VERO - Earnings call transcript Q1 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to the First Quarter 2021 Earnings Conference Call for Venus Concept, Inc. At this time, all participants have been placed in a listen-only mode. Please note that this conference call is being recorded and that the recording will be available on the company's Web site for replay.

Before we begin, I would like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements that are based on the current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including those identified in the Risk Factors section of our most recent annual report on Form 10-K and 10-Q filed with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our Web site. to result or events of obligation statements our or no a as new undertake publicly revise update forward-looking otherwise. We information, future measures in will are accounting call also references GAAP. certain This include principles, or not with accordance financial calculated generally accepted to that refer these to generally non-GAAP financial We measures. as our to Relations non-GAAP issued site. in measures our Web press most release calculated portion GAAP and Reconciliations of the with available these presented on are Investor the today of financial measures comparable in accordance earnings I would the over now like to call to turn Mr. Dom Serafino, Venus Chief Executive Officer of Concept. sir. ahead, go Please

Domenic Serafino

Thank Officer. you, Della I'm Domenic Concept's earnings our operator, joined and quarter call. Officer, Commercial Venus Financial Penna; welcome and with everyone conference call Chief first to Chad today Zaring, the on Chief XXXX our

guidance agenda of trends provide our our first revenue than of the increased targeted in believe period, quarter system press confidence in which start afternoon. we remarks. quarter, in update area this gave get will quarterly a XXXX, brief condition XXXX. for with and our I more Domenic discuss And call let's we our in sheet financial particularly of in what open of in-depth performance mind, updated revenue updated the first review both a us trends, including year-over-year. We will then, then stated, we experienced and adoption prepared further the of our financial results first product update a new how progress our direct results execution system overview improve of commercial then you me how believe of will and release in performance then XXXX better overview will we started business adoption our result reflection a our system the strong for GAAP quarter. of development. revenue during with it a million review strong overall trends our and our was Chad of our and and first an our start an an guidance, quarter With improving continued will will XX.X the we America, encouraged reported of we up North trends. strategy. the I our to results, brief of procedural XX% overall questions. balance during a guide and expected during of that improving which by revenue quarter with representing with of cover Let provide quarter on continued increase business And in very first are in Simply the

quarter by growth total year-over-year year-over-year growth to in U.S. growth and customers. revenue XX% driven customers sales was XX% international sales to in First

and pace quarter of procedure the hair and system aesthetic first both trends improvement adoption. continued our of results the Our reflect restoration

in Our growth quarter direct growth consolidating higher of of result a have direct calls. a primarily we of strong discussed in the which focus term targeted more implementing year-over-year intermediate strategy, strategy; Investor of execution we two, one, delivered commercial growth U.S. return, reminder, two are there this market. attractive strong strategy; capital in near selling is to in markets our key international our way the By team's recent and of that reinvesting tenants a and certain operations first

during The we the continue XXXX. calls, through to one off strong prior to strategy recover is progress has of the well data that Starting trends positioned large active on strategy restoration XXXX. our believe growth improvement and us growth strong over market above to experienced evident when quarter. most for with half this aesthetics of to customers, is real-time procedures reflects us we and during for hair procedure incredibly on trends return base the trends as gives in global as demand installed business a first the systems our aesthetic in IoT We trends data second quarter. device consumer As we our the implement evaluating procedure portion for our start markets such the visibility the per and of are product improving reasons primary first XXXX activity discussed into a this use this efforts system improving average

basis. we of Outside continue usage on the see North America. question. variation recovery world in EMEA average to the are North we in U.S., about we region a on America per average system an to lag of a per trends Specifically, of saw wide increase XX% in continues seeing depending the usage pace system quarter-over-quarter the in

And usage in to be increased choppy slowed continued finally, utilization quarter in However, per and to COVID-related through continues after compared on basis a February America, XXXX. challenges. customer deal as region to average difficult Latin recovery increased QX and average of usage trends QX. in as with the APAC’s March both January, a first QX the system quarter-over-quarter

an was month an our hair In in the continued in of in as our of terms towards we on encouraged further U.S. quarter, year-over-year Most impressive in for increased that ARTAS the procedures a North U.S. well to in America our in on restoration global improvements procedure year-over-year The detail, strategy as restoration combination are the systems where XX% driven growth who customers have this been execution XX% team had procedures quarter strong systems each strong key as growth commercial a current the Providing by our of trends underutilized. North fueled of reengage culminating improving QX. procedures by customers year-over-year quarter and X% first March. procedure in with month procedure global very utilization the procedure our business we increased restoration believe in a during in ARTAS growth QX basis environment procedure hair first the growth increased customers in quarter. by hair importantly, trends was America, among by

procedures we be results. the ARTAS concerted engage last a on We to with the posted made effort discussed record throughout with in utilization look prior by our we have customers going We and America North driven happier existing business to are customers. utilization North trends As in hair installed the restoration primarily continued being could of over forward. first and forward year, base calls, strong quarter, of not America

respect hair outside restoration to with Now procedure U.S. of the trends

X% the in total procedures and international region question. restoration hair trends, year-over-year, trends significant March. international showed in hair region seeing of culminating first Each just in meaningful restoration month the procedure world variability during recovery improvement While a declined on we are XX% depending of quarter the in and year-over-year the declining

mimic quarter North given to and each sales update American strong experienced provide first we on for training expect our in continue ask system to deeper future procedure our a demand on more support our the America, Chad side going to of you we the As ARTAS of North business. build an trends see we've in post the overall. region systems closely I'm quarters performance performance now outside to Chad?

Chad Zaring

Thanks, Tom.

XXX% by global overall quarter first in commercial U.S. We reflect America. our quarter, nearly up year-over-year, growth Our fueled adoption systems improving results XX% XXX first sales shipped North strong in year-over-year. system shipment system the of customers to of strategy particularly trends, execution and

QX environment execution. result was delivered of capital shipments we QX, broadly really team’s in strong the to compared a in growth system showed improvements our the equipment QX While as in strong

effectively, ARTAS prior direct targeted also focused sales and recover positioned on right channels, very has depending delivered that of strategy arming region our believe our opening of streams. strategy geographic drive XX% We and and six is revenue the NeoGraft, systems in targeting, As strategies our total recurring and we and discussed new continues through further year-over-year global we on and selling progress and first pipeline have sales focused which messaging team as lines; to growth calls, strategy tightening the sales us as optimizing that quarter, and Viva meaningful we executing country, Bliss, equipment of are clinician market we us our commercial continued Glow, confidence which the which product Versa, above market growth leases have on the on and gives capital strategic XXXX. programs well process with diversifying to revenue the four key tailoring

brief a Venus our Bliss. on to update Turning

and in the year-over-year are We market to differentiated fat response non-invasive XXX% Global our quarter. strong platform. contouring sales than the body continued with first happy more increased Bliss of

continue a and expect to to significant the year, commercial marketing We our by fueled strategy. be Bliss driver both growth investments in our this of team in

as increasing QX, awareness. which throughout multi-city a University continue Master's in at driving will aimed and pipeline well plan tour and Bliss preceptorships. consumer market for QX, continued Bliss Roadshow class this development to Bliss the as We a We include our Roadshow

awareness confident create appeal. throughout and given Global the as we contributions also and announced a XXXX. the with recently provide Venus We Venus strong significant clinical Bliss, will this that offers patient recognition and for revenue financial Williams her significant that brand Venus product to from consumers we patients believe generation customers the global serve, lead which added we've and and Ambassador We Brand opportunity very remain Bliss expect that significant

and to the our sales Regarding largest in growth contributor ARTAS leases represented compared ARTAS performance the the first prior QX, systems exceeded to quarter in and expectation revenue year.

ARTAS strategy Our working. new for commercial clearly is

comprehensive solutions of solutions having commercial which our restoration with strategy drive billion installed our market maximizing market. improved earlier, utilization invasive In With an opportunity offered hair minimally ARTAS global clinicians from I of of portfolio in engage restoration any in NeoGraft, to unique today. have the most and plan base, addition to to the the new $X.X end-to-end hair our the is targeted we competitor discussed

seeing new among are with surgeons and targeting strong recent customer strategy customer We in notable plastic months. well dermatologists are adoption success and as our driving

well see as our national these in me Dom. back accelerating core restoration targeting as let hair to leverage turn With improved the our move We large we doctors expect trends to as we through as that, call business, strategies accounts. growth XXXX of

Domenic Serafino

moment to mission sight the today not I the company founded to intermediate term proud Chad. core a of years to are more towards demonstrated have near growth highlight we've XX this was success Thanks, ago. very early on which strategy, take that while the want we lost of than we

philosophy categories probability our is to dedicate to develop last effective the the our mission has easy company the continued technologies team best-in-class mission of commercial and in payment support frankly, of operating the can model Our options in product a class has year, hallmark empowered and with via sales this all differentiator story, post help the team results success safe, a use world with enhance mind and quite sales in in key markets. flexibility we operate we customers. to in geographic which have and and environment of our way by and subscription deliver model, challenges to of certain our financial Despite our industry and pricing specifically, to that a our over in provide been clinical concept unique Venus further first certain

is to plan extended an the contract and model the subscription cell you pay phone, where time contract newest technology for that technology of a mid over Our and for similar upgrade to term. the can you

contracts subscription capture Our contract we economics first three-year the are in agreements of XX% typically typically year. where the

plan identify to I more work meet needs. Our we team right importantly effective participating and in is for right a cost This than and our a quarter total upgrade for the our under technologies their activation but only incredible the with an of not first as as empowers by are shipments practice, their protected have, can business device model just which lever global enjoy said period. the year-over-year monthly and to commercial seamless customers in to model that represented increased customers really payment clinics Systems shipped the subscription XX% opportunities XX% our code. program the

along are sale Importantly, cash hair demand and a as subscription Bliss sale systems technologies and basis. features around is cash and to restoration on model. the a the with are as innovative most offered disruptive not ARTAS all only including more markets we systems strong intentional, for This new, under high profile key Certain the the traditional offered our Venus systems, traditional world. in attractive a profile flow company cash aesthetics scale go growth

America first our better shipments delivered North summarize year-over-year. in results, quarter system to strong XXX% by where adoption, improving utilization So trends nearly than expected growth we increased and fueled system particularly

in actively XXX pipeline Our this to for were manage in increase results quarter of combined and a XXX million, revenue XX% an which with the revenue today XXXX strong guidance, now drivers year-over-year. full representing primary our we XX% leases first of range calls total approximately of increase the to system million

right have positioned we success belief in to and for the intermediate We based are commercial extremely product confident XXXX term. well the outlook portfolio that strategy, which our the on near us over future for right our has

the is specifically will compelling developing solutions offering progress that clinicians to in for next reduce technology competitive we We as surgeons for generation benefiting medical develop provide improve the believe dermatology term will in product invasive offer also a equally customer procedures greater efforts medical new and Importantly, significant and clinical surgery minimally significantly help continue robotic profile, plastic community. variability, specifically advantage of outlook for we applications. the while fatigue treatment and aesthetic to technology company operator development, make the our longer aesthetic the new for are safety predictability, the marketing acquisition plastic and robotic areas reduce dermatologists

the to with very the a market. We our excited skin procedure non-surgical device, about of prospects the disrupt tightening are RoboCore potential robotic

feasibility included areas. our and zones six different XX and completed patients treatment with studies device, safety our XX handheld body which have across We

will be in conducting additional are targeting which data small we animal the quarter. support study a by currently of XXX(k) secure third to handheld our Israel We submission to end

We robotic coring. will our make the human for preparation to in also evaluate clinical to progress study the continue

for expect investigator three We the sites is on States third of quarter. to expected XX clearance expected possible upon quarter United with enrollment patients soon up the of submit of first in identified clinical to have study, XXXX. enroll the currently the completion depending by FDA the which to the sometime intend to as We begin pace enrollment in as of end and

the about product Bliss the new products. excited systems Venus as our We introductions of and are expand prospects we also portfolio

technology Venus the also and Bliss fat body but includes Max, device for not toning. a only Specifically, new stimulation contouring tightening skin a and that capabilities, reduction muscle adds

fee new this modest and adding list expect utilization a device. on to but we device important intend this We will a price have of $XXX,XXX,

let over me balance condition. first launch and targeting XXXX, With FDA submission results XXXX. us and quarter turn a in of keeps our are Domenic? to for track will which in detailed Domenic of the end provide the XXXX that, of QX clearance We commercial call sheet our discuss the still Penna Della potential review late on by financial early who financial and

Domenic Della Penna

Dom, Thanks, everyone. afternoon, and good

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

due systems of of to XX% X.X X.X from suspension including other our where million XX% in services geography commercial is compared in in payments XX% in of model driven year-over-year have in the which XX, by Chad an sales XX% and subscription X.X products discussed XX% to revenue, procedure-related strategy, XX half in by in marketing by of and and change by revenue March or less total of XX% X.X percentage reported XXX% by total with product and of ARTAS the lease increase earlier, quarter total increase of quarter increase XXXX. our First of sales cash million product kits, year-over-year XX, an represents XXXX. revenue of XX a we consumable an was lines, was driven increase products, our which the XX% by in increased international period. systems other terms typical the quarter all The million ended and the of systems months, in our driven of or offset is system prior which or months revenue subscription revenue was key ended services revenue, X.X strong leases which derived change and million in million sales sales in The products category and a in partially or first XX.X million. to with increase XtwoX $X.X ARTAS or by sales or XXXX or X.X expected three sales million approximately revenue three of the operations decrease compared an or prioritized aesthetics are XX% first the a driven revenue in months, second in than by to Dom The year months increase March sales U.S. million program

Restoration a a review for mix increased margin of our discontinuation year post profit related million. non-recurrence the or decreased XX% and XX.X% the XX% quarter a expense of in primary of compared to P&L. to across XX.X increase prior Robotics GAAP performance no the first XX.X the improved impact million, XX.X purchase consumables, impacted gross of to price X in the million the prior Gross last operating to expenses Total of of driven or gross in decrease ad and agency margin of revenue acquisition first services XXXX quarter year. was The the Turning XtwoX million, million period. impairment XXXX. of XX% adjustment The there of our charge was of quarter representing a of rest in to were charge drivers operating period year-over-year gross total XX.X only, Venus the margin year of which by sales first goodwill the impairment our higher a the

XX.X attributable XX%. or of or XXXX Net Excluding operating XX.X of of first loss the million $X.XX Concept to Venus to Total quarters million the Inc. of this operating for XXXX, the was of of X adjusted operating of XX.X X.X stockholders net year-over-year. was million, share, to loss of and compared XXXX, average the declined in for operating adjusted stockholders million attributable item, improvement in loss EBITDA used XX% and was period, Weighted or per compared in prior an of first the year-over-year. loss per compared XX% shares of quarter quarter to XXXX first XXXX. share, million Non first per first XX.X expenses loss were loss stockholders million, respectively. attributable the X.X for $X.XX first share improvement XX.X X.X XX.X EBITDA year quarter to an XXXX quarter XXXX quarter loss million plus XXXX of million loss million for to quarter the compute million net for first GAAP an of to or

adjusted provided our our this We press of reconciliation EBITDA to net GAAP have afternoon. release loss full a in

activities, and December The change the balance XXXX in months primarily XX.X of cash XXXX. XXXX the cash and total had XX, hand March at offering sheet. XX.X XXXX, XX, The respectively, to million February proceeds the cash million XXX,XXX of three and company million public from equivalents on including Turning as obligations debt of and used XX, obligations December of March for of of compared XXXX government provided XX.X exercise exercise of by including offset debt $XXX,XXX as approximately by price of per was of of assistance of total cash X.X million, XX.X assisted the from approximately in operating activities million of million, ended cash million approximately X.X loans million to X X.X including share government warrants driven December $X.XX financing loans in XX, XXXX. received total

of review guidance. a to our Turning

release reaffirmed quarter As press this originally the press our and which introduced March for January was on detailed afternoon, in period, year our release XX, in press XXXX, fourth revenue XX, the release our company XXXX. on XXXX full earnings updated its guidance in

XX company's company the the on Assuming revenue revenue expects million XXXX XX% pipeline impact and for to and strong XX, that months XX XXXX. customer of of total representing XXX COVID-XX would December approximately ending resurgence an months in the base no million XX% persistent to year-over-year the based now key compared of XXX December for XX, range to negatively XX significant markets ended the of activity, in million, increase total

full offer XXXX, providing we for for year purposes. formal to not like modeling While guidance the we considerations following profitability would are

costs XX% related with our manufacturing gross than of First, from we initiatives be faster continue ARTAS to expect growing and benefits at our reducing directed of mix, margins in in XXXX, international to in driven U.S. to XX% to XXXX, systems. our the favorable range markets Robotic revenue by the

a representing continue we Second, approximately decrease operating million, expenses of year-over-year. GAAP XX XX% to expect

XXXX, operating expenses, including which our of operating impacted Importantly, this charge to growth of approximately adjusted items in severance GAAP debt non-cash items related XX.X certain were approximately expense tables which and X.X and XX to million, XX% represented approximately our impairment expenses, retention, non-operating bad of expenses incremental together non-GAAP exclude detailed other represents legal goodwill last in all and million EBITDA non-recurring million, our in costs XXXX, that related year. COVID-XX reconciliation a expenses normalized of in

X.X to Fifth, million. approximately costs XX compared X we expect expense interest our continue Fourth, our stock non-cash to the expect million average year. we X.X shares to prior given the of outstanding obligations be approximately be expect we to D&A Third, and borrowing of lower million. continue debt to approximately and non-cash weighted comp million

Finally, practice pandemic QX is expect our approximately given benefit we the Operator? COVID-XX of the growth not of of 'XX to increase guidance we and quarterly it the year-over-year quarter a open the we to call while will now that, revenue not XXXX XXXX to rates, future, significant our and in your provide do and expect XX% operator, related guidance year-over-year. standard With impact questions. our to second in to the total XX% our quarter second

Operator

[Operator Instructions]. you. Thank

Thalmann. Jeffrey proceed with your of Our first Cohen from questions. question Ladenburg Please comes

Jeffrey Cohen

you? are How Chad. and Domenic Dom, Hi,

Domenic Serafino

Good, Jeff. you How doing? are

Chad Zaring

Jeff. Hi,

Jeffrey Cohen

you nice Chad. see recently, to It was

So into. just a couple to of questions dive I wanted

that shipped commentary of systems you your QX those are along in approximately say sold? XX% the of would on the XX% also leased with So XXX, versus lease

Domenic Serafino

on shipped basis impact because unit a be percentage the slightly obviously that systems the the cash. Yes, of of higher cash than would on

you're So in the ballpark.

Jeffrey Cohen

you or to give top QX platforms? four what three were us [indiscernible] the or could two And Okay.

Domenic Serafino

QX in the Versa ARTAS Top and system, platforms Bliss the platform. the system were

Jeffrey Cohen

and wanted compete the it to I'm lower that is XXX nanometers call the thinking with area and directly as and that wavelengths? and you, as Chad red is And the area? how into? to they And what's between about derms I some general the, And derm team going XXX blue wanted speak light it. of ask the his I far got your to Okay, sense then Dom, -- an

Domenic Serafino

to talking treatments? Are acne you

Jeffrey Cohen

Yes.

Domenic Serafino

Okay. are new. nothing wavelengths These

community think companies, of not a what strategic It's that of offset of when for parents derm I those provide. because have room they their treatment the to to treating be efficacy comes rate the make issue kind treatments charge can decisions to restoration. devices other biggest to customer it included, the base, the acne more the us the that really is variety derms of as their like rates do for or and in using to doing what fat can and is may treatment return they able those rooms, hair teenagers --

So overall. I is somewhat think category that that still challenged

As the advantage -- think I companies, taking solution us, of I have said, opportunity we but the have patients limited a because we excellent all overall clinically, of not are in somewhat the the treatment. simply the of of majority terms an good that of solution market demographic just for profile it's the

Jeffrey Cohen

much. and into me, it. February how lastly any last just dramatically does feel and Thanks January or flavor year-over-year, that us versus give commentary got Okay, And which how a for have then very April of ballpark procedure volumes, grown May?

Domenic Serafino

Yes.

What I think globally. data that I’ll improvement devices this steady the activation look being because pull it's call gives have to tough. -- optimism, in and IoT time the it our really in sequential growth. the we done real we the see we us the And continued month-over-month really at of procedures is

in of terms a little affected with area every it. to they dealing kind COVID obviously, issue gets still getting differently. America Latin were of lags because bit the simply late Now,

of as with removal, we're And especially cellulite. this that key little we're a pleased month-over-month we're we're a pre-pandemic of like well part that And numbers in very But improvement. reduction this and utilization I in seeing the like is categories, few others at and really bit seeing, the a they're So what terms behind. hair beyond most fat significant, point. important said, said,

monetizing So the you are as the and we if saddle, we pull customers that we're hangover, in out good fact their investments. back of our feel more will, about this COVID pretty importantly

Jeffrey Cohen

Thanks for the Thank and quarter. you. commentary nice

Domenic Serafino

Thanks, Jeff.

Operator

you. Thank

questions. of your next Oppenheimer. comes question with from Our Please Kalia the Suraj proceed with line

Suraj Kalia

alright? hear you Dom, Hi, Domenic. me Chad, Can

Domenic Serafino

Suraj. Great. Yes. Hi, doing? are you How

Chad Zaring

Suraj. Hi,

Suraj Kalia

So let them Dom, Chad it. or whoever comfortable, take is

XXX% of Bliss down actual especially So I faring can what was point sensitivity the on year-over-year. to global just tack lifecycle? Dom, a you XXk details the drill help And I are does heard this more? numbers? in if CoolSculpt question, bit I Chad relative demand where the subpart your thought its sales suggests? of say And could the internal up on Bliss were a Max, us is to how for What at this Maybe Bliss price

Domenic Serafino

Yes.

let the sort So I me over the days take the XXX%. Chad -- and have of right of we're -- of the I'll aside they the then to the answer part about a of it I'll Zeltiq, us, last so of rollout the and hand very did to Venus they But that that reason joined because question left compare people one value to I economic early and around commentary I'll as first, job your well, fact customers. been have from doing is the good Bliss think things that now, Allergan compelling the that saw we've able hire to compared

profile had call well points -- other us what user educated to CoolSculpt, I In So it's not call the using very on that did the be user. uncommon words, started today calling becoming early a for the our the the days the using fat, in of other as variety cost competitive coming the but of device. the to acutely in the with doctors area became pressures of sensitive to companies market

as thought years, development the have we're X.X even developing far opportunity to journey recognize feel number the customers a already have this perfect I'll year, better well of sensitivity competitors using three-in-one treatments the of each device that with to third they device, call highly do Bear that's that price which and expensive having cellulite satisfied We sense. pretty a is incremental us, believe proven our And so ability sorry, that platform is treatment product with last out element makes area, in category has just and that for clinical well as are fat start with it, solution having do with treating most are treatment. already adding in the meaningful, question growth, standalone. element in have to maybe that -- storm in cetera, when of a the who sold with every lot mind product bode we these that kept and for to some our the you who with clinics been tightening the disposable a the do the it that a patients, over along intentionally of reflected economic a is pretty we category, products and disposable results, than which because skin the Chad, really combine on our I well. sort sales for can of our predictive fact the touch-up you very and where we're cost fat And stimulation. in that outcome that muscle of fat treatments combine continued is but et in if of the touch

In value mix that to America they proven that on is we could margins are on proposition believe $XXX,XXX for a can us, a you improve competitors. be for choose us price the as very in very a that -- And the products a gross technology, just touch using doctors So allows Chad, only in but investment on category. point helps case, our as particular in compelling not be very, some price into actually the importantly return customers made maybe list from cases, profit who it our depending real the or $XXX,XXX provides $XXX,XXX, XXX North of quickly.

Chad Zaring

Sure, Dom. Suraj. Yes. Hi,

And commercial were a really If QX down, -- COVID of many QX, that shutdowns sales started had quick still were really And our to showed the see been to customers we somewhat were full really -- planning of open. you And XXXX, procedures as back recall, first not inning QX But about beginning of decision markets weren't picking the launch in they QX. -- still results Bliss. the geographically showed normal. really the sales pull hit. in QX shut those of because we happened concerns made the we in in that then very selective to Roadshow, to on that results clinic closed trigger, and while the the do have may markets

And we question Roadshow it ties remainder the it's We the economic the now. marketplace, opportunity in even pretty a continue to And of of some is about revenue I'd year. of the for to opportunity, doctors, some the space to core I'm -- are the for in remain alternatives what enthusiastic the about and QX. Bliss say, seeing the established Bliss,

do I what the some the in looking potential, the are perfect name prior Bliss customers for. is So which profit of is the the that patients door, for space, model business of maximize recognition leaders in coming brand how really are the

strong we throughout So expect performance for product remainder year. the the the of

Domenic Serafino

various of Williams with add that, And addition the collateral base. we been mid has more we our extremely that materials, but to we just of all an And Suraj. customer announced think our agreement stages that The on quarter did be to Venus and a this received we will trajectory impact QX her one complete with had point very going to well by released signed it meaningful very of have product extensive that's as and marketing particular at you a into well. will, through QX preparation collateral that beyond that materials if package,

Suraj Kalia

little hop question us appreciated. the greatly Dom, system back could utilization my if you give Congrats question. it. a any or guidance, other per [indiscernible] U.S., in one us How that Bliss, through like? us detail especially the the I’ll Dom, per look? in again. Chad subpart would taking goalposts procedures queue. bell Gentlemen, you and look be month still apply? ARTAS? how curve would the do maybe thank could Does you provide -- rules thinking for walk of legacy And Got the Again, Versa, Just granular about Domenic questions. you're of you could additional components for guide you, more how the maybe a metrics,

Domenic Serafino

Okay.

it little can So I'll more the you, first and part you a Suraj. a then take at shot Chad thank bit of add color.

numbers, North the we're be to think to the combination should focus utilization for America. in because Chad, focused I that measurement metrics, in speak can the roadmap important sort one utilization which and have a hair the on on recognize and restoration, it ARTAS trends think While there? that key I that we to you us which can it's our getting we Chad perhaps actual the we release a products to good touch and trends gives don't utilization therapies as of you is NeoGraft of which team on geographies. of dedicated

Chad Zaring

Sure. improvement ARTAS The we an sales as in same-store accounts. trends new XX% programs. by among people in meaning year-over-year and getting there North very clinics good, in quick-start systems, primarily made, and the and Many doing driven reengagement five-day the of increase America we've QX, active challenges procedures training in challenges were getting in there's America underutilized North reported, with -- our ARTAS still were sales into obviously, still QX, of with

systems, of the getting is really choppiness same-store the people onboard to choppiness a sales, into improve same overall. is with in we to as to with lot continue But that issue, which selling seeing OUS ARTAS promising. goes ARTAS are we're going as sales we're think markets that of see away new be able We result some new and programs. utilization growth trends to So a

Domenic Serafino

Domenic, rationale on you for touch just guidance? And the can

Domenic Della Penna

growth the of there. percentage on continue think we relative mix by to high terms as and Yes. But our the of our what to should drivers up of the understand the a we capability robotics -- the improve of rest have of disclose relation We systems. ARTAS that system. makes And split behind ARTAS don't the team Suraj, business in I thinking you to sales approximately to revenues globally potential you it better put in be components improving the representing about XX% at wanted understand is the level. truly lately

high to possibly as north fact we to expect the head to that on of still So very reinforce But, is to we important focus base XX% we again, want business ARTAS. subscription we Versa, particular, that the we make that and especially In to yes. of sure continue with Versa we benefit capitalize with product. has margins, that plan have, and this on the continue that Venus the us

Operator

Thank you.

question the your Please with from Jon Block proceed of comes Our next with Stifel. line questions.

Jonathan Block

quarter. Good Thanks, afternoon. Great. guys. Nice

small me. a handful Just for

The just how hiring and that's on first is centered going.

reps the update Pretty how you ambitious last U.S. North there. the that in quarter, numbers XX XX wanted rep And number XX. in out to just Chad, to believe just look to called onboarding I But next like what? maybe I can take over gone think you out America. reps roughly several give an date? the if and of months, us on you have when the you if thinking that here you're

Chad Zaring

going back But We're you. question. we'll Both well. in-person great the an per make We've are very remain on very remain opportunity beyond strategic also pace decisions. there's we Jon, speak to to gone optimistic with really that. if Good to areas getting We Yes. for training. XX. And about bullish. business, that, to get

them So I've myself. attended

train the Bliss, through sales the doing to we hands we're it back have with approach, the hands classes. the on reps And we when the devices more last two especially time So plays, onboarding reps the higher the versus traditional getting on, to for can that's sales significant role like the them can remotely. model on we opportunity more devices on do because take shorter and hands is products priced the

the Jon, So we're side. hiring both on bullish areas,

Domenic Serafino

No, add let go I’m – And me ahead, Chad. sorry.

Jonathan Block

going where to out. was me ended I sorry. ask where ask I'm I Out to the pardon up? was ended you going XX, quarter, -- of the you

Chad Zaring

end. than on Approximately target sorry. I’m XX XX by and year more for we remain

Domenic Serafino

and now, Yes. Jon, people just trained. We're getting and right XX fiercely over are hiring

Jonathan Block

to I thoughts and sort you some in from broadly aesthetics, looking share Dom, strong did one the Okay, guys think know and are see comments. it's geographies market capital just then, pretty you recurring. come back back I difficult 'XX But And terms 'XX. to capital and across come are end of different for of all some just of market great. or guys and second

you were pinpoint Venus or And relative one performing isolate you think peers? perspective, to you I’ve one. if be to to then a last deem share got what is market to from try So closest how your just

Domenic Serafino

is define market, surgery each market if market share taking because other a professional dermatology, it's that question number. out the like in a the sense peers, you're plastic every think one Look, share, defining piece that's that in quarter our I most Yes. tough of of you how

right without think double the team would what digits, with take bit we share pre-COVID sales and If mostly as numbers, plastic professional the each focusing model, portion the guess you the of you're our digits organization a about reset of business to we we can of talking traditional a exact to our dedicated market, subscription But expanding the into one which do it creating that at our single and the we was market. the a market overall be to single I point. quarter in by significant with new this actually having of going that dermatology time. or size of very market the continue adjust digits I get if sort outside by in Venus business now, audience, were and targeting of really from surgery what continuation going day and goes motivation originally and in of core. we But of the We're primary but is market on define still that's and subscription our the with a the to non-core think

Jonathan Block

DDP, growth last one, enough. maybe XQ XX%, you. XX%, revenue of The And XX%. great. Okay, Fair XQ guidance for

with think the new more well. anything I can beyond is it's is just 'XX, on low I The XX% that talk seems the pretty comps? part believe just ARTAS Thanks, for guide range you’ve in the of doing around door in and full you growth. XH products in back XX% and that to or these knocking year got and if like of Bliss [Indiscernible] pronounced the implied guys. a deceleration if

Domenic Della Penna

deceleration because didn't XX% calling just full the I A -- for said? you right. we're year,

is against to the -- we're second we show half the the So stronger. is Jon, recovery did first XXXX. business of in what our up be But second half of XXXX, half going in

still against still second to relative half is we think significantly speak. up of XXXX. grow we can that we're So half so relatively to But second a the weak,

Domenic Serafino

as quarters And you there in we've to the outcome you industry, to to sometimes specifically, start approach this as that two people taken are second on this. them hire feel basis. for the a elements and may conservative half. monetize it in help very new Jon, takes three know, consistent typically improve a two We that

tear two a everybody's scheduled been hiring bit meeting, in half one we've the year. So that for back years the of national sure aligned especially we America. as a July in And first to North [ph], on of make have the mid a for obviously sales

I able a deceleration, So how growth year feel on while to about compare maintaining we're look to be that like think profile. may surface against pretty that the going that previous good we the and

Jonathan Block

helpful. Thanks, guys. Very Perfect.

Operator

Thank you.

comes question with line with proceed Marie next Thibault questions. Our your BTIG. Please from of the

Marie Thibault

Hi.

quick exiting, some two point? your that process? details shift that from re-devoting moving filings and U.S., to the mostly this but love you some markets international in resources shift to were where On the is hear know at you about some questions. that your geographic Just I were countries are would there in done

Domenic Serafino

the contributing relatively the think accelerating why resources to been essentially, way, given long offices And reps so challenges to Clearly, the need much of amount most a it direct sales that's right and Chad I’ll I’ll now. his But is much together call Yes, the this it the to to that's we're of a working. that and there. But we're continue that in terms in -- that and sort there's decisions our couple be point. on, pretty are non-material a of putting to smaller, think to in done. and that takes times now closures those get of huge it got We've call right closing strategy process this I additional we operational of pretty meaningful make investments team focus completed us North We thing lead important is America. opportunity realignment. for reallocating

Marie Thibault

more XX, maybe subscription XX curious something -- that's to maybe maybe shifted, then of sort strength ARTAS there, subscription. of with or revenue. that And possibly trending on the the kind long a were question between systems of we and on where helpful. direct was that's even Okay, and you higher, kind it some seeing but like a towards split XX-XX there split of see term? know maybe XX-XX split I COVID, And Prior

Domenic Serafino

Yes.

be to on on and subscription subscription basis. guys, percentage reporting of there's is cash I that do business quite a think with a difference need of you of on that of, with we aware better one we Obviously, a a to the of basis percentage job the things really product the frankly cash cash of in between different unit Venus for to sells to on. need of the and like of $XX,XXX $XXX,XXX, $XXX,XXX ARTAS of big area variety products a a from to skew in or $XX,XXX done and going that a the [indiscernible] margin and area sells the predominately area not the those are least to sell basis, so the that Bliss cash reasons, and that's typical under

all the think for are for on whole opportunity managing still looking basis. sector. inflows and and subscription, think XX-XX, be terms you at way is industry cash I contributions and cash because though of that we're this right and disposables, the obviously ARTAS balance of interest closer depending Bliss customers split QX do quarter renewed XX-XX; this when best cash, think way to that of which proportion given XX-XX, So, this in on a of sort going also XX-XX business I the is of the XX-XX level, get to into in to of and We think and we XX now, providing are a right our what the who model by reasons, this, the flattens mix. in out, should on But a depending done a distributor the of lot XX

Operator

you. Thank

next with with questions. come questions Anthony the line Maxim Vendetti your from Please of Our proceed Group.

Anthony Vendetti

Thanks.

And RoboCore, know How said wondering give there? don't ARTAS commercial of the I a couple then commercial revenues. that splits, you gauge -- you how on product would about is quick XX% know Just questions going? of opportunity you just what opportunity that's but I

selling and what little you of be? or could Glow bit that is product how percent could talk about Venus sales that If just a

Domenic Serafino

companies, as a is skin somewhat with part tightening are RoboCore, a I'm blue as the I'll it think Glow challenged, category going predictability next is deal solution. let of of to non-invasive patient from of this directional There with provide kind Venus lifting decent selling of which Chad the Yes, the a that we the to far that lot included, call but of variety question. and results, ocean us regardless category. of one that different technologies company is the can But

or is the a a the end, breast it's lot the surgical end patients At fully a of to spectrum. brachioplasty a a are facelift of that's intervention afraid So procedure, back a high the that in invasive minimally RoboCore that fill which lift think that at like full of arm, between low the or a a nicely there's sweet invasive we areas will invasive with the We of in and us think variety minimally can And lifting treatment category. very tremendous spot and that do. a create give solution. we spot in that tightening

XX lifting we some safety the sites terms that histological feasibility initial in for of the be process. able the areas. studies, get loaded in quickly. XX that the now the six of study, can with should to Our which part do body in and over a patient in saw We fairly stages to system with were performance we to and three trials We do animal we what did robot able be lifting, moving are using so of and tightening. preparing parallel, happy fully XX directional treatments patients Israel, directional in of we quite And the early evidence and tightening some we're different as coring

and the the to so Glow, we safety few can maybe Viva And call is the not we And actually a But the trying and the outcome, clinical that. for you think on. the a of a nature that Venus done -- it us I robotic, with all are ensure you of I’ll manually. you that to do enter on there's the maximize that there out can treatment where that of to microneedling robots it profile. the coring, predictability think only think be application. provide initiatives on market applications of touch because So the companies coring been a of but reason this have Chad, compelling type these that

Chad Zaring

Sure. Yes, good no problem. Anthony, talk with to you.

So there’s $XXX,XXX of market maybe downstream give sales to we and of when doors a have based seen just $XXX,XXX a in And they this to you those and focus. focus quarters product companies a that HydraFacial serums. with we've knock time done the the core doctors know It's huge business volume product larger then to from lot is, the hard on it's What the like that reps get opportunity many progress. on. on with what focus class, can how more bundles deals take as

what we've reps more to allow is bifurcated deals. of done So we've those focus our senior on large we kind where

a Viva, call plan we a many get that product. on. we've really downstream consumable which and it get on we're Bliss like products standalone frequency. and where but on feel doesn't as And and to perhaps reps the some set as and Glow And asking now well Venus the -- of bringing optimistic. component them into great the more call pipeline bundled in sell or products same deals, focused just pretty is the an build junior objectives, would high get, do sale We're like you again, And does focus how sell larger and doors there's initial targets our ARTAS and knock demos Venus focus

we'll So works, do able more it to strategy. really we bifurcation. if going think continue And of be take of that we're to that to advantage

Anthony Vendetti

are with targeting in Venus reps, the that terms are up Chad. focus will right reps in that Thanks, graduate expensive coming on junior or stay product? the they you now? then and just of That's Glow helpful. to more the specifically But they products, reps are just that And

Domenic Serafino

going They're that product. stay with to

may at with product. Now But be point, promoted. they some stay they're to going that

ways. does thing good this the it Now about is strategy both go

these give Venus reps commission. opportunity get higher Glow, a and Viva to an Venus we'll percentage sell So

What for it's where you sharing a some is don't sell leads want because time. selling create in not be their the they these products. reps a of of if So one situation But the it be commission dollar for plan. to model of worth and higher there'll then

them this opportunity have on to intend good really somebody, other and they side on focus the they'll to create well consumable Viva. we component, that's say pushing But And just to with -- well financial will of somebody huge going sales and we intend have if So do let's become on Glow we as a because and specialists, they Viva end robotic have long-term leads. backfill we up Glow. focus to

So blanket. we always have that

Anthony Vendetti

Understood.

Okay, much. great. Thanks very

Domenic Serafino

No problem.

Operator

Thank you.

for showing additional in no night. does And questions for are this the have conference tonight. queue. time you We currently a our Thank evening. your That conclude good

Domenic Serafino

Thanks, everybody.

Chad Zaring

you. Thank

Domenic Della Penna

you. Thank

Venus Concept (VERO) 18 May 212021 Q1 Earnings call transcript