DENTSPLY SIRONA Inc (XRAY) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the quarter three 2024 Dentsply Sirona earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 2024 年第三季登士柏西諾德財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Andrea Daley, Vice President of Investor Relations.

現在我想將會議交給今天的發言人、投資者關係副總裁安德里亞·戴利 (Andrea Daley)。

Thank you, operator. And good morning, everyone. Welcome to the Dentsply Sirona third-quarter 2024 earnings call. Joining me for today's call is Simon Campion, Chief Executive Officer; Glenn Coleman, Chief Financial Officer; and Rich Rosenzweig, EVP, Corporate Development and General Counsel. I'd like to remind you that an earnings press release and slide presentation related to the call are available on the Investors section of our website at www.dentsplysirona.com.

謝謝你，接線生。大家早安。歡迎參加登士柏西諾德 2024 年第三季財報電話會議。與我一起參加今天電話會議的是執行長 Simon Campion；格倫‧科爾曼，財務長； Rich Rosenzweig，企業發展執行副總裁兼總法律顧問。我想提醒您，與電話會議相關的收益新聞稿和幻燈片演示可在我們網站 www.dentsplysirona.com 的投資者部分獲取。

Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today's call, we may make certain predictive statements that reflect our current views about future performance and financial results. We base these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties.

在我們開始之前，請花點時間閱讀我們的收益新聞稿中的前瞻性陳述。在今天的電話會議中，我們可能會做出某些預測性陳述，以反映我們目前對未來業績和財務表現的看法。我們的這些陳述以及某些假設和預期是基於存在風險和不確定性的未來事件。

Our most recently filed Form 10-K and any updating information in subsequent SEC filings lists some of the most important risk factors that could cause actual results to differ from our predictions. Additionally, on today's call, our remarks will be based on non-GAAP financial results.

我們最近提交的 10-K 表格以及後續 SEC 文件中的任何更新資訊列出了一些可能導致實際結果與我們的預測不同的最重要的風險因素。此外，在今天的電話會議上，我們的言論將基於非公認會計準則財務表現。

We believe that non-GAAP financial measures offer investors valuable additional insights into our business' financial performance, enable the comparison of financial results between periods where certain items may vary independently of business performance, and enhance transparency regarding key metrics utilized by management in operating our business. Please refer to our press release for the reconciliation between GAAP and non-GAAP results. Comparisons provided are to the prior-year quarter unless otherwise noted. A webcast replay of today's call will be available on the Investors section of the company's website following the call.

我們相信，非公認會計準則財務指標為投資者提供了對我們業務財務業績的寶貴額外見解，能夠對某些項目可能獨立於業務業績而變化的時期之間的財務業績進行比較，並提高管理層在經營我們的業務時所使用的關鍵指標的透明度。請參閱我們的新聞稿，以了解 GAAP 和非 GAAP 業績之間的調節情況。除非另有說明，所提供的比較均與去年同期進行比較。電話會議結束後，公司網站的投資者部分將提供今天電話會議的網路直播重播。

And with that, I will now turn the call over to Simon.

現在，我將把電話轉給西蒙。

Thank you, Andrea, and thank you all for joining us this morning for our Q3 2024 earnings call. I will start with an update on Byte, then provide an overview of our Q3 performance and highlights. Glenn will go over Q3 financial results, and I will finish by covering our revised 2024 outlook and a strategic operating update. But first, I want to take a moment to acknowledge Glenn and thank him for his leadership and many contributions to our company and its transformation journey over the past two years. We wish him well in his future endeavors.

謝謝 Andrea，也謝謝大家今天早上參加我們的 2024 年第三季財報電話會議。我將從 Byte 的最新情況開始，然後概述我們第三季的表現和亮點。Glenn 將回顧第三季的財務業績，最後我將介紹我們修訂後的 2024 年展望和策略營運更新。但首先，我想花點時間向 Glenn 表示感謝，並感謝他的領導以及過去兩年對我們公司及其轉型之旅所做的許多貢獻。我們祝福他在未來的事業中一切順利。

Let's start with some key points on slide 3. In late October, we announced a voluntary suspension of sales, marketing, and shipments of Byte Aligners and impression kits while the company conducts its review of certain regulatory requirements related to these products. We made this decision in communication with the FDA and remain in close contact with them.

讓我們從投影片 3 上的一些要點開始。10 月下旬，我們宣布自願暫停 Byte Aligners 和印模套件的銷售、行銷和發貨，同時公司對與這些產品相關的某些監管要求進行審查。我們在與 FDA 溝通後做出了這項決定，並與他們保持密切聯繫。

Patients are and will continue to be our top priority, and we are committed to doing what's right for them. Byte has communicated to customers that it is not selling impression kits, starting new cases, or processing refinements for patients mid-treatment. We are not at a point in our analysis to make a definitive decision concerning Byte, and we are thoroughly evaluating strategic options, which may include a discontinuation of some or all of this business.

患者現在並將繼續是我們的首要任務，我們致力於為他們做正確的事情。Byte 已向客戶傳達，它不會銷售印模套件、開始新病例或在治療過程中對患者進行處理改進。我們的分析尚未到對 Byte 做出明確決定的階段，我們正在徹底評估策略選擇，其中可能包括終止部分或全部業務。

Our decision will be data driven, taking into account the legislative environment, recent performance, longer-term prospects, and the ongoing regulatory review, which may take time and require additional investment. We are continuing to assess the resources at Byte for opportunities to leverage capabilities and are already redeploying assets to other parts of our business. In the meantime, we have moved swiftly to significantly reduce discretionary spending. We promised on day one to be transparent with you, and we will continue this philosophy as we determine the next steps for Byte.

我們的決定將由數據驅動，同時考慮立法環境、近期表現、長期前景以及正在進行的監管審查，這可能需要時間並需要額外投資。我們正在繼續評估 Byte 的資源，尋找利用能力的機會，並且已經將資產重新部署到我們業務的其他部分。同時，我們迅速採取行動，大幅減少可自由支配支出。我們在第一天就承諾對您保持透明，並且在確定 Byte 的後續步驟時我們將繼續這一理念。

Turning to third-quarter performance, we delivered $951 million in revenue, with organic sales up 1.3%, driven by timing of EDS sales with distributors purchasing in anticipation of our first US ERP deployment. Excluding this, sales were down 0.8%. We continue to see pressure on our implants and equipment business, and CAD/CAM growth was propelled in part by the launch of Primescan 2 in September.

談到第三季的業績，我們實現了 9.51 億美元的收入，有機銷售額增長了 1.3%，這是由於 EDS 銷售時機和分銷商因預期我們首次在美國部署 ERP 而進行採購的推動。排除這一點，銷售額下降了 0.8%。我們的植入物和設備業務繼續面臨壓力，而 CAD/CAM 的成長在一定程度上是由 9 月推出的 Primescan 2 推動的。

Reduced conversion rates for Byte drove a sequential double-digit decline, while SureSmile experienced mid-single-digit growth in the quarter over the prior-year period. Now let's shift to guidance. As a result of market pressures that continue to impact US equipment as well as Byte, we are revising our full-year 2024 outlook, which I will cover later.

Byte 的轉換率下降導致連續兩位數下降，而 SureSmile 在本季較上年同期實現了中個位數成長。現在讓我們轉向指導。由於市場壓力持續影響美國設備和 Byte，我們正在修改 2024 年全年展望，我將在稍後介紹。

As we told you with the Byte announcement, Byte had approximately $40 million in sales in Q3 and was dilutive to adjusted EPS. While we see innovation as a growth catalyst and important value driver for our customers, we remain cautious on the overall macroeconomic environment. Capital equipment and elective procedure headwinds persisted throughout the third quarter, and the environment remains uncertain.

正如我們在 Byte 公告中告訴您的那樣，Byte 在第三季的銷售額約為 4000 萬美元，稀釋了調整後的每股收益。雖然我們將創新視為成長催化劑和客戶的重要價值驅動力，但我們對整體宏觀經濟環境仍保持謹慎態度。資本設備和選擇性程序的不利因素在整個第三季度持續存在，環境仍然不確定。

Our October customer survey of over 1,300 respondents indicated that our major markets remain largely unchanged. Patient traffic was flat in the US and Germany, while Japan and China both saw declines, and results showed a slight decrease in utilization, particularly in elective procedures. Sentiment in Germany remained negative, but it was encouraging to see at least for now some improvement in practices' desire to purchase capital equipment.

我們 10 月對 1,300 多名受訪者進行的客戶調查表明，我們的主要市場基本上保持不變。美國和德國的病患流量持平，而日本和中國的病患流量均出現下降，結果顯示使用率略有下降，特別是在擇期手術中。德國的情緒仍然消極，但令人鼓舞的是，至少目前看到醫療機構購買資本設備的願望有所改善。

Now before we discuss Q3 results in more detail, I'd like to share some recent business highlights on slide 4, starting with operational updates. On November 1, we went live with our first ERP deployment in the US, building on our previous rollout in the UK, which I'll cover in a bit more detail shortly. We have now executed the majority of our Phase II transformation activities and are on track to deliver full run rate savings by the end of 2025.

現在，在我們更詳細地討論第三季的業績之前，我想在投影片 4 上分享一些近期的業務亮點，首先是營運更新。11 月 1 日，我們在美國進行了首次 ERP 部署，這是建立在我們之前在英國部署的基礎上的，稍後我將更詳細地介紹這一點。我們現已執行了大部分第二階段轉型活動，並預計在 2025 年底前實現全面運行率節省。

Moving to innovation, we were pleased to launch Primescan 2 in September, which sets a new milestone in digital dentistry. It is hardware independent, wireless, and powered by DS Core. The link between Primescan 2 and DS Core represents further integration of our digital ecosystem and provides our customers more flexibility and efficiency within their practice while also enabling a better patient experience, which all supports practice growth.

轉向創新，我們很高興在 9 月推出 Primescan 2，這在數位牙科領域樹立了新的里程碑。它獨立於硬體、無線且由 DS Core 支援。Primescan 2 和DS Core 之間的連結代表了我們數位生態系統的進一步整合，為我們的客戶在其實踐中提供了更大的靈活性和效率，同時也實現了更好的病患體驗，所有這些都支持實踐的發展。

With DS Core, we continue to drive adoption with over 32,000 unique users as of the end of Q3, representing approximately 20% growth sequentially. Last quarter, I shared that R&D had identified opportunities to reallocate funds into higher-return programs. Specifically, we plan to invest in our SureSmile orthodontic software, accelerate DS Core capabilities, and make further investments across our connected technology platforms.

截至第三季末，我們繼續推動 DS Core 的採用，擁有超過 32,000 名唯一用戶，季增約 20%。上個季度，我分享研發部門已經找到了將資金重新分配到更高回報項目的機會。具體來說，我們計劃投資 SureSmile 正畸軟體，加速 DS Core 功能，並在我們的互聯技術平台上進行進一步投資。

Since the launch of DS Core, we have delivered over 85 new software updates, adding functionality and capability to the platform. We have a healthy innovation pipeline for DS Core and have demonstrated accelerated adoption when we add significant functionality. As we continue to drive innovation, a key component of our strategy is digital connectivity, with DS Core serving as the hub.

自 DS Core 推出以來，我們已經交付了超過 85 個新軟體更新，為平台增加了功能和功能。我們擁有健全的 DS Core 創新管道，並且在添加重要功能時已展現出加速採用的趨勢。隨著我們不斷推動創新，我們策略的關鍵組成部分是以 DS Core 為樞紐的數位連結。

The transformation to digital dentistry starts with a scan, and the versatility and portability of Primescan 2 with its link to DS Core provides a gateway to treatment options and planning. Looking forward, we see many more opportunities to advance connected technologies and we plan to accelerate our pace to get there by allocating more of our R&D dollars to that area.

數位牙科轉型從掃描開始，Primescan 2 的多功能性和便攜性及其與 DS Core 的連結為治療選擇和規劃提供了途徑。展望未來，我們看到了更多推進互聯技術的機會，我們計劃透過向該領域分配更多研發資金來加快實現這一目標的步伐。

Within CTS, we also expanded the relaunch of the Orthophos SL imaging line, bringing it to additional markets in EMEA and Asia Pac. In EDS, we launched X-Smart Pro+, our tabletop endo motor in the US. Initial reception has exceeded our expectations with our full-year projections already achieved by the end of Q3. Sales rep engagement has also been strong, with 100% of reps having sold a motor.

在 CTS 內，我們也擴大了 Orthophos SL 成像系列的重新推出，將其推向歐洲、中東和非洲和亞太地區的其他市場。在 EDS，我們在美國推出了 X-Smart Pro+，這是我們的桌面內視鏡馬達。最初的反應超出了我們的預期，我們的全年預測已在第三季末實現。銷售代表的參與度也很高，100% 的銷售代表都售出了馬達。

Through Q3, we successfully received 510(k) clearances for five products. This is a testament to the improvements we have made in the execution of our NPD and regulatory processes, and we look forward to bringing these innovations to market. Wrapping up our highlights, clinical education remains an important component of how we bring value to our customers.

截至第三季度，我們成功獲得了五種產品的 510(k) 許可。這證明了我們在執行 NPD 和監管流程方面所取得的改進，我們期待將這些創新推向市場。總結我們的亮點，臨床教育仍然是我們為客戶帶來價值的重要組成部分。

In Q3, we hosted multiple events around the world, including DS Worlds in the US, Spain, and Italy, and our MIS Implants conference in Europe. At DS World Las Vegas, we hosted over 4,000 total participants and offered more than 100 clinical education courses, and we exceeded our sales projections for this event. Additionally, in Q4, we are holding inaugural DS Worlds in Japan and Brazil.

第三季度，我們在世界各地舉辦了多項活動，包括在美國、西班牙和義大利舉行的 DS Worlds 以及在歐洲舉行的 MIS 植體會議。在拉斯維加斯 DS World 上，我們總共接待了 4,000 多名參與者，並提供了 100 多個臨床教育課程，我們超越了本次活動的銷售預期。此外，第四季度，我們將在日本和巴西舉辦首屆 DS Worlds。

And with that, I'll turn it over to Glenn to provide more details on Q3 financials. Glenn?

接下來，我將把它交給 Glenn，以提供有關第三季財務狀況的更多詳細資訊。格倫？

Thanks, Simon. Good morning, and thank you all for joining us. I want to start by expressing what a privilege it's been to be part of the Dentsply Sirona team. I'm proud of what we've accomplished together and remain confident in the strategy and vision that's driving the company's transformation journey.

謝謝，西蒙。早安，感謝大家加入我們。首先，我想表達能夠成為登士柏西諾德團隊的一員是多麼榮幸。我為我們共同取得的成就感到自豪，並對推動公司轉型之旅的策略和願景充滿信心。

Before we turn to a discussion on our non-GAAP third quarter financial results, let me mention that we recorded a roughly $500 million non-cash after-tax charge in Q3 related to goodwill, impacting the orthodontic and implant solutions segment. This charge was the result of sustained macroeconomic pressures, legislative challenges impacting Byte, and weakened demand and competitive pressures in implants.

在我們開始討論非公認會計原則第三季財務業績之前，讓我提一下，我們在第三季記錄了大約5 億美元的與商譽相關的非現金稅後費用，影響了正畸和植體解決方案領域。這項指控是持續的宏觀經濟壓力、影響 Byte 的立法挑戰以及植入物需求和競爭壓力減弱的結果。

Let me now move to slide 5 to discuss third-quarter results. Revenue was $951 million, representing an increase of 0.5% on a reported basis and 1.3% on an organic basis compared to the prior-year quarter. Foreign currency headwinds were less than anticipated but still had a negative $8 million or 80-basis-point impact on sales. On a constant currency basis, growth was attributed to EDS, which included an estimated $20 million in US distributor orders placed in advance of the November 1 ERP deployment in the US that were shipped and recognized as revenue in the third quarter.

現在讓我轉到投影片 5 來討論第三季的業績。營收為 9.51 億美元，與去年同期相比，報告營收成長 0.5%，有機收入成長 1.3%。外匯不利因素比預期小，但仍對銷售額產生 800 萬美元或 80 個基點的負面影響。按固定匯率計算，成長歸功於 EDS，其中包括在 11 月 1 日在美國部署 ERP 之前向美國分銷商發出的估計價值 2000 萬美元的訂單，這些訂單已在第三季度發貨並確認為收入。

Excluding these timing impacts, overall organic sales declined 0.8%. We also saw growth in CAD/CAM, supported by innovation and the recent launch of Primescan 2. However, this growth was offset by declines in equipment and instruments and orthodontic and implant solutions as we continue to see market pressures in equipment and elective procedures.

排除這些時間影響，整體有機銷售額下降了 0.8%。在創新和最近推出的 Primescan 2 的支持下，我們也看到了 CAD/CAM 的成長。然而，由於我們繼續看到設備和擇期手術的市場壓力，這種增長被設備和儀器以及矯正和種植解決方案的下降所抵消。

EBITDA margins declined 40 basis points versus prior year, mainly due to a gross margin decline from unfavorable product mix shift, lower volume, and lower pricing in CTS. Cost savings realized through our restructuring programs partially offset some of this decline and contributed to the sequential improvement in EBITDA margins. Adjusted EPS for the quarter was $0.50, up 3% versus the prior-year quarter, driven by the timing of distributor orders as previously noted.

EBITDA 利潤率較前一年下降 40 個基點，主要是由於不利的產品結構轉變、CTS 銷售下降和定價下降導致毛利率下降。透過我們的重組計劃實現的成本節約部分抵消了部分下降，並有助於 EBITDA 利潤率的連續改善。本季度調整後每股收益為 0.50 美元，比去年同期增長 3%，這主要是受到先前提到的分銷商訂單時間的推動。

We also benefited from a lower share count, which was partially offset by higher tax rate. Operating cash flow of $141 million, was up 5% compared to the prior-year quarter due to the timing of accounts payable and improved inventory management. In the third quarter, we completed $100 million of share repurchases, bringing the year-to-date total cash returned to shareholders through share repurchases and dividends to $345 million. We maintained a strong balance sheet with $296 million of cash and cash equivalents as of September 30, and our leverage ratio increased slightly to 2.8 times.

我們也受惠於股票數量減少，但稅率上升部分抵消了這種影響。由於應付帳款的及時支付和庫存管理的改進，營運現金流為 1.41 億美元，比去年同期成長 5%。第三季度，我們完成了 1 億美元的股票回購，使年初至今透過股票回購和股利返還給股東的現金總額達到 3.45 億美元。截至 9 月 30 日，我們保持著強勁的資產負債表，擁有 2.96 億美元的現金和現金等價物，槓桿率略有上升至 2.8 倍。

Let's turn to slide 6 for segment performance. Starting with the essential dental solutions segment, which includes endo, resto, and preventive products, organic sales increased 7.5%, primarily driven by the previously mentioned impact from the timing of US distributor orders. This impact was a shift of revenue from Q4 to Q3 and is not expected to impact our full-year revenue guidance for EDS.

讓我們轉向投影片 6 來了解分段效能。從基本牙科解決方案細分市場（包括endo、resto和預防產品）開始，有機銷售額增長了7.5%，這主要是受到前面提到的美國經銷商訂單時間影響的推動。這一影響是收入從第四季度轉移到第三季度，預計不會影響我們對 EDS 的全年收入指引。

Rest of world sales also showed an improvement over the prior-year quarter with growth in China and Canada. Moving to the orthodontic and implant solutions segment, organic sales declined 3.9% with a decline of approximately 1% in aligners. SureSmile, our professional aligner brand, grew 6%.

世界其他地區的銷售額也較去年同期有所改善，其中中國和加拿大的銷售額有所增長。轉向矯正和種植解決方案領域，有機銷售額下降了 3.9%，其中矯正器的銷售額下降了約 1%。我們的專業矯正器品牌 SureSmile 成長了 6%。

We saw another quarter of strong performance in Europe and rest of world. We've made recent commercial investments and expanded our sales force. This was partially offset by soft demand in the US. Byte, our direct-to-consumer aligner brand, declined 7% year over year and 19% sequentially, primarily due to lower conversion rates and other adverse impacts from legislative challenges in certain states.

我們看到歐洲和世界其他地區又一個季度表現強勁。我們最近進行了商業投資並擴大了我們的銷售團隊。這被美國需求疲軟部分抵銷。我們的直接面向消費者的矯正器品牌 Byte 年比下降 7%，環比下降 19%，主要是由於轉換率較低以及某些州立法挑戰帶來的其他不利影響。

Moving to implants and prosthetics, sales declined mid-single digits versus the prior-year quarter. Sales were down in the US and Europe, and China declined, largely due to facing a difficult comp as the prior-year period included the first full quarter on the volume-based procurement program. Switching to the connected technology solutions segment, organic sales increased sequentially but declined 1.4% versus the prior-year quarter.

在植入物和義肢方面，銷售額與去年同期相比下降了中個位數。美國和歐洲的銷售額下降，中國的銷售額下降，主要原因是去年同期包括基於數量的採購計劃的第一個完整季度，因此面臨困難。轉向互聯技術解決方案領域，有機銷售額環比成長，但與去年同期相比下降 1.4%。

Global CAD/CAM grew mid-single digits due to increased sales of mills and intraoral scanners to our distributors, which includes the benefit from the recent launch of Primescan 2. Equipment and instruments declined mid-single digits as the demand environment for equipment continues to be soft due to macro headwinds, competitive pressures, and high interest rates.

由於向我們的經銷商提供的銑床和口腔內掃描器銷量增加，其中包括最近推出的 Primescan 2 帶來的好處，全球 CAD/CAM 實現了中個位數成長。由於宏觀不利因素、競爭壓力和高利率導致設備需求環境持續疲軟，設備和儀器下降了中個位數。

While certain countries started to reduce interest rates in Q3, we did not see any notable impacts in the quarter. Wrapping up segment results, organic sales for Wellspect HealthCare were flat versus the prior-year quarter. We saw continued growth in Europe and rest of world, while sales in the US were negatively impacted by the timing of orders from a large distributor. On a full-year basis, Wellspect is still expected to grow mid-single digits, largely driven by new product launches.

雖然某些國家在第三季開始降低利率，但我們在本季沒有看到任何顯著影響。總結部門業績，Wellspect HealthCare 的有機銷售額與去年同期持平。我們看到歐洲和世界其他地區的銷售持續成長，而美國的銷售則受到大型經銷商的​​訂單時間的負面影響。全年來看，Wellspect 預計仍將實現中個位數成長，這主要受到新產品發布的推動。

Now let's turn to slide 7 to discuss third-quarter financial performance by region. US organic sales increased 5.1%, primarily due to the timing of distributor orders in EDS. While CTS grew at the wholesale level, retail demand lagged in the quarter. This contributed to a sequential increase in distributor inventory of approximately $48 million, which also included the initial stocking of Primescan 2 and the expected seasonal increase.

現在讓我們轉向投影片 7，討論按地區劃分的第三季財務表現。美國有機銷售額成長 5.1%，主要是由於 EDS 中經銷商訂單的時間表。雖然 CTS 在批發層面有所成長，但本季零售需求卻落後。這導致分銷商庫存連續增加約 4,800 萬美元，其中還包括 Primescan 2 的初始庫存和預期的季節性增加。

This compares to a $28 million sequential increase in the prior-year quarter. We continue to closely monitor wholesale and retail dynamics, and we expect distributor inventory levels to return to historical averages by the end of the year. Our US clear aligners business declined 4% versus the prior-year quarter, largely driven by declines in our Byte business and softer demand trends. In addition, implants declined year over year due to market pressures.

相比之下，去年同期較上季增加了 2,800 萬美元。我們將繼續密切關注批發和零售動態，預計經銷商庫存水準將在年底前恢復到歷史平均值。我們的美國透明矯正器業務較去年同期下降 4%，這主要是由於我們的 Byte 業務下降和需求趨勢疲軟所致。此外，由於市場壓力，植入物比去年同期下降。

Turning to Europe, organic sales declined 2% due to lower demand for implants and continued pressure on equipment, most notably in imaging. This was partially offset by SureSmile growth of over 20% and continued growth in Wellspect HealthCare. Germany grew in the quarter, the first time we've seen growth in five quarters. We're starting to see slight improvements in sentiment in this market but remain cautious until we see further signs of improvement.

轉向歐洲，由於植入物需求下降以及設備（尤其是影像設備）持續面臨壓力，有機銷售額下降了 2%。這被 SureSmile 超過 20% 的成長和 Wellspect HealthCare 的持續成長部分抵消。德國本季實現成長，這是五個季度以來首次出現成長。我們開始看到這個市場的情緒略有改善，但在看到進一步改善的跡象之前仍保持謹慎。

Rest of world organic sales grew 0.6% in the quarter. Implants grew in the region despite the tough comp for China, and EDS and CAD/CAM were also bright spots benefiting from recent product launches. Growth in these areas was offset by a decline in equipment and instruments.

本季世界其他地區的有機銷售額成長了 0.6%。儘管中國競爭激烈，但該地區的植入物仍然增長，EDS 和 CAD/CAM 也受益於最近產品的推出，成為亮點。這些領域的成長被設備和儀器的下降所抵消。

And now I'll turn the call back over to Simon to discuss the full-year outlook and strategic operating update.

現在我將把電話轉回西蒙，討論全年展望和策略營運更新。

Thank you, Glenn. First, I'll cover our updated outlook for 2024 on slide 8 and then get into our strategic operating update. We are revising our full-year 2024 outlook based on the continued market pressures with equipment in the US as well as Byte. Let me note that our forecast revisions do not include potential impacts from any additional remediation measures we may take or decisions we may make related to our continued assessment of strategic options for the Byte business.

謝謝你，格倫。首先，我將在投影片 8 上介紹我們更新的 2024 年展望，然後介紹我們的策略營運更新。基於美國和 Byte 設備持續面臨的市場壓力，我們正在修訂 2024 年全年展望。請注意，我們的預測修訂不包括我們可能採取的任何額外補救措施或我們可能做出的與我們對 Byte 業務策略選擇的持續評估相關的決定的潛在影響。

That said, we wanted to provide you with current updates to our forecast in the spirit of ongoing transparency. We expect organic sales to be down 2.5% to 3.5% compared to our prior estimate of flat to down 1%. We expect full-year net sales to be in the range of $3.79 billion to $3.82 billion with less of an FX headwind based on current rates. Our outlook for adjusted EBITDA margin is now approximately 17.5%, down from our prior estimate of greater than 18%, driven by lower sales volume and unfavorable mix impacting gross margin, which offset the positive contributions to profitability from our multiple initiatives.

也就是說，我們希望本著持續透明的精神向您提供我們預測的最新更新。我們預計有機銷售額將下降 2.5% 至 3.5%，而我們先前的預測為持平至下降 1%。根據目前匯率，我們預計全年淨銷售額將在 37.9 億美元至 38.2 億美元之間，且外匯阻力較小。由於銷量下降和影響毛利率的不利組合，抵消了我們多項舉措對盈利能力的積極貢獻，我們對調整後 EBITDA 利潤率的預期目前約為 17.5%，低於我們之前超過 18% 的估計。

With these updates, we now expect 2024 adjusted EPS to be in the range of $1.82 to $1.86, representing slight growth over the prior year at the midpoint of the range. While we don't plan to issue guidance until February, I think the obvious question many of you will have surrounds our original $3 adjusted EPS target for 2026. Clearly, the macro and other pressures, like Byte, have created significant hurdles to achieving this target, and we will provide you an update with our year-end results.

透過這些更新，我們現在預計 2024 年調整後每股收益將在 1.82 美元至 1.86 美元之間，較上年略有增長，處於該範圍的中點。雖然我們不打算在 2 月之前發布指導意見，但我認為你們中的許多人都會提出一個明顯的問題，即我們最初調整的 2026 年每股收益 3 美元的目標。顯然，宏觀和其他壓力（例如位元組）為實現這一目標造成了重大障礙，我們將為您提供最新的年終業績。

Moving on to our strategic update, starting on slide 9, this year, we have faced challenges that have negatively impacted our performance, such as market and other dynamics and most recently, Byte. Specifically, we have underperformed in certain major geographies and product categories. We told you, for example, at the beginning of the year that we expected growth acceleration in implants in the second half, and we have not delivered the progress we anticipated.

繼續我們的策略更新，從幻燈片 9 開始，今年我們面臨著對我們的業績產生負面影響的挑戰，例如市場和其他動態以及最近的 Byte。具體來說，我們在某些​​主要地區和產品類別中表現不佳。例如，我們在今年年初告訴您，我們預計下半年植體的成長將加速，但我們尚未取得預期的進展。

As one of the steps to address these issues, we have made a number of leadership changes as we continue to evolve to a high-performance, disciplined, and accountable culture in this company. The initiatives we have underway to transform Dentsply Sirona are progressing as planned, and we remain confident in the strategy and the priorities we've set to execute on them.

作為解決這些問題的步驟之一，我們進行了一系列領導層變動，不斷發展公司的高績效、紀律和負責任的文化。我們正在進行的登士柏西諾德轉型舉措正在按計劃取得進展，我們對策略和我們設定的執行優先事項仍然充滿信心。

Last quarter, we shared our plans to unlock further efficiency through a second phase of transformation. We have now executed on over 70% of the identified actions and remain on track to deliver on our Phase 2 savings goal. Now moving to slide 10 with an update on our foundational initiatives, these initiatives focus on simplifying our portfolio, driving network efficiency, and modernizing our ERP landscape.

上季度，我們分享了透過第二階段轉型進一步提高效率的計畫。目前，我們已執行了超過 70% 的已確定行動，並繼續按計劃實現第二階段的節約目標。現在轉到投影片 10，更新我們的基礎計劃，這些計劃的重點是簡化我們的產品組合、提高網路效率以及實現 ERP 環境的現代化。

We are advancing our SKU optimization work, focused on our endo and resto portfolios with approximately 50% of non-revenue-generating SKUs already eliminated. We expect the remainder of these SKUs to be eliminated by the end of this year, and we expect to migrate most of the revenue-generating SKUs in 2025.

我們正在推進 SKU 優化工作，重點關注 Endo 和 Resto 產品組合，大約 50% 的非創收 SKU 已經被淘汰。我們預計剩餘的這些 SKU 將在今年年底前被淘汰，並預計在 2025 年遷移大部分創收 SKU。

Our supply chain team continues to seek opportunities to improve our network performance. This quarter, we ceased operations at one of our US manufacturing sites. To date, we have closed three manufacturing sites and four distribution centers and continue to explore more opportunities to drive more network efficiency. As I mentioned earlier, we have now completed two deployments as part of our ERP rollout of SAP S/4HANA.

我們的供應鏈團隊不斷尋求機會來提高我們的網路效能。本季度，我們停止了美國一個製造基地的運作。到目前為止，我們已經關閉了三個製造基地和四個配送中心，並繼續探索更多機會來提高網路效率。正如我之前提到的，作為 SAP S/4HANA ERP 部署的一部分，我們現在已經完成了兩次部署。

We went live with the UK in August and resumed business activities at full volumes within three days. As you would expect with these implementations, we have made some limited adjustments and fine-tuning to our processes. Overall, we are very pleased with the UK launch and would like to recognize the collaboration and patience from customers and distributors as we executed this initiative.

我們於 8 月與英國上線，並在三天內全面恢復了業務活動。正如您對這些實施的期望，我們對流程進行了一些有限的調整和微調。總的來說，我們對在英國的推出感到非常滿意，並感謝客戶和分銷商在我們執行這項措施時的合作和耐心。

Earlier this month, we also went live with our first deployment in the US, primarily involving the resto and preventive businesses within EDS. This is the first in a series of US deployments with additional rollouts scheduled to continue throughout 2025 and into 2026. As you all know, ERP implementations require tremendous effort, and I'd like to take this opportunity to thank our global teams for their great work to get us to this point.

本月早些時候，我們還在美國啟動了首次部署，主要涉及 EDS 內的恢復和預防業務。這是美國一系列部署中的第一個，其他部署計劃在 2025 年至 2026 年繼續進行。眾所周知，ERP 的實施需要付出巨大的努力，我想藉此機會感謝我們的全球團隊為我們實現這一目標所做的出色工作。

Earlier, I touched on Phase 2 of our business transformation journey aimed at reducing operating expenses to fund key reinvestments. We previously noted that an important part of this reinvestment focuses on creating our own demand and augmenting both DS' and our distributor sales efforts.

早些時候，我談到了我們業務轉型之旅的第二階段，旨在減少營運費用，為關鍵的再投資提供資金。我們先前指出，本次再投資的一個重要部分著重於創造我們自己的需求並增強 DS 和我們經銷商的銷售力度。

To that end, we have already hired over 75 of the approximately 100 virtual reps we plan to have in place by the end of Q1 2025. Trained reps began engaging with customers this very week. And again, we view having a virtual sales team as a cost-effective way to improve our relationships with and proximity to our end customers.

為此，我們計劃在 2025 年第一季末之前部署約 100 名虛擬代表，其中超過 75 名已就位。訓練有素的銷售代表本週開始與客戶互動。同樣，我們認為擁有虛擬銷售團隊是改善我們與最終客戶的關係和接近度的一種經濟高效的方式。

Let me give you a little more color on some of the redeployment efforts we are undertaking as it relates to the team at Byte. We have recruited a very talented workforce there with the dynamics of this business requiring advanced skill sets for developing a robust patient funnel, strong social media presence, customer service, e-commerce, technology and software, data assessment, and treatment planning.

讓我向您詳細介紹我們正在進行的與 Byte 團隊相關的一些重新部署工作。我們在那裡招募了一支非常有才華的員工隊伍，該業務的動態需要先進的技能來開發強大的患者管道、強大的社交媒體影響力、客戶服務、電子商務、技術和軟體、數據評估和治療計劃。

Many of these skills translate very well to our other businesses and initiatives and can potentially accelerate our efforts discussed last quarter like getting closer to the customer, generating our own demand, and improving our SureSmile software and e-commerce user experience.

其中許多技能可以很好地轉化為我們的其他業務和計劃，並有可能加速我們上季度討論的工作，例如更接近客戶、產生我們自己的需求以及改善我們的 SureSmile 軟體和電子商務用戶體驗。

Now let me close on slide 11 with a few summary remarks. On October 24, we announced the voluntary suspension of the sales, marketing, and shipment of Byte Aligners and impression kits. As we have discussed, we are conducting a regulatory review and evaluating strategic options for Byte moving forward.

現在讓我用一些總結性的評論來結束投影片 11。10 月 24 日，我們宣布自願暫停 Byte Aligners 和印模套件的銷售、行銷和出貨。正如我們所討論的，我們正在進行監管審查並評估 Byte 前進的策略選擇。

In the quarter, we posted organic sales growth of 1.3%, driven by a mix of timing in EDS and CTS orders. Without the distributor order timing impact, sales declined 0.8%. As anticipated, benefits from our transformation work positively contributed to EBITDA. We are revising our 2024 outlook in light of the market pressures impacting the equipment in the US and the evolving landscape with Byte.

在 EDS 和 CTS 訂單時機的共同推動下，本季我們的有機銷售額成長了 1.3%。如果沒有經銷商訂單時間的影響，銷售額下降了 0.8%。正如預期的那樣，我們的轉型工作為 EBITDA 做出了積極貢獻。鑑於影響美國設備的市場壓力以及 Byte 不斷變化的格局，我們正在修訂 2024 年展望。

We remain committed to innovation as evidenced by the launch of Primescan 2 in September and the launch of X-Smart Pro+ in the US. We have a healthy innovation pipeline. And as we couple it with better process, discipline, and focus, we see opportunity to alter the return trajectory of our total innovation pipeline. Lastly, our business transformation journey continues to take shape as we execute strategic plans and initiatives to make Dentsply Sirona a more efficient, more effective, and stronger company.

我們仍然致力於創新，9 月推出的 Primescan 2 和在美國推出的 X-Smart Pro+ 證明了這一點。我們擁有健康的創新管道。當我們將其與更好的流程、紀律和重點結合時，我們看到了改變整個創新管道回報軌蹟的機會。最後，隨著我們執行策略計畫和舉措，使登士柏西諾德成為一家更有效率、更有效、更強大的公司，我們的業務轉型之旅不斷成形。

And with that, I will open it up for questions.

接下來，我將開放提問。

(Operator Instructions) To start it off, I would like to turn it over to the CEO, Simon Campion.

（操作員說明）首先，我想交給執行長 Simon Campion。

Good morning, and thank you. In the ongoing spirit of transparency, I want to inform you all about a developing situation today in Germany. We are aware that federal and local authorities and tax investigators arrived at our facilities in and Bensheim and Hanau this morning. Obviously, this is a very recent development, and we intend to cooperate with the authorities.

早安，謝謝。本著持續透明的精神，我想向大家通報德國目前正在發展的情況。我們知道，聯邦和地方當局以及稅務調查人員今天早上抵達了我們位於本斯海姆和哈瑙的工廠。顯然，這是最近的進展，我們打算與當局合作。

Our facilities in Germany are operating as normal. And we do want to continue to emphasize that ethics and compliance is at the center of everything we do. And finally, on this matter, given the evolving status of this situation, we will be unable to answer any questions on this subject during Q&A. And with that, I'll hand it back to the operator to walk us through Q&A. Thank you.

我們在德國的設施正常運作。我們確實想繼續強調道德和合規性是我們所做一切的核心。最後，關於這個問題，鑑於情況的不斷發展，我們將無法在問答過程中回答有關此主題的任何問題。然後，我會將其交還給操作員，引導我們完成問答。謝謝。

(Operator Instructions) David Saxon, Needham & Company.

（操作員說明）David Saxon，Needham & Company。

Great. Good morning, Simon and Glenn. Thanks for taking my questions. Glenn, good luck on your next chapter.

偉大的。早安，西蒙和格倫。感謝您回答我的問題。格倫，祝你下一章好運。

Thank you.

謝謝。

I have two questions -- yes, great. Just two questions, one on Byte, one on implants. So on Byte, can you just give us an update on how long you think the suspension might last? And then in terms of cost tied to Byte, it sounds like the cost in the quarter, at least, was around $40 million or in that range. Does that include COGS and OpEx or just OpEx? And then on the OpEx side, how much or what percent can you reallocate to other parts of the business if Byte does go away? And how much would be viewed as more discretionary?

我有兩個問題——是的，很好。只有兩個問題，一個是關於 Byte，一個是關於植入物。那麼，在 Byte 上，您能否向我們介紹一下您認為暫停可能會持續多久的最新情況？然後就與 Byte 相關的成本而言，聽起來本季的成本至少約為 4000 萬美元或在這個範圍內。這包括銷貨成本和營運支出還是僅包括營運支出？然後在營運支出方面，如果 Byte 確實消失，您可以將多少或多少百分比重新分配給業務的其他部分？多少會被視為更自由裁量權？

Yes, good morning, David. I'll take the first part and then Glenn will have a crack at the second part of your question. Listen, I would say that we are still conducting the review and all necessary analysis that go into this. It's multifactorial assessments that involves regulatory, technical, commercial, and operational, and it does need to take into account the legislative environment we find ourselves in, recent performance, longer-term prospects of this business, and as I noted, the ongoing regulatory review, which may take time and require further investment on our part.

是的，早上好，大衛。我將回答第一部分，然後格倫將解決你問題的第二部分。聽著，我想說的是，我們仍在對此進行審查和所有必要的分析。這是涉及監管、技術、商業和營運的多因素評估，確實需要考慮我們所處的立法環境、近期業績、該業務的長期前景，以及正如我所指出的，正在進行的監管審查，這可能需要時間並需要我們進一步投資。

So we want to be swift but diligent, and trying to get an answer to you all, but also to our employees as swiftly as possible. We've taken very fast action on the cost side. We've ceased all marketing activities. For example, we informed all, shall we say, relevant employees yesterday that their jobs will be ceasing to exist over the next couple of weeks. And the redeployment of assets that we think can be redeployed is ongoing, but we already have moved different groups of people, such as software developers, over to other areas of our business.

因此，我們希望迅速但勤奮，努力為你們所有人以及我們的員工盡快找到答案。我們在成本方面採取了非常迅速的行動。我們已經停止了所有行銷活動。例如，我們昨天通知所有相關員工，他們的工作將在未來幾週內停止存在。我們認為可以重新部署的資產的重新部署正在進行中，但我們已經將不同的人員（例如軟體開發人員）轉移到我們業務的其他領域。

And so Glenn, do you want to have a crack at the cost part of that question?

格倫，你想解決這個問題的成本部分嗎？

Yes. I think the only thing we can say around the Byte P&L is the most recent quarter, we did about $40 million of revenue. That's obviously down versus prior year. It's down sequentially close to 19% or so. So the business has been declining. It is accretive to our gross margins, but dilutive to EBITDA margin. So there's a high OpEx cost associated with this business.

是的。我認為關於 Byte 損益表我們唯一能說的是最近一個季度，我們的收入約為 4000 萬美元。與去年相比，這顯然有所下降。環比下降近 19% 左右。所以生意一直在下滑。它會增加我們的毛利率，但會稀釋 EBITDA 利潤率。因此，該業務的營運成本很高。

I think we've even said that most recently, we've operated at a loss in the most recent quarter. So the business has been declining, deteriorating. And it is accretive to gross margins but overall dilutive to our operating profit, and we're actually in a loss position in the most recent quarter. So I think that gives you a general idea about the type of OpEx this business has. And Simon mentioned, we're taking action where we can to take out as much cost as possible in the short term here to minimize the potential impact.

我想我們甚至說過，最近一個季度我們一直在虧損。所以生意一直在下滑，每況愈下。它增加了毛利率，但總體上稀釋了我們的營業利潤，而且我們在最近一個季度實際上處於虧損狀態。所以我認為這可以讓您大致了解該企業的營運支出類型。西蒙提到，我們正在採取行動，在短期內盡可能降低成本，以盡量減少潛在的影響。

Okay. That's super helpful. Thanks for that. And then my second question is just on implants. So it weakened sequentially. I guess could you talk about the performance across value versus premium? And then as it relates to China, I guess, are you expecting that region to be down until you lap the VBP comps? And then lastly, on implants. You talked about some leadership changes. Can you just talk about kind of how you see the strategy going forward? And any update on kind of expectations around returning to growth and market growth? Thanks so much.

好的。這非常有幫助。謝謝你。我的第二個問題是關於植入物的。所以它依次減弱。我想您能談談價值與溢價之間的表現嗎？然後，就與中國有關的情況而言，我想，您是否預計該地區會下降，直到您完成 VBP 比賽？最後是植入物。您談到了一些領導層變動。您能談談您對未來策略的看法嗎？關於恢復成長和市場成長的預期有何更新？非常感謝。

Yes, thanks, David. So on the value side, we saw a decline this quarter for the first time this year in that part of our business. And as we've informed you before, that represents 25-or-so percent of our total business. That was impacted by some unique events. We're obviously -- we're lapping the China situation, so that's one.

是的，謝謝，大衛。因此，在價值方面，本季我們的這部分業務今年首次出現下降。正如我們之前告知您的，這占我們總業務的 25% 左右。這是受到一些獨特事件的影響。顯然，我們正在關注中國的情況，所以這就是其中之一。

The situation with -- in the Middle East with Turkey, they won't import any products manufactured in Israel. That's had a significant impact on us so far this year and again in Q3. And then there is a timing issue with respect to a dealer in Central Europe as well. So that is certainly impacting us.

中東地區的土耳其情況是，他們不會進口任何以色列製造的產品。今年到目前為止，這對我們產生了重大影響，並在第三季再次產生了重大影響。此外，中歐經銷商也存在時間安排問題。所以這肯定會影響我們。

In general, around electives, we saw a decline in our survey of, as I said, over 1,300 people, particularly in Japan and China. But fortunately, we saw no further degradation in the US and Germany. So that's where we are with the performance in the quarter. And listen, we have simply failed to live up to our own internal expectations on this.

總的來說，正如我所說，圍繞著選修課，我們對 1,300 多人的調查有所下降，特別是在日本和中國。但幸運的是，我們沒有看到美國和德國的情況進一步惡化。這就是我們本季的表現。聽著，我們在這方面根本沒有達到自己的內在期望。

We've made -- we want to communicate the value that we bring at the upper end and the low -- middle of the range with our MIS Implants. And so we felt some change and freshening up was needed. And so we have taken that, and it is -- we have the portfolio we feel and our customers feel to win in this space. We have invested heavily in clinical education and expansion of the sales team, particularly in the US in this space. So there are -- the only reasons for us to fail are internal reasons. And so we're trying to remediate those right now.

我們希望透過我們的 MIS 植入物來傳達我們在高端和低階產品中帶來的價值。所以我們覺得需要一些改變和更新。所以我們已經採取了這一點，而且我們擁有我們認為並且我們的客戶認為可以在這個領域獲勝的產品組合。我們在臨床教育和擴大銷售團隊方面投入了大量資金，特別是在美國的這一領域。所以，我們失敗的唯一原因是內部原因。所以我們現在正在努力修復這些問題。

Great. Thanks so much.

偉大的。非常感謝。

Kevin Caliendo, UBS.

凱文‧卡里恩多，瑞銀集團。

Thanks, and thanks for all the transparency on this situation. Can you just remind us first like how big Germany is for you in terms of sales or any other numbers you can provide? And then, I guess, second question, more macro. At this point, given how the macro is, Simon, as you sit there, how do you think about investment versus cost saves?

謝謝，也感謝您對這種情況的所有透明度。您能否先提醒我們一下，德國對您來說有多大的銷售或您可以提供的任何其他數字？然後，我想，第二個問題，更宏觀。在這一點上，考慮到宏觀情況如何，西蒙，當你坐在那裡時，你如何看待投資與成本節約？

Is the macro such that it's an opportunity to try to take share as things are bad and like, let's educate everybody and let's throw money at the problem, and as things get better, we'll be in a really good situation? Or are you at a point where, hey, you know what? It's bad, let's just circle the wagons. And I know you have this cost-savings program. How do you think about investment versus cost saves when the macro is just extending worse than you had imagined?

宏觀經濟是否是一個機會，讓我們在情況不好時嘗試分享，讓我們教育每個人，讓我們在問題上投入資金，隨著情況好轉，我們將處於一個非常好的境地？或者你正處於這樣的境地，嘿，你知道嗎？情況很糟糕，我們就繞著馬車轉一圈吧。我知道你們有這個成本節約計畫。當宏觀經濟狀況比您想像的更糟時，您如何看待投資與成本節約？

Yes. Thank you, Kevin. So in relation to the first part, Germany represents about 10% of our total business, and it is -- there's quite a healthy proportion of that that's in the connected technology, legacy Sirona business. With respect to cuts versus investment, I think we've said that we cannot cut our way to growth. I think we've tried to be very diligent with respect to taking out costs in certain areas of our business that are not customer-facing, just taking out infrastructure costs that we feel are unnecessary and investing in areas that will stimulate growth in areas that are higher growth categories.

是的。謝謝你，凱文。因此，就第一部分而言，德國約占我們總業務的 10%，而且其中有相當大的比例是在互聯技術、傳統的 Sirona 業務中。關於削減與投資，我認為我們已經說過，我們不能透過削減成長的方式來實現成長。我認為我們非常努力地削減了某些不面向客戶的業務領域的成本，只是削減了我們認為不必要的基礎設施成本，並投資於能夠刺激成長的領域是成長較高的類別。

For example, I refer you back to our Investor Day presentation. We said, hey, we believe we should be growing at market in implants, and that's a mid- to high single-digit growth market, strong double digits in aligners. Obviously, Byte has impacted that. But those sort of areas that we do want to invest in that we are at a competitive disadvantage with respect to feet on the street and capabilities and also invest in, what should I say, the hygiene of this company by getting our websites up, by getting our e-commerce up, by making it easier to do business with, et cetera, et cetera.

例如，我請您回顧我們的投資者日演講。我們說，嘿，我們相信我們應該在植入物市場上成長，這是一個中高個位數成長的市場，而矯正器市場則有強勁的兩位數成長。顯然，位元組對此產生了影響。但是我們確實想要投資的那些領域，我們在街上的腳步和能力方面處於競爭劣勢，並且還通過建立我們的網站來投資，我應該說，這家公司的衛生，通過讓開展業務變得更容易等等來提升我們的電子商務。

So we are -- we see where we have spent money in areas that are not driving creating demand and enhancing the customer experience. And so we're taking money from there and investing it to set ourselves up, to make us, as I said in my remarks, a stronger company moving forward.

所以我們——我們看到我們把錢花在了那些無法推動創造需求和增強客戶體驗的領域。因此，我們將從那裡獲取資金並進行投資來建立自己，正如我在演講中所說，使我們成為一家向前發展的更強大的公司。

Thanks, Simon.

謝謝，西蒙。

Jeff Johnson, Baird.

傑夫·約翰遜，貝爾德。

Thank you. Good morning, guys. Simon, just on the Byte commentary you made here in the first question of the Q&A about notices going out to employees, and obviously, you're moving some of your other employees to other parts of the company, things like that. I mean, effectively, it sounds like you telling us you're shutting down the business without just saying you're shutting down the business.

謝謝。早安，夥計們。西蒙，就你在問答的第一個問題中所做的有關向員工發出通知的 Byte 評論而言，顯然，你正在將一些其他員工轉移到公司的其他部門，諸如此類。我的意思是，實際上，這聽起來像是您告訴我們您要關閉該業務，而不僅僅是說您要關閉該業務。

And I understand there's maybe people issues here involved in and it's a public call and all that. But at least from our side of the table, from an investor standpoint, is that how we should be looking at things at least for now? Take it out of our model, take it out of our expectations on a go-forward basis ad infinitum? And then if it comes back, we can deal with it then. But for now, that's maybe the safe way to think about things?

我知道這裡可能涉及人員問題，這是一次公開呼籲等等。但至少從我們這邊，從投資人的角度來看，至少目前我們該如何看待事情？將其從我們的模型中刪除，將其從我們的期望中無限地刪除？如果它回來了，我們就可以處理它。但就目前而言，這也許是思考問題的安全方式？

No, that is -- that's not what I'm saying, Jeff. I'm saying we have a lot of work to do. It's a complex situation that we find ourselves in. And as you rightly said, a lot of people impacts that -- in that business. We have a lot of technical work to do, regulatory work, consultation with FDA, trying to figure out a path for this project to get back to the market. And then if there is a path, what's the commercial viability of being back in the market.

不，那是——我不是這個意思，傑夫。我是說我們還有很多工作要做。我們發現自己處於一個複雜的境地。正如你所說，很多人都會影響這一點——在這個行業。我們還有很多技術工作要做，監管工作，與 FDA 的磋商，試圖找出讓這個計畫重返市場的途徑。如果有一條路，重返市場的商業可行性是什麼？

As Glenn noted in his response to David's question, we did about $40 million or so in this last quarter. It was dilutive to our business. The middle of the P&L is quite burdensome in this business. And so when we look at the legislative environment, how much it's going to take to get back into the market, then we have to determine if the view is worth that climb, if the climb as possible. So we're not saying anything about it yet. I'm not trying to duck and dive your question, but they are the facts as we see them right now.

正如 Glenn 在回答 David 問題時指出的那樣，我們在上個季度賺了大約 4000 萬美元。它稀釋了我們的業務。在這個行業中，損益表的中間部分是相當繁重的。因此，當我們考慮立法環境時，需要花多少錢才能重返市場，然後我們必須確定這種觀點是否值得攀登，如果攀登盡可能的話。所以我們還沒有對此發表任何評論。我並不是想迴避你的問題，但它們就是我們現在所看到的事實。

Yes. All fair. That's great. And then, Glenn, maybe help us out just a lot of volatility here these last couple of quarters. Can you just kind of level set us what are you exiting 2024 run rate savings on the cost savings initiatives? Where are those cost savings expected to run rate by the end of 2025? So really kind of looking at what would be the incremental potential cost savings in 2025 we can still expect through the P&L? Number one.

是的。一切公平。那太棒了。然後，格倫，也許可以幫助我們擺脫過去幾季的巨大波動。您能否告訴我們，您在 2024 年透過成本節約計畫實現的運行率節省是多少？到 2025 年底，預計這些成本節省的效果如何？那麼，我們實際上可以透過損益表來了解 2025 年我們仍然可以預期的增量潛在成本節省是多少嗎？第一。

And number two, as I look at kind of that low to mid-$0.40 guidance for Q4, I can use the last couple of years, I can use pre-COVID years, using a lot of different ways of looking at Q4 as a percentage of your typical earnings year, I can get to a number anywhere from $1.50 to $2 for next year.

第二，當我考慮第四季度 0.40 美元的低至中美元指導時，我可以使用過去幾年，我可以使用新冠疫情之前的幾年，使用很多不同的方式來看待第四季度的百分比根據你典型的收入年度，我可以得出明年1.50 美元到2 美元之間的數字。

I know you're not guiding to 2025, but is my thinking correct, kind of that's more of the range? The Street's sitting at 2.28. It just seems impossible for me to believe we can get anywhere near that next year. So kind of take that low to mid-40s and kind of apply whatever fourth-quarter percentage we want to it to kind of be more in that range I suggested. Thank you.

我知道你不是在指導 2025 年，但我的想法是否正確，有點超出範圍了？華爾街的股價為 2.28。我似乎不可能相信明年我們能接近這個目標。因此，我們可以把這個價值從 40 多歲左右調整到 40 多歲左右，然後應用我們想要的任何第四季度百分比，使其更接近我建議的範圍。謝謝。

Yes. No, thanks for the question, Jeff. I think as it relates to the restructuring savings, the first restructuring program is complete. It was completed in Q2. That was $200 million of annualized savings. We've obviously announced the second restructuring program, which is anywhere from $80 million to $100 million. That's, I'd say, on track, and a lot of those run rate savings will be seen in 2025. So that's how we look at the restructuring program.

是的。不，謝謝你的提問，傑夫。我認為，由於涉及重組節省，第一個重組計劃已經完成。它於第二季完成。每年可節省 2 億美元。我們顯然已經宣布了第二個重組計劃，金額從 8000 萬美元到 1 億美元不等。我想說，這已步入正軌，並且大部分運行率節省將在 2025 年實現。這就是我們對重組計劃的看法。

Obviously, as we look at the business, Simon mentioned some of the reinvestment that we're going to be doing in the business, and we haven't quantified how much will flow through the bottom line versus be reinvested. But we're on track with respect to our restructuring programs that have been announced.

顯然，當我們審視該業務時，西蒙提到了我們將在該業務中進行的一些再投資，但我們尚未量化將有多少資金流向底線，而不是進行再投資。但我們已經按照已宣布的重組計劃步入正軌。

As it relates to Q4 and low $0.40 type number, I just keep in mind the Byte business is having a large impact on our fourth-quarter forecast. We've essentially removed all revenue associated with shipments beyond October '24, which is when we initiated the ship hold. And while the revenue is obviously removed, there's still costs in this business that we're working through, right? And so you could take that from me, and there should be less of an impact as you go into 2025 on a quarterly basis once we work through all of those items. But nevertheless, we're not going to comment any further on 2025.

由於它與第四季度和低 0.40 美元的類型數字相關，我只記得位元組業務對我們第四季度的預測有很大影響。我們基本上已經取消了 24 月 24 日（也就是我們開始暫緩發貨的時間）之後與發貨相關的所有收入。雖然收入顯然被取消了，但我們正在解決的這項業務仍然存在成本，對嗎？所以你可以從我這裡得到這一點，一旦我們完成了所有這些項目，當你進入 2025 年時，按季度計算，影響應該會更小。但儘管如此，我們不會對 2025 年做出進一步評論。

I would say, just in relation to that cost statement that Glenn made, Jeff, we have stopped discretionary spending in this business. So costs are people costs for the most part right now.

我想說的是，就格倫所做的成本聲明而言，傑夫，我們已經停止了這項業務的可自由支配支出。因此，目前成本大部分是人員成本。

Understood. Thank you.

明白了。謝謝。

Jason Bednar, Piper Sandler.

傑森·貝德納，派珀·桑德勒。

Hey, good morning. Thanks for taking the questions. Good luck to you, Glenn, on your next endeavors here. Wanted to dig in a little bit more in the CTS segment, your CAD/CAM comments, and apologies if this has already been addressed. I'm bouncing between a couple of calls. But the lower retail demand in CAD/CAM, do you sense whether this is at all coming ahead of your PS2 launch?

嘿，早安。感謝您提出問題。格倫，祝你接下來的努力一切順利。希望深入了解 CTS 部分、您的 CAD/CAM 評論，如果這個問題已經解決，我們深表歉意。我在幾個電話之間來回切換。但是 CAD/CAM 的零售需求下降，您是否感覺到這是否會在 PS2 發布之前發生？

And then can you talk about the headwinds you're seeing and how much you attribute to the maybe the macro and the level of interest rates versus maybe how much might be competitive headwinds in scanners and printers? Really just trying to understand with these questions what might be exogenous and what maybe a cleaner trend or exit rate might look like in CAD/CAM now that you actually have PS2 launch come out there?

然後你能談談你所看到的阻力，以及你將多少歸因於宏觀和利率水平，以及掃描器和印表機的競爭阻力有多少？實際上，只是想透過這些問題了解什麼可能是外生的，以及 CAD/CAM 中可能出現的更清晰的趨勢或退出率是什麼樣的，既然 PS2 已經發布了？

Yes. Good morning, Jason. I think the delta between retail and demand in Q1 and Q2 was pretty reasonable. And we saw a significant delta in Q3 between those two variables. It's across the board. It's not just on the scanner business. So I don't think it was related to any pent-up demand for Primescan 2, although we have done very well with Primescan 2 since it launched, where we have sold in excess of 900 cameras around the world. It's been -- in terms of units, it was the best quarter of scanners this year and the second-best quarter for scanners in three years. So that's certainly helped us this past quarter.

是的。早上好，傑森。我認為第一季和第二季零售與需求之間的增量相當合理。我們在第三季看到這兩個變數之間存在顯著的差異。這是全面的。這不僅涉及掃描器業務。因此，我認為這與 Primescan 2 被壓抑的需求無關，儘管自推出以來我們在 Primescan 2 方面做得非常好，我們已在全球銷售了超過 900 台相機。就單位而言，這是今年掃描器最好的季度，也是三年來掃描器第二好的季度。因此，這無疑對我們上個季度有所幫助。

If we look at customer sentiments, I shared in our previous -- in the prepared remarks that it had degraded in some areas. But the Germany had stopped the degradation and actually some of the survey results came back that the German customers are now reconsidering investments in their digital workflows. And the interesting data point, I think you'll agree, is that only 27% of German dentists actually have a scanner.

如果我們看看客戶的情緒，我在之前準備好的評論中分享過，它在某些領域已經下降。但德國已經停止了退化，實際上一些調查結果表明，德國客戶現在正在重新考慮對其數位工作流程的投資。我想您會同意，有趣的數據點是，只有 27% 的德國牙醫實際上擁有掃描儀。

So I think there's a lot of room for digitalization in Germany once we get past some of the macro headwinds. And those 3D printers are a small part of our business. We had a good quarter in 3D printers. We had a good quarter on mills. So we're reasonably pleased with what we sold in the quarter. It's just the retail thing hasn't had an impact. And given the survey data that we have, we want to be cautious moving forward.

因此，我認為一旦我們克服了一些宏觀阻力，德國的數位化就有很大的空間。這些 3D 列印機只是我們業務的一小部分。我們在 3D 列印機領域度過了一個不錯的季度。我們在工廠方面度過了一個不錯的季度。因此，我們對本季的銷售情況相當滿意。只是零售業還沒產生影響。鑑於我們掌握的調查數據，我們希望謹慎行事。

Okay. Right. Fair enough. And then on -- for my follow-up, and maybe a little bit bigger picture and maybe a little bit of a follow-up to what Jeff had just asked, but -- and I don't mean to be critical here. But when we think strategically about the savings plans you've had in place, shareholders really haven't seen these materialize at the bottom line. Earnings are basically flat year over year. That's despite headcount coming down -- or sorry, share count coming down by about 5% this year.

好的。正確的。很公平。然後 - 對於我的後續行動，也許是一個更大的前景，也許是對傑夫剛才問的問題的一點後續行動，但是 - 我無意在這裡批評。但是，當我們從策略角度思考您已製定的儲蓄計劃時，股東們實際上並沒有看到這些計劃在底線中實現。獲利與去年同期基本持平。儘管員工數量減少了——或者抱歉，今年的股份數量減少了約 5%。

You've talked about deploying a large chunk of those Phase 1 savings -- some of the Phase 2 savings back into growth initiatives, but the growth just hasn't really materialized. So the question here is how or whether you think about reevaluating maybe some of those business investments, whether the returns on that spend justify the investment? And does there comes a point where you look to drop more to shareholders at the bottom line so that you can get back to growing earnings?

您已經談到將第一階段的大部分節省——第二階段的一些節省重新投入到成長計劃中，但成長並沒有真正實現。因此，這裡的問題是，您如何或是否考慮重新評估其中一些商業投資，這些支出的回報是否證明投資合理？您是否會在某個時刻希望向股東提供更多的利潤，以便您能夠恢復不斷增長的利潤？

I think that's an entirely fair question, Jason. That's one that we think about here frequently. As I noted in my response to Jeff's question that there are areas of our business where we have been under-resourced and are outfought in the trenches. And those areas we feel represent areas of growth in dentistry and for Dentsply Sirona in particular. I noted in response to that we don't think we can cut our way to growth here.

我認為這是一個完全公平的問題，傑森。這是我們經常思考的問題。正如我在回答傑夫問題時指出的那樣，我們業務的某些領域一直資源不足，而且在戰壕中處於劣勢。我們認為這些領域代表了牙科領域的成長領域，尤其是登士柏西諾德 (Dentsply Sirona)。我在回應時指出，我們認為我們無法在這裡實現成長。

We have the portfolio. We have been investing in sales teams, in clinical education, for example. We're fixing the software piece on SureSmile. We've got this headwind with Byte. And so driving top-line growth is of considerable importance to us -- preeminent importance to us. And we feel the investments that we are making will get us there. We've demonstrated with aligners where we invest, we grow.

我們有投資組合。例如，我們一直在投資銷售團隊，例如臨床教育。我們正在修復 SureSmile 上的軟體部分。我們遇到了 Byte 的逆風。因此，推動營收成長對我們來說非常重要——對我們來說非常重要。我們認為我們正在進行的投資將幫助我們實現這一目標。我們已經透過矯正器證明了我們在哪裡投資，我們就在哪裡成長。

We posted very solid growth in Europe this year and indeed in the rest of the world. In North America, our SureSmile business, if you exclude that one partner where we have a significant headwind with, we actually grew mid-single digits. So the areas we invest in, with the exception of implants, we are unlocking value. And the great work that's been done on the other hygiene factors such as operations is going to show significant benefit when the macro turns. We'll begin to get the true leverage from the actions that we have taken to make Dentsply Sirona a more efficient company.

今年我們在歐洲乃至世界其他地區都實現了非常穩健的成長。在北美，我們的 SureSmile 業務，如果排除我們面臨重大阻力的那個合作夥伴，我們實際上實現了中個位數的成長。因此，除了植入物之外，我們投資的領域都在釋放價值。當宏觀經濟轉變時，在其他衛生因素（例如營運）上所做的出色工作將顯示出顯著的效益。我們將開始從我們為使登士柏西諾德成為更有效率的公司所採取的行動中獲得真正的影響力。

The only thing I'd add to Simon's comments, our operating expenses year over year are going to be down. So I think the challenge we have is the revenue levels are coming down faster than that. So we are seeing a reduction in overall operating expenses as a result of the actions that we have taken, but we have a revenue challenge, which is why EPS is flat year over year.

我對西蒙的評論唯一要補充的是，我們的營運支出將逐年下降。所以我認為我們面臨的挑戰是收入水準下降的速度比這更快。因此，由於我們採取的行動，我們看到整體營運費用有所減少，但我們面臨收入挑戰，這就是每股收益同比持平的原因。

And we have returned over $300 million, I think or so this year, Glenn, to investors in form of share buybacks and dividends.

格倫，我想今年我們已經以股票回購和股息的形式向投資者返還了超過 3 億美元。

Right, very helpful. Thank you.

對的，非常有幫助。謝謝。

Jon Block, Stifel.

喬恩·布洛克，斯蒂菲爾。

Great. Thanks guys. Good morning. Glenn, for 4Q -- the implied 4Q organic, that might be down high single digits or so when we tie out. So do we think about maybe a 400-basis-point year-over-year impact from Byte, some impact from the EDS pull forward into 3Q from 4Q to $20 million?

偉大的。謝謝你們。早安.格倫，第四季度——隱含的第四季度有機，當我們平手時，可能會下降高個位數左右。那麼，我們是否會考慮 Byte 的同比影響可能達 400 個基點，EDS 的一些影響從第四季度提前到第三季度，達到 2000 萬美元？

I guess where I'm trying to go with this is we all sharpen our pencils on '25. Just to arrive at like a normalized core revenue for 4Q, optically, again, it might be down high single digits. It's a little difficult. But do you think it's fair to say maybe it's closer to down low single digits when we make some of those adjustments, again, most notably the Byte and the EDS pull forward, just as we can get a better sort of jump off or trajectory into '25?

我想我想表達的意思是我們都在 25 年削鉛筆。只是為了達到第四季的標準化核心收入，從視覺上看，它可能會再次下降高個位數。有點困難。但你認為公平地說，當我們做出一些調整時，也許它更接近低個位數，再次，最顯著的是 Byte 和 EDS 向前拉動，就像我們可以獲得更好的跳躍或軌跡一樣'25？

Yes, I think if you look at the organic growth implied guidance for Q4, it's down high single digits. And keep in mind, there's $20 million of consumables revenue that we called out relative to being pulled forward from Q4 into Q3. So you have to adjust $20 million for that. And then really, the rest of the decline is coming from the Byte situation and just to put in the context, right?

是的，我認為如果你看看第四季的有機成長隱含指導，你會發現它下降了高個位數。請記住，我們所說的消耗品收入為 2000 萬美元，是相對於從第四季提前到第三季而言的。所以你必須為此調整 2000 萬美元。事實上，剩下的下降是來自字節的情況，只是放在上下文中，對嗎？

So we stopped shipping on October 24. And so the rest of the quarter revenues on a $40 million type business from a quarterly perspective is out of the numbers. So you can do the math on that to figure out what the impact of Byte is, and then the rest of it is coming out of North America and soft retail demand. So that's how we're looking at Q4 right now.

所以我們在 10 月 24 日停止出貨。因此，從季度角度來看，4000 萬美元類型業務的本季剩餘收入是無法計算的。因此，你可以對此進行數學計算，找出 Byte 的影響，然後其餘部分來自北美和疲軟的零售需求。這就是我們現在對第四季的看法。

Okay. Got it. Fair enough. And then, just a bigger-picture question. There's, I guess, some chatter out there on MA for dental, and there's a good amount of talk about benefits being reduced and what that does or doesn't mean for the dental industry, and maybe more specifically, implants. So would love your thoughts on how you view that going into 2025 and what that may or may not mean for the implant market and maybe even more specifically Dentsply Sirona's initiatives, most notably in North America for implants? Thanks.

好的。知道了。很公平。然後，只是一個更大的問題。我想，有一些關於牙科 MA 的討論，並且有很多關於福利減少的討論，以及這對牙科行業，更具體地說，對植體意味著什麼或不意味著什麼。那麼，您想知道您如何看待進入2025 年的情況，以及這對植體市場可能意味著什麼，也可能不意味著什麼，甚至更具體地說是登士柏西諾德的舉措，尤其是在北美的植體計畫？謝謝。

Yes. Thanks, Jon. Definitely, on top of macro, these reductions and benefits are, I think, are going to have an impact on customers' willingness to pay more out of pocket for implants, perhaps for aligners, and so on. So I think we will see an impact. But to turn back again to Jason's question, they are still segments that are attractive growers when you compare it to core dentistry.

是的。謝謝，喬恩。當然，我認為，除了宏觀因素之外，這些減少和好處將會影響客戶為植入物（也許是矯正器等）支付更多費用的意願。所以我認為我們會看到影響。但再次回到傑森的問題，當你將其與核心牙科進行比較時，它們仍然是對種植者有吸引力的細分市場。

And so we would still feel that continuing to invest there and get rid of the internal cobwebs that we have to get growth in those areas is still an area of immense interest for us. So no doubt it's a headwind, coupled with macro interest rates, the lack of willingness to invest in capital equipment, and then these recent patient downturns that we've seen, particularly in Japan and China. I think it's -- we're in for a slightly longer period of compression here than everyone had hoped.

因此，我們仍然認為，繼續在那裡投資並擺脫我們必須在這些領域實現成長的內部蜘蛛網仍然是我們非常感興趣的領域。因此，毫無疑問，這是一個逆風，再加上宏觀利率、缺乏投資資本設備的意願，以及我們最近看到的耐心低迷，特別是在日本和中國。我認為，我們面臨的壓縮期比每個人預期的要長一些。

Thanks for the color.

謝謝你的顏色。

Erin Wright, Morgan Stanley.

艾琳·賴特，摩根士丹利。

Great. Thanks. Could you give us an update on just like the distribution channel, your relationships there, and kind of the conversations, how those have been going since kind of the recent disclosure around sort of revisiting some of those relationships? And so how do we think about the importance of distribution across your business? And also kind of what's in the channel, some of the stocking dynamics pull forward, just how we should think about that? Thanks.

偉大的。謝謝。您能否向我們介紹一下分銷管道、您在那裡的關係以及對話的最新情況，以及自從最近披露有關重新審視其中一些關係以來這些關係的進展？那我們該如何看待整個企業分銷的重要性呢？還有通路中的情況，一些庫存動態向前推進，我們應該如何考慮這一點？謝謝。

Yes. So I'll take the first part Erin, and then Glenn can comment on the channel stocking. Listen, we are still heavily reliant on our distributors. They do great work for us. With respect to our friends at Patterson, we continue to work closely with them day in and day out. In fact, we had a senior meeting with them -- senior level meeting with them over the past couple of weeks.

是的。所以我將先講第一部分，艾琳，然後格倫可以對渠道庫存發表評論。聽著，我們仍然嚴重依賴我們的經銷商。他們為我們做了很棒的工作。對於我們在帕特森的朋友，我們繼續日復一日地與他們密切合作。事實上，我們在過去幾週與他們舉行了一次高層會議。

We continue to be in discussion about the point of contention between us. And we hope that we get to an amicable solution here in the not-too-distant future. But as I noted, back in Q2, we do a lot of great work to enable their success. And so that's the crux of the challenge that we have. And Glenn, do you want to comment on the orders?

我們繼續就我們之間的爭論點進行討論。我們希望在不久的將來我們能夠達成友好的解決方案。但正如我在第二季度指出的那樣，我們做了很多出色的工作來幫助他們取得成功。這就是我們面臨的挑戰的關鍵。格倫，你想對這些命令發表評論嗎？

Just in terms of orders, we saw healthy orders from our dealers in the third quarter. I mentioned we had a $48 million sequential increase from Q2 to Q3 in our equipment business. Part of that's normal seasonality with DS World, also saw an uptick in orders from Primescan 2. And I would just highlight that with that dealer inventory increase, there were no special incentives provided to these dealers surrounding that. And that compares to $28 million sequential increase in the prior year.

僅就訂單而言，第三季我們的經銷商訂單狀況良好。我提到我們的設備業務從第二季到第三季連續成長了 4800 萬美元。部分原因是 DS World 的正常季節性，Primescan 2 的訂單也有所增加。我想強調的是，隨著經銷商庫存的增加，沒有為這些經銷商提供特殊的激勵措施。相比之下，去年環比增加了 2800 萬美元。

So it was a situation that created elevated inventory levels, and we're just being careful given what we're seeing in terms of the retail demand as we move forward into Q4. And then I mentioned earlier also the $20 million increase in dealer inventories associated with consumables, and that was directly associated with our ERP conversion and making sure that we minimize any risk in Q4 around that whole conversion. So that was intentional. Again, no special incentives were given associated with that, but we got our orders in earlier and got some of that delivered in the third quarter.

因此，這種情況導致庫存水準升高，考慮到進入第四季度時我們所看到的零售需求，我們只是保持謹慎。然後我之前還提到與消耗品相關的經銷商庫存增加了 2000 萬美元，這與我們的 ERP 轉換直接相關，並確保我們最大限度地減少第四季度圍繞整個轉換的任何風險。所以這是故意的。同樣，沒有給予與此相關的特殊獎勵，但我們較早收到了訂單，並在第三季度交付了其中一些訂單。

Okay, thanks. And then just on SKU rationalization, you commented on it earlier, but has there been any changes in terms of that cadence of where you're at now in terms of the SKU rationalization efforts? And just remind me, some of -- that doesn't necessarily meaningfully impact the top line, right, for you? Are you thinking about that differently in terms of the mix? Thanks.

好的，謝謝。關於 SKU 合理化，您之前評論過，但是您現在在 SKU 合理化工作方面的節奏是否有任何變化？請提醒我，有些 - 這不一定會對營收產生有意義的影響，對吧？您在混合方面有不同的想法嗎？謝謝。

Yes. No major changes since our last update, Erin. We expect to have all the non-revenue SKUs gone by the end of the year. And we expect the majority of revenue-generating SKUs to be migrated by the end of '25. So that's -- no material change to our thinking since our last update.

是的。艾琳，自上次更新以來沒有重大變化。我們預計到今年年底所有非收入 SKU 都會消失。我們預計大多數創收 SKU 將在 25 年底前完成遷移。所以，自上次更新以來，我們的想法沒有重大變化。

Okay. Thank you.

好的。謝謝。

Michael Cherny, Leerink Partners.

邁克爾·切爾尼，Leerink Partners。

Hi, good morning. This is Ahmed on for Mike. Looking ahead, how should we think about what ortho organic growth should be excluding Byte, assuming the team can be more focused on SureSmile? I know that their investments to the company is making -- in software and the push into the ortho market. And lastly, how would you characterize the current and expected uptake in SureSmile with those orthodontics? Other than the software update, is there anything else that's keeping SureSmile back, so to speak, from branching into the ortho space now? Thanks.

嗨，早安。這是艾哈邁德為麥克代言的。展望未來，假設團隊可以更專注於 SureSmile，我們應該如何考慮排除 Byte 以外的有機成長？我知道他們對公司的投資正在軟體和進軍骨科市場方面進行。最後，您如何描述 SureSmile 與這些正畸技術的當前和預期採用？除了軟體更新之外，還有其他因素阻礙 SureSmile 現在進軍正交領域嗎？謝謝。

Yes, good morning. Let me start with maybe the second part of your question. Our sales team -- our commercial teams for the most part focus on general dentistry. And so that's the majority of -- our SureSmile revenue comes from that group of clinicians. As we noted on our last call, when we get the front end of the software fixed, because that's the general feedback that we get from the community, is that then we will invest in a commercial team to begin going -- calling on orthodontists to try and accelerate even more growth.

是的，早安。讓我從你問題的第二部分開始。我們的銷售團隊－我們的商業團隊大部分專注於一般牙科。因此，我們 SureSmile 的大部分收入都來自這群臨床醫生。正如我們在上次電話會議中指出的那樣，當我們修復軟體的前端時，因為這是我們從社區獲得的一般反饋，所以我們將投資一個商業團隊來開始 - 呼籲正畸醫生嘗試加速更多的增長。

Obviously, that's -- our competitor friends won't take that lying down, and it's going to be a turf battle. But we do feel that the clinical offering that we have based on fewer refinements and fewer anchoring points confers efficiency benefits to clinicians, whether they're GPs or orthodontists.

顯然，我們的競爭對手朋友不會袖手旁觀，這將是一場地盤爭奪戰。但我們確實認為，基於更少的改進和更少的錨定點的臨床產品為臨床醫生（無論是全科醫生還是正畸醫生）帶來了效率優勢。

In relation to your comment about SureSmile growth, I think our comments from earlier, you should consider those. We've grown very healthily in Europe and those areas where we've invested like Japan and Brazil. And if you listen to my comments, I think excluding that one partner that we had that has stopped purchasing, we grew in the mid-single digits on SureSmile in North America. So we cannot foresee any reasons why that would not continue.

關於您對 SureSmile 成長的評論，我認為我們之前的評論，您應該考慮這些。我們在歐洲以及日本和巴西等我們投資的地區發展得非常健康。如果你聽聽我的評論，我認為排除我們已經停止購買的一個合作夥伴，我們在北美的 SureSmile 上的成長是中個位數。因此，我們無法預見這種情況不會持續下去的任何原因。

And then back to -- linking it back to Byte, as I noted in the prepared remarks, we have some talented people at Byte on the software and demand generation side, and we would likely be deploying some of those to help us with the SureSmile software and to help us stimulate some further awareness of SureSmile as a very significant brand in the clear aligner marketplace.

然後回到——將其與 Byte 聯繫起來，正如我在準備好的發言中指出的那樣，我們 Byte 在軟體和需求生成方面有一些人才，我們可能會部署其中的一些人來幫助我們開發 SureSmile軟體並幫助我們進一步提高SureSmile 作為透明矯正器市場中非常重要的品牌的知名度。

Got it, thanks. And if I could sneak in one last one. The revenue-generating SKU reduction in 2025, any idea of the impact that has on top line? Is that, if I'm correct, mostly coming from the EDS segment?

明白了，謝謝。如果我能偷偷溜進最後一張就好了。2025 年創收 SKU 減少，您知道這對營收有何影響嗎？如果我沒猜錯的話，這是否主要來自 EDS 部門？

Yes. So we -- I don't think we've ever shared what the impact would be on the top line. Obviously, we've been very cautious about that, and it is primarily focused on the endo and resto businesses today. The work is focused on those businesses today.

是的。所以我們——我認為我們從未分享過這會對營收產生什麼影響。顯然，我們對此非常謹慎，目前主要關注內切和恢復業務。今天的工作重點是這些業務。

Got it. Thank you.

知道了。謝謝。

Brandon Vazquez, William Blair.

布蘭登·巴斯克斯，威廉·布萊爾。

Good morning, everyone. Thanks for taking the question. Simon, can we go back maybe for a second on implants? And I'm kind of curious -- I'm sure you guys have done kind of a postmortem internally where you expect it to be today. And I know you're kind of adjusting things on a go-forward basis, you're hiring new leadership. But what was it you think that hasn't gone to plan in the past couple of quarters or a year or two just to better understand like where you guys are, what hasn't worked, and what needs to be fixed still on a go-forward basis?

大家早安。感謝您提出問題。西蒙，我們可以再回顧一下植入物嗎？我有點好奇——我相信你們已經在內部進行了事後剖析，正如你們今天所期望的那樣。我知道你們正在逐步調整事情，你們正在招募新的領導階層。但是，在過去的幾個季度或一兩年內，您認為哪些內容沒有按計劃進行，只是為了更好地了解您現在的情況，哪些內容不起作用，以及哪些內容需要繼續修復-遠期基礎？

Yes. Thanks, Brandon. I think the investments we've made in commission plans and the number of feet on the Street in new product development that we've introduced over the past couple of years and a very significant investment in clinical education, I think, are all the right moves. And so it comes back to, are we equipping our team in the right way to be successful in the marketplace against a very strong competitor with a very robust portfolio?

是的。謝謝，布蘭登。我認為我們在過去幾年推出的佣金計劃和新產品開發方面的投資以及對臨床教育的非常重大的投資都是正確的移動。那麼，我們是否以正確的方式裝備我們的團隊，以便在市場上對抗擁有強大產品組合的強大競爭對手，取得成功？

And we just have to be -- we have to be far more aggressive and equip the teams in a far more meaningful way to convey the value of our products at the top end and at the middle of the implant market. So net-net, our rate of new accounts has not offset the decline that we've seen over the past several years. So we just have to -- we have to go and do a reset.

我們必須更加積極進取，以更有意義的方式裝備團隊，以在植體市場的高端和中端傳達我們產品的價值。因此，我們的新帳戶率並沒有抵消過去幾年的下降。所以我們必須－我們必須去進行重置。

But again, everything we have heard, Brandon, is there's no reason why we should not be successful in this marketplace even when we -- our sites were not that egregious. Let's grow at the market rate. That was the plan for 2026, let's be at market growth. So I don't think it was an egregious or aggressive plan. I think it was a fair plan. We have not delivered. So we have to go and do a further postmortem and hold people more accountable to commitments that have been made.

但布蘭登，我們所聽到的一切都是，即使我們的網站沒有那麼糟糕，我們也沒有理由不在這個市場上取得成功。讓我們以市場速度成長。這是 2026 年的計劃，讓我們專注於市場成長。所以我不認為這是一個令人震驚或激進的計劃。我認為這是一個公平的計劃。我們還沒有交付。因此，我們必須進行進一步的事後分析，讓人們對已經做出的承諾負起更多責任。

Okay. And one -- maybe one quick follow up, if I could squeeze it in real quick. You guys had mentioned hiring a new virtual internal sales team. Just curious if you could give us examples of where you envision that virtual sales team really plugging into the commercial organization and when you might start to see some P&L benefits from those investments going forward? Thank you.

好的。還有一個——也許是一個快速的跟進，如果我能很快地把它擠出來的話。你們曾提到僱用一個新的虛擬內部銷售團隊。只是好奇您能否給我們舉例說明您設想虛擬銷售團隊真正融入商業組織的地方以及您何時可能開始從這些投資中看到一些損益效益？謝謝。

Yes. Thanks, Brandon. So as I noted in the prepared remarks, we have in excess of, I think, 75 of these individuals hired right now. They're actually starting to make calls today to customers in a specific region in the US. We would expect that they will begin generating revenue for us in '25, obviously. I mean '24, it's very late, but they have to build relationships with the targets.

是的。謝謝，布蘭登。正如我在準備好的演講中指出的那樣，我認為我們現在僱用了超過 75 名這樣的人。實際上，他們今天開始打電話給美國特定地區的客戶。顯然，我們預計他們將在 25 年開始為我們創造收入。我的意思是'24，已經很晚了，但他們必須與目標建立關係。

The targets, I think there's opportunity across our portfolio. Certainly, I would say, in the EDS side, it's probably a little more straightforward to get there. But when we look at the account breakdown of customers that we serve, I think we leave a lot of money on the table. We have a long tail of accounts who purchased only a couple of thousand of -- only take a couple of thousands of dollars' worth of product from us each year. And I think there's an opportunity in that type of account to get a slightly bigger slice of their business.

就目標而言，我認為我們的投資組合中存在機會。當然，我想說，在 EDS 方面，實現這一目標可能會更簡單一些。但當我們查看我們所服務的客戶的帳戶明細時，我認為我們留下了很多錢。我們有一長串客戶，他們每年只向我們購買數千美元的產品。我認為這種類型的帳戶有機會獲得更大的業務份額。

So that's what they're focused on. And it's all about getting closer to the customer, creating demand for whatever channel is served by that particular product line. So if it's endodontics, we will serve it. If it's preventive or resto, Schein or Patterson or other distributors in the US, we'll serve it. But it's all about getting the Dentsply name out further into the dental community, demonstrating the value that we can bring, and trying to earn the right to acquire some more business from all 150,000 dentists in the US.

這就是他們關注的重點。這一切都是為了更接近客戶，為該特定產品線所服務的任何管道創造需求。所以如果是牙髓病，我們會提供服務。如果是預防性或恢復性的，Schein 或 Patterson 或美國的其他經銷商，我們將提供服務。但這一切都是為了讓 Dentsply 的名字進一步深入牙科界，展示我們可以帶來的價值，並努力贏得從美國所有 150,000 名牙醫那裡獲得更多業務的權利。

Allen Lutz, Bank of America.

艾倫·盧茨，美國銀行。

Hi there. This is [Dev] on for Allen Lutz at BofA. I just had a quick question on implants, just following up on the conversation there. Considering some of the commentary and sitting below expectations here, one, should we still think about getting to market growth in 2026 as an expectation? And just curious what you think about any additional investments needed there on product or pricing changes given some of the competitive landscape and changes there? And what is required to get to market growth in 2025 -- sorry, in 2026?

你好呀。這是美國銀行 Allen Lutz 的[開發]。我只是有一個關於植入物的簡單問題，只是跟進那裡的對話。考慮到這裡的一些評論和低於預期的情況，第一，我們是否仍然應該考慮將 2026 年的市場成長作為預期？只是好奇，考慮到那裡的一些競爭格局和變化，您對產品或價格變化所需的任何額外投資有何看法？要在 2025 年（抱歉，2026 年）實現市場成長，需要什麼？

Good morning. I don't think we're going to provide any more guidance at this point with respect to '25 or '26 growth or lack of growth in implants. I don't think it's an egregious thought that we should be growing at that market, as I've said in response to the previous question. The work that we've done to assess our portfolio as said, as we've noted several times that we don't have any major gaps.

早安.我認為我們目前不會就“25”或“26”植體生長或生長缺乏提供任何更多指導。正如我在回答上一個問題時所說的那樣，我認為我們應該在這個市場上發展並不是一個令人震驚的想法。如上所述，我們為評估我們的投資組合所做的工作，正如我們多次指出的那樣，我們沒有任何重大差距。

We have invested in clinical education. Maybe we need to pivot that and drive more local education and get at these referral networks that seem to be causing us the challenges to unlock those. I think quite simply, it comes down to our own ability to execute and to equip our reps and educate our reps to have robust conversations with the implantologist community, their referral network, and do it in a much faster way.

我們投資於臨床教育。也許我們需要扭轉這一局面，推動更多的本地教育，並獲得這些推薦網絡，這些網絡似乎為我們帶來了解鎖這些挑戰的挑戰。我認為很簡單，這取決於我們自己的執行能力，為我們的代表提供裝備，並教育我們的代表與種植科醫生社區、他們的推薦網絡進行強有力的對話，並以更快的方式做到這一點。

Not have this long tail while they filled up their reputation but get out faster into the marketplace and begin creating demand. It's a multifactorial issue as I use that word I used earlier on. And we are disappointed with where we sit today on implants. That is for sure.

當他們填補聲譽時，他們不會有這麼長的尾巴，而是更快地進入市場並開始創造需求。這是一個多因素的問題，因為我使用了之前使用過的這個詞。我們對今天的植入物狀況感到失望。這是肯定的。

Absolutely. And then just last one for me. I think at the Investor Day, there was a mention of a $30 million gross benefit -- gross profit benefit from SKU optimization efforts through 2026. It seems like SKU optimization efforts are progressing well. Could you just give us an update on where that stands in terms of the gross profit benefit, and if that's something that's more of a 2025 event or 2026? Thank you.

絕對地。然後是我的最後一個。我想在投資者日，有人提到了 3000 萬美元的毛收益——到 2026 年 SKU 優化工作帶來的毛利收益。SKU 優化工作似乎進展順利。您能否向我們介紹一下毛利效益的最新情況，以及這更像是 2025 年的事件還是 2026 年的事件？謝謝。

Yes. So I think we just noted that for all intents and purposes, all our transformational efforts, including SKU optimization, are on track. And that will provide a more robust update when we do year-end earnings in, I guess, late February. So that will be our thoughts on that. But we have -- there are no alarms ringing with respect to SKUs right now.

是的。因此，我認為我們剛剛注意到，無論出於何種意圖和目的，我們所有的轉型努力（包括 SKU 優化）都已步入正​​軌。我想，當我們在二月底公佈年終收益時，這將提供更強勁的更新。這就是我們對此的想法。但我們目前還沒有就 SKU 發出警報。

Thank you.

謝謝。

Thank you. I am showing no further questions at this time. I would now like to turn the conference back to our CEO, Simon Campion, for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請我們的執行長西蒙‧坎皮恩 (Simon Campion) 致閉幕詞。

Thank you, operator. So in closing today, I want to express my thanks to you all for joining us and to the entire Dentsply Sirona team for their commitment to our customers and our ongoing transformation of our company. While we know we have lots more to do, we are making progress. We are bringing innovation to the marketplace. And we are creating a more disciplined, accountable, and Dentsply Sirona-first culture that will benefit all stakeholders over the long term. Thank you for your time today.

謝謝你，接線生。因此，在今天結束時，我要感謝大家加入我們，並感謝整個 Dentsply Sirona 團隊對我們客戶的承諾以及我們公司的持續轉型。雖然我們知道還有很多事情要做，但我們正在取得進展。我們正在為市場帶來創新。我們正在創造一種更紀律嚴明、更負責任、登士柏西諾德優先的文化，這將使所有利害關係人長期受益。感謝您今天抽出時間。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。