- Earnings call transcript Q3 2022

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Operator

Good afternoon. Welcome to Establishment Labs' Third Quarter 2022 Earnings Conference Call. [Operator Instructions] I will now turn the conference over to your host Raj Denhoy, Chief Financial Officer. Please go ahead.

Raj Denhoy

Thank you, operator and thank you, everyone for joining us. Juan our is Executive today me Jose Chief Chacon-Quiros, Officer. With

your prepared remarks, our questions. we'll Following take

and Before management's we will development for would laws. outlook by statements within begin, and I forward-looking meaning and These management current comments you the uncertainties. based involve plan Establishment are during sales. made include that the statements risks These this Labs' federal Company's and product call of include expectations on statements like forward-looking on securities to financial remind timing to

is a comments of SEC and that recent most materially you or XX-Q Form which results For discussion factors encourage filings the and as available on XX-K of to this undertakes product are Please our differ may with cause the at annual over device content of obligation as X, the the the from turn continually trial principal to but it are FDA be otherwise well is authority or the time-sensitive uncertainties our the my the or certain We to our of and on contains to check approved. from risk exemption With call broadcast, today’s like investigational comparable that in include Labs can be required in to Jose. currency statement as expand non-GAAP conference to for is revise an I United a received CEO, The specific review website including regulatory circumstances reflect performance results call. support call this local our these accurate quarterly to to clinical statements, financial geographies GAAP date November affect which information, update this no of reports performance, Labs directly by approval establishmentlabs.com. will undergoing found to pleasure law, would other press with products for events Establishment our implants, to to Form our our stated website. Establishment after as constant a measures available our that actual I live in on basis. regulatory availability. financial note only Please not results also seek release that, to which which Except Reconciliations Juan you remind most on States. sales Motiva also can any limited respect XXXX. date the

Juan Jose Chacon-Quiros

XXXX in you, everyone. healthy everyone quarter third good of third Raj. million, a quarter continues XX% over increase the morning, hope I totaled is safe. remain and XXXX. And $XX.X Revenue Thank to of the

the Excluding currency changes, quarter the growth in negative been of foreign approximately have third our XX%. impact would

to driven strong by be share and Our market gains focus health our wellbeing. women's on continue singular

on breast Mia growth years we the in on our performance would I $XXX detail bring industry. expanding Femtech, commitment With to $XXX to provide aesthetics guidance our the including sustain are breast to category third will new technology are But X, recent to our in and million. our like markets that October to new an revenue we highlight I presented unique over him, design will update the outlook, On the tightening additional and events commitment wholly is aesthetics. range updated to creating science this reconstruction call several turn existing Raj million to before creating we over categories differentiated months. based quarter Wednesday, for markets highly to patient-centric Our and come. in many past our on innovation,

video for women of with testimonials as progress had who Mia commercialization a presentation, on During update an Mia, from the in have well showed procedure. the expectations we procedure, clinical the the our as

our website highly on it, a seen to recommend it. haven't the time taking you If and of watch is I available recording webcast the

We By European where procedure Japan XX done aesthetics. appealing the more about currently commercialize to on are year. are we XVI traditional with their The in Annex performed We to shape is up traditional into but our Union are Japan, of invasive encouraging. that augmentations general Mia receiving consumer an more opening for interested breast in only updates for specifications new breast insights every continue. about common to women the The providing that consumers for less We in and the procedure augmentation, the next in be first traditional they completed, recent in than plan want and out XXX,XXX plans are a the market providing have XXXX. anesthesia minutes research are a these aesthetics entering that return the without creating extensive in for forward the breast. XXX,XXX to there look months. daily months. conscious women whole today. group Mia show with showed interested Mia updates a primary Europe getting a more regulatory women market are can over the than don’t in In our is reasons new minimally offers of XXXX of that solution proportions many women a markets interested category are breast around And other of example, women a activities. their XX half easy to coming a we are Mia saying augmentation

announced cohorts we of fully quarter our moving call, second through are are all and we IDE U.S. follow-up. enrolled in study the diligently our As

All expander module PMA mark which Flora the Aesthetic are we continue MRI allows advances our other ongoing. in passed August, a launch and port RFID-enabled our aesthetic In tissue imaging to Mark other tissue without the Europe many of fourth Breast pursuing three-year and and available the including is modular expanders, Motiva submission previously for a first-of-its-kind will to cohorts CE submit expect commercially we Recon communicated, On Flora final this in has countries FDA cohort, as of franchise, the artifacts. quarter. we path. patients in the we a

during new formation Flora patented, for radiation and technology During surface options smooth after oncology have mastectomy. an this unique of self-friendly time silk our with opens early comfort being the patient Flora healthier and is expander. noted treatment this capsule features expander recovery. users By stage also used improved potentially non-magnetic, tissue

their We can with are Surgeons expanding we Flora take available. Adoption reconstruction the tools will allow are support women early been reconstructive is time, have belief Labs step only to more, they achieve which adopting women to surgeries making Flora the markets to techniques our our is and in journey. Flora many in efforts aesthetic Aesthetic which initiative add that aspire. will but in technology Breast and breast choice. that help that receive offer expander first their Recon the our where of encouraging ideals Establishment

Our clinical regulatory commercial the in process. efforts and China make to are in progress and ongoing we continue

approval We XXXX. the in market this half continue in for expect to first Motiva of

more surgeons Dr. the last the showed hosted results implant Establishment patented capsules that paper over rupture. or call Robert was million compared our commercially Langer in Before in a the symposium began leading year, up commercialization clinical more no I is of website. device-related provides year contracture Langer textured carcinoma, FDA. Motiva other XX attended Motiva including we surface show in XX answer Motiva papers and noted our market over to The note Plastic lowest Boston. post-market work Dr. on safety decade In to the late are and the Implants smooth reviewed Biomedical from supported cases his to lab turn implants. annual, month he October, to more from surveillance Langer's months as and I and coming implant rates The than since the Scientific After we recently the we implants Labs presented why where XXXX. which years in I inflammation clinical Co-Authored the every Nature science which produces in it last squamous look now to Surgeons our report, Raj. by reported highlights Raj such publications surfaces. perform cover the which over capsular Also, by about performance over These market, seminal to years. X.X implants. as than Implants published to we to are American of and healthiest which on research our for publication like Society than meeting our to to better SmoothSilk in will results, re-operation, continue financial We update forward wanted available was turn by others. There less the a unprecedented available paper; report, have complications the cell than of behind Dr. the X% results of peer the done our Engineering now the MIT

Raj Denhoy

million. Juan Reporter quarter Thank Jose. the quarter revenue the XX.X%. Total revenue in $XX.X growth third you, for was was

our by revenue Foreign approximately third million. currency quarter reduced $X.X changes

From currencies Excluding and Euro growth in approximately quarterly revenues been of the which sales. impact perspective, and part where distribution largest Both and Brazil and world sales; affect this around was approximately made take Europe Asia global XX% single foreign we in Middle total, where in fluctuate can based The or these currency percentage sales patients and reorders pronounced approximately summer the and in surgeons of of products timing we and of with disproportionately and factors currency the Pacific of East was for total balance; in the a distributor changes local the the globally up of British quarter like seasonality which U.S. Latin by were on of to inventory in accounted the dollars. months revenue to our made quarter impacted the points XX.X% XX% XX%; more while revenue up price markets higher the sales pandemic. Pound, Direct XX.X%. regional in X America end this price balance. of vacations many our sales in market comprised would've levels Europe our

on to R&D a million. trial the timing from growth The normalization period the to third a $X.X million compared operations XXXX. quarter an of gross from or selling XXXX. reporter and to quarter investments currency U.S. compared prioritization ago, period. or $X.X increase in This a in million the in resulted quarter $XX.X initiatives. effects This in operating XXXX. net global R&D again for same overall year-ago for a launch from year-ago SG&A for normalization based the our foreign quarter in third a in was $XX.X XX.X% increase increase expenses $X.X to of to the fluctuate the expenses pandemic in growth up million exchange approximately of from the the third due $XX.X $XX.X expenses million million, like in in Total same $X.X quarter loss $X for million. will of the profit Our SG&A spending as new expenses the XX.X% this period quarter disruption of the increased relative revenue. from preparations expenses. million the was approximately well in the ago slightly average third quarter clinical revenue business the continued the compared negative of of quarter investment as primarily and year other of Net of with increase to the activity prices in rates, for initiatives approximately of second million third for following were and practices was third quarter-to-quarter and from loss XX.X% the the quarter to third Even Mia year The quarter our third period. million $XX

quarter as year. position net at this million, result from the the $XX.X compared million new secured term-loan of was The first increase million $XX.X XXth. of September previous was cash $XXX in Our the on end April this cash XXth tranche the of the to

non-dilutive three access the million and tranches can on revenue of the additional As a $XX achievement reminder, additional totaling term-loan regulatory we milestones. of has capital

of to expand cash million. revenue milestone capacity, more results have in will world's draw the million used $XX the new quarter in the in tranche accessible breast to half Cash $X.X bringing next our included the currently that facility With third approximately quarter million manufacturing our the achieved investments we approximately than implants. the our necessary third of $XX produce

of position our facility available Under to we currently as as profitability, We the approximately our our credit changes raw to third activity increase on also growth achieve in new funding capital the cash in hand, have quarter. increased Overall our working capital expenditures the cash purchase inventories while as including materials. $XX cash current under by the flow still reduced in million investing allows us we initiatives. additional forecast, well us our facility,

XXXX to for our guidance sales to million This our compares representing to $XXX tightening a range previous $XXX estimated are range growth XX%. to XX% We million of to million $XXX annual of of $XXX million.

and in considerable this will our expect saw we third in results is there business As momentum we our quarter continue.

also However, our in quarter headwind estimate currency year-over-year a quarter, report sales approximately the by saw current sales impact points At In as from results. third steeper expect currency form approximately impact of is X we we we fourth of the will rates, XXXX. to year our full to compared million. this total, year or currency reported percentage revenue $X.X now XXXX $X.X million impacting negatively

operating the we for of top down over levels our the investment commercialization reflecting development our remain and launch the increase spending significant investments is expect underway. prioritize look these we we in opportunities. while spending P&L to as As Mia of entering in near-term see priorities, of into number rest the have and U.S. Preparing the programs the we

percentage these position expenses growth trend very I back execute a over Overall, a Juan will of expect turn our Labs down Establishment on revenue Jose. remains to to the will strong as call We initiatives. now in time. financial And

Juan Jose Chacon-Quiros

you, and and in U.S. of China journey. positively the Thank opportunities we of have of Mia the Motiva many to launch some into commercial women health are launches The impact breast their Raj. the

mission the to aesthetics their focused work women equally just reconstruction. in company's and to are to limited Our we we on breast doing experience lifetime. cancer breast will democratize are not One-in-eight access is

lives. have disease impact a survival have While the rates still women's improved, on can devastating

the surgery, waiting in For years. receive those countries globally reconstruction XX% breast can times as mastectomy, approximately breast long a low. after is than Less reconstruction seek women availability of who and women as be a XX the some

we awareness around, a initiatives October, and month cancer. breast in of to in partnerships. to commitment breast of our all This is and events sponsorships our program the efforts educational redouble time understanding involved these year campaigns, continents were While year, cancer is is month awareness and across which including awareness

network Establishment For ran Brazil. example, for Power Labs a the reconstruction in the plastic and to device breast this Africa and resources Is reconstruction the awareness In our on allow XXX bringing to importance health also surgeons, health, Not opportunity of Pink to annual women a program and is we of to awareness. with detection. the that Establishment breast year provided partnership were focus years. and access Labs cities to techniques outcomes, they to in across and breast access generate breast medical traveled aesthetic about democratize access promoting and to to company providing healthcare XX unable has a them many responsibility where programs promote education obtain improve reconstruction. early global breast are personally helping only establish to market reconstruction, Brazil in to I but to education clinical we women's receive Mali technologies, for can

around create now creating the for new world women I the our transform we sustainable to as call options over we continue turn growth, importantly, solidifying will our to a more for credentials but leading so future. are industry will in questions. We will categories the the to operator markets new your and doing for and

Operator

Anthony Our comes Thank question you. Group. question. Instructions] [Operator with with Petrone first Please proceed your Mizuho from

Anthony Petrone

the Thanks clinical and U.S. here, performance be in and module ups. a updated year-end follow and timelines strong I'll Appreciate the confirming submitted congratulations another XQ. start of on I'll before couple here that J.J. the Motiva have with will here. timelines

in aesthetic for three at like the satisfied data of data sounds – it years wondering, least there. is Just post-surgery the threshold follow-up cohort,

pathway timeline ups? clearance? if XXXX a can in couple bit a and all wondering Just tighten have threshold that think up to so U.S. other And then there when modules place, is being the that of I'll Thanks. a and about follow mid-to-late we perhaps we satisfied

Juan Jose Chacon-Quiros

are have module we the quarter. Yes, submit plan you we And of in breast three-year crossed Anthony. thank that for mark, extremely And Ds to silicone FDA the approval the clinical confirmed that we from have course happy implants. of is that that gel-filled we guidance which

to find a scientific mark. be to process try This continuous date course We data FDA, though three going right of communication will the speculate shown and of on for approval. the the at with forum are is to we year not the of

timing However, again approval. of we cannot speculate on the

good We down everything quick that are can at dependent the not we very but on the possible to doing responding are always a entity like as foreign and as we process, slow external FDA.

Anthony Petrone

ahead slowdown on seem No. relates in couple seeing due months to even you I few it it's Europe But of as question evidence or inflation to appreciate J.J. demand regions? be, would tilted of for to And a the a and some flip follow-ups, a Europe, pivot you as constraints There recessionary certain economic U.S. textured are of side heavily say that. some to still let's Europe; two-part be just any the implants. pressures. in

you So smooth overall could volumes get to again. mix an over and the into to the think do update it Thanks and have on relates wondering XXXX; shift as you how if to between textured quickly smooth of end we as XXXX? it

Juan Jose Chacon-Quiros

the the we is And this in is this reason there closely. What our quarter Europe I of other British a in impact shares plus would these who is believe you. of that in fundamentally at the what's are using of lot see on look we be also you just to impacted and this Many going this going market pound, is XX%. and developments in them Scandinavian hand, a of are of you like markets. growth, accounts Ukraine, say said the the change that is Thank we to currency regarding opportunity concern Definitely to the in are still Euro last targeted. all but there aesthetic on textured are point that market. is for But the were and the have no we taking currency a hit. with of being on us have all rate significant this and because you with Europe that at in when so the watching do

than XX% growing because market effective being our means to medical roughly big growing we before. the that do and a are lot us a accounts thing is we education means directly that at plus, it. at is And at is job for did if that we be to So continue impact that, that more back X% we can what

in So direct getting we continue share. we to plan working that most make are hard Europe market to of sure we are more and

Anthony Petrone

Appreciate in that all. I'll hop Thanks. queue.

Operator

comes Please Jennings Cowen. Our next question with from Josh question. with proceed your

Josh Jennings

afternoon. U.S. for taking congrats the good Hi, a to on Wanted and on the FDA ask follow questions Thanks just approval process. strong another quarter. up

Just, three that have and the the will module modules first submission is then clinical review you structural you a of more modular question the the last about once the kick submit, process; module off and time. PMA submitted

those three questions ask been FDA the scratch that it receive package, models you a and first start three questions have where or the about fully come only this FDA could assume from So is by is – and we will the back first on reviewed as data well? the clinical modules

Juan Jose Chacon-Quiros

Josh. modules different this questions, always we and process from continuous at different is times. Thanks questions had and ask they can And have

a of they is things have in having at I a the think which time. FDA lot deal the same to situation with

So done. to are get all seeing of things what them we these is trying

all they're appreciate fact a that modules. lot actually three moving the we So on of

this fourth So we and the way get with the that going process module expect of to submit our final we expect to PMA. continue and

Josh Jennings

the level the about just when, when infrastructure out effort strategy Thanks. to But sales the to of just, the the ready be U.S. be ready U.S.? talk on one the about any high on about you'll clues then kind there Thanks strategy not timing for or And taking any thinking and may of that. commercial share commercial build Understood. questions. follow-up for

Juan Jose Chacon-Quiros

the as people then What launch. adding begin Yes. undertaking one, our been done the create started On process yet know we that to commercial for we hired Brennan And we of cognizant are with people the we've because U.S. hiring of that are FDA. US actually other not when furthermore, our market. structure we necessary Heather the we when have Head is

we hosted towards continue in us for We meeting saw will plastic a to Robert and Langer we had ahead surgeons work implant his there active, have you Implants? work the plastic launch? symposium compatibility to be surgery that speaking at about approval investigators. promote to the mindful You we We of bio and shows that Dr. not on of and, Boston Motiva are the but

Josh Jennings

Thank you.

Operator

of with line the Stephens. on George comes question. your question Please next with Sellers Our proceed

George Sellers

for the congrats the on question Thanks quarter. taking and

to You in XXXX. in of first the mentioned Europe begin expectations Mia for commercialization half

about to ask about wanted Annex of just sort any we MDD and the timeline? I you're and the update MDR So as think incorporating what requirements to on commercialization XX transition that

Juan Jose Chacon-Quiros

Thanks Yes. George.

fronts. pending We basically Annex thing is was to this XX, are month. happen publication expected of all moving the was on the The which only that

so we the that that plan do areas that ago. with implants the full Now approved a of the tools, with approval going by been had steam couple have the having the authorities, different are specifications common necessary European the for years C-mark get and for move ahead to

also Now, other progress we making are markets. in

are work currently taking of our the partners because the this here towards continuing launch. Japan, local call with to Japan, in in local are – clinics we continued We preparation

time. exciting an it's So

cases, it continue in These with cases happy Japan. know, week experience We here you and Mia we're Mia but very we are shows that. are early of to this about doing progress how, you

George Sellers

we could Okay. think in you you there additional That's of Europe then else be help in elsewhere, the Mia need out any about aware we and and sales build or of helpful. should approval as the think about and, commercialize And anything you of really a as commercialization the Mia? us terms infrastructure

Juan Jose Chacon-Quiros

Yes.

model. true a the direct-to-consumer One is of that about things great it's Mia

sales new in all unit we've And messaging category so there is continue consumer Mia that communicating business breast that this something is everything are the we is their with makes in progress different built, to this dedicated to creating What already a are adding we for ways. and necessary consumers So aesthetic. reps. no with work

messaging, significant. working we in week type again, market with instance this here and make is sure messaging for that every So we're in every, that specialized agency We're to local correctly are of we plan Japan. in single this

George Sellers

so time. Thank Okay. I it. much you appreciate for the

Operator

Our question your question. Please line Marie BTIG. the on with next comes with proceed Thibault with

Marie Thibault

or a about you Wanted to for the quarter. there bit region, good hear Thailand on know in evening, morning symposium. little that maybe morning recently you Good just Asia, Japan. nice in APAC your early Congrats I for world a were

So hear lagging recovery APAC? are love was I to strong which then path turnout event, the would how and the that recovery on in countries for are and maybe on which path

Juan Jose Chacon-Quiros

our the where world symposium on area see region we time had it we the see Asia. the tells hosted and us, growth with We first how ergonomic kind an the Yes opportunities growing Mia. in for it's fastest for annual it's you great It the of area with also Asia implants. we

gain Asia see we see Pacific. surgeons every what definitely mostly excited very world, And all one from continue that in. from markets of share So Pacific that we but parts of are plastic from other the over single the hundreds is to to are and of market in we around Asia also Asia we

strong; shows how relationship plastic our think community offering this in are I it partners region. markets a Our really they special the to shines in and those product surgery really have

Marie Thibault

that’s All good right, to hear.

Juan Jose Chacon-Quiros

yes, sorry. of – Terms

in. in to we the path in specific give say, that single Marie, short to that term what leadership I of leaders country country, participate or data markets either would but country, is to don't terms one we are country we In every market of

Marie Thibault

touch helpful. Flora Okay. you on for Then wanted Thank comments That's the on your that. briefly to tissue expander. I very

know various process to far? about a learning so so has You rollout reconstruction of breast like sort mentioned work us in countries. you Can market. what a that some bit Any in, more it's I looked the far? tell that change little

any Thanks So countries more on learning detail you're of and thinking much. and so far? any thus there expanding what where

Juan Jose Chacon-Quiros

Yes.

I that more for us in focus think, first, is so on always is safety reconstruction the breast the market. and

MRI So expansion possibility women the reducing of comfort an process breast all reconstruction, oncology us. that can that more and we possibility the and to of have the of doing bring breast levels in the the they pain less reconstruction, important fact are radiation during to

involved things has meeting of get in want Mia Just the is future her scientists want to device the in what option. through that comfortable breast after And study who comparing are responding our a conducting we mastectomy the options reconstruction. that CE much more that's hear breast be showed which the results Mark patients to another suffered eyes from this clearly been with the of is cancer an that research to Thailand independent device, one in we in can reconstruction because and for women type better the viewed have of a this

Operator

Our of with comes Matt on Jeffries. next your with Baylor [ph] the question question. line proceed Please

Unidentified Analyst

guys. taking for question. Thanks Hi the

talk XXXX. about ask could you're that anything that to that doing and just into visibility the for wanted could follow-up. wondering reiterated I launch you and So, prepare the see a release In when in start, if half your first I approval we was press the China there? to launch expectations

Raj Denhoy

different Asia and devoted Flora. Asia. on our has been to of here our part Motiva but Mia trip only on Not regulatory to Yes, timelines on also around Implants, update

So process that in we the that a never of have in the a we China in and communication transparent. reinforced a passage first process. half will of fully always, to that's authorities we met with There's our year. is next our belief degree regulatory quite partners approval natural with the Again, get Chinese the but

date. in that concerned hear that our So by stand to it we happy China are experts from not they and regulatory about

Unidentified Analyst

be think you going to in I breast implants, to wanted follow-up great. the, able produce Okay, as facility of said. on ask you're past half to building mentioned I that And is sort a the world's that reminder, the you

starting to and your, these guess, where I of wanted seeing confidence see in into while you've for So, back been and a other some what to I you're leadership. markets tie market kind of that

half said, where time? confidence markets I you all world's the been share, guess of in to So, where over give to examples today your guess, you've your these of you and hey, going that to, some some facility is get us that in could give I that share market leadership

Raj Denhoy

Yes, decades Allergan. big division the & is it about Johnson was way for think market this of many Johnson Mentor the out and two I led that to breast by basically, think companies

once grow. are tends XX% most market have So compete think, of markets Motiva, but they with four from retreated then And to Allergan surpassed different. markets there and to these continue already where the markets, we leadership I look where

do Mia to about is you which, high aesthetics there. in it as speak So the of new that And different can Mia, partners understand really market high that's leadership technology biggest make days job, I then And breast the here take that longer when be possible. like a to well is Japan, substantially that in the and can in shows be you can last the is couple to remember have this our do. things expand one over improve what the and that that sure we game consumers. the of And is initiatives the think as believe a work might that impact been what think do, and And but It an has you Japan. changer have lot of launch excitement markets very major expanding in see, level but fact safety markets. levels is more that actually we've from we we potential we doing local clinics to

Juan Jose Chacon-Quiros

States those world. around we're the initiatives so we doing And markets other needed that, is that in Matt, largest two gains I continued would share just markets for the too in the with offer along United China, the the capacity poised world, and into in are

Unidentified Analyst

Thanks, Thanks, Raj. Right. J.J.

Operator

the on with of Our Neil Please B. Riley. line Chatterji next question your proceed question. with comes

Neil Chatterji

Yes. Thanks for questions. the taking

the to have Mia clearances, the Asia. it might countries been you've on regulatory Femtech started believe just maybe So where already and I Latin America for guess receive I

are you And regions? those have Just talk early you there in also strategy if the if an in Japan curious could partner there. you experiences on seeing about clinic update then potential your perhaps the and launch

Raj Denhoy

Yes, not any have to we in be clear, country. launched

who on cases example. in continue saw from her towards because Saturday. her I'll plan of Mia no of procedure in been procedure a strong around the to launch. as work is most any have big our testimonial and doing basically to you got married the enjoying part type use the in Tuesday, had day profound undergone America Day Japan. experience a And procedure Investor stigma And you and give the We on is patients the so We the engineer had as that way. insights and Latin an our those early an have

what So, we this is like are about.

both We time. and and insights gathering towards happens, strong markets notice expanding we analysis is are when The are in will share new to that have that quantitative option. a for think, just you'll working But be it the this are patient launch. we consumer that have we to qualitative and due true we continue I

Neil Chatterji

the Day, X,XXX. Got from X,XXX just just it. And to, maybe range the one the slides in think, to I quick terms kind kind a gave of Mia the of like in strategy, follow-up, ASP of of it

just nuances So that's based the assumptions around regional the what kind of that if to that's of curious or around kind related on?

Raj Denhoy

or under-price We and price want it's based don't consumers. pay out to conducted Well, market-to-market. on to willingness is this analysis

So that's that. the work around

always best fashion. given to we're going our why course, do always try to when possible, in pricing as it's this are we on conservative that's but as Of

Juan Jose Chacon-Quiros

they at Neil, think points, economics you and talked probably too at that those we bit surgeon the day, price their at look at to appreciate that I in time devoted the to if the you represents the slides And given the that speed do about at presented efficiency practice have value price surgeon. run of quite those the to if can still the they can which it Mia, they procedure, points, at even which a

so value as our and of spot that surgeons the received us also I for but a creates for for And who think and procedure. absolutely a partners sweet the women finding question it's company, that

Operator

proceed of comes Hazan with line question Goldman the Amit your question. with Sachs. Please next from Our

Unidentified Analyst

Amit. I Thanks. Phil preliminary for is This I'd of of kind thought on on XXXX. questions ask kind some directional

to one, end simple shaking at as the I seven for out So up the can you for most year preliminary the to pretty place are we for going is the headwind front six this hopefully a see it? for start least range currency a look to on of year giving that's year next guys think good – next first kind

Juan Jose Chacon-Quiros

obviously yes, suggest detail be. place more but to see around a as more numbers. Yes, year. not quarter so a also start currency lot is the and XXXX right, the a and lot report when lot part I that of I a pronounced there bad in We'll – is obviously impact a mean guidance fluctuating think But would of first more I we'll our we give fourth is

Unidentified Analyst

with where absolutely. growing bit going sales of helpful a U.S. underlying starting in that investments on ahead next or OpEx an up the next investments basis SG&A with a that place the the are in are numbers for of for you end that as going all like That's growing a year for ahead making even be, and similar to on? Yes, to SG&A you're side, all year it the are of starting China, then point. is year And sales total the going on looks reasonable

Juan Jose Chacon-Quiros

these periods directionally be a for several the as what us we are you this as like. is are As the significant XXXX up Mia thinking think right a us. investment right? stand to going think leverage And in again, for see – budgeting of correctly, will looks and we U.S. up next year of right, plans as development, quarters we operation, But time are the that all stand about it we from not company, I about

leverage. think as are leverage in our year, operating not However, next to a expected the But where you lot in in quarters to model. start materialize, that we're show start long not will about I of the too opportunities correctly next U.S. quarters are Mia expense the it few hopefully after that thinking those to show

Unidentified Analyst

call wondering negative or forward time Europe highlight if was would from I to questions I you sneak you last but and European region. one APAC side. Raj, asked I helpful. distributor one, regions out the the of pull there's about APAC that's XX% to know already, Okay, said that kind sales that If been have anything standpoint, the the I'm either believe a a one for could XX% from

bit trend lines little of a kind Just off. Thanks.

Raj Denhoy

Yes, I is Europe. currency. seeing in was being number one quite We're who mentioned. seasonality, to I the a That's pushing bit also mean, Europe, major I think, number that stronger obviously that thing, from that XX%. impacted

really of business most anything of lot continues. with implants one these shared still our And We're I seeing call markets, the we're is mentioned, and nothing in the Asia-Pacific that a time, think, wouldn't taking is well. markets time very one very I terms So specific to so as the Motiva one doing in there. traction I of move strong growth,

in of Europe just then good again, think lot other impacting kind I so markets. demand. and growth really it's Good And currency a of

Unidentified Analyst

you That's great. Thank Raj.

Operator

comments. today That is all turn Chacon-Quiros have the closing the time would to now call over questions. we I Jose for for back like to Juan

Juan Jose Chacon-Quiros

today's call. Thank everyone you We good quarterly providing our on in joining wish we for update early and to continued next forward look us health. XXXX,

Operator

today's conference. concludes This

may time this and we your thank lines You at disconnect for participation. you your

Juan Jose Chacon-Quiros

you there. are still Raj. hope Thank I you Great.

Raj Denhoy

Yes, goodbye.

Establishment Labs (ESTA) 8 Nov 222022 Q3 Earnings call transcript