thank you, operator. And welcome, everyone, to Venus Concept's second-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.

謝謝你，接線生。歡迎大家參加 Venus Concept 2023 年第二季財報電話會議。我們的財務長 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長 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 overview of our Q2 results and notable operating developments in recent months. Then Hemanth will share an update on our recent progress in our restructuring programs, R&D priorities, and new product pipeline progress, as well as our recently announced formation of a medical advisory board.

讓我先列出我們將在準備好的發言中討論的內容的議程。首先，我將簡要概述我們第二季的業績和近幾個月的顯著營運發展。然後，赫曼斯將分享我們在重組計劃、研發重點和新產品管道進展方面的最新進展，以及我們最近宣布成立的醫療顧問委員會的最新進展。

Domenic will then provide you with an in-depth review of our second-quarter financial results, and our balance sheet and financial condition at quarter 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二季度財務業績、季末資產負債表和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've seen in our press release issued today, in the second quarter of 2023, we delivered total revenue of $20.1 million. These results are within the range of expectations we provided on our Q1 earnings call. Our second-quarter revenue results reflect notable declines versus the prior year as expected.

考慮到該議程，讓我們開始吧。正如您在今天發布的新聞稿中所看到的，2023 年第二季我們的總收入為 2,010 萬美元。這些結果在我們在第一季財報電話會議上提供的預期範圍內。正如預期的那樣，我們第二季度的收入結果與前一年相比顯著下降。

Similar to what we discussed on our Q1 call, the year-over-year revenue decline is a direct result of the strategic initiatives we are executing this year. Specifically, we are transitioning the company to higher quality 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. Our results in Q2 point to continued progress towards these key strategic initiatives that we outlined earlier this year.

與我們在第一季電話會議中討論的內容類似，營收年減是我們今年執行的策略性舉措的直接結果。具體來說，我們正在將公司轉型為更高品質的收入，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，並加速走向長期發展的道路。長期可持續盈利和增長。我們第二季的結果表明，我們在今年稍早概述的這些關鍵策略舉措方面持續取得進展。

First, we are pleased to report that cash system sales represented 74% of total system sales and subscription sales, compared to 49% in the prior year period. Our progress towards this initiative is even more evident when looking at the mix of cash system sales in the US, which represented 82% of total US systems and subscription sales in Q2, compared to 36% in the prior year period.

首先，我們很高興地報告，現金系統銷售額佔系統總銷售額和訂閱銷售額的 74%，而去年同期為 49%。從美國的現金系統銷售組合來看，我們在這項舉措方面取得的進展更加明顯，該銷售佔第二季度美國系統和訂閱銷售總額的 82%，而去年同期為 36%。

Cash system sales in the US customers increased 55% year over year in Q2. And as expected, this growth fueled significant improvements in our cash generation, given the higher quality of revenue cash system sales represent.

第二季美國客戶的現金系統銷售額年增 55%。正如預期的那樣，鑑於現金系統銷售所代表的收入品質更高，這種成長推動了我們現金產生的顯著改善。

Second, our restructuring activities continue to progress. We are rightsizing the business, reducing costs, and simplifying the organization. We delivered a 25% (sic - see press release, "24%") reduction in our non-GAAP operating expenses representing a reduction of $6.5 million (sic - see press release, "$6.2 million") year over year. Our progress in each of these areas in Q2 drove a 71% reduction in cash used in operations on a year-over-year basis, and a 64% reduction in cash used in operations on a quarter-over-quarter basis.

二是重組工作持續推進。我們正在調整業務規模、降低成本並簡化組織。我們的非 GAAP 營運費用減少了 25%（原文如此 - 參見新聞稿，「24%」），年比減少了 650 萬美元（原文如此 - 請參閱新聞稿，「620 萬美元」）。第二季度，我們在上述各領域的進展使得營運中使用的現金年減了 71%，較上季減少了 64%。

We believe this 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. We are particularly pleased with our performance in light of a very difficult financing environment for our end customers. This is even more relevant considering our shift from subscription revenues to higher quality cash system sales that rely on third-party financing for our customers.

我們相信，這是最明確的證據，表明我們正朝著增強業務現金流狀況、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。鑑於我們的最終客戶的融資環境非常困難，我們對我們的表現感到特別滿意。考慮到我們從訂閱收入轉向更高品質的現金系統銷售（依賴第三方融資為客戶提供服務），這一點更加重要。

In addition, the inflationary economy has impacted higher price procedures, such as those related to our hair business. There are two other items I wanted to briefly discuss. First, 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.

此外，通貨膨脹的經濟影響了更高的價格程序，例如與我們的頭髮業務相關的程序。我想簡要討論另外兩個項目。首先，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 recent calls, our strategic plan originally targeted the reduction in the company's cost structure by a total 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're evaluating a series of incremental initiatives to continue our path to cash flow breakeven in the second half of 2024 without impacting our 2023 objectives. We are also actively engaged in discussions with key lenders to ensure the requisite runway that allows us to execute a strategic plan, and successfully achieve cash flow breakeven next year. We're appreciative of the constructive relationship that we have with our primary lenders.

正如我們在最近的電話會議中所概述的那樣，我們的策略計畫最初的目標是從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。正在評估一系列漸進舉措，以在 2024 年下半年繼續實現現金流收支平衡，同時不影響我們的 2023 年目標。我們也積極與主要貸款人進行討論，以確保我們能夠執行戰略計劃，並在明年成功實現現金流收支平衡。我們非常感謝我們與主要貸款人之間的建設性關係。

Second, we developed a plan for regaining Nasdaq continued listing compliance, which was approved by the exchange. Nasdaq provided us with an extension of the compliance period through November of 2023.

其次，我們制定了恢復納斯達克持續上市合規的計劃，並獲得了交易所的批准。納斯達克將合規期延長至 2023 年 11 月。

I would now like to turn the call over to Dr. Hemanth Varghese, who will share an update on recent progress in our restructuring programs, R&D investments, and new product pipeline initiatives, including our recently announced formation of a medical advisory board. Hemanth?

我現在想將電話轉給 Hemanth Varghese 博士，他將分享我們重組計劃、研發投資和新產品管道計劃的最新進展，包括我們最近宣布成立的醫療顧問委員會。赫曼斯？

Thanks, Rajiv. As Rajiv described earlier, we've already made considerable progress against several key initiatives of our corporate turnaround strategy. On balance, we believe we are executing the strategic plan we outlined at the start of the year on or ahead of expectations. Let me share a little color in key areas, where we're making notable progress.

謝謝，拉吉夫。正如拉吉夫先前所描述的，我們已經在公司扭虧為盈策略的幾項關鍵舉措方面取得了相當大的進展。總的來說，我們相信我們正在執行年初概述的戰略計劃，符合或提前於預期。讓我分享一下我們正在取得顯著進展的關鍵領域的一些色彩。

First, our cost reduction in cash management initiatives designed to accelerate our path to cash flow breakeven are progressing at or ahead of expectations. It is a credit to the hard work and dedication of the entire Venus Concept organization who've all greatly contributed to improving business performance.

首先，我們旨在加速實現現金流損益平衡的現金管理成本削減計劃的進度達到或超過了預期。這是整個 Venus Concept 組織辛勤工作和奉獻精神的功勞，他們為提高業務績效做出了巨大貢獻。

In addition, during Q2, we made the decision to target additional cost containment initiatives, including identifying areas where we can implement phased R&D investments to protect cash runway and accelerate our path to cash flow breakeven.

此外，在第二季度，我們決定採取額外的成本控制舉措，包括確定我們可以實施分階段研發投資的領域，以保護現金跑道並加速現金流量收支平衡。

Second, recognizing the challenging environment that many of our customers are facing. We've taken proactive steps to stay responsive to market headwinds and are implementing plans in the US, and internationally to provide greater commercial momentum, as we move through the balance of 2023.

其次，認識到我們的許多客戶所面臨的充滿挑戰的環境。我們已採取積極措施應對市場逆風，並正在美國和國際上實施計劃，以在 2023 年餘下的時間裡提供更大的商業動力。

We have initiated several targeted programs to provide more operational flexibility to our commercial teams, including new financial tools and transaction support needed to provide an enhanced level of customer and deal support. We believe that these measures will enhance overall sales productivity, while improving our ability to respond to an evolving market conditions.

我們啟動了多項有針對性的計劃，為我們的商業團隊提供更大的營運彈性，包括提供更高水準的客戶和交易支援所需的新金融工具和交易支援。我們相信，這些措施將提高整體銷售效率，同時提高我們應對不斷變化的市場狀況的能力。

In the US, we're streamlining our internal financing processes, expanding our capacity to perform onsite demos, introducing new sales promotions and incentive programs, as well as enhancing our level of technical service commitments to our customers. Outside the US, our efforts to rightsize the business are progressing well. We are rationalizing our international infrastructure, reducing costs, and simplifying the organization with a keen focus on establishing the optimal mix of direct presence and distribution partners in key international markets around the world.

在美國，我們正在簡化內部融資流程，擴大現場演示的能力，推出新的銷售促銷和激勵計劃，並提高我們對客戶的技術服務承諾水準。在美國以外，我們調整業務規模的努力進展順利。我們正在合理化我們的國際基礎設施、降低成本並簡化組織，重點是在全球主要國際市場建立直接存在和分銷合作夥伴的最佳組合。

Third, as mentioned earlier, while refocusing our R&D efforts as resulted in phasing of some project spent to better manage cash burn, we've also been able to leverage our broad portfolio of technology and IP to advance certain new pipeline projects ahead of expectations. Specifically, we now expect FDA 510(k) clearance in the third quarter and initial commercial introduction in the fourth quarter of a new medical devices that exist in, the Versa pro.

第三，如前所述，在重新調整我們的研發工作重點並分階段支出一些項目以更好地管理現金消耗的同時，我們還能夠利用我們廣泛的技術和知識產權組合來提前推進某些新的管道項目。具體來說，我們現在預計 Versa pro 中存在的新型醫療設備將在第三季度獲得 FDA 510(k) 批准，並在第四季度首次商業推出。

The cc is the next generation version of the Venus Versa, one of the company's flagship products with more than 2,500 systems sold globally since introduction. The Versa pro is our second generation Versa, that leverages our novel MP squared, IPL, and NanoFractional RF technology that treats color, texture, and tightening for the face and body with a choice of 10-hand pieces.

cc 是 Venus Versa 的下一代版本，Venus Versa 是該公司的旗艦產品之一，自推出以來已在全球銷售了 2,500 多套系統。 Versa pro 是我們的第二代 Versa，它利用我們新穎的 MP squared、IPL 和 NanoFractional RF 技術，透過 10 種手部選擇來處理臉部和身體的顏色、紋理和緊緻度。

We're adding the advances that have been made with Viva MD to provide higher power and deeper skin penetration for optimal results. We see this as an important near-term growth opportunity for new customers and an attractive upgrade opportunity for existing customers.

我們正在添加 Viva MD 所取得的進步，以提供更高的功率和更深的皮膚滲透，以獲得最佳效果。我們認為這對新客戶來說是一個重要的近期成長機會，對現有客戶來說也是一個有吸引力的升級機會。

We are proud of the R&D team's strong execution and commitment to our goals, which resulted in an accelerated product development process. The team has us poised for an exciting new product introduction in the fourth quarter of 2023 ahead of our original timeline.

我們為研發團隊強大的執行力和對我們目標的承諾感到自豪，這加快了產品開發過程。團隊讓我們做好準備，在 2023 年第四季提前推出令人興奮的新產品。

Our new product pipeline continues to progress favorably in terms of what we expect in 2024 as well. Specifically, we are on an accelerated plan for the commercial introduction of our next body system in the first half of 2024.

我們的新產品線也持續順利進展，符合我們 2024 年的預期。具體來說，我們正在加速計劃在 2024 年上半年將我們的下一個車身系統商業化。

And importantly, we are encouraged by the continued progress we are making in support of our target for commercial introduction of the AI.ME, our next-generation aesthetic robotics platform, in the second half of 2024. As announced last month, we are very excited to established our new medical advisory board for AI.ME. We are fortunate to have attracted the support of an industry-leading group of physicians to help us realize AI.ME's full potential clinically. We look forward to engaging with this group to initiate a series of clinical studies over the next several months.

重要的是，我們為支持我們在 2024 年下半年將下一代美學機器人平台 AI.ME 商業化的目標所取得的持續進展感到鼓舞。正如上個月宣布的那樣，我們非常高興很高興為AI. ME 建立新的醫療顧問委員會。我們很幸運地得到了業界領先的醫生團隊的支持，幫助我們充分發揮 AI.ME 的臨床潛力。我們期待與該小組合作，在接下來的幾個月內啟動一系列臨床研究。

These studies are designed to inform our AI.ME aesthetic robotics product development and clinical strategy, ensuring we continue to meet the evolving needs of patients and providers, with advanced technologies and strong clinical impact. Our first three AI.ME systems for clinical use have been built. And will be shipped to kick off initial study activities in Q3.

這些研究旨在為我們的 AI.ME 美容機器人產品開發和臨床策略提供信息，確保我們繼續以先進的技術和強大的臨床影響滿足患者和提供者不斷變化的需求。我們的首批三個用於臨床的 AI.ME 系統已經建成。並將在第三季度發貨以啟動初步研究活動。

It is important to note that we expect the commercial launch of AI.ME to be consistent with the 510(k) clearance we received in December of 2022. No further FDA clearances are required to support the commercial launch planned for H2 2024.

值得注意的是，我們預計 AI.ME 的商業發布將與我們在 2022 年 12 月收到的 510(k) 許可一致。不需要進一步的 FDA 許可來支持計劃於 2024 年下半年進行的商業發布。

With that, let me turn the call over to Domenic for a review of our second quarter financial results and balance sheet as of June 30. Domenic?

接下來，讓我將電話轉給多梅尼克，請其審查截至 6 月 30 日的第二季度財務業績和資產負債表。多梅尼克？

Thanks, Hemanth. For the avoidance of doubt, unless otherwise noted, my prepared remarks will focus on the company's reported results for the second 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 年第二季度報告的業績，所有增長相關項目均按同比計算。

We reported GAAP revenue of $20.1 million, down 26% year over year. The decrease in total revenue by region was driven by a 27% decrease year over year in US revenue, and a 26% decrease year over year in international revenue. The decrease in total revenue by product category was driven by a 64% decrease in lease revenue, and a 16% decrease in products other revenue, offset partially by a 7% increase in product systems revenue, and a 13% increase in services revenue.

我們公佈的 GAAP 收入為 2,010 萬美元，年減 26%。各地區總收入下降的原因是美國收入年減 27%，國際收入較去年同期下降 26%。按產品類別劃分的總收入下降的原因是租賃收入下降 64%，產品其他收入下降 16%，但被產品系統收入增長 7% 和服務收入增長 13% 部分抵消。

Turning to a review of our second-quarter financial results across the rest of the P&L, gross profit decreased $4.8 million, or 25% to $14.2 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 de-emphasizing subscription sales and exiting and/or rightsizing unprofitable direct markets.

回顧第二季損益表其餘部分的財務業績，毛利減少 480 萬美元，即 25%，降至 1,420 萬美元。毛利的變化主要是由於美國和國際市場的收入同比下降，這是由於戰略決策關注收入品質、不再強調訂閱銷售以及退出和/或調整無利可圖的業務而導致的。直接市場。

Gross margin was 70.8%, compared to 69.9% of revenue in the second quarter of 2022. The change in gross margin was primarily due to changes in product mix, including lower ARTAS system sales, which have a lower gross margin than our energy-based devices, partially offset by a $0.2 million foreign exchange headwind as a result of certain currencies depreciating relative to the US dollar.

毛利率為 70.8%，而 2022 年第二季為營收的 69.9%。毛利率的變化主要是由於產品結構的變化，包括 ARTAS 系統銷售額的下降，該系統的毛利率低於我們基於能源的系統由於某些貨幣相對於美元貶值而導致20 萬美元的外匯逆風，部分抵消了這一影響。

Total operating expenses decreased $6.2 million, or 24% to $20 million. The change in total operating expenses was driven primarily by a decrease of $3.3 million, or 26% in general and administrative expenses; a decrease of $2.1 million, or 20% in sales and marketing expenses And second quarter of 2023 GAAP general and administrative expenses, include approximately $0.4 million of costs related to restructuring activities designed to improve the company's operations and cost structure.

總營運支出減少 620 萬美元，即 24%，降至 2,000 萬美元。總營運費用的變化主要是由於一般和管理費用減少了 330 萬美元，即 26%；銷售和行銷費用減少 210 萬美元，即減少 20% 2023 年第二季 GAAP 一般和管理費用包括與旨在改善公司營運和成本結構的重組活動相關的約 40 萬美元成本。

Excluding these restructuring costs, our non-GAAP operating expenses declined $6.6 million, or 25% year over year. Excluding the aforementioned non-GAAP items and non-cash G&A, stock compensation expense and bad debt expenses in both periods, our non-GAAP cash operating expenses declined $4.2 million or 19% year over year.

排除這些重組成本，我們的非 GAAP 營運費用年減 660 萬美元，即 25%。排除上述兩個期間的非 GAAP 項目和非現金 G&A、股票補償費用和壞帳費用，我們的非 GAAP 現金營運費用年減 420 萬美元，即 19%。

The total operating loss was $5.8 million, compared to $7.1 million in the second quarter of 2022. Net interest and other expenses were $1.4 million, compared to $3.4 million in the second quarter of 2022. The year-over-year change in net interest and other expenses was driven by non-cash foreign exchange gain loss, which was $178,000 gain in the second quarter of 2023, compared to a loss of $2.4 million last year.

總營業虧損為 580 萬美元，而 2022 年第二季為 710 萬美元。淨利息和其他費用為 140 萬美元，而 2022 年第二季為 340 萬美元。淨利息和其他費用的同比變動其他費用是由非現金外匯收益損失所驅動的，2023 年第二季的收益為178,000 美元，而去年為虧損240 萬美元。

Net loss attributable to stockholders for the second quarter of 2023 was $7.4 million or a $1.35 per share, compared to $10.6 million or $2.47 per share for the second quarter of 2022. Note, our net loss per share calculations and the current and prior year periods reflect the 1-for-15 reverse stock split in May 2023.

2023 年第二季股東應佔淨虧損為740 萬美元，即每股1.35 美元，而2022 年第二季為1,060 萬美元，即每股2.47 美元。請注意，我們的每股淨虧損計算以及當前和去年同期的情況反映了 2023 年 5 月的 15 股反向股票分割。

Adjusted EBITDA loss for the second quarter of 2023 was $4 million, compared to $5.5 million for the second 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.

2023 年第二季調整後EBITDA 虧損為400 萬美元，而2022 年第二季調整後EBITDA 虧損為550 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。

Turning to the balance sheet. As of June 30, 2023, the company had cash and cash equivalents of $6.1 million and total debt obligations of approximately $78.4 million compared to $11.6 million and $77.7 million respectively as of December 31, 2022.

轉向資產負債表。截至2023年6月30日，該公司擁有現金及現金等價物為610萬美元，債務總額約為7,840萬美元，而截至2022年12月31日分別為1,160萬美元及7,770萬美元。

Cash used in operations for the three months ended June 30 was $2.1 million, a 71% decrease in cash use 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 for subscription sales, and an otherwise challenged credit market.

截至 6 月 30 日的三個月營運中使用的現金為 210 萬美元，現金使用量較去年同期下降 71%。營運中使用的現金的改善是由於我們的重組計劃努力、營運資金的改善以及我們主動關注現金系統銷售而帶來的現金流生成的好處，包括壞賬費用追踪的大幅減少加強對訂閱銷售和其他充滿挑戰的信貸市場的信用篩選實踐。

Cash used in operating and investing activities during the second quarter of 2023 was partially offset by $1.9 million of cash from financing activities in the period driven by the net proceeds of $1.6 million from the sale of senior preferred stock from the 2023 multi-tranche private placement, which occurred on May 15, 2023, and proceeds from the issuance and sale of common stock pursuant to our equity purchase agreement with Lincoln Park Capital of $0.3 million.

2023 年第二季營運和投資活動使用的現金被該期間融資活動產生的 190 萬美元現金部分抵消，該現金來自 2023 年多批次私募出售高級優先股的 160 萬美元淨收益，發生於2023 年5 月15 日，根據我們與林肯公園資本(Lincoln Park Capital) 的股權購買協議，發行和出售普通股所得收益為30 萬美元。

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 of approximately 9.5% to 4.5% year over year.

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。該公司仍預計截至2023年12月31日的12個月總收入將在9,000萬美元至9,500萬美元之間，年減約9.5%至4.5%。

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.

雖然我們沒有提供 2023 年全年的正式獲利能力指引，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. Note, the low end of our guidance implies high single digit growth year over year in the second half of 2023, driven primarily by cash system sales growth of more than 30% year over year. 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.

首先，收入下降 9.5% 仍處於我們全年指導範圍的下限。隨著我們完成向收入品質的轉變，2023 年下半年的總收入成長被 2023 年上半年營收的年減所抵銷。請注意，我們指導的下限意味著 2023 年下半年同比增長較高，這主要是由現金系統銷售同比增長超過 30% 推動的。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 年全年這一比例約為 58%。

Our total revenue guidance for 2023 continues to reflect year-over-year headwinds to our revenue growth from lower lease revenue in favor of cash system sales of approximately $16 million, and the impact related to the aforementioned strategic changes we are implementing in our international business this year of approximately $8 million. 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.

我們 2023 年的總收入指引繼續反映出我們的收入成長面臨的同比逆風，即租賃收入下降，有利於約 1600 萬美元的現金系統銷售，以及與我們在國際業務中實施的上述戰略變革相關的影響今年約800萬美元。剔除現金系統銷售優先和今年部分國際市場策略變化的影響，我們認為在正常化基礎上，我們的總收入年增將達到15%。

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

其次，我們的 2023 年全年營收指引包括假設我們第三季的總營收將在 2,000 萬美元至 2,200 萬美元之間。

Third, at the low end of our full-year 2023 revenue range, we now expect gross margins of approximately 67%, up roughly 100 basis points year over year, as compared to prior guidance assumptions, which called for relatively flat gross margins year over year in 2023.

第三，在我們 2023 年全年收入範圍的低端，我們現在預計毛利率約為 67%，同比增長約 100 個基點，而之前的指導假設要求毛利率同比相對持平。2023 年。

Based on the better than expected expense performance in the first half of 2023, we now expect GAAP operating expenses in the range of approximately $87 million to $89 million, compared to our prior guidance of $89 million to $91 million. Note, this updated GAAP operating expense guidance range includes approximately $1.9 million of restructuring severance and other non-operating expenses.

基於 2023 年上半年優於預期的費用表現，我們現在預計 GAAP 營運費用約為 8,700 萬美元至 8,900 萬美元，而我們先前的指引為 8,900 萬美元至 9,100 萬美元。請注意，更新後的 GAAP 營運費用指引包括約 190 萬美元的重組遣散費和其他非營運費用。

The updated GAAP operating expense guidance range also includes approximately $9 million of non-cash expenses, including stock compensation, G&A, and bad debt expenses. Excluding the aforementioned non-operating items and non-cash expenses, we now expect our cash operating expense target to be approximately $77 million to $79 million for 2023, down $1 million from our prior guidance range, driven by better-than-expected performance in Q2.

更新後的 GAAP 營運費用指引範圍還包括約 900 萬美元的非現金費用，包括股票補償、一般管理費用和壞帳費用。不包括上述非營運項目和非現金支出，我們現在預計 2023 年現金營運支出目標約為 7,700 萬至 7,900 萬美元，比我們先前的指導範圍減少 100 萬美元，這是由於 2023 年業績優於預期。 Q2。

Fourth, we continue to expect interest expense of approximately $6 million. 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 50% year over year, compared to our prior modeling assumption, which called for a reduction of more than 40% year over year.

第四，我們仍然預期利息支出約為 600 萬美元。最後，與我們先前的建模假設（要求年減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 Thalmann.

（操作員說明）Jeff Cohen、Ladenburg Thalmann。

Hi, Rajiv, Domenic, and Hemanth. How are you?

大家好，拉吉夫、多梅尼克和赫曼斯。你好嗎？

Hey, Jeff. We're well, thank you.

嘿，傑夫。我們很好，謝謝。

Hey, Jeff.

嘿，傑夫。

I'm going to work backwards on a complicated question. So I guess, Domenic, lastly, the $87 million, $89 million OpEx in that back half as you compare it to the previous $91 million-ish, and then you talk about the cash OpEx $77 million and $79 million. So I guess I'm just trying to correlate the differential between cash and GAAP. Sounds like 10 to 12-ish, approximately?

我將逆向思考一個複雜的問題。所以我想，多梅尼克，最後，後半部分的營運支出為 8700 萬美元、8900 萬美元，與之前的 9100 萬美元左右進行比較，然後你談論現金運營支出 7700 萬美元和 7900 萬美元。所以我想我只是想將現金和公認會計準則之間的差異聯繫起來。聽起來大約是 10 到 12 左右？

And then maybe could you tie that into trimming of the business as far as OpEx and spend? And let us know how you're thinking about whether you're mostly through that process, or preliminary through that process, or mostly concluded through that process? Thank you.

然後，也許您可以將其與營運支出和支出等業務的削減聯繫起來？讓我們知道您如何看待您是主要完成該過程，還是初步完成該過程，還是大部分完成該過程？謝謝。

I mean, first off, Jeff, the difference between the two metrics primarily $4 million of G&A, $2 million of stock comp expense, and about $2.5 million of bad debt expense. So those are the key drivers between the GAAP and the non-GAAP and then the cash piece.

我的意思是，首先，傑夫，這兩個指標之間的差異主要是 400 萬美元的一般管理費用、200 萬美元的股票補償費用和大約 250 萬美元的壞帳費用。因此，這些是 GAAP 和非 GAAP 以及現金部分之間的關鍵驅動因素。

In terms of where we stand, we're primarily through our restructuring efforts as far as what we announced earlier in the year. There is some ongoing tweaking that goes on, as we continually adjust and look for opportunities. But largely, the bulk of it is behind a subject to certain modifications that we may make, as we continue to unleash our strategy in the second half.

就我們的立場而言，我們主要是透過今年稍早宣布的重組努力進行的。隨著我們不斷調整和尋找機會，一些持續的調整仍在繼續。但很大程度上，隨著我們在下半年繼續釋放我們的策略，其中大部分是我們可能做出的某些修改的背後。

Jeff, I think we will continue to make some further adjustments, particularly in our international regions. So that's taken a little bit longer than changes that we made in North America and Israel.

傑夫，我認為我們將繼續做出一些進一步的調整，特別是在我們的國際區域。因此，這比我們在北美和以色列所做的改變所花費的時間要長一些。

Okay. Got it. And then as follow-up on the technological side. The Versa pro, what difference versus the Versa system now? Is it form factor hand pieces and potentially cost of goods? And then also follow us up with, you mentioned body system. I'm assuming you were referring to the AI.ME system.

好的。知道了。然後作為技術方面的後續行動。 Versa pro 與現在的 Versa 系統有什麼不同？是手機的形狀因素和潛在的商品成本嗎？然後跟著我們，你提到了身體系統。我假設您指的是 AI.ME 系統。

With respect to the body system, AI.ME is actually incremental to what we're doing at the AI.ME system, right? So AI.ME, we're expecting to have come out in H2 of next year. The new body system, which again, we'll have more detail on in upcoming calls will actually be an update to our energy-based systems with a new body system next year.

就身體系統而言，AI.ME 實際上是我們在 AI.ME 系統上所做的事情的增量，對吧？所以AI.ME，我們預計會在明年下半年推出。新的身體系統，我們將在即將召開的電話會議中再次詳細介紹，實際上將是我們基於能量的系統的更新，明年將採用新的身體系統。

Got it. Okay. That helps perhaps. Thanks for taking the questions.

知道了。好的。這也許有幫助。感謝您提出問題。

Thanks, Jeff.

謝謝，傑夫。

Marie Thibault, BTIG.

瑪麗蒂博，BTIG。

Good evening. Thank you for taking the questions. Wanted to ask one here. I heard you mention, targeted programs to try to provide financial tools and transaction support to your sales teams as they go out to the US, and try to help those customers who are maybe facing tougher financing environments. Can you give us a little more detail on what tools will be offered and anything we should be considering, as we think about your balance sheet and we think about those financing tools?

晚安.感謝您提出問題。想在這裡請教一下。我聽到您提到有針對性的計劃，試圖在您的銷售團隊前往美國時提供金融工具和交易支持，並盡力幫助那些可能面臨更嚴峻融資環境的客戶。您能否更詳細地介紹一下我們在考慮您的資產負債表和這些融資工具時將提供哪些工具以及我們應該考慮的事項？

Yes. So Marie, let me just provide a high level answer that, and allow Hemanth to add some details. So look, there's nothing here that should create any major impact on our balance sheet. These are operational tools and techniques that we are helping our field force, with some of them have to do with how we price our products, particularly in combination in bundles.

是的。瑪麗，讓我提供一個高級答案，並允許赫曼斯添加一些細節。所以看，這裡沒有任何東西會對我們的資產負債表產生任何重大影響。這些是我們正在幫助我們的現場人員的操作工具和技術，其中一些與我們的產品定價方式有關，特別是捆綁產品的組合。

We've obviously also learned quite a bit about how to approach internal financing well, given our heritage in the subscription sales model, which obviously we have tweaked and changed quite a bit. And so those are the types of tools that we are providing our field force. So nothing that should impact our balance sheet.

考慮到我們在訂閱銷售模式方面的傳統，我們顯然也學到了很多關於如何很好地處理內部融資的知識，顯然我們已經對這種模式進行了很大的調整和改變。這些就是我們為現場人員提供的工具類型。因此，沒有任何事情會影響我們的資產負債表。

But maybe, Hemanth, if you want to add any further detail?

但赫曼斯，如果您想添加更多細節，也許可以嗎？

Yeah. I think you said it right. There's nothing here that would be fundamental shift in terms of our balance sheet or profitability. Think of it in terms of anything that would either help speed up or accelerate the close of any type of transaction, right? In a tough financing environment, these things take a long time to do. So we've expanded our demo capacity in terms of being able to do onsite demos.

是的。我認為你說得對。就我們的資產負債表或獲利能力而言，沒有任何事物會發生根本性的轉變。從任何有助於加速或加速任何類型交易的完成的角度來思考它，對嗎？在嚴峻的融資環境下，這些事情需要很長時間才能完成。因此，我們擴大了演示能力，能夠進行現場演示。

As Rajiv mentioned, we've taken a look at our internal processes around our internal financing, and to see if there's ways to streamline that. So we can get to decisions faster. And pricing incentives, bundles, all tools that give the field force and leadership of the commercial organization, what they need to be able to move quickly when transactions are available.

正如拉吉夫所提到的，我們已經檢查了有關內部融資的內部流程，並看看是否有辦法簡化它。這樣我們就可以更快做出決定。定價激勵、捆綁銷售、所有為商業組織的現場人員和領導提供的工具，以及他們在交易可用時能夠快速採取行動所需的東西。

Okay. Just to clarify, there wouldn't be any change to revenue recognition? Everything would be recognized up front?

好的。澄清一下，收入確認不會有任何改變嗎？一切都會被預先辨識？

No.

不。

No. Yes, no changes.

不，是的，沒有變化。

Okay. Perfect. And then wanted to ask about, I think on a earlier call you talked about potential partnering on the R&D side. Certainly seems like you're doing quite well going it alone for now. But what might we hear on that? When might we hear more about partnering and which specific systems might you be partnering on?

好的。完美的。然後想問一下，我想您在早些時候的電話會議上談到了研發方面的潛在合作夥伴關係。當然，目前看來你單打獨鬥做得很好。但我們可能會聽到什麼？我們什麼時候可以聽到更多有關合作的信息以及您可能在哪些特定係統上進行合作？

Look, I think, Marie, we continue to be open to the concept of partnering. But we have a lot of intellectual capital built into particularly our AI.ME system. And we want to make sure that we advance it as much as possible under our own steam, right? So that's really what we are focused on.

瑪麗，我想，我們繼續對合作的概念持開放態度。但我們擁有大量的智力資本，尤其是我們的 AI.ME 系統。我們希望確保在我們自己的推動下盡可能地推進它，對吧？這才是我們真正關注的重點。

But as we have described on other calls, there are multiple ways in which the AI.ME system could evolve in the future with new indications. So once we get beyond, getting our arms really wrapped around our initial launch, we certainly would benefit from other partnerships. And so, there's really no timeline to this, but we certainly remain open to the idea of partnering if it'll allow us to advance some our future iterations of AI.ME.

但正如我們在其他電話會議中所描述的那樣，AI.ME 系統未來可以透過多種方式發展並提供新的適應症。因此，一旦我們取得突破，真正開始我們的首次發布，我們肯定會從其他合作夥伴關係中受益。因此，這確實沒有時間表，但如果合作能讓我們推進 AI.ME 的未來迭代，我們當然對合作的想法持開放態度。

Okay. Very helpful. Thanks for taking the questions.

好的。很有幫助。感謝您提出問題。

Thank you, Marie.

謝謝你，瑪麗。

Anthony Vendetti, Maxim Group.

安東尼文代蒂，馬克西姆集團。

Thanks. Yes, Vendetti. But just on -- in terms of ARTAS, what do you think the reason is for the softer sales from ARTAS?

謝謝。是的，凡德提。但就 ARTAS 而言，您認為 ARTAS 銷售疲軟的原因是什麼？

And then if you could talk about -- I know you're moving away from more of the subscription business, although not completely ending it if that's what a customer wants to do. What is the split now in terms of subscription versus outright purchase? And what do you think is the ideal mix going forward?

然後，如果你能談談——我知道你正在放棄更多的訂閱業務，儘管如果這是客戶想要做的，但並沒有完全結束它。現在訂閱與直接購買有何不同？您認為未來的理想組合是什麼？

Sure, Anthony. So let me -- we'll start with the ARTAS question. So I think -- look, I think there are a couple of reasons driving the softness in the ARTAS business as we described in our script. One is this. Look, it is one of our higher price devices, right? And then what we are finding is that, any device that's priced above $200,000, it just becomes incrementally harder. And it takes longer for customers to get financing, right? So the sales cycle is becoming longer.

當然，安東尼。那麼讓我——我們將從 ARTAS 問題開始。所以我認為——看，我認為有幾個原因導致了 ARTAS 業務的疲軟，正如我們在腳本中所描述的那樣。其一是這個。看，這是我們價格較高的設備之一，對嗎？然後我們發現，任何價格超過 20 萬美元的設備都會變得越來越困難。而且客戶獲得融資需要更長的時間，對嗎？所以銷售週期變得更長。

And then in terms of the actual procedure itself, it is also one of the more higher price procedures that our devices are useful, being upwards of $10,000 to a customer, depending on the number of transplants that the customer is getting. And what we are finding is that there is a certain softness when it comes to these higher price procedures.

然後就實際手術本身而言，這也是我們的設備有用的價格較高的手術之一，對客戶來說高達 10,000 美元以上，具體取決於客戶接受的移植數量。我們發現，這些價格較高的程序存在一定的疲軟。

Right now, there's no indication that this is a permanent shift. But certainly, it is probably a reflection of the current inflationary economy.

目前，沒有跡象表明這是永久性的轉變。但可以肯定的是，這可能是當前通膨經濟的反映。

Hemanth, any further details add to that?

Hemanth，還有更多細節嗎？

No, I think you said exactly that this -- I do believe it's business cycles in both at the customer level and at the consumer level. We're seeing it, but not something we see as permanent.

不，我認為你說得很對——我確實相信這是客戶層面和消費者層面的商業週期。我們正在看到它，但我們認為這並不是永久性的。

On your second question. So if you look at the quarter, we were at about 74% cash system sales versus 26% subscription sales. The US was over over-indexed in cash system sales. As we said, it was about 82% and 18% subscription.

關於你的第二個問題。因此，如果你看一下本季度，我們的現金系統銷售額約為 74%，而訂閱銷售額為 26%。美國的現金系統銷售指數過高。正如我們所說，訂閱率約為 82% 和 18%。

We are not trying to manage this to a particular number. But I would guess, going forward is 75/25 split is not a bad split to think about for modeling purposes. What I would say though is that, one of the advantages that we have having done subscription sales for a very long period of time, we have a pretty good understanding of the customer profile that works for internal financing, right?

我們並不試圖將其控制在特定數量。但我猜想，出於建模目的，75/25 的分割並不是一個糟糕的分割。但我想說的是，我們長期進行訂閱銷售的優勢之一是，我們對適用於內部融資的客戶資料有很好的了解，對嗎？

So what we expect to do is to continue to tweak the way we do our subscription sales, our internal financing, in a way that it becomes more effective, our bad debt expense keeps going down. And if we can do that effectively at a 75/25 split, that's a pretty decent split for us.

因此，我們期望做的是繼續調整我們的訂閱銷售和內部融資方式，使其變得更加有效，我們的壞帳費用不斷下降。如果我們能夠以 75/25 的比例有效地做到這一點，那麼這對我們來說是一個相當不錯的比例。

Okay. And just a follow-up on the ARTAS. I know the price of the system has been brought down from over $300,000, but it's still over $200,000. Do you feel there's any, also, competition? Is there -- a company called SmartGraft, or a product called SmartGraft, that sells for around a $100,000, that might be somewhat of an option for some of the customers that are thinking about a robotic hair transplant system?

好的。這只是 ARTAS 的後續行動。我知道該系統的價格已從 30 萬美元以上下調，但仍超過 20 萬美元。您覺得還有競爭嗎？是否有一家名為 SmartGraft 的公司，或者一種名為 SmartGraft 的產品，售價約為 10 萬美元，對於一些正在考慮機器人毛髮移植系統的客戶來說可能是個選擇？

I think, as you pointed out, there are other options for customers. There's obviously also manual procedures. I think the reality, though, is for a new customer getting into this business. The robot offers a lot of benefits that other devices don't, right? Because it's a way to overcome inexperienced techs. It provides repeatability for the techniques. So it still has an important role to play.

我認為，正如您所指出的，客戶還有其他選擇。顯然還有手動程序。但我認為現實是新客戶進入這個行業。該機器人提供了許多其他設備所沒有的好處，對吧？因為這是克服缺乏經驗的技術人員的方法。它提供了技術的可重複性。所以它仍然可以發揮重要作用。

And I wouldn't say that the competition is dramatically different. Though, I would say that as the end consumer looks for cheaper pricing, some people do opt for the manual procedures which do cost less, right? But like I said, for practices getting into this for the first time, practices looking to expand their offerings, the robot is still a pretty unique offering.

我不會說競爭有很大不同。不過，我想說，隨著最終消費者尋求更便宜的價格，有些人確實會選擇成本更低的手動程序，對嗎？但就像我說的，對於第一次涉足這一領域的實踐，以及尋求擴展其產品的實踐來說，機器人仍然是一個非常獨特的產品。

Okay. Thanks. I will hop back into queue. Appreciate it.

好的。謝謝。我會跳回隊列。欣賞它。

Thank you, Anthony.

謝謝你，安東尼。

(Operator Instructions) We're currently showing no additional participants in the queue. That does conclude our conference for today. Thank you for your participation.

（操作員說明）目前隊列中沒有顯示其他參與者。我們今天的會議到此結束。感謝您的參與。

Thank you, everyone.

謝謝大家。

Thank you.

謝謝。