ZimVie Inc (ZIMV) 2024 Q2 法說會逐字稿

Good afternoon and welcome to ZimVie's Second Quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this call is being recorded for replay purposes.

下午好，歡迎參加 ZimVie 2024 年第二季財報電話會議。（操作員說明）謹此提醒，此通話正在錄音以供重播之用。

I would now like to turn the call over to Marissa Bych from Gilmartin Group for introductory disclosures.

我現在想將電話轉給吉爾馬丁集團的瑪麗莎·比奇 (Marissa Bych)，以進行介紹性披露。

Thank you all for joining today's call. Earlier today, ZimVie released financial results for the quarter ended June 30, 2024. A copy of the press release is available on the company's website, zimvie.com, as well as on sec.gov.

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 2024 年 6 月 30 日的季度財務業績。新聞稿的副本可在公司網站 zimvie.com 以及 sec.gov 上取得。

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. 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.

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。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。

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 or the investor deck issued today found on the Investor Relations section of the company's website. This conference call contains time-sensitive information and is accurate only as of the live broadcast today, August 1, 2024. 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.

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準則財務指標的對帳包含在今天發布的收益報告和/或公司網站投資者關係部分的投資者資料中。本次電話會議包含時效性訊息，僅截至今天（2024 年 8 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聲明的意圖或義務，無論是由於新資訊、未來事件或其他原因。

And 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。

Thank you, Marissa. Good afternoon and thank you all for joining us. I'm pleased with our execution in the second quarter, achieving revenue of $117 million as we continue to innovate across our portfolio of implants, biomaterials and digital solutions. We have also advanced our efforts to improve the margin profile of our business, rightsize corporate costs and optimize our operational footprint.

謝謝你，瑪麗莎。下午好，感謝大家加入我們。我對我們第二季的執行情況感到滿意，隨著我們在植入物、生物材料和數位解決方案組合方面的不斷創新，我們實現了 1.17 億美元的收入。我們也努力改善業務的利潤狀況、合理調整企業成本並優化我們的營運足跡。

Meanwhile, we continue to invest and scale our differentiated solutions to give our patients and providers the best possible outcomes. I'll now provide an update on each of our product portfolios, starting with dental implant portfolio. We see strong commercial traction with our newest line of implants, the TSX andt the T3 PRO. We believe that we continue to gain market share as we strive to expand the implant dentistry market.

同時，我們繼續投資和擴展我們的差異化解決方案，為我們的患者和提供者提供最佳的結果。我現在將提供我們每個產品組合的最新信息，從牙種植體產品組合開始。我們看到我們最新的植入物系列 TSX 和 T3 PRO 具有強大的商業吸引力。我們相信，隨著我們努力擴大植牙市場，我們將繼續獲得市場份額。

During the quarter, we launched a series of meaningful innovations to our implant offerings to strengthen our already comprehensive portfolio of surgical tools, abutments and restorative components. Last week, we announced the FDA clearance of the U.S. launch of GenTek Restorative Components, expanding ZimVie's portfolio of end-to-end prosthetic offerings. We first launched the GenTek portfolio in Europe in 2019 and have seen tremendous success in that market to date. These components support digitally driven CAD/CAM restorations and are designed to provide the best fit and a tight seal crucial to implant success, supporting the long-term aesthetic and functional restorations.

在本季度，我們對植體產品推出了一系列有意義的創新，以加強我們已經很全面的手術工具、基台和修復組件產品組合。上週，我們宣布 FDA 批准在美國推出 GenTek Restorative Components，擴大了 ZimVie 的端到端義肢產品組合。我們於 2019 年首次在歐洲推出 GenTek 產品組合，迄今為止在該市場取得了巨大成功。這些組件支援數位驅動的 CAD/CAM 修復體，旨在提供對植牙成功至關重要的最佳貼合和緊密密封，可支援長期的美觀和功能修復。

The introduction of GenTek to the U.S. market brings a broad offering of differentiated restorative components to the ZimVie product family. We like this segment, and we look forward to competing here. As of July, we have gained 510 clearance for an expanded portfolio of titanium bars for our BellaTek abutments, growing its selection to include the most widely-adopted full arch restorative platforms to support some of our most complex procedures. We will continue to deliver innovation across our implant portfolio in support of gaining competitive market share while simultaneously driving the expansion of the implant industry market as a whole.

GenTek 進入美國市場為 ZimVie 產品系列帶來了廣泛的差異化修復組件。我們喜歡這個細分市場，並期待在這裡競爭。截至 7 月，我們已獲得 510 個許可，可以為 BellaTek 基台擴大鈦棒產品組合，擴大其選擇範圍，包括最廣泛採用的全牙弓修復平台，以支持我們一些最複雜的手術。我們將繼續在我們的植體產品組合中提供創新，以支持獲得有競爭力的市場份額，同時推動整個植體產業市場的擴張。

Now turning to our best-in-class biomaterials portfolio. During the quarter, we drove modest growth in biomaterials offerings. Providers are recognizing the quality and efficacy of our portfolio of bone graft substitutes, membranes, tissue products and regenerative products. In this segment, our growth continues to outpace market growth. We believe this may serve as a future leading indicator for growth in our implant offerings. We look forward to continue to innovate within this portfolio throughout the back half of 2024 and beyond.

現在轉向我們一流的生物材料產品組合。本季度，我們推動了生物材料產品的適度成長。供應商正在認識到我們的骨移植替代品、膜、組織產品和再生產品組合的品質和功效。在這一領域，我們的成長持續超過市場成長。我們相信這可能成為我們植體產品未來成長的領先指標。我們期待在 2024 年下半年及以後繼續在該產品組合中進行創新。

Finally, we saw strong growth in our digital portfolio, which aims to provide customers with greater efficiency in their workflow. Our complete digital portfolio, excluding iTero scanner sales, grew high single digits in the second quarter as a result of our commitment to driving penetration by making implants more accessible and efficient procedure for providers.

最後，我們看到我們的數位產品組合強勁成長，旨在為客戶的工作流程提供更高的效率。我們完整的數位產品組合（不包括 iTero 掃描器銷售額）在第二季度實現了高個位數成長，這是由於我們致力於透過為提供者提供更容易獲得和更有效率的程序來推動滲透。

The increase was driven in part by over 20% growth in our Implant Concierge service. Implant Concierge removes hours of labor and cost by providing outsourced treatment planning, services and guided surgery solutions, taking significant workflow out of the dental office. We believe this service represents a large unmet need or the size of the market for Implant Concierge could be equivalent to that of the premium implant market.

這一增長的部分原因是我們的種植禮賓服務增加了 20% 以上。種植禮賓服務透過提供外包治療計劃、服務和指導手術解決方案，減少了人工時間和成本，從而將重要的工作流程從牙科診所中解放出來。我們相信這項服務代表了龐大的未滿足需求，或者植體禮賓服務的市場規模可能相當於優質植體市場的規模。

Additionally, we drove over 20% growth in surgical guide sales with RealGUIDE software. On this note, we recently announced the release of Version 5.4 of our RealGUIDE software. The most significant enhancement in this version is a one-click nerve detection and automated bone and tooth segmentation. These features greatly increased safety and accuracy in less time. 5.4 also introduces new cloud library updates and efficiency tools to streamline the customer's design experience.

此外，我們利用 RealGUIDE 軟體推動手術導板銷量成長了 20% 以上。為此，我們最近宣布發布 RealGUIDE 軟體 5.4 版。此版本最顯著的增強功能是一鍵式神經偵測和自動骨骼和牙齒分割。這些功能在更短的時間內大大提高了安全性和準確性。 5.4也引進了新的雲端庫更新和效率工具，以簡化客戶的設計體驗。

All of these features are aimed to enhance our ability to deliver quality, efficiency and time savings in treatment planning and restorative design for both patient and the clinician.

所有這些功能都旨在增強我們為患者和臨床醫生提供治療計劃和修復設計的品質、效率和節省時間的能力。

I'm also very excited to announce our newest scanner partnership with Medit. We are now distributing this powerful imaging solution alongside our existing suite of technologies, expaning our addressable mdarket with a broader range of scanner price points and technologies. The Medit scanners include IOS driven apps and integration opportunities that help us create a seamless experience with the rest of ZimVie's digital solutions suite. We expect these features to enhance the adoption of downstream products based on digital imaging.

我也非常高興地宣布我們與 Medit 的最新掃描器合作夥伴關係。我們現在將這項強大的成像解決方案與我們現有的技術套件一起分發，透過更廣泛的掃描器價格點和技術擴展我們的可尋址市場。Medit 掃描器包括 IOS 驅動的應用程式和整合機會，可幫助我們創建與 ZimVie 數位解決方案套件的其餘部分的無縫體驗。我們預計這些功能將增強基於數位成像的下游產品的採用。

We remain very excited with the growth phase of our digital solutions and believe there is a -- they are a critical piece of the strategy to improve the workflow of dental offices and ultimately reduce barriers to implant adoption. Beyond product introductions and innovations, medical education and training are greatly aiding in the adoption of our technologies. To date, we've trained over 1,400 providers on our products and technologies. Our programs are booked out through December 2025 as we continue our focus on expanding our presence in the market and in the field of implant industry as a whole. Our commercial advantage continues to stem from the value we deliver across our stakeholders, patients, clinicians and the dental lab. Our second quarter results reflect the resilience of our portfolio and our team's continued commitment.

我們對數位解決方案的成長階段仍然感到非常興奮，並相信它們是改善牙科診所工作流程並最終減少植體採用障礙的策略的關鍵部分。除了產品推出和創新之外，醫學教育和培訓也極大地有助於我們技術的採用。到目前為止，我們已經為 1,400 多家提供者提供了關於我們的產品和技術的培訓。我們的計劃已預訂至 2025 年 12 月，因為我們將繼續專注於擴大我們在市場和整個植入物行業領域的影響力。我們的商業優勢仍然源於我們為利害關係人、患者、臨床醫生和牙科實驗室提供的價值。我們第二季的業績反映了我們投資組合的彈性和我們團隊的持續承諾。

I will now turn the line over to Rich to review our financial performance and forward outlook in greater detail.

我現在將把這條線轉給里奇，以更詳細地審查我們的財務表現和未來前景。

Thanks, Vafa, and good afternoon, everyone. I'll begin by reviewing our second quarter 2024 results for continuing operations and will close by providing commentary on our outlook for the full year 2024. As a reminder, we finalized the sale of our spine business on April 1, 2024, thus our spine segment is reflected in discontinued operations in our financial statements.

謝謝瓦法，大家下午好。我將首先回顧我們 2024 年第二季的持續營運業績，最後對我們對 2024 年全年的展望進行評論。提醒一下，我們於 2024 年 4 月 1 日完成了脊椎業務的出售，因此我們的脊椎業務在我們的財務報表中反映在已終止經營業務中。

Please refer to our 10-Q for financial results from discontinued operations. Beginning with sales, total third-party net sales for the second quarter of 2024 were $116.8 million, a decrease of 1.5% in reported rates and a very modest decline of 0.4% in constant currency. In the U.S., third-party net sales for the second quarter of 2024 of $69.3 million, increased by 0.1%. Over the past couple of quarters, we have seen pressure on capital sales, which for us is the sale of oral scanners. We continued to see that trend in the second quarter. When excluding that impact, U.S. sales grew by 0.8%, driven by strength in digital solutions and biomaterials, partially offset by weaker U.S. implant sales. Outside of the U.S., third-party net sales of $47.5 million, decreased 3.8% on a reported basis and 1.2% in constant currency.

請參閱我們的 10-Q，以了解已終止經營業務的財務表現。從銷售額開始，2024 年第二季第三方淨銷售額總額為 1.168 億美元，以報告率計算下降 1.5%，以固定匯率計算略有下降 0.4%。在美國，2024 年第二季第三方淨銷售額為 6,930 萬美元，成長 0.1%。在過去的幾個季度中，我們看到了資本銷售的壓力，對我們來說就是口腔掃描儀的銷售。我們在第二季度繼續看到這種趨勢。排除這一影響後，在數位解決方案和生物材料實力的推動下，美國銷售額增長了 0.8%，但部分被美國植入物銷售疲軟所抵消。美國以外的第三方淨銷售額為 4,750 萬美元，按報告計算下降 3.8%，以固定匯率計算下降 1.2%。

We have seen stability in the U.S. dental market over recent quarters, and our competitive position remains strong in the core markets we serve. When we exclude the impact of capital sales outside of the U.S., the business was flat in constant currency terms. Second Quarter 2024 adjusted cost of products sold was 37.0%, roughly flat with 37.2% sales in the prior year period. We expect improvement in cost of products sold over time as we streamline the organization, cut duplicative costs, improve manufacturing efficiency and benefit from a more favorable product mix as implant sales recover.

最近幾個季度，我們看到美國牙科市場的穩定，我們在所服務的核心市場中的競爭地位仍然強勁。當我們排除美國境外資本出售的影響時，以固定匯率計算，該業務持平。2024 年第二季調整後的銷售產品成本為 37.0%，與去年同期的銷售額 37.2% 大致持平。我們預計，隨著時間的推移，隨著我們精簡組織、削減重複成本、提高製造效率，並隨著植入物銷售的復甦，從更有利的產品組合中受益，產品銷售成本將會有所改善。

Q2 2024 adjusted research and development expense of $6.3 million or 5.4% of sales compared to $5.6 million or 4.8% of sales in the prior year. Q2 2024 adjusted sales, general and administrative expense of $62.4 million compared to $61.9 million in the prior year. Other income in Q2 '24 of $3 million reflects income from transition services agreements resulting from the sale of our spine business and offset stranded costs that remain in SG&A expense.

2024 年第二季調整後的研發費用為 630 萬美元，佔銷售額的 5.4%，而前一年為 560 萬美元，佔銷售額的 4.8%。2024 年第二季調整後的銷售、一般及管理費用為 6,240 萬美元，而前一年為 6,190 萬美元。2024 年第二季的其他收入為 300 萬美元，反映了因出售我們的脊椎業務而產生的過渡服務協議的收入，並抵消了 SG&A 支出中剩餘的擱淺成本。

Adjusted EBITDA attributable to continuing operations in the second quarter of 2024 was $16.1 million or a 13.8% margin. Q2 2024 adjusted earnings per share attributable to continuing operations was $0.13 per share on a fully diluted share count of 27.4 million shares. Adjusted earnings per share in the quarter was largely impacted by the timing of share-based compensation expense in the quarter. Q2 share-based compensation was $5.7 million, and we expect our full year share-based compensation expense to range between $17 million and $17.5 million.

2024 年第二季持續經營業務調整後 EBITDA 為 1,610 萬美元，利潤率為 13.8%。2024 年第二季度，持續經營業務調整後每股收益為 0.13 美元，完全稀釋後的股數為 2,740 萬股。本季調整後每股盈餘在很大程度上受到本季基於股票的補償費用的時間的影響。第二季的股票薪酬為 570 萬美元，我們預計全年股票薪酬支出將在 1,700 萬美元至 1,750 萬美元之間。

We remain on track to deliver on our adjusted EPS guidance for the year. We are pleased with our financial performance in the second quarter of 2024 as we continue to deliver on our plan to make strides to position ZimVie as a pure-play dental company. We remain committed to achieving our financial objective of 15% plus EBITDA margins one year post spine sale.

我們仍有望實現今年調整後的每股盈餘指引。我們對 2024 年第二季的財務表現感到滿意，因為我們將繼續實施我們的計劃，將 ZimVie 定位為純粹的牙科公司。我們仍致力於在脊椎出售一年後實現 15% 加 EBITDA 利潤率的財務目標。

Quickly turning to the balance sheet. As of this end of the second quarter 2024, consolidated ZimVie continuing operations cash was $78.6 million and gross debt was approximately $235 million, yielding a net debt balance of approximately $156 million.

迅速轉向資產負債表。截至 2024 年第二季末，ZimVie 合併持續營運現金為 7,860 萬美元，總債務約 2.35 億美元，淨債務餘額約為 1.56 億美元。

Note, our net debt balance does not include the seller note from the sale of the spine business. In addition, we continue to maintain our $175 million revolving credit facility, which remains undrawn.

請注意，我們的淨債務餘額不包括出售脊椎業務的賣方票據。此外，我們繼續維持 1.75 億美元的循環信貸額度，目前尚未提取。

Turning toward our outlook for the full year 2024. We are reaffirming our full year revenue guidance of $450 million to $460 million, reflecting an increase of 0.2% at the midpoint compared to 2023. Specifically looking at the third quarter 2024, our third quarter is historically the slowest of the year due to seasonal impacts of the summer months. We expect our third quarter revenue to be sequentially lower versus Q2 and lower on a year-over-year basis by 3% to 4%.

展望 2024 年全年。我們重申全年營收指引為 4.5 億至 4.6 億美元，與 2023 年相比中位數成長 0.2%。具體來看 2024 年第三季度，由於夏季的季節性影響，我們的第三季度是歷史上最慢的季度。我們預計第三季營收將環比第二季下降，年減 3% 至 4%。

This trend is largely similar to the seasonal sales patterns we saw in 2022 and 2023. In conjunction with our seasonally lower revenue in the third quarter, we expect an adjusted EBITDA margin of approximately 12%. We continue to expect fiscal year 2024 adjusted EBITDA to be in the range of $60 million to $65 million, resulting in an adjusted EBITDA margin in the range of 13.3% to 14.1% of sales. As mentioned before, we remain committed to our 15% plus adjusted EBITDA margin by April 1, 2025. Turning to our interest expense profile, considering our recent actions to pay down a substantial portion of our debt and the payment-in-kind interest, we began accruing on the seller note resulting from the sale of spine, we now expect 2024 interest expense to be approximately $13 million, inclusive of the $3.1 million of interest expense in the second quarter of 2024. We expect share-based compensation expense to be in the range of $17 million to $17.5 million for the full year. And lastly, we are pleased to reaffirm our adjusted EPS guidance. Specifically, we expect to generate adjusted earnings per share of $0.55 to $0.7 per share on a fully diluted share count of 27.6 million shares for the year.

這一趨勢與我們在 2022 年和 2023 年看到的季節性銷售模式很大程度上相似。考慮到第三季營收的季節性下降，我們預計調整後的 EBITDA 利潤率約為 12%。我們仍預期 2024 財年調整後 EBITDA 將在 6,000 萬至 6,500 萬美元之間，調整後 EBITDA 利潤率將在銷售額的 13.3% 至 14.1% 之間。如前所述，我們仍致力於在 2025 年 4 月 1 日之前實現 15% 以上的調整後 EBITDA 利潤率。談到我們的利息支出情況，考慮到我們最近為償還大部分債務和支付實物利息而採取的行動，我們開始在出售脊柱時產生的賣方票據上計提，我們現在預計 2024 年利息支出為約為1,300 萬美元，包括2024 年第二季310 萬美元的利息支出。我們預計全年股權激勵費用將在 1700 萬美元至 1750 萬美元之間。最後，我們很高興重申調整後的每股盈餘指引。具體來說，我們預計今年調整後每股收益為 0.55 美元至 0.7 美元，完全稀釋後的股數為 2,760 萬股。

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.

謝謝你，里奇。

I'm very proud of our team's execution in the first half of 2024 and believe that we have a great opportunity ahead of us.

我對我們團隊在 2024 年上半年的表現感到非常自豪，並相信我們前面有一個很好的機會。

With that, we'll open it up to questions.

至此，我們將開放提問。

Thank you. (Operator Instructions) Our first question comes from the line of David Saxon with Needham & Company.

謝謝。（操作員說明）我們的第一個問題來自 David Saxon 和 Needham & Company 的線路。

Your line is now open.

您的線路現已開通。

Oh great. Good afternoon, Vafa and Rich. Thanks so much for taking my questions. Maybe I'll start with a higher level philosophical question. Just about your positioning within dental. So you -- I mean, you have a very focused portfolio relative to competitors. So when you think about kind of reaching your desired scale, is that continuing to build out this implants portfolio with digital capabilities organically? Or are there certain product categories that kind of if wrapped around your portfolio would be complementary?

哦，太棒了。下午好，瓦法和里奇。非常感謝您回答我的問題。也許我會從更高層次的哲學問題開始。關於您在牙科領域的定位。所以你——我的意思是，相對於競爭對手，你有一個非常專注的產品組合。因此，當您考慮達到您想要的規模時，是否會繼續有機地建立具有數位功能的植入產品組合？或者是否有某些產品類別如果包含在您的產品組合中將會是互補的？

Great question, David. Just on that one, yes, I think right now, what we've done so far is especially post the sales plan is really focus on how unique our assets are and where we're unique, and that puts us square in the premium dental implant market. And what we've been able to do, which is, again, a bit more unique is really we have excellent gross profit margins and we've been able to hold price really well. What's working well in conjunction with this is a rapidly growing and highly differentiated digital offering, which we believe can give us a unique position to expand the market.

好問題，大衛。就這一點而言，是的，我認為目前我們所做的尤其是在銷售計劃之後，真正關注的是我們的資產有多麼獨特以及我們的獨特之處，這使我們在優質牙科領域處於領先地位植入物市場。我們能夠做到的，更獨特的是，我們確實擁有出色的毛利率，並且我們能夠很好地控制價格。與此結合的是快速成長且高度差異化的數位產品，我們相信這可以為我們提供獨特的地位來擴大市場。

Now, I also mentioned, I think Implant Concierge can can be a significant contributor. So we're -- we're adding things like GenTek, which is the restorative and we're adding more power behind Implant Concierge. We take that we can expand this market. I think, selectively, we may look at other markets that are interesting, maybe pressured a little bit for price or one of the areas that highlight is the floor set for large segment, which may require us to have a slightly different implant, but add a lot of technology to it so that we make the same advances we made with them -- with implants here, but make it in that group. And we've got some work that we're doing there. So I think you can look at us procedure-by-procedure, go after the markets that we think somehow either underserved or could use some tech to really accelerate them. So those are the key areas. We're happy with the announcement for the addition of Medit scanner. I think that gives us a better margin profile to compete there, gives us a different price point to compete alongside the (technical difficulty) a bit more color.

現在，我還提到，我認為植入禮賓可以做出重要貢獻。所以我們——我們正在添加像 GenTek 這樣的東西，它是恢復性的，並且我們正在為種植禮賓添加更多的功能。我們認為我們可以擴大這個市場。我認為，我們可能會選擇性地關注其他有趣的市場，可能會因為價格而受到一點壓力，或者突出的領域之一是大型細分市場的地板設置，這可能需要我們進行稍微不同的植入，但添加我們使用了很多技術，因此我們取得了與它們相同的進步 - 在這裡植入，但在那個組中進行。我們正在那裡做一些工作。因此，我認為您可以逐一程序地審視我們，追隨我們認為服務不足或可以使用某些技術來真正加速發展的市場。所以這些都是關鍵領域。我們很高興宣布添加 Medit 掃描器。我認為這給了我們更好的利潤狀況來在那裡競爭，給了我們一個不同的價格點來與（技術難度）更多的顏色一起競爭。

Okay, great. Thanks so much.

好的，太好了。非常感謝。

You broke up a little so hopefully you can hear me. But just maybe my next question on iTero. So Lumina's restorative launch was delayed about a quarter or so. Did that have any impact on how you're thinking about 2024 at all? If so, what made up that delta? And then can you talk about the Medit partnership? I mean, is that going to be maybe more of a value offering and has that kind of help your strategy?

你們分手了一點，希望你們能聽到我的聲音。但也許我的下一個問題是關於 iTero 的。因此 Lumina 的恢復性發布被推遲了大約四分之一左右。這對您對 2024 年的看法有什麼影響嗎？如果是這樣，這個三角洲是由什麼組成的？那麼您能談談與Medit 的合作嗎？我的意思是，這是否會更有價值並且對您的策略有幫助？

Okay. So sorry if I broke up there. If you look at the digital offering and you look at the scanners, without the scanners, our business did pretty well. With specific scanners, year-over-year, it's a worse profile. So equipment hasn't been great this year. And maybe some of it is because of the Lumina that is to come here sometime next year. So all of our miss in digital is from missing scanner sales. So we do think that that is an issue that will resolve itself when that when the new product comes out. But in the near term, we've got this this new relationship with Medit, which we actually don't believe that we're sacrificing our technologist. Quite a rich offering, but it does have different positions.

好的。如果我在那裡分手的話，我很抱歉。如果你看看數位產品和掃描儀，如果沒有掃描儀，我們的業務做得相當不錯。對於特定的掃描儀，情況逐年惡化。所以今年的裝備不太好。也許部分原因是 Lumina 將於明年某個時候來到這裡。因此，我們在數位領域的所有失誤都來自於掃描器銷售的失誤。因此，我們確實認為，當新產品問世時，這個問題將會自行解決。但在短期內，我們與 Medit 建立了這種新的關係，我們實際上並不認為我們正在犧牲我們的技術專家。產品相當豐富，但確實有不同的定位。

It does have different lines in terms of features and functions (technical difficulty) quite well equipped. So it will satisfy what we need to do in terms of advancing customers to a digital platform, which, as we've mentioned before rapidly accelerates the number of implants used and frankly, the quality of the implant that comes out of it as the more digital. So that is where we're at. I think -- you didn't ask any financial details on that, did you, Dave?

它在特性和功能（技術難度）方面確實有不同的路線，配備精良。So it will satisfy what we need to do in terms of advancing customers to a digital platform, which, as we've mentioned before rapidly accelerates the number of implants used and frankly, the quality of the implant that comes out of it as the more數位的.這就是我們現在的處境。我想——你沒有問任何財務細節，是嗎，戴夫？

I mean, if you want to share, then go for it.

我的意思是，如果你想分享，那就去做吧。

Rich, any color you want to add on?

Rich，你想添加什麼顏色嗎？

Yes. Yes. So contemplated in our guide, David, is the lower equipment sales. And as Vafa mentioned, right, the delay of Lumina, you know, we can have already had that kind of baked in our numbers. And so it's already contemplated in the full year guide.

是的。是的。大衛在我們的指南中考慮到的是設備銷售量的下降。正如 Vafa 所提到的，對，Lumina 的延遲，你知道，我們可能已經在我們的數據中考慮到了這種情況。因此，全年指南中已經考慮到了這一點。

You know, one of the prepared remarks that we made relative to iTero capital sales for us in the U.S. was when you exclude actually the year-over-year impact of iTero in the U.S., the U.S. business actually grew by 80 basis points for us. So, you know, it's something that we've been watching quite a while. The U.S. market, as you know, has been has been pressured.

您知道，我們針對 iTero 在美國的資本銷售準備好的評論之一是，當您排除 iTero 在美國的同比影響時，我們的美國業務實際上增長了 80 個基點。所以，你知道，我們已經觀察了很長一段時間了。如您所知，美國市場一直面臨壓力。

And so we're really pleased with our performance in the second quarter, particularly in the U.S.

因此，我們對第二季的表現非常滿意，尤其是在美國。

Okay. That kind of gets into my next question, if I could. So you know, third quarter down, I think it was 3% to 4% year-over-year. I mean, I guess last year that should theoretically kind of as you already baked in the knowledge there. I mean, are you seeing anything in the market that's kind of, you know, causing this decline? Or is it conservatism?

好的。如果可以的話，這就是我的下一個問題。所以你知道，第三季年減了 3% 到 4%。我的意思是，我想去年理論上應該是這樣，因為你已經在那裡掌握了知識。我的意思是，您是否在市場上看到任何導致這種下降的因素？還是保守主義？

I mean? And then also, what does guidance assume in terms of patient demand and traffic, is it more stability or do things get worse? Or is there even that recover in the back half? And then I'll just have one more say for all the questions.

我是說？另外，指導意見在病人需求和流量方面有何假設，是更穩定還是情況會變得更糟？或者說後半段是否有恢復？然後我將對所有問題再發言一次。

Sure. Rich, you want to take that one?

當然。里奇，你想買那個嗎？

Yes, sure. Thanks, Vafa. So the -- our Q3, David, right, even though we're pleased with our performance in the second quarter, right? You know, the market and the space in general, right, is not -- it's not well on the road to recovery rate based on kind of what we're hearing in the market, right? And so our -- what we classify as performance and good performance in second quarter is largely related to I think the differentiation of our portfolio, you know, is that the kind of alluded to earlier on the call and then also up and also execution rate. And so we're being prudent about about Q3 because the market, the underlying market challenges have not completely subsided. And so we're just being prudent in Q3 like we historically have been in prior quarters so that we can continue to execute to our plans.

是的，當然。謝謝，瓦法。那麼，我們的第三季度，大衛，對吧，儘管我們對第二季度的表現感到滿意，對吧？你知道，市場和整個空間，對吧，根據我們在市場上聽到的情況，復甦之路並不順利，對吧？因此，我們將第二季的業績和良好業績分類很大程度上與我們投資組合的差異化有關，你知道，就是之前電話會議中提到的那種，然後也是上漲和執行率。因此，我們對第三季持謹慎態度，因為市場、潛在的市場挑戰尚未完全消退。因此，我們在第三季度保持謹慎，就像我們過去幾個季度一樣，以便我們能夠繼續執行我們的計劃。

Okay, great. And then lastly for me, I'll start with you, Rich. So the cadence on the EBITDA, So I think I heard 12% in the third quarter, if I'm doing the math right, and apologies if it's on the fly, so it may not be, but I think that implies a fourth quarter EBITDA margin closer to 16%. So is -- I mean is that am I thinking about that right? Or and then I guess if I am, like how should we think about the the exit rate as it relates to 2025 margins? I know you're probably not going to give guidance here.

好的，太好了。最後，我將從你開始，里奇。所以 EBITDA 的節奏，所以我想我聽說第三季度是 12%，如果我計算得正確的話，如果是動態的，我很抱歉，所以可能不是，但我認為這意味著第四季度EBITDA 利潤率接近16%。所以——我的意思是我在想這個嗎？或者然後我想如果我是的話，我們應該如何考慮與 2025 年利潤率相關的退出率？我知道您可能不會在這裡提供指導。

Yes. Yes. The way that you're thinking about it, generally speaking, is correct. We've historically said that $0.55 on the dollar drops to the bottom line, whether that's an upswing in revenue or a downswing in revenue because of our fixed cost infrastructure. And so Q3 being over $10 million lighter than in Q2 of 2024, we're going to see an impact to adjusted EBITDA as a result.

是的。是的。一般來說，你的想法是正確的。我們歷來說過，由於我們的固定成本基礎設施，無論是收入上升還是收入下降，1 美元兌 0.55 美元都會跌至底線。因此，第三季比 2024 年第二季減少了 1,000 萬美元以上，我們將看到調整後 EBITDA 受到的影響。

And so a lot of that is really around kind of fixed cost absorption in the P&L. That, and when you kind of step forward to the fourth quarter, that, of course, comes back the other way.

因此，其中很大一部分實際上是圍繞著損益表中的固定成本吸收進行的。當你進入第四節時，當然，會以相反的方式回來。

And then we also have a number of operating initiatives internally within the business that -- to further take cost out of the organization, even though we're still doing TSAs with the purchaser of our spine business. And so there's also a little bit of a benefit there in the fourth quarter as we continue to take costs out of the business.

然後，我們還在企業內部製定了許多營運計劃，以進一步降低組織成本，儘管我們仍在與脊椎業務的購買者進行 TSA。因此，隨著我們繼續降低業務成本，第四季也有一些好處。

And then like you appropriately mentioned, yes, where -- we think that Q4 will exit us at a good rate, then position us for 2025. But we're not there yet to quite to give any more specifics about it.

然後，就像您適當提到的那樣，是的，我們認為第四季度將以良好的速度退出我們，然後為 2025 年做好定位。但我們還沒有給更多細節。

Okay, great. Thanks so much for taking my questions.

好的，太好了。非常感謝您回答我的問題。

Of course.

當然。

Thank you.

謝謝。

Our next question comes from the line of Matt Miksic with Barclays.

我們的下一個問題來自巴克萊銀行的馬特·米克西奇。

Your line is now open.

您的線路現已開通。

Yes, good evening.

是的，晚上好。

Can you hear me okay?

你聽得到我說話嗎？

Hi, great. Thanks for taking the questions. Maybe a couple of follow-ups here. I appreciate all the color. Maybe on the sort of guide (technical difficulty) planning business period where you have sort of a broader exposure across a number of players?

嗨，太好了。感謝您提出問題。也許這裡有一些後續行動。我欣賞所有的顏色。也許是在某種指南（技術難度）規劃業務週期中，您對許多參與者有更廣泛的了解？

Matt, sorry, I think we didn't catch you at the beginning. The audio wasn't functioning. Could you repeat the question? I'm reall sorry. Sorry about that.

馬特，抱歉，我想我們一開始就沒有抓住你。音訊無法正常工作。你能重複一下這個問題嗎？我真的很抱歉。對此感到抱歉。

Yes. Can you hear me okay now?

是的。現在你能聽到我說話嗎？

Yes, yes, perfectly fine.

是的，是的，完全沒問題。

Maybe just any insights that you're picking up from your -- you had sort of a wide, I guess, access to a lot of different platforms that are using your planning software. And I'm just wondering from that, are you able to sort of surmise any intelligence that tells you like general market trends or that sort of thing?

也許只是您從您那裡獲得的任何見解 - 我想您可以廣泛訪問使用您的規劃軟體的許多不同平台。我只是想知道，你是否能夠推測任何告訴你的情報，例如一般市場趨勢或類似的事情？

Sure. Well, yes, the guided software and the Implant Concierge, each of them are growing over 20%. So there is a movement towards guided surgery and a little bit more outsourcing of lab work. It should be an indicator of overall demand in the market. That's kind of stabilizing.

當然。嗯，是的，引導軟體和種植禮賓服務，每一個都成長了 20% 以上。因此，出現了引導手術和更多實驗室工作外包的趨勢。它應該是市場整體需求的指標。這就是一種穩定。

I wouldn't say, like Rich said, I wouldn't say it's great by any stretch, but it is stabilizing. And then another leading indicator you might look at is biomaterials, which is the bone substitute used prior to an implant. And what we are hearing from a lot of our practitioners that they're using the bone substitute as a waiting period until the patient comes back. So if, for example, the procedure going to get delayed for financial reasons, they would do this as an inexpensive in between and get themselves ready to come back for the procedure when they're ready. And that just sort of preserves the jaw and the bone so that it doesn't degenerate to a point where the surgery becomes (technical difficulty) That to me is bit of a leading indicator as well. So that -- those would be the two areas where I would say we steel stability in the market, so the market is certainly not gone. And again, we also feel pretty good about the premium segment as well.

我不會說，就像里奇說的那樣，我不會說它無論如何都很棒，但它正在穩定下來。您可能會關注的另一個領先指標是生物材料，這是植入之前使用的骨替代品。我們從許多醫生那裡得知，他們正在使用骨替代物作為患者康復之前的等待期。因此，例如，如果手術因財務原因而被推遲，他們會以低廉的價格這樣做，並在準備好後回來接受手術。這只是保留了下巴和骨骼，使其不會退化到手術變得（技術難度）的地步，這對我來說也是一個領先指標。因此，我想說的是，這兩個領域是我們鞏固市場穩定性的兩個領域，因此市場肯定不會消失。再說一遍，我們對高端市場也感覺很好。

That's great. I must say you are breaking up a touch. I hope you can hear me okay, Vafa. So my next question, I've been juggling back and forth between a couple of calls as a lot of people are, but I'm not sure how much you've commented or maybe you said you can't comment on some of the discussions you're having with potential strategic interest around the company. But just sort of theoretically, I'd love to hear like how -- as much as RealGUIDE and the platform that you have is of great value as is the implant line, I'm wondering if there is a way to think about if we take a platform that's being used across a broader number of implant competitors and use to put in the implant systems of a bunch of different companies, and then you get pulled into, say, another strategic that -- is your thinking down the road -- would your thinking ever be that you just kind of remain open?

那太棒了。我必須說你正在分手。我希望你能聽到我的聲音，Vafa。所以我的下一個問題是，我和很多人一樣在幾個電話之間來回切換，但我不確定你發表了多少評論，或者也許你說你不能對某些內容發表評論您與公司周圍潛在戰略利益進行的討論。但只是從理論上講，我很想聽聽如何——儘管 RealGUIDE 和您擁有的平台與種植體生產線一樣具有巨大的價值，我想知道是否有一種方法可以考慮，如果我們採用一個被更多植入競爭對手使用的平台，並用於將許多不同公司的植入系統放入其中，然後你就會陷入另一個戰略——這就是你未來的想法——你的想法是否會是保持開放？

Or is there a part of this where Switzerland becomes more closed? Or how to think about that?

還是瑞士在這方面變得更封閉？或者說如何思考這個問題？

Sure. Okay. So I think in med tech, there's always going to be speculation around assets like ours based on the size, and maybe even more so that it's -- now it's a pure-play dental implant business, which wasn't the case when we [indiscernible]. So what we need to do is run the company like we're going to run it for 10 years, right? But we also know that we have a very unique asset that is very differentiated in the dental market.

當然。好的。因此，我認為在醫療技術領域，總是會根據規模對像我們這樣的資產進行投機，甚至可能更多的是——現在它是一個純粹的牙科植入業務，而當我們這樣做時情況並非如此。[音頻不清晰]。所以我們需要做的就是像經營 10 年一樣來經營公司，對嗎？但我們也知道，我們擁有非常獨特的資產，在牙科市場上非常與眾不同。

So the more that we retain our differentiation, we've been able to hold price. We've been able to participate in the premium segment. Many of our competitors have left that segment, and we're doing well and we're holding price. We also have this great, great digital platform, which allows us to help both competitive and our own. I think that if I understood the Switzerland comment around open versus closed, right now, our software is open.

因此，我們越能保持差異化，我們就能保持價格。我們已經能夠參與高端市場。我們的許多競爭對手已經離開了這個細分市場，而我們做得很好，並且保持價格不變。我們還擁有這個非常非常好的數位平台，它使我們能夠幫助競爭對手和我們自己。我認為，如果我理解瑞士關於開放與封閉的評論，那麼現在我們的軟體是開放的。

I would only close that if I had significant -- very significant market share. Otherwise, being open is probably good for us strategically. It's also a really, really [Technical Difficulty]. That will be a decision for later on when we get to that point. But as a public company, we don't plan for that, but you've got to run it like you're running it for the next 10 years, and if something happens in the middle, you have to look at it with an open mind.

只有當我擁有相當大的市場份額時，我才會關閉它。否則，開放可能對我們的策略有利。這也是一個真的真的[技術難度]。當我們到達這一點時，這將是稍後的決定。但作為一家上市公司，我們並沒有這樣的計劃，但你必須像未來 10 年那樣運營它，如果中間發生什麼事情，你必須以一種冷靜的態度來看待它。

So I don't know if I can say much more than that in terms of how -- what my approach is. I don't know, Rich, if you've got a different perspective on that.

所以我不知道我是否可以說更多關於我的方法是什麼。里奇，我不知道你對此是否有不同的看法。

Yes. No, no, that's just actually a very helpful framework to think about, and I understand this is all -- I understand the running the company without all these considerations if you're going to be running it for another five or 10 years. So -- maybe just lastly on some of the -- two topics that have come up a fair amount of been capacity and Asia. And I think you touched on Asia and China a little bit in your prepared remarks, but maybe any lifts or hints that you're picking up that there's a shift in capacity or on the other side of it? Any sense that some of the sluggishness in China is temporary, or is it the beginning of a longer slog?

是的。不，不，這實際上是一個非常有幫助的框架，我理解這就是全部 - 我理解如果你打算再運營公司五年或十年，那麼在沒有所有這些考慮的情況下運營公司。所以——也許只是最後的一些——已經出現了相當多的兩個話題是容量和亞洲。我認為您在準備好的演講中稍微談到了亞洲和中國，但也許有任何提振或暗示您發現產能或另一方面發生了變化？中國的一些低迷是否是暫時的，或者是更長期困境的開始？

Would be super helpful.

會非常有幫助的。

Thanks so much.

非常感謝。

I'll start. Rich, you can add some color. But we really reduced our exposure to China. So China is really immaterial to us, and I think it's going to continue to have ups and downs based on the year that it compares to. So we really mostly exited that market with the exception of a very private section that we've kept.

我開始吧。豐富，可以加點色。但我們確實減少了對中國的投資。因此，中國對我們來說真的並不重要，我認為與去年相比，中國將繼續經歷起起落落。因此，除了我們保留的非常私密的部分外，我們實際上基本上退出了該市場。

But we're seeing it (inaudible).

但我們正在看到它（聽不清楚）。

Yes, yes, that is correct. Yes, our exposure in China is minimal, and so we don't get wrapped up with kind of the volatility that you're referencing in China. What do we say about Asia Pacific? Actually, when you kind of segment our Asia Pacific business, we're actually performing pretty well actually in that particular market. And so for us, a headline number for Asia Pacific is, in reported currency, we declined in the quarter about 6.9%.

是的，是的，這是正確的。是的，我們在中國的風險敞口很小，因此我們不會被您提到的中國的波動所困擾。關於亞太地區我們怎麼說？實際上，當你對我們的亞太業務進行細分時，我們實際上在該特定市場中表現得相當不錯。因此，對我們來說，亞太地區的主要數據是，以報告貨幣計算，我們在本季下降了約 6.9%。

But the yen had a pretty drastic change in the quarter. And so when you adjust and you actually look at our Asia Pacific business, in constant currency, that business actually grew 1.1%. And just a reminder, our biggest businesses in Asia Pacific is Japan is number one, but what we're seeing is we have a really fast-growing business in India, and a really -- a good, solid business that is also growing in Australia. And so we feel like Asia Pacific outside of China, we're actually positioned in the right markets and have a right to win there and we're, as a result, growing in Asia Pacific in constant currency.

但日圓在本季發生了相當大的變化。因此，當你進行調整並實際查看我們的亞太區業務（以固定匯率計算）時，該業務實際上成長了 1.1%。提醒一下，我們在亞太地區最大的業務是日本，位居第一，但我們看到的是，我們在印度的業務成長非常快，而且在印度也有一個非常好的、穩定的業務也在成長。澳大利亞。因此，我們認為，在中國以外的亞太地區，我們實際上處於正確的市場，並且有權利在那裡獲勝，因此，我們在亞太地區以固定匯率計算成長。

All right.

好的。

Thank you.

謝謝。

There are no further questions at this time. This concludes the question and answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

目前沒有其他問題。問答環節到此結束。感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。