ZimVie Inc (ZIMV) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the ZimVie Third Quarter 2023 Financial Results 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 ZimVie 2023 年第三季財務業績電話會議。 （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 first speaker today, Marissa Bych.

現在我想將會議交給今天的第一位發言人瑪麗莎·比奇 (Marissa Bych)。

Thank you all for joining today's call. Earlier today, ZimVie released financial results for the quarter ended September 30, 2023. A copy of the press release is available on the company's website, zimvie.com as well as on sec.gov. Before we begin, I'd like to remind you that management will make comments during this call that include forward-looking statements. Actual results may differ materially from those indicated by the forward-looking statements due to a variety of risks and uncertainties.

感謝大家參加今天的電話會議。今天早些時候，ZimVie 發布了截至 2023 年 9 月 30 日的季度財務業績。該新聞稿的副本可在該公司網站 zimvie.com 以及 sec.gov 上取得。在我們開始之前，我想提醒您，管理層將在本次電話會議中發表評論，其中包括前瞻性陳述。由於各種風險和不確定性，實際結果可能與前瞻性陳述所示的結果有重大差異。

Please refer to the company's most recent periodic report filed with the SEC and subsequent SEC filings for a detailed discussion of these risks and uncertainties. In addition, the discussion on this call will include certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included within the earnings release and the investor deck issued today found on the Investor Relations section of the company's website. This conference call contains time-sensitive information as accurate only as of the live broadcast today, November 1, 2023. ZimVie disclaims any intention or obligation, except as required by law, to update or revise any financial projections or forward-looking statements, whether because of new information, future events or otherwise.

請參閱該公司最近向 SEC 提交的定期報告以及隨後向 SEC 提交的文件，以了解有關這些風險和不確定性的詳細討論。此外，本次電話會議的討論將包括某些非公認會計準則財務指標。這些指標與最直接可比較的公認會計原則財務指標的調節包含在今天發布的收益報告和投資者資料中，可在公司網站的投資者關係部分找到。本次電話會議所包含的時間敏感資訊僅截至今天（2023 年 11 月 1 日）直播時準確。除法律要求外，ZimVie 不承擔任何更新或修改任何財務預測或前瞻性陳述的意圖或義務，無論是由於新資訊、未來事件或其他原因。

With that, I will turn the call over to Vafa Jamali, President and Chief Executive Officer of ZimVie.

接下來，我將電話轉給 ZimVie 總裁兼執行長 Vafa Jamali。

Good afternoon, and thank you all for joining us. In the third quarter, we continue to make progress on our innovation platform, actively reshaping our portfolio to further penetrate markets with best long-term growth potential. In parallel, we are improving our operational efficiency and driving better cash flow generation. In dental, our sales team and DSO partners continue to have success engaging existing and new customers. We've seen strong traction for our products launched over the past year with both our legacy customers and our ever-emerging DSO channel, driving new customer acquisition across the board.

下午好，感謝大家加入我們。第三季度，我們繼續在創新平台上取得進展，積極重塑我們的產品組合，以進一步滲透具有最佳長期成長潛力的市場。同時，我們正在提高營運效率並推動更好的現金流產生。在牙科領域，我們的銷售團隊和 DSO 合作夥伴繼續成功吸引現有和新客戶。我們看到過去一年推出的產品受到我們的老客戶和不斷湧現的 DSO 管道的強烈關注，全面推動了新客戶的獲取。

We're also very pleased with the cadence of new profit introductions. The most recent name Biotivity A/C in the year. The Biotivity A/C Plus Membrane, now part of the dental biomaterials portfolio delivers a common request we've received from the field to offer a growth factor rich bioactive barrier. The Biotivity membrane, which is derived from human placental tissue conforms nicely for site coverage that's now being used in a variety of regenerative procedures.

我們也對新利潤推出的節奏感到非常滿意。今年最新的名稱 Biotivity A/C。 Biotivity A/C Plus 薄膜現已成為牙科生物材料產品組合的一部分，滿足了我們從該領域收到的共同要求，即提供富含生長因子的生物活性屏障。 Biotivity 膜取自人類胎盤組織，非常適合部位覆蓋，目前已用於各種再生手術。

Turning to our Azure multi-platform product solutions. With Azure the portfolio offers a more comprehensive selection of components effectively cater to the dental lab market. This solution set includes 13 lab-focused prosthetic and restorative solutions designed to integrate into digital workflows. In summary, I'm very pleased with our position in dental, and remain confident in our ability to perform at or above market in core product areas into the year ahead.

轉向我們的 Azure 多平台產品解決方案。借助 Azure，該產品組合提供了更全面的組件選擇，有效滿足牙科實驗室市場的需求。該解決方案集包括 13 個以實驗室為中心的義肢和修復解決方案，旨在整合到數位工作流程中。總而言之，我對我們在牙科領域的地位感到非常滿意，並對我們未來一年在核心產品領域達到或高於市場水平的表現仍然充滿信心。

Turning to our Spine business. We're also driving incremental success within our spine portfolio. Our position with Mobi-C is improving also. Earlier in the quarter, we announced FDA approval for a new smaller height Mobi-C and 7 footprints. This approval allows the usage of Mobi-C to address more anatomical needs, expanding access for patients across the U.S. I'm pleased to report that we've implanted our first device and I look forward to seeing further adoption.

轉向我們的脊椎業務。我們也正在推動我們的脊椎產品組合取得逐步成功。我們在 Mobi-C 上的地位也在改善。本季度早些時候，我們宣布 FDA 批准新的高度較小的 Mobi-C 和 7 封裝。這項批准允許使用 Mobi-C 來滿足更多解剖學需求，擴大美國各地患者的使用範圍。我很高興地報告，我們已經植入了我們的第一個設備，我期待看到進一步的採用。

Continuing with Mobi-C, we received FDA approval to launch a groundbreaking at e-clinical study of cervical arthroplasty adjacent to fusion. This study will further deepen Mobi-C is truly differentiated clinical event Biotivity and an expand suitable patient population for cervical arthroplasty. I'm also pleased to share that we recently crossed the milestone for 2,000 patients treated with The Tether device.

繼續使用 Mobi-C，我們獲得了 FDA 的批准，可以啟動頸椎關節置換術鄰近融合的突破性電子臨床研究。這項研究將進一步深化 Mobi-C 真正差異化的臨床事件 Biotivity 並擴大適合頸椎關節置換術的患者群體。我還很高興地告訴大家，我們最近跨越了使用 Tether 設備治療 2,000 名患者的里程碑。

As a reminder, The Tether is a high-impact solution for pediatric patients. Over 50 surgeons that perform BBT using the market-leading center systems, 2 patients diagnostic with adolescent idiopathic scoliosis, and we look forward to treating more patients with this therapy into the future.

提醒一下，The Tether 是針對兒科患者的高效解決方案。超過 50 名外科醫生使用市場領先的中心系統進行 BBT，其中 2 名患者診斷為青少年特發性脊椎側凸，我們期待未來用這種療法治療更多患者。

Finally, we continue to advance our Brainlab partnership has recently expanded our development cooperation agreement to include co-marketing. We continue to work on achieving compatibility between our spinal implant and Brainlab spine and trauma navigation systems, allowing us to enhance workflow and accuracy in the operating growth while reducing their operating actually and radiation exposure. We'll continue to engage with key surgeon customers, innovate on and around existing solutions and ultimately optimize our positions in markets where we can win.

最後，我們繼續推進 Brainlab 合作夥伴關係，最近擴大了我們的開發合作協議，將聯合行銷納入其中。我們繼續努力實現脊椎植入物與 Brainlab 脊椎和創傷導航系統之間的相容性，使我們能夠增強手術生長的工作流程和準確性，同時減少其實際操作和輻射暴露。我們將繼續與主要外科醫生客戶合作，在現有解決方案的基礎上進行創新，並最終優化我們在能夠獲勝的市場中的地位。

Turning to our continued operational improvements. As I mentioned in past quarters, we've made meaningful reductions to our physical footprint and corporate overhead while working through excess inventory receivables. Although there is still room for further optimization, I'm pleased that we're making excellent progress and have improved cash position in our balance sheet by nearly $10 million this quarter. We're continuing to leverage our cash position to pay down the principal balance of our debt and prepaid 2024 interest payments, a topic which we will provide more detail on shortly.

轉向我們持續的營運改善。正如我在過去幾季中提到的，我們在解決過剩庫存應收帳款的同時，顯著減少了實際足跡和公司管理費用。儘管仍有進一步優化的空間，但我很高興我們取得了良好的進展，而本季資產負債表中的現金狀況改善了近 1000 萬美元。我們將繼續利用我們的現金部位來償還債務的本金餘額和預付的 2024 年利息，我們很快就會提供更多細節。

Finally, I am very excited to announce that we have completed all of our ERP conversions. This concludes a heavy operational lift, completing LTSAs related to our 2022 spin-off, moving over 950 service to new data centers and transitioning over 200 applications to modern and large cloud-based platforms.

最後，我非常高興地宣布我們已經完成了所有 ERP 轉換。這完成了一項繁重的營運提升，完成了與 2022 年分拆相關的 LTSA，將 950 多個服務轉移到新的資料中心，並將 200 多個應用程式過渡到現代大型基於雲端的平台。

I'll now turn the call over to Rich to outline our financial performance.

現在我將把電話轉給里奇，概述我們的財務表現。

Thanks, Vafa, and good afternoon, everyone. I'll begin by reviewing our third quarter 2023 results, and we'll close by providing our updated outlook for the full year of 2023. Total third-party net sales for the third quarter of 2023 were $202.9 million, a decrease of 4.9% on a reported basis and a decrease of 5.0% in constant currency. As we mentioned towards the conclusion of our Q2 earnings call, we expected Q3 to be impacted by slightly higher than normal seasonality for our businesses in the summer months, and our sales performance exceeded these expectations.

謝謝瓦法，大家下午好。我將首先回顧 2023 年第三季的業績，最後提供 2023 年全年的最新展望。2023 年第三季第三方淨銷售額總額為 2.029 億美元，下降 4.9%按報告計算，按固定匯率計算下降5.0%。正如我們在第二季財報電話會議結束時所提到的，我們預計第三季我們的業務將受到夏季月份略高於正常季節性的影響，而我們的銷售業績超出了這些預期。

Moving on to our key segments. Global Dentals third-party net sales were $105.3 million in the third quarter, representing 20 basis points of growth as reported and a decline of 1.2% in constant currency when compared to the prior year period, driven entirely by 1 less selling day in Q3 of 2023 versus Q2 2022. While the dental market in aggregate was relatively soft in the third quarter, we continued to execute well commercially and the market acceptance of our new premium implants contributed to effectively flat year-over-year implant sales on a global basis.

繼續我們的關鍵部分。 Global Dentals 第三季第三方淨銷售額為 1.053 億美元，較上年同期成長 20 個基點，以固定匯率計算下降 1.2%，這完全是由於第三季銷售日減少 1 個所致。2023 年與2022 年第二季相比。雖然第三季牙科市場整體相對疲軟，但我們在商業上繼續表現良好，而且我們的新型優質植體的市場接受度導致全球植體銷售實際上與去年同期持平。

In the U.S., dental third-party net sales of $65.0 million declined by 2.5%, driven by 1 less selling day and a slightly weaker implant market, partially offset by ongoing strength in our digital solutions sales. Outside of the U.S., dental third-party net sales of $40.3 million increased by 4.9% on a reported basis and 1.2% in constant currency, driven by growth across all 3 of our product families, implants, biomaterials and digital dentistry, partially offset by 1 less selling day in Q3 of 2023.

在美國，牙科第三方淨銷售額為 6,500 萬美元，下降了 2.5%，原因是銷售日減少 1 日和植體市場略有疲軟，但我們數位解決方案銷售的持續強勁部分抵消了這一影響。在美國以外的地區，牙科第三方淨銷售額為4,030 萬美元，按報告計算成長4.9%，以固定匯率計算成長1.2%，這主要受到我們所有3 個產品系列（植體、生物材料和數位牙科）成長的推動，但部分被2023 年第三季銷售日減少 1 個。

Our new product launches in 2022 and 2023, particularly T3 PRO and TSX continued their early and impressive trend of market acceptance during the third quarter. Third quarter global spine third-party net sales were $97.6 million, a decrease of 9.8% on a reported basis and an 8.9% decrease in constant currency when compared to the prior year period. The decrease was primarily driven by continued competition in the spine market, our decision to exit China following volume-based procurement and 1 less selling day, partially offset by the recognition of sales that were previously attributed to Zimmer Biomet and growth in both our EMEA and Asia Pacific regions.

我們在 2022 年和 2023 年推出的新產品，特別是 T3 PRO 和 TSX 在第三季繼續保持早期令人印象深刻的市場接受趨勢。第三季全球脊椎第三方淨銷售額為 9,760 萬美元，與去年同期相比，報告基礎上下降 9.8%，以固定匯率計算下降 8.9%。這一下降主要是由於脊椎市場的持續競爭、我們在基於數量的採購後決定退出中國以及減少1 個銷售日，但部分被先前歸因於Zimmer Biomet 的銷售認可以及我們的EMEA 和歐洲和中東地區的成長所抵銷。亞太地區。

As Vafa commented, we are pleased with our Mobi-C and Tether performance relative to the balance of our core spine portfolio led by growth in Europe and Asia Pacific. In the U.S., Spine third-party net sales of $78.3 million decreased by 10.2%, driven by competitive pressure in core spine and 1 less selling day and partially offset by a relative improvement in Mobi-C and The Tether. Outside of the U.S., spine third-party net sales of $19.3 million decreased by 8.3% on a reported basis and 3.6% in constant currency.

正如 Vafa 評論的那樣，我們對 Mobi-C 和 Tether 的表現感到滿意，相對於由歐洲和亞太地區增長帶動的核心骨幹投資組合的平衡。在美國，Spine 第三方淨銷售額為 7,830 萬美元，下降 10.2%，原因是核心脊椎的競爭壓力和銷售日減少 1 個，但部分被 Mobi-C 和 The Tether 的相對改善所抵消。在美國以外，Spine 第三方淨銷售額為 1,930 萬美元，按報告資料計算下降 8.3%，以固定匯率計算下降 3.6%。

Mobi-C and Tether outside of the U.S. continue to leverage our differentiated best-in-class clinical evidence by growing 67% and 62%, respectively, during the third quarter. Third quarter adjusted cost of products sold at 31.8% of sales compares to 27.2% of sales in the prior year period. As a reminder, in Q3 of 2022, our cost of sales benefited from the settlement of a contingent liability with our prior parent.

美國以外的 Mobi-C 和 Tether 繼續利用我們差異化的一流臨床證據，在第三季分別成長了 67% 和 62%。第三季調整後產品銷售成本佔銷售額的 31.8%，去年同期為 27.2%。提醒一下，2022 年第三季度，我們的銷售成本受益於與前母公司的或有負債的結算。

We are pleased with our ongoing progress to reduce cost of products sold as we look to continue to better manage inventory and inventory-related charges. Adjusted research and development expense of $10.5 million represents 5.2% as a percentage of third-party sales. Third quarter 2023 adjusted selling, general and administrative expenses of $115.7 million or 57.0% of third-party net sales was $13.1 million lower versus the prior year period.

我們對降低產品銷售成本方面不斷取得的進展感到高興，因為我們希望繼續更好地管理庫存和庫存相關費用。調整後的研發費用為 1,050 萬美元，佔第三方銷售額的 5.2%。 2023 年第三季調整後的銷售、一般及管理費用為 1.157 億美元，佔第三方淨銷售額的 57.0%，比去年同期減少 1,310 萬美元。

Lower SG&A expenses year-over-year are due to less variable expenses from lower net sales and savings from our previously announced restructuring initiatives and cost containment measures. Adjusted EBITDA in the third quarter of 2023 was $25.8 million or 12.7% of third-party net sales, reflecting a decline of 110 basis points from 13.8% in the prior year period. The decrease in adjusted EBITDA margin is primarily due to lower net sales. The benefit of the contingent liability with our prior parent in Q3 of 2022, partially offset by savings from restructuring and cost containment. Adjusted earnings per share in the third quarter was $0.08 on a fully diluted weighted average share count of 27.0 million shares.

SG&A 費用年減是由於淨銷售額下降導致變動費用減少以及我們先前宣布的重組計劃和成本控制措施帶來的節省。 2023 年第三季調整後 EBITDA 為 2,580 萬美元，佔第三方淨銷售額的 12.7%，較上年同期的 13.8% 下降 110 個基點。調整後 EBITDA 利潤率的下降主要是因為淨銷售額下降。 2022 年第三季我們與前母公司的或有負債帶來的好處，部分被重組和成本控制帶來的節省所抵消。第三季調整後每股盈餘為 0.08 美元，完全稀釋加權平均股數為 2,700 萬股。

Regarding working capital, liquidity and debt. In Q3, we accelerated our progress on initiatives to monetize the strength of assets on our balance sheet and the application of our disciplined financial frame work. In the quarter, we added over $9 million in cash to end at $75.4 million, including a $7 million prepayment of required principal payments on our term loan debt. Net working capital improved by $8 million, including a $12 million reduction in inventory and a $14 million reduction in accounts receivable. Although we have further opportunity to improve our financial profile, we are pleased that our focus on the operationalization of the business is yielding continued progress. As a reminder, a $175 million credit facility revolver remains undrawn.

關於營運資金、流動性和債務。第三季度，我們加快了將資產負債表上的資產實力貨幣化的舉措以及嚴格財務框架的應用。本季度，我們增加了超過 900 萬美元的現金，最終達到 7,540 萬美元，其中包括提前償還定期貸款債務所需本金的 700 萬美元。淨營運資本增加 800 萬美元，其中庫存減少 1,200 萬美元，應收帳款減少 1,400 萬美元。儘管我們還有進一步改善財務狀況的機會，但我們很高興我們對業務運營的關注正在取得持續進展。需要提醒的是，1.75 億美元的循環信用額度仍未提領。

Looking ahead, please note that we expect our interest expense to increase by a couple of million dollars in 2024 relative to 2023, given the current rate environment and debt balance.

展望未來，請注意，考慮到當前的利率環境和債務餘額，我們預計 2024 年的利息支出將比 2023 年增加數百萬美元。

I'll now turn to our updated full year 2023 outlook. We are pleased with the progress we are making and are subsequently revising our full year 2023 financial outlook. Starting with revenue, we are revising our expected full year 2023 net sales to be in the range of $860 million to $870 million, narrowing our range from our previous guidance of $850 million to $870 million.

現在我將談談我們更新後的 2023 年全年展望。我們對所取得的進展感到滿意，並隨後修訂 2023 年全年財務展望。從營收開始，我們將 2023 年全年淨銷售額預期調整為 8.6 億至 8.7 億美元，將範圍從先前的 8.5 億美元縮小至 8.7 億美元。

Looking at our segments, we continue to expect 2023 dental net sales to be flat or to grow in the low single digits versus 2022, and we continue to expect 2023 Spine net sales to decline in the high single digits to low double digits versus 2022.

就我們的細分市場而言，我們繼續預計2023 年牙科淨銷售額將與2022 年持平或以低個位數增長，並且我們繼續預計2023 年脊柱淨銷售額將比2022 年從高個位數下降到低兩位數。

Moving to adjusted EBITDA margin. We expect full year adjusted EBITDA margin to be in the range of 13.5% to 14.0% of net sales, the same as previously guided. With regard to adjusted earnings per share, we are revising our adjusted earnings per share guidance range to $0.60 per share and $0.70 per share on a fully diluted share count of 26.6 million shares, narrowing the range of our previous guidance range of $0.50 to $0.70 per share.

轉向調整後的 EBITDA 利潤率。我們預計全年調整後 EBITDA 利潤率將在淨銷售額的 13.5% 至 14.0% 範圍內，與先前的指導相同。關於調整後每股收益，我們將調整後每股盈餘指引範圍修改為每股0.60 美元和每股0.70 美元，完全稀釋後的股數為2,660 萬股，將先前的指導範圍縮小為每股0.50 美元至0.70 美元。分享。

With that, I'll now turn the call back over to Vafa.

這樣，我現在將把電話轉回瓦法。

Thank you, Rich. I'm pleased with our progress in 2023 to date as well as our execution on streamlining objectives. Although we have additional work ahead to return our business to durable growth, I am confident in the strength of the assets in the portfolio and our presence in underserved end markets, which ultimately bring great value to patients. As we continue to improve the evidence of our company in all of our product platforms and execute commercially, we look forward to showcasing the results that were hard to deliver.

謝謝你，里奇。我對 2023 年迄今的進展以及精簡目標的執行情況感到滿意。儘管我們還有更多工作要做才能使我們的業務恢復持久增長，但我對投資組合中資產的實力以及我們在服務不足的終端市場的存在充滿信心，這最終會給患者帶來巨大的價值。隨著我們繼續在所有產品平台中改進我們公司的證據並進行商業化執行，我們期待展示難以交付的成果。

With that, we will open it up to questions.

至此，我們將開放提問。

(Operator Instructions) Our first question comes from the line of Robbie Marcus with JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的羅比·馬庫斯（Robbie Marcus）。

This is actually Lilly on for Robbie. A lot of the upside, at least relative to our own expectations came from Spine. So can you talk about any progress in the trends you're seeing there, particularly in terms of competition? And what signals are you seeing that could potentially indicate a stabilization moving forward?

這其實是莉莉為羅比做的。至少相對於我們自己的預期而言，許多好處都來自 Spine。那麼您能談談您所看到的趨勢方面的進展嗎，特別是在競爭方面？您看到哪些訊號可能預示著未來的穩定？

Right. Thanks for the question, Vafa here. We are seeing international growth contribute the most to the Spine recovery. We still believe that we've got some work to do in the U.S., and we have plans on points that can get us there. But the primary drivers for the recovery are Mobi-C sales internationally, both in EMEA and APAC and Tether sales in EMEA. Those are the primary drivers for the improved supply performance.

正確的。謝謝你的提問，瓦法。我們看到國際成長對脊椎復甦的貢獻最大。我們仍然相信，我們在美國還有一些工作要做，我們已經制定了可以實現這一目標的計劃。但復甦的主要動力是 Mobi-C 在歐洲、中東和非洲地區和亞太地區的國際銷售以及歐洲、中東和非洲地區的 Tether 銷售。這些是供應績效改善的主要驅動力。

Yes. This is Rich here. Thanks again for the question. Just to kind of add to that comment that Vafa made. If you look at our international, our international decline actually impact was only down about 3.6%, and that included the impact of exiting China for the year. But when you look at the international market, specifically, particularly around our flagship products, Mobi-C and Tether in our EMEA region, we've mentioned before that Mobi-C is the only cervical disc replacement in France is approved for reimbursement. And that business in our EMEA region grew by almost 40% year-over-year in the quarter. And then Tether, we've also had great uptick in Tether. And in Europe, in EMEA, our Tether business also grew by about 29%. So to Vafa's point, we're really starting to see some stability in the U.S. -- for U.S. environment. So those green shoots continue to take root.

是的。這是里奇。再次感謝您的提問。只是為了補充 Vafa 的評論。如果你看看我們的國際市場，我們的國際市場下降實際上只下降了約 3.6%，其中包括今年退出中國的影響。但當你看看國際市場時，特別是我們在 EMEA 地區的旗艦產品 Mobi-C 和 Tether 時，我們之前提到過，Mobi-C 是法國唯一批准報銷的頸椎間盤置換術。本季 EMEA 地區的業務年增近 40%。然後是 Tether，我們的 Tether 也有了很大的成長。在歐洲，在 EMEA，我們的 Tether 業務也成長了約 29%。因此，就瓦法的觀點而言，我們確實開始看到美國的環境出現了一些穩定。所以那些綠芽繼續生根發芽。

Got it. That's good to hear. And then maybe on the flip side, dental was a little bit softer compared to our numbers. So -- and you called out a weaker dental market this quarter. So what are the drivers of that? And how do you see that trending into the back half of the year?

知道了。聽起來還不錯。也許另一方面，與我們的數字相比，牙科的情況要軟一些。因此，您指出本季牙科市場疲軟。那麼，其驅動因素是什麼？您如何看待下半年的趨勢？

Right. So what we feel that we're doing well relative to the competition, but we do see a slower dental implant market in the United States. So that is where we're seeing the softest part, it's primarily macro driven. It's not class customer. We're actually doing well on that front. We're doing well on new customers, but we do see softer existing user sale in dental in the U.S. Rich, internationally?

正確的。因此，我們認為相對於競爭對手，我們做得很好，但我們確實看到美國的植牙市場成長較慢。這就是我們看到的最柔軟的部分，它主要是宏觀驅動的。這不是一流的客戶。事實上我們在這方面做得很好。我們在新客戶方面做得很好，但我們確實看到美國牙科領域的現有用戶銷售疲軟。國際上有錢人嗎？

Yes. So dental is largely driven by first and foremost, year-over-year, we had one less selling day. And it's largely macroeconomic pressure in the U.S. But to Vafa's point, we actually use the dental business, we're actually pleased with our performance year-over-year. And we've seen similar strength, particularly in Europe on the dental side. Our dental business in EMEA grew almost 12% and year-over-year in reported and about 4% in constant currency.

是的。因此，牙科主要是由第一也是最重要的因素推動的，與去年同期相比，我們的銷售日減少了。這主要是美國的宏觀經濟壓力。但就 Vafa 的觀點而言，我們實際上使用牙科業務，我們實際上對我們的同比表現感到滿意。我們也看到了類似的實力，特別是在歐洲的牙科方面。我們在 EMEA 的牙科業務按報告計算年增近 12%，以固定匯率計算約成長 4%。

And so we're really pleased with our digital portfolio. It continues to grow double digits for us. Our biomaterials offerings continue to do well. And on a year-over-year basis, our flagship implants are basically flat year-over-year, which, despite the macroeconomic pressures, we think that we're outpacing some of our other competitors in the market.

因此，我們對我們的數位產品組合非常滿意。對我們來說，它繼續以兩位數成長。我們的生物材料產品繼續表現良好。與去年同期相比，我們的旗艦植入物基本上與去年同期持平，儘管面臨宏觀經濟壓力，但我們認為我們正在超過市場上的其他一些競爭對手。

Yes. We think we're positioned really well within that dental portfolio. So when the market share return, we should be in a very, very good place competitively with respect to our portfolio, our price and our customers.

是的。我們認為我們在牙科產品組合中處於非常有利的位置。因此，當市場佔有率回歸時，我們在產品組合、價格和客戶方面應該處於非常非常有競爭力的位置。

Next question comes from the line of Matt Miksic from Barclays.

下一個問題來自巴克萊銀行的馬特·米克西奇。

So I appreciate all the color. I wanted to get a sense of following up on the question on spine. It seemed like when you described at NAV, the opportunity to sort of get after a more significant part of the cervical disc replacement market with the new sizes that you've rolled out in the U.S. based on -- I think it was like 30% of the European market was addressed by these new sizes. Can you -- would you actually describe the current competitive environment in the U.S. like you've been at a disadvantage because these other -- these patients say 1/3 roughly of the U.S. population is possibly been unaccessible to you, and this is going to open that up?

所以我很欣賞所有的顏色。我想了解一下脊椎問題的後續情況。當您在 NAV 上描述時，似乎有機會利用您在美國推出的新尺寸來佔領頸椎間盤置換市場更重要的部分——我認為這大約是 30%這些新尺寸滿足了歐洲市場的需求。你能否——你實際上能描述一下美國目前的競爭環境嗎？就像你一直處於劣勢一樣，因為這些其他——這些患者說，你可能無法接觸到大約1/3 的美國人口，而這正在發生打開它？

Or would you say this is kind of a market expansion opportunity for folks who are maybe looking at a patient and saying, "You know what, we have to fuse this because we just don't have the size for this patient". I'd love to get a sense for how big of an inflection you think this is for the U.S. market? And I have one follow-up.

或者你會說，對於那些可能在看著病人並說「你知道嗎，我們必須融合這個，因為我們沒有適合這個病人的尺寸」的人來說，這是一種市場擴張機會。我很想知道您認為這對美國市場有多大的影響？我還有一個後續行動。

Sure. Matt. So I think the underlying concern that we had with our portfolio was we haven't innovated since the acquisition of LDR, and we needed to continue to innovate the portfolio specifically to Mobi-C. So there's a couple of things we're doing there. The size it just adds to our portfolio. So it adds more suitable patients to that portfolio, and puts it competitively at parity with the newer launch that's come out. So that's important to be able to at least offer everything that's happening there. At the same time, we think that we can -- we have -- the biggest opportunity is still to expand the market in terms of who is eligible for a disc versus fusion.

當然。馬特。因此，我認為我們對產品組合的根本擔憂是，自收購 LDR 以來我們尚未進行創新，而我們需要繼續專門針對 Mobi-C 進行產品組合創新。所以我們正在那裡做一些事情。它的規模只是增加了我們的投資組合。因此，它為該產品組合添加了更多合適的患者，並使其與已推出的新產品具有相同的競爭力。因此，至少能夠提供那裡發生的一切是很重要的。同時，我們認為我們可以——我們擁有——最大的機會仍然是在誰有資格獲得光碟與融合方面擴大市場。

And so the combination of the sizes that we are offering now along with the newly announced hybrid study, which will allow a surgeon to put a fusion next to cervical disc these are really, really important drivers of new market growth. So we haven't put a hard number on either one of those, but look at it as a way for us to become more and more competitive within the cervical disc market but never lose sight of the fact that really the greatest opportunity we serve the biscuit is improving the users and the patient population that get versus fusion versus going after competitive share.

因此，我們現在提供的尺寸與新宣布的混合研究相結合，這將使外科醫生能夠在頸椎間盤旁邊進行融合，這些都是新市場成長的真正非常重要的驅動力。因此，我們還沒有對其中任何一個給出確切的數字，但將其視為我們在頸椎間盤市場中變得越來越有競爭力的一種方式，但永遠不要忽視這樣一個事實，即我們真正服務的最大機會餅乾正在改善獲得融合而不是追求競爭份額的用戶和患者群體。

Got it. That's super helpful. And just one more on spine, there's a lot of what's being categorized as sort of disruption or dislocation because of some major spine deals and actions as you're aware of, I'm sure. Is there -- has there been any effect on your ability to or to either recruit reps or distributors or your the pressure on you to sort of other folks trying to pick off some of your better distributors. What's that dynamic like? And then I have just one more follow-up on dental.

知道了。這非常有幫助。關於脊椎，還有一點，我確信，由於一些重大的脊椎交易和行動，有很多東西被歸類為某種破壞或混亂。是否對您招募代表或分銷商的能力或招募代表或分銷商的能力有任何影響，或者您對其他人試圖挑選一些更好的分銷商的壓力是否有任何影響。那動態是什麼樣的？然後我還有一次關於牙科的後續行動。

Yes. So on that particular situation, that's a situation we were on the wrong side of that when we announced the span. And right now, I feel like there is a lot of very, very excellent talent out there, particularly in the United States where we hope to be the recipient of a lot of that talent to improve our sales channel or to go into areas where we have less penetration. So we're feeling like we will be a net beneficiary of that disruption, and I look forward to sharing that news with you over next a while. It won't be something we do suddenly. All these things take a little bit of time, but if we're fast enough, but nevertheless, I think we'll be the beneficiary of some positive news there.

是的。因此，在這種特殊情況下，當我們宣布跨度時，我們就站在了錯誤的一邊。現在，我覺得那裡有很多非常非常優秀的人才，特別是在美國，我們希望成為許多人才的接受者，以改善我們的銷售管道或進入我們所擅長的領域。滲透力較小。因此，我們感覺我們將成為這種破壞的淨受益者，我期待在接下來的一段時間內與您分享這一消息。這不會是我們突然做的事情。所有這些事情都需要一點時間，但如果我們足夠快，但儘管如此，我認為我們將成為那裡一些積極消息的受益者。

That's great. And then just finally on dental. Any sense of how much -- maybe -- I apologize if you answered this in your last -- in the question around dental, but just elements of seasonality that either came into play in Q3 or may come into play in Q4 and any sense of whether that's a market that's stabilizing or potential for improving just some color as to which way the wins of growth are blowing in the dental market in a moment.

那太棒了。最後是牙科。任何感覺 - 也許 - 如果你在最後回答這個問題，我很抱歉 - 在關於牙科的問題上，但只是在第三季度發揮作用或可能在第四季度發揮作用的季節性因素以及任何感覺這是一個正在穩定的市場還是有改善潛力的市場，目前牙科市場成長的勝利正在以何種方式吹散。

Sure. So particular to us, just -- I'll start and Rich will have some further color on it. We are happy with the new customer acquisition that we have. So we're doing really well with DSOs, and we're doing really well with newer non-implant customers that are starting to do implants. So that's very, very positive for us. I would say that we did experience seasonality in Q3, and there is a softness in the U.S. market that is not evident in Asia Pacific or in EMEA. But we do feel that which is probably adding a little bit of conservatism to how we see Q4 working out.

當然。對我們來說非常特別，只是──我將開始，里奇將對此進行一些進一步的闡述。我們對獲得的新客戶感到滿意。因此，我們在 DSO 方面做得非常好，並且在與開始進行植入的新非植入客戶方面也做得非常好。所以這對我們來說非常非常積極。我想說，我們在第三季確實經歷了季節性，美國市場出現疲軟，但在亞太地區或歐洲、中東和非洲地區並不明顯。但我們確實認為，這可能會為我們對第四季業績的看法增添一點保守色彩。

Yes. Matt, this is Rich. Good to talk to you again. Yes, just to expand on what Vafa said, we've -- Q3 in the dental business is always our weakest quarter, and a lot of it is because of summer vacations. And obviously, a large portion of our business, almost half of it actually is U.S. and of course, Europe has their vacations. And so that being said, we did call out at the end of our second quarter call that we did see a little bit higher seasonality than normal.

是的。馬特，這是里奇。很高興再次與你交談。是的，只是為了擴展 Vafa 所說的內容，我們——牙科業務的第三季度始終是我們最弱的季度，其中很大一部分是因為暑假。顯然，我們業務的很大一部分，幾乎一半實際上是在美國，當然，歐洲也有假期。話雖這麼說，我們確實在第二季電話會議結束時指出，我們確實看到季節性比正常情況要高一些。

The dental business put up 105.3%, I believe, for the quarter, which was actually a little bit better than what our expectations were, maybe $1 million or so given better than our expectations. And so we have seen seasonality, but the positioning of the dental business and our commercial execution, frankly, continues to perform well, particularly OUS, which is where we thought the seasonality was going to come from. And so we actually kind of combat that seasonality without performance in those regions.

我相信，牙科業務本季的成長率為 105.3%，這實際上比我們的預期要好一點，可能比我們的預期好 100 萬美元左右。因此，我們看到了季節性，但坦白說，牙科業務的定位和我們的商業執行繼續表現良好，尤其是 OUS，我們認為季節性將來自於此。因此，我們實際上是在對抗季節性，但在這些地區卻沒有表現。

Well, that's great. Congrats on that, and I look forward to hearing more about how things progress through the end of the year.

嗯，那太好了。恭喜你，我期待聽到更多關於今年年底事情進展的信息。

Thank you, Matt.

謝謝你，馬特。

Yes. Thanks, Matt.

是的。謝謝，馬特。

I'm showing no further questions at this time. So this does conclude the question-and-answer session. Thank you, everyone, for your participation.

我目前沒有提出任何進一步的問題。問答環節到此結束。謝謝大家的參與。

Thank you very much.

非常感謝。

Okay. You may now disconnect.

好的。您現在可以斷開連線。