VERO - Earnings call transcript Q2 2021

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Operator

Good morning, ladies and gentlemen and welcome to the Second Quarter 2021 Earnings Conference Call for Venus Concept. At this time, all participants have been placed in a listen-only mode. Please note this conference call is being recorded and that the recording will be available on the company’s website 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 maybe updated from time-to-time in our filings with the SEC, which are available on our website. 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 in measures our website. press most release calculated portion GAAP and Reconciliations of the with available those presented on are Investor the today of financial measures comparable in accordance earnings like now call to would the I to over Mr. turn Dom Serafino, Chief Executive Officer of Venus Concept. Please sir. ahead, go

Dom Serafino

our second and XXXX pleased Thank everyone on Chief and you, operator Chief welcome joined Zaring, Domenic be conference to the am Commercial Venus I Officer. Officer, Concept’s with our Penna Financial quarter call. call today earnings Della to Chad

provide provide we direct guidance, our agenda the in our overall then commercial we overview our quarter a it including results second be which in will strong Let XXXX shipments of targeted particularly will during remarks. performance and up new of during Della product for open the continued release the confidence call more progress results increased quarter with of our an in an revenue Domenic QX gives the and start on our continued We reported then our system guidance of our financial result the year-over-year. exceeding expectations mind, a Then strategy. with in believe period, million, of us you in condition year for me updated development. GAAP revenue XX% get will started how the the our our the trends, our start of results, overall in sheet, further better-than-expected quarterly $XX.X to with morning. second both discuss year-over-year execution Chad XXXX. what then And adoption business review revenue balance call, system and and was in prepared trends a which this a your I and America questions. update of I full strong area trends. will let’s how in-depth we Penna our we provided will second press brief XX% growth to quarter, of with of financial a in improve revenue update we review With our improving that brief assumed of of covering to XX% business which up will North our

believe quarter our reflects have by the are it adoption procedural improving and and the performance encouraged We experienced very system revenue we second during quarter. trends

quarter continued our second growth reflects aesthetic procedure improvement and and the in hair both pace both of the restoration adoption. system Importantly, our trends

in global team the sales we in in prospects the are of for We The performance sequential the substantially able execution XX% qualified increased total was increased our quarter-over-quarter full strong encouraged sales our of which sales in XX% the XXXX. also by and portfolio, of systems second subscription on Diving by QX quarter. increase quarter. a growth expectations our improving us leases growth of revenue confidence to new across gives XX% systems into the trends from revenue. growth in our driven product the basis balance and team and increase very deeper experienced revenue pipeline

represent in QX QX in the equipment of and the shipped Our capital sequentially reflect under XX% improvement XX% global on a System than the quarter-over-quarter X% in our continued period. in basis shipments model increased more total increased systems subscription environment. shipments

our payment from an model have incredible with that have subscription we pricing unique differentiates prior on by us options we lever which discussed in is As flexibility industry-first commercial and calls, model the our our competitors.

team on commercial the to needs clinic our right depending lever identify this the business second each with trends but technologies right practices, customers work also for only empowers to their improving quarter. for model with experienced in Importantly, the respect their not really the we procedure to

our a gives Our second product IoT This demand active system during the average on visibility us our consumer of improving strong base. data portion quarter. medical trends device large usage install reflects into data devices real-time for esthetics procedures per our for the activity

continued the the of among hair utilization trends customers our quarter. XX% second quarter, in year-over-year as encouraged trends in by systems terms our In are procedures global second restoration customers, our for increased restoration the the hair very improvements we on ARTAS procedure in

by North by to number strategy XX% increased by our our our underutilized. largest driven of America Importantly, systems towards this and second commercial was team strong during the who restoration fueled was been growth improving in procedure in U.S. in growth in growth procedures ARTAS in X North environment key hair combination We QX. we customers U.S. reengage the procedures performed customers in year-over-year have a ARTAS quarter the quarter an QX impressive business that last of years. execution have the procedure the strong with procedure believe believe global America, where an in

to have to We months throughout to We of utilization to side could system part Chad? results. going I be our continued the of Chad the we ask engage forward quarter hair happier on strong made an second look ARTAS concerted forward. in our North going the am XX over with and America systems the with business. provide effort restoration a to performance customers the update business not last

Chad Zaring

Tom. Thanks,

world markets trends our commercial Our in strategy. system key around improving of system second sales results execution adoption the and strong reflect certain

the North those from North discussions, less direct to strategy and levels global recall our America in EMEA in we respectively. in XX trends. pre-COVID Stripping interest reinvesting in like spent XX% in to opportunity QX and revenue are key QX smaller in America earlier XXXX months commercial out countries Those divest past and system of markets positive the and COVID we efforts XXXX, have up reflect revenue restructuring profitable and EMEA. system you higher and As markets, XX% our resources QX comparing effects

the and these our to our on opportunity are Bliss significant offers increased are patients customers the and we continued fat Bliss, to happy the body we in response with field Venus Turning that brief and contouring a XX% from financial clinical support receiving feedback Venus Bliss of differentiation. market and to quarter. we of year-over-year update continues sales differentiated non-invasive serve to key the strong points Global the platform. a

strong As and in our of Bliss. team our to strategy in expected, the both continued investments drive adoption commercial marketing

for development and consumer increasing driving a market roadshow We Bliss and continued QX aimed in our pipeline Bliss at awareness. multi-city tour the

Bliss class launched the to helping our also programs and successful We the technology. team practice attention enhancement University with develop Master focus of our customers

the thrilled positive customers, quite from collaboration response also and for on are prospects our our patients with Venus We Venus Bliss. with the Williams

as for global create adding the would market Venus a the with that brand Williams from response recognition following patient The all global Bliss expected initial and exceeded significant announcement Venus brand consumers awareness given expectations. significant our provide generation appeal. her the and ambassador We lead of has

America XX% existing Since BXC adoption our with we seen Venus increased We has in this and accelerated to collaboration. sales trends and we North from the has process. customers of Bliss websites. a announcement, both as our year-over-year in visits prospects initiative the been have and have result have a sales have increase engaged experienced especially This the significant also BXB pleased

with are increasing of utilization continued expect execution Bliss this to strong customers respect of the with on Our product XXX% XX% revenue and branded their strong Bliss year-over-year over during contributions marketing in Venus these year-over-year. strategic capitalize combined right patient and in team, the ARTAS up the utilization than product excited growing half Bliss We NeoGraft XXXX. to more of in a line, we very quarter-over-quarter and our want pipeline product and of Notably, qualified is have XXX% that adoption partnership this customers throughout restoration, first and strategy, base. QX. hair XXXX second confident With remain up our that strategy drive assets from sales our overall to investments sales and sales resulted our key global

solutions, end-to-end minimally we new and the in commercial opportunity maximizing hair strategy hair market. the of of from billion ARTAS is invasive available solutions competitor unique an With NeoGraft, $X.X most restoration offering comprehensive restoration any Our have portfolio the having today.

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

core business large doctors leverage to as expect as restoration these as We see targeting accelerating trends our as in hair XXXX well we through of strategy our accounts. national improved growth move we

to We Dom. with me partnerships back are nationally drive the procedure With exploring also recognized to call let key that, turn brands adoption.

Dom Serafino

America. utilization improving To summarize growth strong our system adoption, quarter better-than-expected by Chad. in delivered results, particularly North Thanks, we trends and second fueled

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

future our to our right term have and has success near confident company very as development. for the outlook the intermediate in product are belief outlook compelling us based XXXX make the longer well-positioned equally continue the is over in product we right for We Most the our progress we on importantly, to extremely term. that which commercial portfolio for strategy new

with aesthetic Robocor, announce AI-driven for technology feel the science the to a robotic resonate artificial pleased of project innovation the that and the new AIme, AIme intelligence, embodies will medical treatment an that AIme for development are name of for our procedure. applications. brand consumers for personalization is generation We name well commercial esthetics We personalized We on with me. wanted next robotic the or AI,

the non-surgical completed X device, the the was studies early to-date, ear, And included and and treated across potentially zones XX on the excited market. behind patient on directional arms, our feasibility will a first patients lifting different AIme. which skin most XX the AIme our including treated been patients of In tightening We procedure handheld with device, prospects X are and have about We robotic very recently, body June, multi-parts robotically that disrupt and the of face. sites. body, the safety treatment

are design design are the and feel prototyping finalizing commercial We look options. and

We trial. to full preparation human in also our progress clinical continue for make

the XXXX. fourth investigator the identified as soon be currently We possible to and begin to which a study, QX quarter. enroll to the We depending early submit enrollment to of clinical sites on in expect to with of as XX the completion FDA patients pace intend of by enrollment upon up expected end the to is expected X have done

excited from Health product introductions, Fiore, which are prospects the regulatory Venus also received Canada by recently our the QX. including We of clearance new in

in clearance Venus clearance year. also U.S. regulatory the trade the submitted XXX(k) QX of market this name Freedom, for of expect for and We we in technology the this have potential

we Lastly, addresses tightening that body all-in-one includes in most This body are systems fat Bliss Venus making new reduction and only Venus skin Max, technology also toning. device procedures specifically, the in-demand capabilities, expand efforts portfolio our the to the products, progress for contouring and Bliss device requested of excellent stimulation three workstation. contouring muscle and also but a today not

expect gross list have margins this on but new company above current fee approximately adding utilization contributing device a and $XXX,XXX approximately of treatment. important intend We $XXX price per a We of modest, averages.

have on just in our Importantly, platform. the ROI our the Bliss to – customers that clinician expect our that Venus we to customers of nicely ROI extremely based XX-week will XX we estimate compares compelling visibility we weeks, IoT be and data current experienced the which of today, clinician

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

Domenic Della Penna

Tom. Thanks,

Given of P&L. a Dom will of review and rest with the detailed revenue Chad’s our the begin results, of I financial review our across performance

revenue quarter prepared loans which XX% items expense $X.X reflects on administrative avoidance of morning Venus XXXX growth-related million basis. a to a expenses company’s results of second are of GAAP tracing remarks forgiveness Gross $X.X on R&D will for focus a the million noted, assistance in and on all $X.X offset and my doubt, of of second or to primarily or XX% driven a basis decrease million driven bad higher million and of of increase $XX.X sold sales under to quarter expenses, XX% of general subscription in of expenses million. and mix on XXXX. consumables million, an expenses unless increase marketing year-over-year reported quarter XXX% by profit For increased the recovery million otherwise this the primarily an gross the million compared to The or by million. was to is in Venus second and sales Bliss. XX% in Gross $XX.X margin sales compared improved or revenue Total program, by decreased our $X.X system XX.X% of in government margin and $X.X or debt $X.X increase total The partially positive a operating XX% gain XXXX. decrease was of operating $X.X the for

the $X.X government income Excluding pressures, our $XX.X Net XXXX. or were gain inflationary $XX.X $X.X EBITDA normalized increase or sequential million, assistance Total of expenses forgiveness operating million, to X% continue million commercial $XX.X recoveries Non-GAAP attributable quarter-over-quarter. increased income and bad will both QX, up This investments million, $X.X $X.X debt which of stockholders on $X.X million. to reflects of adjusted and loans to we total in expect expense million. million increased XXX% half the XXX% million. or XXX% in operating or second increased to targeted

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

partially The obligations XXXX. financing to XXXX, XXXX activities of $X.X to used of million June change debt million the of respectively cash X $XX.X the was the provided had of operating as $X of $XX.X December Turning in cash primarily equivalents and of and from driven and by million for million ended compared company June sheet, cash million XX, million as cash $XX.X XX, activities. approximately XX, $XX.X balance and offset cash investing in months by total

cash with half our performance improving of first pleased are We the during ‘XX.

in capital prior declined in the in reduction primarily by used driven of our year cash to loss net X XX% used year-over-year cash working XX% a a XXXX in operations decline Our the first and compared months period. in

review XX, year XXXX revenue guidance an representing months XX% for the XX% guidance, XX as The of to million, a press increase full the afternoon, this of detailed $XXX revenue our our to total Turning the year-over-year. $XXX December to of release in for period. company expects now updated our we ending in million approximately XXXX range

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

XX% represents gross to guidance gross points margin increase the of versus range First, XX% by continue to our expect approximately we to driven in margins XXXX. This performance be basis prior range the in of strong first in an of XXXX. XXX the the half

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

of legal XXXX, government forgiveness represented Importantly, non-recurring to the severance the expenses and non-operating, items that this non-cash million operating recoveries, certain incremental GAAP and expenses and expense of excludes bad represents year. approximately our million debt XXXX costs expenses to other in together in XXXX, million and which loans, approximately assistance retention, goodwill $XX operating related including which $XX of $X.X expenses, last items impairment, normalized impacted and

our in in XXXX. adjusted detailed items EBITDA these were of non-GAAP tables All reconciliation

million. of the Fifth, to stock Operator? will outstanding your compensation approximately million. approximately With given call our lower and expect compared non-cash non-cash debt Fourth, approximately year. average to costs our we to be million million that a be weighted the borrowing $X.X continue $X open of and we interest questions. we $X.X shares the operator, $XX to expense now we expect to expect prior G&A obligations Third,

Operator

BTIG. you. Thank will first [Operator our Thibault Instructions] come Marie question with from And

Marie Thibault

to and Thank a impact It’s Great. too much hear where bit terms here. not like guess you discussion your in COVID. with and start of Good congrats But the impact morning. in about are it comments. of questions saw to feel various on would the you hear I’d recovery customers the result I nice for taking like prepared that your little of the you trajectory? to a I the geographies on nice

Dom Serafino

of live have thanks and watch Yes. reason COVID enough, think a are Marie are our for like Good at us. else. data part, the particular for it morning, learned question. in point we confidence this everybody time customers points Ironically we there high the concerned most providing overly to that level the Look, environment. about The very I for this that as are not in news two

look in qualified patients pipeline a secondly, what beyond And of the we XX% given growth all, above as nicely. as of a our very defined globally doing pipeline on That our pre-COVID. closure in or utilization First our continued to through Things treating likelihood pipeline grow our is and were greater trends they system continue continues are still Internet devices, qualified quarter. activation we of customers see where and to to

to XXXX. strong have the fairly these of back sense confidence data a So two of us points given half

Marie Thibault

Okay, question I U.S. sales an correctly if Chad, for efforts. guess update I some were I on undertaking Maybe that’s hiring a wanted get helpful to and encouraging. you force, the recall

then hear partnership how headcount Williams, boost interest with you that to continues? the news details details the of love last? with that the on her and I’d curious stands? So, Maybe or how Bliss marketing on initiative? where And think long kind some anymore Thank And in your outlook might boost long from you. do on Venus

Chad Zaring

Sure. Thank good Yes. Hey, morning, the for you questions. Marie.

in force very off, sales the actually has First well. expansion U.S. gone

at North sales ahead schedule. in QX we communicated of end by are XX and have we would the of people We be America,

force. of on-boarding dramatic We overturns new our are that now impact the and some and and have am training with sales done And reps very increases pleased and changes the to having. I U.S. level

of we fill ahead optimistic will be So team. And out pace that. that able we on to are are we the

we install given for this the can in of rapid impact think we Bliss, some actually we that Williams, are Venus base Venus expansion Regarding persist time. believe

and agreement. opening of up are But clinics still new in we as we markets. open multiyear on a position up, in We are a new bring

how a activities grow as they into Williams from the interested we utilize impact ambassador fair to BXC turn a Venus a And so of brand volume in next and year. clinics of those have their own can are very planned number to level

So, some think persist time. we going that to for impact is

Marie Thibault

Alright.

Dom Serafino

Marie, was we March, sales actual one we should late quarter. the consider. just use Williams but add to that in one images, around The since and to in etcetera, to in started more add materials – and collateral the thing clinics, on the support just the announced, just to it that the only of Venus jump brand announced QX the but in, activity so Venus Williams we in numbers sorry late increase relationship really recently

question how sustain another XX and have we way, about we we in with to your XX believe us to helping can So of business. we at Venus And by the long as also Bliss the Bliss grow terms least Max runway will this, months that her to Venus of well. promote extend

Marie Thibault

Okay. back for Alright, questions. Very I’ll taking queue. in jump helpful. Thanks the

Dom Serafino

you. Thank

Operator

The from question Cohen question. your proceed next the Thalmann. line is Please Ladenburg Jeffrey of with with

Jeffrey Cohen

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

Dom Serafino

morning. are Jeff? Good doing, How

Domenic Della Penna

Good morning.

Chad Zaring

Good morning.

Jeffrey Cohen

I Just fair two. will enough. stick to

a side. the just this pull-through So the previous little curious I quarter can high-XXs to thinking looks perhaps about am like And it about margins? in as on strong a like bit and the you talk it the relates It very margin you looks had low-XXs? now

Dom Serafino

Okay.

So initially. that address Della I’ll Domenic Penna let

Domenic Della Penna

for Jeff. Thanks Sure. the question,

margins mix Certainly, had with So, in a good system on good side contribution. we having had result Bliss we a the good on QX.

end in In we range. on also higher very the the business, of margin are decent has that of that our is a addition, consumables seeing results sort which

certainly the we us. to helped fuel to growth, are that extent So, that that continuing

a America. the quite there not APAC, for also been in high margins we’ve terms considerations of outlook does but is example, to on the North consider. and that have QX regional as margin QX conservative side as is bit in gross view Our

of given But the So, due next really hedge well. is there how a to and months. regional side consumables the are depends few well. mix in bit a system that the again, quite the as on Bliss very was But performing over component it strong evolves

Dom Serafino

mix, a XX want rapid our to it on felt without the Bliss QX, the bit, us customers we that feel customers QX ultimately continue platform, pushback Bliss And who ROI that that price mix, very the was for an mentioned given Venus basis. nicely will on on margins. a did ASP that take to in expect average we the weeks current add we resonate really help given the appropriate increase and I to devices, from ultimately, recall that just and Jeff, product any in are little that buying maintain will to our as I on QX which you the improving

Jeffrey Cohen

for then you Dom an in there own Okay, and your any got could it. commentary walk or year? the you. on back us through Thank update international of us secondly from And footprint for half kind I guess Chad, the of give and quarter me, the

Dom Serafino

Chad Yes, touch it. will part Well, on. of I I answer let will

which First markets pulling of see in areas America. still that to you happens America. Latin of all, made The bode in we we EMEA an about our it is issue market that well has in decisions COVID as perhaps one there will is be news Obviously, out significant of that good our go Brazil. well. Chad, of still and in we is strategic like and been Latin think that Mexico can the as do forward some growth disproportionate nicely continue the definition challenges very biggest we talk

Chad Zaring

Dom. sure, Yes,

or We XX%, focused that’s actually we by growth QX reinvested are North Outside mentioned, in well going less divested North on the in XX markets. ‘XX our with focused encouraged the we less profitable we As interest to the in Mexico, and are the in in system so opportunity markets and expanding the team Australia, the sales versus the U.S. a made quite we last key key and sales ‘XX revenue EMEA. EMEA, XX% executive I key direct QX months America America more France, the market has our Germany, UK, Spain, significant sales with garner brought changes can are sales we markets, new QX share in in some is industry experience team already we EMEA. markets, significant recently He that countries direct on. in

the markets focused. o-U.S. are then America North in reinvested consolidated we where and in EMEA again, we and So

our kind products. focused the expanding We and adoption force strategy strategic of of sales of the on driving the are same

Jeffrey Cohen

Got it. taking Thanks the for questions.

Dom Serafino

Jeff. Thanks,

Operator

Next with line Jon your proceed question is from the with Block Please Stifel. of questions.

Jon Block

small Perfect. of have want just quarter. the handful make assistance EBITDA Good them. the to start was maybe you with some a just I I will of morning, maybe DDP government sure got on out And guys. clarifications, I backed Nice debt but I calc correct. not, if revenues just I to was roughly to is still the would expected ARTAS, just want And recovery the bad believe of for see tack-on XX% that’s for year? maybe be this company that then be

Domenic Della Penna

on as Yes, so we in some on bunch bank feel believe for the assistance risky that a area the the that of because recovery your happening but we we that the – with provided one-time a the In of there the possibility, bad first year. recovery, positivity. XXXX of and accounts accounts is can’t We correct, there question, had were reopening, so you balance loan, given that item. we of have of identified more are debt complete we that a But government consider we we possibility on. in that, shutdown is

know it continue out. we be sure that’s part could that show not don’t positive there So as for backing we happened. and expense results the future, of in operating why And it to wanted some to

Jon Block

for ARTAS, And sorry?

Domenic Della Penna

a It and quarter. think that’s XX% is approximately basis representative. for ARTAS, an vary that fair But still range. annualized on the overall we could And is in number by

Jon Block

Thanks Dom, perfect. that. certainly Okay, for And exciting. Max seems then

would while I of brand would do my to existing or one will new after to service out a from with going is will ask accounts Maybe final the try and and gate the stop be that what perspective you accounts and the wait curious you I there then that? first? approach a trading little Just

Dom Serafino

Sure.

think three-in-one the strategy with really the think achievable the twofold. Bliss have fair price and be we will And of appealing systems history given we that that customers. its to Number solution is obviously, range a own. the think new competitive very pricing is standalone on one, having I the we given

simply Again, we they XX%, customers number top So, our are how not at of instead time. that it because would the the on performance. as be one have of may just XX% be will treatment trading approach because real-time going can be are a remember, can for doing. It these one, really one, to only they device use rooms target because a an can remember, gathering program, well patient you the data add-on, in customers directly, twofold: two

and them better room fairly so between forth to margins on not our this rooms muscle a We do will on. and adding a by aggressive would So, stimulation land on where But back COGS program. toggle have the us we give trade-in do product, go give second trade-ins the does sale Max. to flexibility the than intend believe to experience Bliss, pretty successful this Bliss of It we those but average to very some that will with are typical aggressive may a room for option. who necessarily they given

Jon Block

little bit visibility you data. first, great. your maybe long have But got last And great and one, two-part. from a That’s it? IoT Got

guys on vacations, that that to now are go was under want you led year. maybe clarify the what last to so, from am for moved third seeing quarter? into just change? after here expect if the pronounced you aesthetics, Chad, just unlike XX well are just have you guys. in okay, August, curious, months. other deserved you Hey, Thanks, vacations middle last maybe market to I And and get of companies what We a subscription seeing I very heard program? the doctor or some difficult one, the we then taking some sold seasonality? the Bliss Do as is and the

Dom Serafino

Yes.

definitive. anecdotal. will answer It’s And information I one. can not the Chad, So, is the answer our first you second our one. competitors, Unlike

deserved of truth globally. the Whether is, on we well what’s going the matter So, see not. can or

any that off. We time are trend taking just doctors not seeing are

I increased fact, full advantage and level are traffic the that think taking relishing at it. of In clinic they the

with high look that our year. at stage, well we The of last tracking to QX in at so I compared performance second degree that this terms is, of far is a can are reason say in confidence our we ahead

for what’s down data you based clinics we any a touch given or see Chad, fact because pretty feel time real have, So, perhaps the able are can simply on of we that that on clearly very believe that in confident on week. we our couple given in the to I the day, weeks going question. aren’t Bliss shut on points to any on the whenever, August in going

Chad Zaring

slightly that, you you repeat please? Could repeat you part? the Could when ask second

Jon Block

model. thought, Sure. Bliss seem a I in sorry. I Bliss were sold is a not sold being But thought, ARTAS subscription subscription. am in like just now I Yes, it and

So, I not? if am just curious case that’s or the

Chad Zaring

special if do for we necessary. fee. modified subscription upfront for That’s but We a what a higher reserve needs, with the where license occasions client it Bliss,

it we in So, ARTAS, use basis. to situations. But take specific a continue on cash to only we try

Jon Block

guys. I Okay. can Thanks. with follow-up you

Dom Serafino

Great. Thanks, Jon.

Operator

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

Suraj Kalia

Domenic Good me, Chad, morning alright? can you hear Dom, and

Dom Serafino

can Good morning. We Suraj.

Chad Zaring

Good Suraj. morning,

Suraj Kalia

healthy. a micro of would of the I and hope Hey, material net that Dom, kind Venus me and about this so talking of level all performance positive the everyone quantify Bliss with ask May question. safe the is impact out yield I you specifically, you let collateral what collaboration? to start quarter are more Williams

Dom Serafino

for the all, of question. Suraj, first thanks Well,

products. into We get not to specific are going

that, We And pretty year-over-year. up have consistent sales been know XX% reported, global our we our were approach. do as in we

it we see will think relates we system on. do. investment continue so our The XX% response. total as Venus business made and ARTAS that consistently we that Bliss Collectively, strong to of and We to have the market strategies very Williams that around the represent

our throughout digital mentioned reported to guess, signed prepared available assets QX. make all continued perfect will, media QX, and Venus late and And or to these you I assets, if we earlier, with As in etcetera, customers. etcetera of them the we basically I

results, in-clinic, initiated we brand, in have that continue stories marketing global using a of Bliss. media like nicely you Venus for in-clinic Williams, charge materials, Venus the very share clinical influencers, in-clinic the things sorry in with specifically social Venus – So, people the contest experience Williams to their so with if videos, competition, of Venus asking to Venus and etcetera, just best leading that we a on with terms will, sort

frankly. early in us a use dad least, that Will are that that can the is Richard, comes organization, given that acting for our it’s Compton excited Serena but that things evolution that BXB appeal there out Smith for sisters coming plethora not about of of two November, is believe to her our the the BXC, is area for really quite stage. is movie global So, the and as out, one from sales King materials a these Williams, Venus of the as but Last customers not coming new we also only I world called and different

to of create all for think choice we made we stuff Venus very compelling continue combined Williams. a with the will reason that So, this

from far extremely our so population, received. customer And she been well has

Suraj Kalia

Got throw it. question way. level and will Dom, your one one Chad high I

Chad, of come there, driving characterize guys. Robocor your we fruit and What information throw you Gentlemen, been any? if is Chad, currently? on questions, how as seeing U.S. based the time How out characterize field what versus would it or would characterize – are how shifts you pronounced how my competitive now, For quickly correctly? COVID, working would And if OUS? for thank competitive AIme, activity, you guys also thanks low-hanging you. And U.S. Robocor? taking that OUS? Dom, I in category some So, now you the could landscape, versus I the for have procedure you if most

Dom Serafino

of certainly. add can like address those both you Chad, And to questions. then I would

Chad Zaring

Sure.

Dom Serafino

to which create new a industry, of category what going beyond when to our is to I time. always a reasons The acquire the made is one lot competitive robotic expectations of first believe were. comes landscape, accelerating in company industry which is That to a we decision around whole we mean, a we part have are been not the long we all softening. it be this this there competition why

Specifically, as tremendous amount no we entry. there look is is lower outside at the of of global simply competition footprint, there North barriers because to a is America, there that question

process So, words, in and on. not an other FDA so

– we and obviously the that So, we of vary region. categories competition a see by lot

handful category fat is extremely compared really because is players. of the North America, EMEA, reduction competitive there For to of players multiple there example, in a serious is where

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pleased think where I are. are with that quite we we So,

this accelerated project. have We

that or We into have any don’t fact in Houston you to that we reason generation. We robot us a any baseline the that had it. restoration. The that down significant used felt down start, the at already next shape was the And very if form gave effort we the see will slow road. head will, real put hair some that why

Chad Zaring

Yes, to add I a thing as only Suraj. question is. proof The your would

prior in talked market expanding the of to the about discussions, derms As core install base plastics. we artists rapidly and have

robotic outcome of strategy that to the higher from AIme a see to of core Spa a an distance patients. for – further are trying the we to market differentiation and of as create service evolution clinical the and the that the office level So, Med between offer total they

to to the So, talk we great back about them next as entree see – to install next a base go the and robot. it

Suraj Kalia

you. Thank

Operator

with Maxim Please questions. line Thank Group. you. Vendetti of is with next proceed Anthony from your [Operator Instructions] the question The

Anthony Vendetti

Thanks.

Bliss to account just focus the business, products about I want your on XX% that ARTAS. for and two of So,

or me am product. Bliss, Dom Bliss can did correct? if if – First not on the the consumable, does Venus you correct Chad, wrong, a have product I The Bliss standalone

Dom Serafino

correct. That’s

Anthony Vendetti

the treatments the have to it be is $XXX will that muscle reduction, of $XXX right? three treatment, any you tightening that be approximately one of be XXX,XXX. will we It will a And Venus body in for and one, mentioned a correct? that treatment stim, going will Bliss Max, a is fat And consumable it offer, because

Dom Serafino

correct, That’s Anthony.

you with share will how are at looking we this. I So,

TriBella called basically do feel procedure a resurfacing. we few of was one to and at for lot well drove fractional IPL, the look exact This years a really Versa. As received, thing We the radio are the we body. extremely for a same we business frequency hour did TriBella that the we a and basically going introduced ago, treatment which Versa, included treatment Venus was that the

was contouring. XX XX Venus fat, that for will a type same the XX be approximately where Max it minutes the Bliss Versa minutes muscle the So, we treatment scenario the of of minutes have of minutes face will protocol, be the stim to And body. of hour and XX one

Our the should And achieve initial in IoT six calculations data on be able an per of week average treatments based Bliss, on to are current average, translate. therapies. would that our that, about on combination we clinic Venus a

only muscle $XXX are We technology. the of going stimulation charge the to have on portion the

word the for of better on utilization activation device. Now, throwaway element this disposal. that a a not be code lack a will particular be of will This

the opportunity Max. future sale which we will So, in margin the for Venus be think compelling it’s with quite years Bliss of – a very high ops us

Anthony Vendetti

Okay, yes. It’s helpful.

is treatment component. only $XXX the muscle the on So,

Dom Serafino

Correct.

Anthony Vendetti

trade can’t I about the Okay. to want And this. just you talking were sure correct in, when as on make you am just I

Bliss, our trading, correct? You is that require stim the add component would it can’t just muscle to a current

Dom Serafino

Anthony. yet, we Well, that haven’t finalized

don’t on is that it, do user investment hey, Bliss base. will not do that, need on simply the the as For sure, we back, us it the earlier, able because plan will because Bliss I from we field. doesn’t we upgrade not do return to we our to Right and the average preclude saying the now, weeks in-house said send But do that, think to it take back. have that in is be XX

So the Venus by Max for so cost paid Bliss covered time, and the customers, come out most will their only also will of the but on. have not time device, operator

can modeling think that our quite is opportunity compelling. the financial customers I we So, that we the can present do, to and

think that. don’t I going are lot to of that a we So, get

customers as that can XX% what’s earlier, simply there. of A, I add going generating of because really sort you it’s much a on the treated stimulation, its to standalone by way, own say, happen you and originally I the number on two that was the top more, we so if think have room to are can them Bliss amount room, into to very do and who go second And that business. treatment revenue put is of time got muscle a patient wants and significant said

se so off we them to the upgrading utilization point, opportunity necessary advantage stim. just on it’s this per not as at we But a the of do So it’s device, not selling table. device then taking are just and opposed feel to second full the to don’t muscle

Anthony Vendetti

the utilization That’s great. last then on did ARTAS, in want I I or was to just to see ever Okay, was XX just correct months? clarify. quarter you And say helpful. wanted on best the if I this,

Dom Serafino

Last years. four

Anthony Vendetti

Okay. years? in That’s last made device. the that Obviously, four quarter utilization you improvements lots of to

of the goods brought cost down You sold. have

other procedures in a do was potentially that revamped time the you could that? or to treatment of know protocol? the I out getting yet two than these at that you bring that You there so – practitioner working there anything are effort still message are an else have Are completely day. point Is you there? towards a down still

Dom Serafino

it. we predominantly an the XXX follicles can per to last XXX and between So, hour. improve follicles X,XXX a implant have where we got hour. doctor implantation right spent he harvest feature focusing year the approximately have on to a place And And now it can

every a to is around hour, total XXX the to typical What away that the from software, going follicle procedure. don’t will, you single some to will time implantation further clinic everything improve treatment the or goal we per platform the we up for get to able we follicles think to hold implantation now to it’s ultimately right in so the is procedure. are doing as it procedure which far hours been feature on that at the start X,XXX are the take The to the do improve implantation minus but to from are feature working time, Okay, And that the make the help we still to of that five get uses cartridges down have follicle typical time if now implantation here transplant plus on to reproducible cadence, are XXX the the algorithms, finish using we be is the X,XXX that, in in our hours, the find baseline. the to the that part device. going sure to four dramatically that again,

Anthony Vendetti

Okay, turn it great. helpful. will back. very Thanks That’s much. I very

Dom Serafino

Thanks, problem. Anthony. No

Operator

does you for are today. participants showing the conference your That our conclude for additional Thank participation. currently no We queue. in

Dom Serafino

everybody. Thanks,

Chad Zaring

Thank you.

Venus Concept (VERO) 13 Aug 212021 Q2 Earnings call transcript