ESTA - Earnings call transcript Q2 2024 | Establishment Labs Holdings Inc.

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Operator

Good afternoon, and welcome to the Establishment Labs Reports Second Quarter 2021 Financial Results Call. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the call over to Raj Denhoy, Chief Financial Officer. Please go ahead.

Rajbir Denhoy

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

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

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

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

Juan Jose Quiros

of States. week timeline inspection had This to should am not observations I single United good products totaled are and this Thank tell our strong to and XX.X%, impact inspection top sequential revenue afternoon, to the inspection this of manufacturing in X second by you, PMA demand quarter. increases Raj, and improvement growth about quarter FDA Costa to a a launch in a Quarter-over-quarter, and everyone. you of report, continues unrelated non-systemic for return current the XX, our unexpected the nature. in in during many and July XXX our investigator pre-approval Global each for million. listed The revenue their for pre-approval which and our reflected completed in call, was facility in markets. I XXXX not the PMA you Rica. pleased in on FDA and am Revenue our the is meaningfully of mind pre-approval saw stabilize in sure improved the we is our confidence that $XX.X conducted recent of of

responses to towards forward approval closure. process should now their our submitted the address to already move The FDA have We to observations.

pending that received an already FDA would stated of our satisfactory be a approved. we a As our have letter, the review reminder, PMA facility, approvable where

and believe in in final sequential We final of that Latin timely we have particular, America, the quarter with soon. All satisfied Brazil. and step, and regions the response, the second exception that showed inspection approval that improvement our will the are after we confident be issued

Brazilian As see to we noted this suffer not in do and year. underlying previous demand, calls, softer expect market the continues we to from improvement

on America have our while have at we that is number initiatives that and aesthetics regions, slower year. the current and there pace than a for other have think of second of We in to markets our the well, other general. Brazil, demand. are base hand, sure was environment EMEA, the this performed from market in last current The as a cost that quarter region reflects slowdown, to fully position in strengthen a the rest the making be slowdown during challenging we recovered Latin stabilizing will continue notable

in We are region. good APAC the also distributors seeing in from a recovery demand our

for what the this of quarter last second over commercial reported than quarter year, and in loss results EBITDA year. Adjusted This we quarter our to half second activities reach $X positive a despite the EBITDA launch. the a Our coming in undertook less of The cost last showed reduction results was trajectory remain to in organization loss improvement preparation of good the we we was the and was U.S. million. in similar second efficiency investment quarters. half on XQ of tangible increasing approximately

it Raj worth results and on several is our provides outlook, Before financial recent more highlighting events.

expect our U.S. is entry forward FDA with very we preparations moving into As near, are the for approval we

moving is have plastic reaching point. in in surgeons feedback are good are FDA medical their about a study number is their careful leads surgeons Last we a that the is an talked implants of build breast reoperation. years. month, to for to among These Study complications strong the of IDE X-year commodity and a our study, U.S. a in from of cases, not and earlier our they the they than Aesthetic in our been market new U.S. a meeting headquarters, hosted the device-related the commercial are confirmation in implants. Motiva to developed this of from and this we fifth studies. The X manufacturers we complication will at our the new decades. rates This the and team require showed In U.S. who devices The with in These While their Surgeons colleagues is seen such breast standard approved, from the had in offering out data X% of worth that data X largest device-related group was experiences. until Grade X obviously U.S. capsular for board between Motiva women have effort. study, showed in augmentation, has a serious, is support in it interest with Society X innovation market has the scientific There U.S. It is years no amazing. clinical adapt and business, and implants. it company are technologies X real the many U.S. advisory FDA of developed we U.S. knowledge plastic Motiva breast to entirely commodity inflection our noting our interest ago. X follow-up at has that will Grade or the year U.S. buzz from practices only America palpable, not in What to X is low the the year complete and an many been implant That and with U.S. are of FDA at contracture a are sell growing. Jeff North gained Motiva nothing decades XX in not complications less the quickly surprising. is XXX for women. designed our presented short and bringing X month, surgeons Ehrhardt, there

recognizes from the suggest highly inbound what to is implant regarded this receiving daily most in some are Establishment go, absolutely in point tailwind, have With and of With eager people United the to industry, the back an group and hired continues all-star already data which a already calls game next changer handful that the we our the States. office going together have identified. of to a functions is trained, of Labs, put Motiva kind come be We talent our another experienced with to to ready and team. Jeff this we industry reps to

be into our unique RFID-enabled with Flora, devices approval. It technology, into of after This, nonmagnetic our port helpful, one its quickly new hands U.S., puts SmoothSilk traction. entirely and put class surface to expanders, the only an kind is to is will first very continues that expanders. surgeons' for tissue gain of industry. the ready Flora our as We the in we prepare patented Flora's tissue combined

U.S., pending. VAC the cancer and We premier are a the more process have centers number at of completed the in

solution Femtech momentum new within the XX-minute in shared Flora the of number continues need benefits Mia in demonstrated hospitals grow. The creating the surgeon procedure breast for general and the category is aesthetics, this Mia minimally-invasive of plastic to will entirely an without offering a are device can procedure a the to are with women overcomes same X and a whole returning women downtime, opening anesthesia. obstacles that discrete build. shape where community, As the clinical of breast minimal with of is day. a natural we to a group breast many new providing to result. proportionate result X traditional augmentation, requires The cup aesthetics. breast of By The the most with up activities

activities, and cities in X now the speed, end-to-end in and Middle region. Mia grows, other then plastic word supported live, the who fully outcomes of women their provide tailored cities offer Mia is our in is are experience. quarter-over-quarter. We surgeons for on in women of their mouth, seeing fully offering increasing. certified across a Femtech to category. of also number the the their by group East We Mia increasing positive media are channels Seven share of in sharing marketing This highlighting world centers experience Mia. Mia flywheel the into the experience experiences now of experienced now level As with experiences. Consumers up it social XX picking we journey have more positive the that the and This XX cases brings consumers across with activity are

a on active clinics, on are Medical in targets of support and with our and of are place with this the Tier able we year are Chinese our number regular for considerably global and X achieve the and remain in by we'll events with to partners cities cadence XX collaboration to education, track a team. be of We continued growth. year. In negotiations taking the building distribution cities end China, X foundation exclusive our Tier this across marketing and training increase

we and Japan. surrounding countries South Korea, a market leading Thailand, including reminder, Singapore, have Taiwan, positions Asia, across As share Vietnam in

implants breast market we China will similar for Our is ASPs And experience to now globally, given Raj. fact profitability. I second meaningfully success the can will early the the our that share. in our add to suggests call high achieve largest the China that turn and market over

Rajbir Denhoy

million, and Jose. Juan the revenue from X.X% of quarter ago the the exchange. excluding was you, X.X% impact Total $XX.X of a for Thank foreign year decline period second

second Latin markets a Juan fully in softness this demand in of approximately were the we America As Africa and earlier, was of sequentially, Pacific Asia America Juan in softness than quarter-over-quarter Jose second in in region markets Europe reflected the other half Jose the and Latin XX% of as last second inventory. our Pacific and total, the regional is less period growth. From as X%. following quarter in in stable, Europe, Asia the region. working mentioned, We Brazil have North from XX%, Middle East several in a in are XX%, reordering, down the and saw global ongoing America improving year. perspective, XX.X% the distributors sales is rebounded the saw quarter Results noted

in profit in revenue second XX.X% million XX.X% gross $XX.X million of compared revenue the was the XXXX. same Our quarter or or from to $XX.X of period

selling an average gross profit year-over-year. prices quarter the reflected in Our second increase in

between exchange to dollar Foreign and colon the Costa continue be U.S. Rican headwind. a rates

reduction $X.X of same the approximately million the to declined in XXXX. the quarter report declined million As in The EBITDA commercial compared R&D million cost a $XX.X ago $XX $X.X dollars, of year strengthening U.S. expenses primarily second were expenses $X.X in loss from Adjusted quarter the quarter operating compared million second quarter XXXX. quarter net of from was period. quarter expenses flat second by in of for the compared the approximately undertook million. second period XXXX, second the for was same and quarter of quarter the we of $XX.X million the first operating last million compared the the offset the in result to decrease a the million a the approximately expenses operations second million, in ago was were increasing $X.X million results Total in in operation. Net in costs. SG&A from for initiatives loss investments million of $XX.X our of of year colon year second a a we $X.X $X.X in quarter to loss the to of second $X.X the half the higher quarter. for to reported U.S. loss to decrease

our distributors. a quarter Accounts our We the are in the proportion $XX.X the also days second pleased reduction versus expense days first, used investments implants inventory and to improved improving launch preparation In results sales as the saw the quarter, and more the are of loss second operating States. Cash were for came down. million. in in Motiva with payable through the was in we our United in normalized we as level, higher of second quarter receivable increasing higher sales

DSOs were quarter. flat to the first compared Our

Our $XX.X cash was million. XX on position June

As debt in approval of the $XX additional We have on million sales. which can Motiva a XX-month milestone second implants U.S. trailing million. the of X on reminder, remaining and $XXX $XX facility, tranches we FDA million the our with first total achieving access

guidance X% Our million, $XXX this $XXX year XX%. of remains growth million to revenue representing to

We in good regions. seeing most are performance

meaningfully ago, expect earlier, However, a market Brazil America to don't in it year. not previous and recover less than we to remains Jose of levels. our noted of single Latin half largest as this revenue, was XQ in Juan what recovered revenue terms year was and has

but FDA comfortable the with we approval of revenue confidence we XXXX. exact Motiva our certain, in guidance where has our a provided approval U.S. increased, are the in The comfortable this for including we inspection, Following for U.S. year range outlook. is remain timing not

United revenue expect the to as we States. growth expand significantly accelerate in XXXX, For we

managing XXXX a points far We remain focused expect to last the XXXX very than compared gross in XX.X% seen can be in operating margins year higher so operating basis expenses million be $XX continue which of than XXX on to We in approximately range year. to more expenses, to XX%. to reduction this

activity stages, implants approval the and However, Motiva with the in increased operating in will commercial FDA United we see of the final States.

remain as unchanged. are expenses operating our half modestly goals important adjusted in cash company, half for second and first As will such, overall the EBITDA positive Achieving levels. [ us increase ] from a and positive targets flow

to are With U.S. the favorable EBITDA selling market, U.S. year positive our quarter generated soon flow prices of fiscal for and cash overall have in first positive launch, the economics expect we the XXXX. that after expect to be

on Importantly, call currently capital. I the fund back for the will which Jose. and can business our our turn Juan credit under profitability the is we facility additional us need without cash have hand accessible to to to now

Juan Jose Quiros

ago, the technology, it this We entering Thank the you, had climb. company years we our the highest market Raj. but founded almost was the mountain was in knew on we business we U.S. we XX world, that U.S. markets. validation Xx of also other When to that transformative. the to higher on has realize ASPs be will some the cusp ourselves Xx our of cases, effect highest in now than find in achievement. The ultimate

to in in only cannot the use with gold countries U.S. In We this standard women FDA Many stamp our a standup sales of catalyst cash is The commercial of the quickly and will move will significant. to As outside regulatory EBITDA and to remains the profitability U.S. a products the soon opportunity the down markets, clearances. the some positive, for our U.S. surgeons introduce positive. thereafter, for the be path Motiva sales efforts, FDA of approval in surgeons approval. us wait flow becoming will globally. The U.S.

a market the focused women's further the As will your health, will and our reconstruction. I to a the for over access Establishment position strengthen Labs to U.S. questions. turn as and aesthetics on breast global foundation in company call operator now leader

Operator

[Operator Instructions] of line Your Allen comes first question JPMorgan. from from Gong the

K. Gong

it's on U.S. that. I hurdle, the a touch just to Definitely on finally looks the I like approval guidance. want But question first, hear that that final cleared have great but to

from marginal, how by talked U.S. chosen adding little top approval. you that. of the reiterate revenues the pretty includes But and had you're where guide time your X a given beat benefit to You now you've incremental the and on guide, quarters U.S., now about now of on bit

there the seeing quarter how So is now? range far in guess, much this full what really are using right that And for the that in you I third so you makes like confident is U.S. to still be right the year?

Rajbir Denhoy

Allen, question. thanks to when try market. for that outlook reflects the the in an we provide dynamics give Generally, current the we guidance,

weak. on noted is call, the still we Brazil As

U.S. However, the we very are confident in now approval.

outlook And so, sort range third guidance, baked the seasonal and But the now still of we're that sort of things back tracking into thought, more the pattern a with but with towards be is approval. do tracking the of the a We year. where caveat think had we're here expect of is bit Brazil hence, again in in for year those to the back that overall, with I kind we the us normalized confident we've half the U.S. the extremely comfortable in lower, quarter.

K. Gong

can more you being helpful. described could color this there provide? Jose any and any drawn-out process? as of other to the hear then, that comes Got it's you'll in gives great first but get confidence pass when of what to that kind there you you -- Juan provide have And you the become really are to the the know it. kind there a Is won't FDA in, them responses be it specifics already I this a would be XXXs, more through but able non-systemic,

Juan Jose Quiros

them. of gives tells And confidence how Thanks, us response Allen. you about observations, our that quick the already which no, we it's feel Yes. I nature those think

timing reports tissue One the implants in Motiva device of medical in the our of States. sell it outside we of than has was the of a XX of relevance the That's from submission the States. to course, the expander United tissue PMA. the no we one of sell different safety expander them that Flora United And

an the the role second training was that production description validation. one tracking of was the the The auditor. one And of a of at job and last employee performing was internal

we you isolated. affect going minor, those to approval. and as for our that's believe They're really can So, see, are don't timing

Operator

Group. line next Your Mizuho the from from Petrone of question comes Anthony

Anthony Petrone

description through early sometime the stay to the an And United phase team walk Is the Will U.S. you mentioned, imminent, Maybe what like. been of a then States. potentially build-out launch looks that us expectation? has with Motiva maybe on reasonable looks clearance that quarter? now the third in FDA happen Juan in that there Jose, that

So are have maybe there. how quick going sales be reps an and follow-up. update one hired And already forward? have just hired will How I'll to many many

Juan Jose Quiros

Yes.

some lead I the next the think for in Jeff I is shipping come the have invoicing business. that quality most North people our The U.S. weeks, and reps Flora sales all-star and ready. team expander. are importantly is that really and of team an tissue the that bringing We've as the already America coming you on been will few will to before, we've put people said like the we and board in back And think when office, is Anne some and of Ben

all that ready is go. So, of to

the that approval. that implants already planned be In U.S. first we sent after to of it's I important batch the think say manufacturing are addition began Motiva to to that, to

Anthony Petrone

think Maybe How to the some little Maybe Femtech. just flip how at to being is about over are at done surgical active helpful. mentioned a those able And to out just time? Is when with are that those centers. much Mia surgeons share XX bit once of capacity in the Femtech the those centers at you there, you about existing dynamics command centers, it sort Mia goes much Establishment expanded? centers? Femtech and less That's are is looking their live of surgeries

Juan Jose Quiros

Anthony. Thanks, Yes.

are are important Mia, backtrack of the do in cities in to so establish launch important really we what it is clinics to it's a world. to list this that with phase around to trying present think first which we the most of the I of

the the well and important think Europe, cities are Japan. across Middle we of that that things one looking it's in So, East I is fact now XX

and capillarity add Mia the more we as efficient awareness more the will us more So, treatments centers, be then that with to to taking leading get place.

surgeons, category think, were important is be really One that general the fact And things, of breast under there's that not because QX their that a expansion. of of a we I for and their women talking is XX% doing received a who this are category Mia talk of vibrant decades, in have the from also flat news to can was -- surgeons. that to interest. good QX we the really in real And course, that's they has that peers the more like see you to the really think of pretty I when for news, I get aesthetics tells XX over augmentation, practices. think, It breast aesthetics this considering in again. lot negotiation, a these market centers XX, what you good plastic those X last much are about And number been

as related and specifics to augmentation. things the of will So cases, we share market number like of to definitely, able rest give that think more that traditional on go into the be XXXX, I category we

Operator

Jennings Your Cowen. of next from from Josh comes line TD question the

Joshua Jennings

Do data that the Any [ ask on the of you prepared surgeons from think plastic about of color XX%, those just ] and And you buzz add the Motiva, on safety surgeon of completed. comments, Congratulations in incremental plastic and Juan team's getting maybe your kind you I XX%, the to X-year suggested plastic within stands checks, awareness XX% premier to profile? surgeon aware just are do U.S. there's I Jose, hosted ask board the comments. advisory you your was of wanted think you inspection the what community. medical to community? think aware can percolating the

Juan Jose Quiros

Yes.

of American board board because advisory surgeons their first get advisory us do that wanted we in very fact the this the telling them adoption think really the our women ways contracture muscle pectoralis up fact you they open new doing way this and have was for that would is implants. we that the so group expectations, capsular potential they of of currently expose hosted Motiva the that is can what active who on have of to it to anatomical no the And to in this many going option a went to beyond technology understand an to surgery, save because I views placement. eventually

So Motiva while us confidence careful to I we of super of type the really are being boards not this track our promote think that on approval, implants the are ahead advisory with give strategy. we

Joshua Jennings

just then, a follow-up. And

approval mentioned You FDA internationally. increased could spark that adoption

where approval demand in that of is just pent-up of, are there you there -- there that Anything FDA improved? kind process the for countries surgeons and in their setting the them Mark the wave regulatory the think of FDA Mark in there, those countries, adoption surgeons approval? approval over clear on to waiting mentioned in you countries drive CE hump bar. FDA already there regulatory a or own little You hurdle out is out regulatory share will for can do CE this some But terms countries where Motiva rely are get

Juan Jose Quiros

of to. of world, markets only the because And more as the Allergan conservative had. approval standard course. option There's of out States that, of surgeons more have of all FDA around they always should these after that that surgeons Yes, of traditional, seen outside United aspire most a other pulled they went the to that group a gold

our the it's in. America, this completely in the until of U.S. is I areas have So it's a FDA strong eventually basically also also said, our it of in of because also world, many different going traction rest numbers the markets And going sales before we going on Asia. Europe. have is give get not fact It's don't really FDA to for tell that is for lot start approval, just of ability But approval, a to in approval you the to true statement these story. the please us true several clinical are to the think, surgeons a industry come calling not only who trial Latin that to the around combined, and that that's

Operator

Joanne the question of Next comes Wuensch from Citi. from line

Joanne Wuensch

Congratulations on the FDA questions. inspection. Two quick

And guidance? really U.S. pulled to you've U.S. question but gains year-over-year. first Brazil now U.S. in is, we way do second guidance Brazilian is put quantify revenue Is then, the out from you there revenue some your how the the a much as out. improved revenue year, revenue some not and The as margins about is, think next those, in Motiva this gross of year How trajectory just nicely traction? or

Rajbir Denhoy

for Yes. the question. thanks Joanne,

is around the In and of We're U.S., it confident known. coming timing. uncertainty but timing terms coming there's still exact some the extremely soon, the exact is not still

as or and this which year. there And the overall, Brazil year, left still move revenue We out, for we're there. But to outlook softness balance the expect the given will reflects see we're this that. you we noted, we particular, the did back of in wide the some in as do the of still as Brazil in step-up and significant expect half to third range And of we Costa starting prices turn relative were so, of the question fairly into dealing growth We're start headwind year, a but we we nice with continuing take mentioned. confident XXXX be see the that's on also to still in well. from the then, see a we Rican quarter. second colon, we to selling Average to your margins, up, expand the as did little bit as United in States. And very

just these of for not years, in us. As even launch endeavors even of China, next out doing the tissue a we're you expansion gross company, are everything Flora, the margin-accretive look really over our Mia, all couple U.S., the expander, year, next the really, in as

couple And I the It's continue but over next years. over think so, go see linear, not margin to higher should improvement be we of will nice to that that over time. going

Operator

Stephens. the next comes of Your from from Sellers question line George

George Sellers

clinics if there, year that by additional back also that in from give apologies the any and was fees. could on volume the partnerships, just you're that growth to in versus signed missed on then, you've with I some Mia, quarter you're early to back us could color fee and but if give licensing the second XXXX? speaking And revenue color curious half licensing the procedure with this of have us going to expecting maybe received in see driven you Maybe any I you this, on and recently revenue

Juan Jose Quiros

Yes. Thank you, George.

putting that the provide, are that get the I together. as medical centers, to revenue, X we for of development, we think it's in important onboarding to and takes it these together education, the those license time note practice really exchange

one clinics So it's quickly, so to getting be quick quickly XX able see have more they negotiation, because of have more clinics right and is grows. what million to -- we enough. of in clinics period, saw, to XX working a we the aspirational some we we're get And goal now in will to onboarded a as are that tracking launched that doing Mia and be per goal cases you of we that onboard consecutive the XX that is how bottlenecks And we clinics do month because approximately months center. were really if to that's that cases basically get fall recognizing in $X last of that revenue already be we these can

grow. I'm of in we think the it's be it revenue lot is for grows, be cases are also And city capillarity. precise XXXX, more giving about those of what we of in clinics creating guidance in So, this looks continues the more on that Mia at not doing back as The to a to will month, that number going to each this be revenue every cities. point, different year. of I the more as able becomes terms material. we any how for But half see

George Sellers

curious this That's sequentially on And the then, to remarks. There helpful was that Okay. just there's line unique receivable into I'm anything step-up one you read on accounts color. significant there. quarter. in fairly clarifying opening a just maybe if the point touched

Rajbir Denhoy

not. is There

commentary, terms. the nice So it's in at orders quarter. typically rebound, which look Asia the that Pacific, see flat did right? longer distributors, noted is seeing we which strong as you all the If in days, have first we're We channel, a on

So business seeing. you're generally, the recovery it's just I what in think a is

Operator

Taylor next from of the from comes Your Jefferies. Matthew question line

Michael Toomey

Toomey Michael covering on quarter. the Matt. here for It's Congrats

in just you track. there? in I whether for XXXX, have China wondered remains anything's mentioned changed baked what China You on

Rajbir Denhoy

has and about We've we're this been revenue we expected. still -- moving to launch Nothing It's there, still We're about, as talking everything into is the of X tracking changed. $XX quarters that. million year.

Michael Toomey

in about any how Great. XXXX? Okay. we can should other for ] [ the Is in you ESTA's Asia think in good sales And to us ramp markets give us idea China? a think way about growth

Juan Jose Quiros

we although Yes. Singapore many The China Taiwan, and like is way I different. leaders these of would population markets much that is And put years. X bigger in have X market significant market. become a to it with China Chinese after is

question to part at it's it in years our next market of But point. get this how the to think the is grows, aspiration I few So there that leadership.

to are tracking it's for of early We it's are we already a bit be that that going quarters way been X have. say It's this But to happy information the year. little same. we the

it quicker, think think At beginning. even could leave we'll it that. I just potentially, I point, be we're but this at just

Michael Toomey

That's Congrats again. Okay. great.

Operator

comes Marie Your from next Thibault from the line of BTIG. question

Marie Thibault

us A QX. just to first nice and quarter. do how really seasonality model to think helping My about has question with

right later think things. the maybe way I maybe with this more to year. at about remains you back granular look weak. of half I just America little know getting a As think us if the year. about help contribution We the can don't think But U.S. it, in coming a if that's about Latin little

Rajbir Denhoy

that's quarter half the normal third recovery, I year, to faster and quarter, think about XX% second the a a it. the year. about a we seasonal Marie, could way a down the in of from I think see good in not saw little think We Yes, probably first bad

of then, expect nice is normal we approval, I moving the think in to in the to finish think but it. dependent fourth we're probably sort on quarter quarter, the trends Now fourth timing do year. a third the in again, the it's the quarter lot down more a the U.S. step-up right in way about the towards of right? And business, XX% So

Marie Thibault

lot do in reorder standpoint? reordering, I are how from bit? to much the your distributors to And by understanding, a Or bit adding little get glad things half? a trends still of weeds they perfect, about to distributors sort asking, those then, Okay. the reordering are hear see full guess, and we That's more on second they in wouldn't they Raj. bit I'm first the to half, back Are stock? in the just expect think -- back. these to that Are coming as to

Juan Jose Quiros

it's I have think because lose the balance account this right an for to important having at right place time the that it's product want because didn't you that. you at between to don't the right distributors, always understand

hand, other careful cadence. comment But what think they're is to markets that with we and their for what tells And been a in trying that recovery the healthy instance, we've you going. is in basically Asia, those reordering cash. I very seeing, are is On happening the today how

lot Latin I and a think the good confidence to America think Brazil I challenges again. feel have distributors those cycle terms of different. of Latin adding inventories to is to you, having begin But our in America political see the that what especially. it's is

Operator

question-and-answer Juan remarks. the turn would And that does closing to session. I the back Quiros floor like Jose to conclude over for

Juan Jose Quiros

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

Operator

Thank call. conference today's participation. concludes your for This you

You now disconnect. may

Establishment Labs (ESTA) 6 Aug 242024 Q2 Earnings call transcript