Venus Concept Inc (VERO) 2024 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the second-quarter 2024 earnings conference call for Venus Concept Inc.

女士們、先生們，美好的一天，歡迎參加 Venus Concept Inc. 2024 年第二季財報電話會議。

(Operator Instructions)

（操作員說明）

Please note that this conference call is being recorded and that the recording will be available on the company's website for replay.

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 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，我們的言論和對您問題的答覆可能包含基於管理層當前預期的前瞻性陳述，並涉及固有風險和不確定性，可能導致實際結果與所示結果存在重大差異，包括我們最近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因素。

Such factors may be updated from time to time in our filings with the SEC, which are available on our website.

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。

We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise.

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。

This call will also include references to certain financial measures that are not calculated in accordance which generally accepted accounting principles or GAAP.

此次電話會議也將提及某些未依公認會計原則或公認會計準則計算的財務指標。

We generally refer to these as non-GAAP financial measures.

我們通常將這些稱為非公認會計準則財務指標。

Reconciliations to 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 for Venus Concept.

我現在想將電話轉給 Venus Concept 執行長 Rajiv De Silva 先生。

Please go ahead, sir.

請繼續，先生。

Thank you, operator, and welcome, everyone, to Venus Concept's second-quarter 2024 earnings conference call.

謝謝業者，歡迎大家參加 Venus Concept 的 2024 年第二季財報電話會議。

I am joined on the call today by our Chief Financial Officer, Domenic Della Penna, and by our President and Chief Operating Officer, Dr. Hemanth Varghese.

我們的財務長 Domenic Della Penna 和我們的總裁兼營運長 Hemanth Varghese 博士也參加了今天的電話會議。

Let me start with an agenda of what we will cover during our prepared remarks.

讓我先列出我們將在準備好的發言中討論的內容的議程。

I will begin with a brief review of our second quarter results and operating developments in recent months.

我將首先簡要回顧我們第二季度的業績和近幾個月的營運發展。

Hemanth will then share an update on our progress in several key operating areas.

然後，Hemanth 將分享我們在幾個關鍵營運領域的最新進展。

Following that, Domenic will provide you with an in-depth review of our second quarter financial results, as well as our balance sheet and financial condition at quarter end.

隨後，多梅尼克將為您提供對我們第二季度財務業績以及季度末資產負債表和財務狀況的深入審查。

Then we will open the call for your questions.

然後我們將打開電話詢問您的問題。

With that agenda in mind, let's get started.

考慮到該議程，讓我們開始吧。

As detailed in our press release issued today, we are pleased to deliver revenue for second quarter that modestly exceeded the expectations we outlined on our first quarter earnings call.

正如我們今天發布的新聞稿中所詳述的，我們很高興第二季度的收入略高於我們在第一季財報電話會議上概述的預期。

While our total business results reflect a decrease of 17% on a year-over-year basis, we are encouraged by the continued improvement in the underlying trends in our business during the quarter, particularly in the US Sales to US customers posted only mid-single-digit declines year-over-year.

雖然我們的整體業務業績年減 17%，但我們對本季業務基本趨勢的持續改善感到鼓舞，特別是在美國。

Outside the US, revenue decreased 29% year-over-year in the second quarter, reflecting impacts related to the strategic restructuring activities we executed last year.

在美國以外，第二季營收年減 29%，反映了我們去年執行的策略重組活動的影響。

Additionally, our all US revenue results were impacted by fluctuations in ordering patterns from our new distribution partners in key international markets as we had expected.

此外，正如我們預期的那樣，我們在美國的所有收入結果都受到主要國際市場新分銷合作夥伴的訂購模式波動的影響。

While the business continues to be impacted by macroeconomic headwinds, which are pressuring the aesthetic sector as a whole, we are encouraged by the continued improvement in the underlying trends in our US business.

儘管該業務繼續受到宏觀經濟逆風的影響，給整個美容行業帶來壓力，但我們對美國業務基本趨勢的持續改善感到鼓舞。

We believe this improvement represents further evidence of the strategy we've implemented to focus our resources on high opportunity markets with the goal of enhancing the company's long-term growth and profitability profile is working.

我們相信，這項改進進一步證明了我們所實施的將資源集中在高機會市場、以提高公司長期成長和獲利狀況為目標的策略正在發揮作用。

That said, the operating environment remains challenging.

儘管如此，經營環境仍充滿挑戰。

Customer financing pressures, higher interest rates, and tighter credit markets continue to impact customer systems adoption throughout our business.

客戶融資壓力、利率上升和信貸市場收緊繼續影響我們整個業務中客戶系​​統的採用。

This is especially the case with high ASP systems deals where time to close continues to lengthen.

對於高平均售價系統交易尤其如此，成交時間不斷延長。

I am proud of our team's continued commitment to our strategy despite the challenging operating environment.

儘管營運環境充滿挑戰，但我對我們的團隊繼續致力於我們的策略感到自豪。

The positive energy and enthusiasm give me confidence that my expectation for continued solid execution and improving results over the balance of 2024 is appropriate.

正向的能量和熱情讓我相信，我對 2024 年餘下時間繼續紮實執行和改善績效的期望是適當的。

Before I turn the call over to Hemanth, I wanted to provide an update on a few areas of notable progress made in the second quarter with respect to three of our key strategic initiatives.

在將電話轉給赫曼斯之前，我想介紹一下第二季度在我們三項關鍵策略舉措方面取得的顯著進展的一些領域的最新情況。

First, we remain focused on our strategic initiative to enhance the cash flow profile of the business and accelerate the path to long-term sustainable profitability and growth.

首先，我們仍然專注於我們的策略性舉措，以增強業務的現金流狀況並加速實現長期可持續盈利和成長的道路。

Domenic will discuss our solid cash flow performance in Q2 later on the call.

多梅尼克將在稍後的電話會議上討論我們第二季穩健的現金流表現。

But I wanted to call out a few important highlights to underscore our recent progress on this front.

但我想指出一些重要的亮點，以強調我們最近在這方面取得的進展。

We achieved a 37% reduction in our cash used in operations year-over-year, which we view as particularly impressive given the continued headwinds to revenue growth that the aesthetic sector participants are facing over the last year.

我們的營運現金年減了 37%，考慮到美容行業參與者去年面臨的收入成長持續不利因素，我們認為這一結果尤其令人印象深刻。

We continue to believe that this performance represents the clearest evidence that we are making progress with respect to this important strategic initiative.

我們仍然相信，這項業績代表了我們在這項重要策略舉措方面正在取得進展的最明確證據。

Second, as discussed on our first quarter call, we announced multiple transactions reflecting material progress towards our strategic initiative to restructure the company's debt obligations and secure bridge financing.

其次，正如我們在第一季電話會議上討論的那樣，我們宣布了多項交易，反映出我們在重組公司債務和確保過橋融資的戰略舉措方面取得了重大進展。

On April 23, one of our largest lenders and investors, Madryn Asset Management, versus the company's Main Street Lending Program Loan or MSLP Loan from City National Bank of Florida for an undisclosed amount.

4 月 23 日，我們最大的貸款人和投資者之一 Madryn Asset Management 與佛羅裡達州國家銀行 (City National Bank of Florida) 對該公司的主街貸款計劃貸款 (MSLP) 進行了訴訟，金額未公開。

Following the close of the MSLP Loan purchase, we entered into a Loan and Security Agreement with Madryn for an aggregate principal amount of up to $5 million in debt financing to support our near-term liquidity requirements, and on May 28, we announced a debt to equity exchange, which resulted in a net reduction in outstanding borrowings of $35 million.

MSLP 貸款購買結束後，我們與 Madryn 簽訂了一項貸款和擔保協議，本金總額高達 500 萬美元的債務融資，以支持我們的近期流動性需求，並於 5 月 28 日宣布債務融資股權交換，導致未償還借款淨減少3500 萬美元。

These transactions facilitated a 39% reduction in our total debt outstanding over the first half of 2024 to approximately $46 million as of June 30 compared to $24.9 million as of December 31, 2023.

這些交易使我們的未償債務總額在 2024 年上半年減少了 39%，截至 6 月 30 日約為 4,600 萬美元，而截至 2023 年 12 月 31 日為 2,490 萬美元。

We are pleased that Madryn has demonstrated further commitment to Venus Concept's long-term prospects with these transactions and look forward to our continued engagement with them as we execute our strategic plan.

我們很高興 Madryn 透過這些交易表現出對 Venus Concept 長期前景的進一步承諾，並期待我們在執行策略計劃時繼續與他們合作。

Third, on June 6, we announced that we were notified by the NASDAQ Stock Market that Venus Concept has regained continued listing compliance.

第三，6月6日，我們宣布，接獲納斯達克股票市場通知，啟明星辰概念已恢復持續上市合規性。

The debt to equity transaction with Madryn served to bring the company above the minimum stockholders' equity requirement.

與 Madryn 的債轉股交易使公司高於最低股東權益要求。

I would now like to turn the call over to Dr. Hemanth Varghese, who will share an update on recent progress related to our other initiatives.

我現在想將電話轉給 Hemanth Varghese 博士，他將分享與我們其他舉措相關的最新進展。

Hemanth?

赫曼斯？

Thanks, Rajiv.

謝謝，拉吉夫。

As outlined on our last earnings call, we were focused in 2024 on our restructuring programs, as well as our commercial strategy, customer engagement, product development, and regulatory initiatives.

正如我們在上次財報電話會議中所述，2024 年我們的重點是重組計劃以及商業策略、客戶參與、產品開發和監管舉措。

Let me share a little color on our recent progress in each of these areas.

讓我分享一下我們最近在每個領域的進展。

First, our restructuring, cost reduction, and cash management initiatives continue to progress well, and our focus on protecting near-term cash runway has been productive.

首先，我們的重組、成本削減和現金管理措施繼續進展順利，我們對保護近期現金跑道的關註一直富有成效。

Specifically, we delivered a 13% reduction in our operating expenses year-over-year, reflecting the significant restructuring activities we've executed as part of our corporate turnaround strategy over the last 18 months.

具體來說，我們的營運費用年減了 13%，這反映出我們在過去 18 個月中作為公司扭虧為盈策略的一部分所執行的重大重組活動。

As part of this effort, it's important to understand that we're also focused on allocating our resources to high priority strategic initiatives that will support our future growth.

作為這項努力的一部分，重要的是要了解我們也專注於將資源分配給支持我們未來成長的高優先級策略舉措。

This includes our efforts to advance certain new product pipeline projects, such as the regulatory clearance and commercialization of our next body contouring system in early 2025.

這包括我們努力推進某些新產品管道項目，例如我們的下一個塑身系統將於 2025 年初獲得監管許可並商業化。

Our strategic focus on accelerating the company's path to cash flow breakeven and sustaining operations has resulted in difficult decisions, like to delay the highly compelling R&D initiatives, including our AI.ME Robotics platform.

我們的策略重點是加速公司實現現金流收支平衡和維持運營，這導致了我們做出艱難的決定，例如推遲非常引人注目的研發計劃，包括我們的 AI.ME 機器人平台。

We continue to believe that our AI.ME Robotics platform has the potential to revolutionize aesthetic medical treatment paradigms.

我們仍然相信我們的 AI.ME 機器人平台有潛力徹底改變美容醫療模式。

The AI.ME technology will be critical to maximizing the synergy between our well-established medical aesthetics business, and our pioneering robotics R&D capability.

AI.ME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。

As we continue to stabilize the core business and enhance our overall financial security and investment flexibility, we look forward to returning to an expanded R&D program and new product development strategy, which will be an essential component of our long-term revenue growth.

隨著我們繼續穩定核心業務並增強整體財務安全和投資靈活性，我們期待回歸擴大的研發計劃和新產品開發策略，這將是我們長期收入成長的重要組成部分。

Second, our efforts to rationalize our international infrastructure reduce costs and simplify the organization continues to progress as well.

其次，我們在國際基礎設施合理化、降低成本和簡化組織方面的努力也持續取得進展。

As part of this initiative, we continue to engage with existing and several new distribution partners to align our new international strategy.

作為該計劃的一部分，我們將繼續與現有的和幾個新的分銷合作夥伴合作，以調整我們新的國際策略。

Importantly, we remain on track to be substantially completed with our international repositioning in the coming months and ready to return to growth outside the US in 2025.

重要的是，我們仍有望在未來幾個月內基本完成國際重新定位，並準備在 2025 年恢復美國以外地區的成長。

Third, during the second quarter, we continued to drive progress with respect to our efforts to secure new regulatory clearances and execute successful commercial launches.

第三，在第二季度，我們繼續推動在獲得新的監管許可和成功進行商業發布方面的努力取得進展。

Specifically, we secured TGA clearance in Australia for our Venus Versa Pro on April 3.

具體來說，我們的 Venus Versa Pro 於 4 月 3 日在澳洲獲得了 TGA 許可。

The initial launch in this important global market is progressing favorably.

在這個重要的全球市場的首次推出進展順利。

In June, we announced the receipt of a medical device license to market Venus Versa Pro in Canada.

6 月，我們宣布獲得在加拿大銷售 Venus Versa Pro 的醫療器材許可證。

Venus Versa Pro continues to receive positive feedback from customers regarding its multimodal system capabilities and best-in-class in treatments.

Venus Versa Pro 持續收到客戶對其多模式系統功能和一流治療的正面回饋。

Fourth, we are pleased with the positive early market response from our company-wide rebranding initiative, Venus AI and the encouraging feedback from physician participants in our NEXThetics programs.

第四，我們對全公司範圍內的品牌重塑計劃 Venus AI 的積極早期市場反應以及 NEXThetics 計劃中醫生參與者的令人鼓舞的反饋感到高興。

We've been pleased to see a significant increase in the popularity and attendance at our NEXThetics events, which as a reminder, bring together our network of aesthetic leaders and practitioners to learn about the science, behind Venus AI technologies and our best-in-class practice development programs.

我們很高興看到NEXThetics 活動的受歡迎程度和出席人數顯著增加，提醒我們，該活動將我們的美學領導者和從業者網路聚集在一起，了解維納斯人工智慧技術和我們最好的技術背後的科學知識。

The NEXThetics program represents a great example of how we are enhancing our focus on physician education and practice enhancement by empowering professionals in the aesthetics field with the knowledge, tools and support they need to grow their businesses.

NEXThetics 計劃是一個很好的例子，說明我們如何透過為美學領域的專業人士提供發展業務所需的知識、工具和支持來加強對醫生教育和實踐增強的關注。

Since launching the first event in March, we've hosted thousands of registrants including our largest gathering to date, which was held in Houston, Texas in June.

自從三月推出第一場活動以來，我們已經接待了數千名註冊者，其中包括 6 月在德克薩斯州休斯頓舉行的迄今為止最大的聚會。

Looking ahead to the remainder of 2024, NEXThetics events will continue to expand across the United States with upcoming events in Phoenix, New York City, Atlanta, Dallas and Minneapolis.

展望 2024 年剩餘時間，NEXThetics 活動將繼續在美國各地擴展，即將在鳳凰城、紐約市、亞特蘭大、達拉斯和明尼阿波利斯舉辦活動。

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

接下來，讓我將電話轉給多梅尼克，以審查我們第二季度的財務表現和季度末的資產負債表。

Domenic?

多梅尼克？

Thanks, Hemanth.

謝謝，赫曼斯。

For the avoidance of doubt, unless otherwise noted, my prepared remarks will focus on the company's reported results for the second quarter of 2024 on a GAAP basis and all growth-related items are on a year-over-year basis.

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 2024 年第二季報告業績，所有與成長相關的項目均按同比計算。

We reported total revenue of $16.6 million, down $3.5 million or 17% year-over-year.

我們公佈的總收入為 1,660 萬美元，年減 350 萬美元，即 17%。

The decrease in total revenue by region was driven by a 29% decrease year-over-year in international revenue and a 5% decrease year-over-year in United States revenue.

各地區總收入下降的原因是國際收入年減 29%，美國營收年減 5%。

The decrease in total revenue by product category was driven by a 30% decrease in products systems revenue, a 4% decrease in services revenue.

產品類別總收入下降的原因是產品系統收入下降 30%，服務收入下降 4%。

The decrease was offset partially by a 5% increase in lease revenue and a 2% increase in products other revenue.

這一下降被租賃收入成長 5% 和產品其他收入成長 2% 部分抵消。

The percentage of total systems revenue derived from the company's internal lease programs, Venus Prime and our legacy subscription model was approximately 34% in the second quarter of 2024 compared to 26% in the prior year period.

2024 年第二季度，來自公司內部租賃計劃、Venus Prime 和我們的傳統訂閱模式的系統總收入百分比約為 34%，而去年同期為 26%。

Note, this represents a change in the trend demonstrated over the last 18 months.

請注意，這代表過去 18 個月的趨勢發生了變化。

Our focus on prioritizing cash system sales has resulted in the overall percentage of total systems revenue derived from our internal lease programs declined from approximately 42% in fiscal year 2022 to 33% in fiscal year 2023 to a low of 25% in Q1 2024.

我們專注於優先考慮現金系統銷售，導致內部租賃計劃產生的系統總收入的總體百分比從 2022 財年的約 42% 下降到 2023 財年的 33%，再到 2024 年第一季的 25%。

As discussed in our recent investor calls, this strategic initiative has been a key driver of the significant improvements in our cash generation given the higher quality of revenue cash system sales represent.

正如我們在最近的投資者電話會議中所討論的，鑑於現金系統銷售收入的品質更高，這項策略舉措一直是我們現金產生能力顯著改善的關鍵驅動力。

For avoidance of doubt, this strategy remains a priority for the company.

為避免疑義，這項策略仍是公司的優先事項。

We continue to prioritize cash system sales and believe the appropriate mix of our system sales revenue to be in the 70% cash, 30% lease mix going forward.

我們繼續優先考慮現金系統銷售，並相信未來我們的系統銷售收入的適當組合將是 70% 現金、30% 租賃組合。

That said, it is important to realize that the company's lease revenue profile in 2024 is very different and materially higher quality than at any time in the company's history.

也就是說，重要的是要認識到，該公司 2024 年的租賃收入狀況與該公司歷史上的任何時候都非常不同，而且品質明顯更高。

Specifically, in January, we introduced Venus Prime, our structured in-house financing program, which replaced the legacy subscription program for new customers in North America.

具體來說，一月份，我們推出了 Venus Prime，這是我們的結構化內部融資計劃，它取代了針對北美新客戶的傳統訂閱計劃。

Venus Prime has been very well received in the marketplace and has given Venus Concept a competitive differentiator during this challenging capital equipment environment.

Venus Prime 在市場上廣受好評，並為 Venus Concept 在充滿挑戰的資本設備環境中提供了競爭優勢。

In the current macro environment, third-party lending has tightened and so has access to capital.

在當前的宏觀環境下，第三方貸款收緊，資金來源也隨之收緊。

With this in mind, the ability to offer Venus Prime represents a valuable option to help with new system adoption.

考慮到這一點，提供 Venus Prime 的能力是幫助新系統採用的一個有價值的選擇。

Importantly, the Venus Prime program is characterized by adherence to strict credit screening practices, a tiered risk assessment for each customer and consistent monitoring of payment trends, which has resulted in significantly lower bad debt expense versus our legacy subscription program.

重要的是，Venus Prime 計劃的特點是遵守嚴格的信用篩選實踐、對每個客戶進行分層風險評估以及對付款趨勢的持續監控，這使得與我們的傳統訂閱計劃相比，壞帳費用顯著降低。

While we continue to favor cash system sales with a target of roughly 70% of total systems revenue coming from cash sales, we are very pleased to have the unique lever of our Venus Prime program as a key differentiator from our competitors.

雖然我們繼續支持現金系統銷售，目標是現金銷售佔系統總收入的大約 70%，但我們很高興擁有 Venus Prime 計劃的獨特槓桿，作為與競爭對手的關鍵區別。

Turning to a review of our second quarter financial results across the rest of the P&L, gross profit decreased $2.4 million or 17% to $11.8 million.

回顧第二季損益表其餘部分的財務業績，毛利下降 240 萬美元，或 17%，至 1,180 萬美元。

The change in gross profit was primarily due to a decrease in revenue in international markets driven by the accelerated exit from unprofitable direct markets and the effects of tighter third-party lending practices, which negatively impacted capital equipment sales in both the US and international markets.

毛利的變化主要是由於加速退出無利可圖的直接市場以及第三方貸款做法收緊的影響，導致國際市場收入下降，這對美國和國際市場的資本設備銷售產生了負面影響。

Gross margin was 71.5% of revenue compared to 70.8% of revenue for the second quarter of 2023.

毛利率佔營收的 71.5%，而 2023 年第二季毛利率為 70.8%。

While margin management and the exit from unprofitable direct markets are the primary contributors of this improvement, the company has also improved margins on our artist systems through manufacturing efficiencies.

雖然利潤管理和退出無利可圖的直接市場是這項改進的主要貢獻者，但該公司也透過製造效率提高了我們的藝術家系統的利潤。

Total operating expenses decreased $2.5 million or 13% to $17.4 million.

總營運費用減少 250 萬美元，即 13%，至 1,740 萬美元。

The change in total operating expenses was driven primarily by a decrease of $1.3 million or 16% in selling and marketing expenses, a decrease of $1 million or 10% in general and administrative expenses.

總營運費用的變化主要是因為銷售和行銷費用減少 130 萬美元或 16%，一般和管理費用減少 100 萬美元或 10%。

Second quarter of 2024 GAAP, general and administrative expenses include approximately $0.2 million of costs related to restructuring activities designed to improve the company's operations and cost structure compared to approximately $0.4 million for the second quarter of 2023.

2024 年第二季 GAAP、一般和管理費用包括約 20 萬美元與旨在改善公司營運和成本結構的重組活動相關的成本，而 2023 年第二季約為 40 萬美元。

The total operating loss was $5.6 million, down $0.2 million or 3% year-over-year.

總營業虧損為 560 萬美元，年減 20 萬美元，即 3%。

Net interest and other expenses were $14.1 million compared to income of $1.4 million in the second quarter of 2023.

淨利息和其他費用為 1,410 萬美元，而 2023 年第二季的收入為 140 萬美元。

The year-over-year change in net interest and other expenses was driven primarily by a $10.9 million noncash pretax loss on debt extinguishment due to the extinguishment of debt as a result of the debt-to-equity exchange transaction with Madryn in May 2024.

淨利息和其他費用的同比變化主要是由於 2024 年 5 月與 Madryn 進行債轉股交易導致債務清償，導致債務清償產生 1,090 萬美元的非現金稅前損失。

The increase in second quarter net interest and other expenses was also driven by higher interest expense on outstanding borrowings and a noncash foreign exchange loss of $0.8 million compared to a noncash gain of $0.2 million in the prior year period.

第二季淨利息和其他費用的增加也是由於未償還借款的利息費用增加以及非現金外匯損失 80 萬美元（而上年同期非現金收益 20 萬美元）推動的。

Net loss attributable to stockholders for the second quarter of 2024 was $20 million or $3.05 per share compared to net loss of $7.4 million or $1.35 per share for the second quarter of 2023.

2024 年第二季股東應佔淨虧損為 2,000 萬美元，即每股 3.05 美元，而 2023 年第二季的淨虧損為 740 萬美元，即每股 1.35 美元。

Adjusted EBITDA loss for the second quarter of 2024 increased 4% year-over-year to $4.1 million.

2024 年第二季調整後 EBITDA 虧損年增 4%，達到 410 萬美元。

As a reminder, we have provided a full reconciliation of our GAAP net loss to adjusted EBITDA loss in our earnings press release.

謹此提醒，我們在收益新聞稿中提供了 GAAP 淨虧損與調整後 EBITDA 虧損的全面調整表。

Turning to the balance sheet.

轉向資產負債表。

As of June 2024, the company had cash and cash equivalents of $5.7 million and total debt obligations of approximately $46 million compared to $5.4 million and $74.9 million, respectively, as of December 31, 2023.

截至 2024 年 6 月，該公司擁有現金和現金等價物為 570 萬美元，債務總額約為 4,600 萬美元，而截至 2023 年 12 月 31 日分別為 540 萬美元和 7,490 萬美元。

Cash used in operations for the three months ended June 30 was $1.3 million, a 37% decrease and cash used year-over-year.

截至 6 月 30 日的三個月營運現金使用量為 130 萬美元，年減 37%。

We are very proud of the continued improvement in reducing our cash used in operations despite the challenging operating environment.

儘管營運環境充滿挑戰，但我們在減少營運現金使用方面的持續改進感到非常自豪。

Specifically, we have delivered a 47% reduction in cash used in operations over the first 6 months of 2024 continuing the strong performance towards this important strategic initiative in fiscal year 2023 when we reduced our cash used in operations by 52%.

具體而言，我們在2024 年前6 個月將營運中使用的現金減少了47%，繼續在2023 財年實現這一重要戰略舉措的強勁表現，當時我們將營運中使用的現金減少了52% 。

With respect to the year-over-year decrease in cash used in operations during the second quarter, the largest driver of change was strong working capital performance with more than $3.8 million of cash generated from working capital in the period.

至於第二季營運中使用的現金年減，最大的變化驅動因素是強勁的營運資本表現，該期間營運資本產生的現金超過 380 萬美元。

While multiple items are contributing to our working capital improvement, we are particularly proud of the notable reduction in cash tied up in accounts receivable.

雖然多個項目有助於我們的營運資本改善，但我們特別自豪的是應收帳款佔用的現金顯著減少。

Our efforts to enhance the quality of our internal lease programs, specifically the enhanced credit profile of customers in our Venus Prime program has resulted in better collections and lower bad debt expense.

我們努力提高內部租賃計劃的質量，特別是在 Venus Prime 計劃中提高客戶的信用狀況，從而實現了更好的收款和更低的壞帳費用。

We remain intently focused on further enhancements of the cash flow profile of our business and believe we have the right strategy to build the requisite foundation to support our growth and profitability goals in the year to come.

我們仍然專注於進一步增強我們業務的現金流狀況，並相信我們擁有正確的策略來奠定必要的基礎，以支持我們來年的成長和獲利目標。

As outlined in our press release, given the company's active dialogue with our existing lender, and investors and the ongoing evaluation of strategic alternatives with various interested parties to maximize shareholder value, the company is not providing full year 2024 financial guidance at this time.

正如我們的新聞稿中所述，鑑於公司與現有貸方和投資者進行積極對話，並與各利益相關方持續評估戰略替代方案以實現股東價值最大化，公司目前不提供2024 年全年財務指引。

For modeling purposes, the company expects total revenue for the 3 months ending September 30, 2024, of at least $17 million.

出於建模目的，該公司預計截至 2024 年 9 月 30 日的 3 個月總收入至少​​為 1700 萬美元。

With that, I'll turn the call over to the operator to open the call for your questions.

這樣，我會將電話轉給接線員，以解答您的問題。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Marie Thibault, BTIG.

瑪麗蒂博，BTIG。

Hi, good morning.

嗨，早安。

Thanks for taking the questions.

感謝您提出問題。

I wanted to ask my first question here on the macroeconomic outlook.

我想在這裡問關於宏觀經濟前景的第一個問題。

It looks like US revenue certainly is stabilizing despite some of the longer selling cycles.

儘管銷售週期較長，但美國的收入似乎確實正在穩定。

And I wondered if that was sort of a stable level we are at now, is that something that you think is relatively sustainable going forth?

我想知道這是否是我們現在所處的穩定水平，您認為這是相對可持續的嗎？

And then second part there on OUS, there was mention of ordering patterns with the new distributors, new distribution partners.

然後是 OUS 的第二部分，提到了新經銷商、新分銷合作夥伴的訂購模式。

Wondering how long that will take to sort of settle into a routine, if you can just kind of elaborate on what you meant by some of those ordering patterns.

想知道需要多長時間才能適應例行公事，如果您能詳細說明其中一些訂購模式的含義。

Sure.

當然。

Marie, I think as you pointed out, I think we are encouraged by the performance of the US business.

瑪麗，我認為正如您所指出的，我們對美國企業的表現感到鼓舞。

And it is declining at a much lower rate and approaching a point of stability, and we are cautiously optimistic as we look into the back half of the year that we should be getting to a point where it's flattish to growing versus last year.

而且它正在以低得多的速度下降並接近穩定點，當我們展望今年下半年時，我們持謹慎樂觀的態度，我們應該會達到與去年相比增長持平的地步。

I think, look, some of that is in the benefit of our very diverse portfolio because, as you know, we have products that span a full spectrum of different types of procedures, different price points.

我認為，其中一些是我們非常多樣化的產品組合的好處，因為如您所知，我們的產品涵蓋各種不同類型的程序、不同的價格點。

And that diversity is certainly likely helping us in this environment despite the tight credit environment.

儘管信貸環境緊張，但這種多樣性肯定會在這種環境下幫助我們。

And obviously, Venus Prime program is also helpful because Venus Prime probably plays more for role in the US than most of the markets.

顯然，Venus Prime 計劃也很有幫助，因為 Venus Prime 在美國可能比大多數市場發揮更大的作用。

So that's the view on US and Hemanth can probably add to it when I'm done.

這就是對美國和赫曼斯的看法，當我完成後可能會補充它。

On the OUS markets, we made great progress in winding down our unprofitable subs.

在 OUS 市場上，我們在減少無利可圖的子公司方面取得了巨大進展。

And then the process of signing on new distributors has taken time and probably intentionally so because what we didn't want to do was just go sign up a bunch of distributors and start selling, we want to make sure we got the right distribution partners, the right terms in place.

然後簽約新經銷商的過程需要時間，而且可能是故意的，因為我們不想做的只是簽約一堆經銷商並開始銷售，我們希望確保我們擁有合適的分銷合作夥伴，適當的條款。

So that has gone on over the course of the last few months.

在過去的幾個月裡，這種情況一直持續著。

My guess, and again, Hemanth, correct me if I'm wrong, is that we should be done with signing up new distributors by the second half of this year.

我的猜測是，赫曼斯，如果我錯了，請糾正我，我們應該在今年下半年之前完成與新經銷商的簽約。

And it's just a little lumpy in terms of when they actually place their first order, which is kind of what we were referring to.

就他們實際下第一筆訂單的時間而言，這有點不穩定，這正是我們所指的。

Our view is that it will be 2025 before this is all kind of in steady state.

我們的觀點是，要到 2025 年，這一切才能達到穩定狀態。

There will be continue to be a little bit more lumpiness in the back half of 2024.

2024 年下半年，市場將持續變得更加不穩定。

Hemanth, do you have anything to add to that?

Hemanth，您還有什麼要補充的嗎？

No, I think you said it well.

不，我覺得你說得很好。

When you look at, starting on a second, our new distribution partners, as Rajiv mentioned, we've taken a different approach to what was done in the past.

正如拉吉夫所提到的，當你從第二個角度開始觀察我們的新分銷合作夥伴時，我們對過去的做法採取了不同的方法。

We really look for proper partners in each region that can grow our products in that market.

我們確實在每個地區尋找合適的合作夥伴，以便在該市場上發展我們的產品。

So in a lot of cases, they're actually registering our products for the first time in those markets.

因此，在許多情況下，他們實際上是首次在這些市場上註冊我們的產品。

If you look at markets like India, we're having our products registered for the first time.

如果你看看印度這樣的市場，你會發現我們的產品是第一次註冊。

So some of those things were up in the registration process, once those get approved, we'll have additional growth.

因此，其中一些事情是在註冊過程中進行的，一旦這些事情獲得批准，我們將獲得額外的成長。

These new contracts are true partnerships, meaning they'll have contractual minimums, there's incentives to essentially not only hit your minimums, but actually grow your sales in each market.

這些新合約是真正的合作夥伴關係，這意味著它們將具有合約最低限額，並且有激勵措施，不僅可以達到最低限額，而且實際上可以增加您在每個市場的銷售額。

So those ordering patterns are what take a little bit of time, right?

那麼這些訂購模式需要一點時間，對吧？

You go -- going from your first order for them entering into the market, potentially with new regulatory approvals and then starting to grow.

你開始——從你進入市場的第一筆訂單開始，可能會獲得新的監管批准，然後開始成長。

But we are seeing positive trends across the board in the markets that we've brought on board.

但我們在我們引入的市場中看到了全面的積極趨勢。

And as we mentioned, we have additional ones that we are hoping to complete before the end of the year.

正如我們所提到的，我們希望在今年年底之前完成更多的工作。

On the US, I think Rajiv said it well, I honestly think we're uniquely positioned with the breadth of the portfolio we have and our customer base.

在美國，我認為拉吉夫說得很好，老實說，我認為我們擁有獨特的定位，擁有廣泛的產品組合和客戶群。

We target both core and noncore physicians and with a very broad portfolio of products, and that really does let us compete attractively within this market even with all the challenges we have.

我們的目標是核心和非核心醫生，並擁有非常廣泛的產品組合，這確實讓我們在這個市場上具有吸引力，即使我們面臨所有挑戰。

Okay.

好的。

Very useful detail.

非常有用的細節。

A quick follow-up here.

這裡快速跟進。

Your cash usage continues to shrink, and you've done a nice job with working capital improvements.

您的現金使用量持續減少，並且您在改善營運資金方面做得很好。

Any way to sort of think about the outlook for your cash runway about $6 million in cash and equivalents here on the balance sheet, how we should think about the next couple of quarters in terms of cash usage?

有什麼方法可以考慮資產負債表上 600 萬美元現金和等價物的現金跑道的前景嗎？

Thanks again.

再次感謝。

Yes.

是的。

Let me start and Domenic can add to it.

讓我開始吧，多梅尼克可以補充。

So I think we are reaching a somewhat steady state, Marie.

所以我認為我們正在達到某種穩定的狀態，瑪麗。

My guess is that third quarter will be similar though may have a little bit of an uptick because there are some R&D spends and things like that, that we're going to have to incur.

我的猜測是，第三季將會相似，儘管可能會略有上升，因為我們將不得不承擔一些研發支出和類似的費用。

Fourth quarter, as you know, is generally because of seasonality, the best quarter for our businesses.

如您所知，第四季度通常是由於季節性原因，是我們業務最好的季度。

So there might be some improvement going into the fourth quarter.

因此，第四季可能會有一些改善。

And then as we look into 2025, it really is a function of growth and how are the pace of our new product introductions and how those will impact the revenue line but we are still focused on getting the company to cash flow breakeven in the second half of 2025.

然後，當我們展望 2025 年時，這確實是成長的函數，我們新產品推出的速度如何，以及這些將如何影響收入線，但我們仍然專注於讓公司在下半年實現現金流收支平衡2025 年。

And I think we are moving in the right trajectory to get there.

我認為我們正在朝著實現這一目標的正確軌道前進。

Domenic?

多梅尼克？

Yes.

是的。

I think Rajiv said it well.

我覺得拉吉夫說得很好。

We'll see some continued burn.

我們會看到一些持續的燃燒。

But towards the fourth quarter, we are generally not burning much in the fourth quarter but there will be some burn in Q3, consistent with what we've seen in Q2 more or less.

但到了第四季度，我們通常不會在第四季度燃燒太多，但在第三季度會有一些燃燒，這或多或少與我們在第二季度看到的情況一致。

(Operator Instructions) Thomas McGovern, Maxim Group.

（操作員說明）Thomas McGovern，Maxim Group。

Hi, guys.

嗨，大家好。

Thanks for taking my question.

感謝您提出我的問題。

So my first question is on the remaining debt on the balance sheet.

所以我的第一個問題是關於資產負債表上的剩餘債務。

So following this debt-to-equity experience you guys did in the quarter, just curious kind of what your strategic approaches to addressing the remaining $46 million in debt on the balance sheet.

因此，根據你們在本季所做的債務轉股經歷，我只是好奇你們解決資產負債表上剩餘 4,600 萬美元債務的戰略方法是什麼。

Thanks.

謝謝。

Yes.

是的。

So thank you for the question.

謝謝你的提問。

We feel very pleased with the partnership that we've had with Madryn.

我們對與 Madryn 的合作夥伴關係感到非常滿意。

They've been very constructive in helping the company think through our strategic options.

他們在幫助公司思考我們的策略選擇方面非常有建設性。

And obviously, their continued investment is a sign of their continued belief in the company and its potential.

顯然，他們的持續投資顯示了他們對公司及其潛力的持續信心。

We continue to work with Madryn as well as our largest shareholders is to work towards what we think is a sustainable capital structure would be for the company.

我們將繼續與 Madryn 以及我們最大的股東合作，努力實現我們認為公司可持續的資本結構。

And certainly, there is ongoing discussion about the remaining $46 million of debt and what that ideal should look like going forward.

當然，關於剩餘的 4,600 萬美元債務以及未來的理想應該是什麼樣子的討論仍在繼續。

We don't have a definitive answer on that yet, but that's certainly a part of ongoing discussion with Madryn and other stakeholders, which we expect to continue over the course of the third quarter.

我們對此還沒有明確的答案，但這肯定是與 Madryn 和其他利益相關者正在進行的討論的一部分，我們預計將在第三季度繼續討論。

Got you.

明白你了。

I appreciate that color.

我很欣賞那種顏色。

And my second question is just kind of more on a high level.

我的第二個問題只是更高層次的問題。

You guys are talking about how you're revisiting your strategic approach to reestablishing yourselves in international markets.

你們正在談論如何重新審視自己的策略方法，以在國際市場上重建自己的地位。

And I know you just kind of briefly touched on it.

我知道你只是簡單地談到了它。

But maybe if you could discuss on a higher level, kind of what's changed from the last time you entered some of these international markets?

但也許你可以在更高的層面上討論一下，與上次你進入這些國際市場相比發生了什麼變化？

And what do you kind of hope to improve upon as you move forward with the strategic expansion plan?

在推進策略擴張計畫的過程中，您希望在哪些方面進行改進？

Sure.

當然。

Hemanth, do you want to pick that up?

赫曼斯，你想接一下嗎？

Sure.

當然。

Yes.

是的。

At a high level, and again, we've talked about this before as part of the overall restructuring.

在較高層面上，我們之前曾作為整體重組的一部分討論過這一點。

The legacy Venus business was direct in a lot of markets, meaning we had infrastructure, and while we might have been generating revenue, we generally weren't profitable in a lot of those markets.

維納斯的傳統業務在許多市場中都是直接的，這意味著我們擁有基礎設施，雖然我們可能已經產生了收入，但我們通常在許多市場中沒有獲利。

And so as part of the restructuring, the first thing we did was we remain focused in markets with a direct presence where we are profitable.

因此，作為重組的一部分，我們做的第一件事就是繼續專注於能夠直接獲利的市場。

So you look at markets like Australia and Mexico and Israel, we're very strong and profitable.

所以你看看澳洲、墨西哥和以色列等市場，我們非常強大並且獲利。

Those are direct markets.

這些是直接市場。

Those make sense for us to maintain and continue to grow.

這些對我們維持並持續發展是有意義的。

In other markets where we're not, we're either subscale, it just doesn't make sense at this time.

在其他我們沒有的市場，我們要么規模較小，但目前沒有意義。

What we've done is found strong distribution partners.

我們所做的就是找到強大的分銷合作夥伴。

And again, not just any distribution partner, a partner that actually has a strong presence in that market and wants to partner with us to introduce our products.

再說一次，不僅僅是任何分銷合作夥伴，而是在該市場上擁有強大影響力並希望與我們合作推出我們產品的合作夥伴。

And so what we've done over the past year has been to transition to strong distributors.

因此，我們在過去一年所做的就是向強大的經銷商轉型。

And both in existing markets where we were direct and into new markets, as I mentioned, India, we're in discussions around a number of areas in Southeast Asia and continue to expand that way.

正如我所提到的，無論是在我們直接經營的現有市場還是在印度的新市場，我們都在圍繞東南亞的許多地區進行討論，並繼續以這種方式擴展。

So I'd say the distribution partnerships we're entering into are new and different from the ones we had before, as I described previously, with more strict terms and purchase minimums as well as incentive structures to kind of grow and with a commitment to kind of introduce more and more of our products in that market.

因此，我想說，我們正在建立的分銷合作夥伴關係是新的，與我們之前的分銷夥伴關係不同，正如我之前所描述的，具有更嚴格的條款和最低購買量以及促進增長的激勵結構，並承諾在該市場上引入越來越多的我們的產品。

So a real marketing and commercial partnership.

這是真正的行銷和商業合作夥伴關係。

Does that answer your question?

這能回答你的問題嗎？

Yes, absolutely.

是的，絕對是。

I appreciate you guys taking the time, and I can open up the call to further questions.

感謝你們抽出寶貴的時間，我可以打電話詢問更多問題。

We are currently showing no additional participants in the queue.

目前，我們在隊列中沒有顯示其他參與者。

That does conclude our conference for today.

我們今天的會議到此結束。

Thank you for your participation.

感謝您的參與。