Establishment Labs(ESTA)2025-05-07 21:32Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $41.4 million, an increase of 11% year-over-year, with a 13.5% growth excluding foreign exchange impacts [28][30] - Gross profit for Q1 was $27.8 million, representing 67.2% of revenue, a 160 basis point increase from 65.6% in Q1 2024 [30] - Adjusted EBITDA loss was $12.1 million, an improvement from a $13.1 million loss in the previous quarter [32] - Cash position as of March 31 was $69.2 million, with an additional $25 million available under a credit facility, totaling approximately $94 million in accessible cash [32] Business Line Data and Key Metrics Changes - U.S. revenue for Q1 was $6.2 million, exceeding the previous guidance of $5.5 million, indicating strong adoption of products [11][12] - Revenue growth outside the U.S. was approximately 5% in Q1, aligning with expectations, with Brazil showing stabilization but still lower than the previous year [29][30] - The launch of Motiva in the U.S. has seen over 900 accounts onboarded, with 84% of those placing reorders [14][16] Market Data and Key Metrics Changes - The U.S. market is expected to exceed the previously guided $35 million for the year, with single-digit growth anticipated for international markets [12][34] - The company has not observed any impact on sales from recent tariff-related concerns, with demand remaining stable [12][34] Company Strategy and Development Direction - The company aims to achieve profitability while continuing to expand its market share in the U.S. and internationally [9][38] - Focus areas include driving growth in the U.S., increasing operational efficiency, launching minimally invasive products, and advancing the innovation pipeline [38] - The company is committed to becoming the market share leader in the U.S. aesthetics market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue and profitability targets despite macroeconomic uncertainties [34][35] - The outlook for 2025 remains conservative, with revenue guidance set between $205 million and $210 million, reflecting a growth of 23% to 26% [33][34] Other Important Information - The company announced the appointment of Peter Caldini as the permanent CEO, emphasizing a strong start to 2025 [6][11] - The partnership with Meghan Trainor has generated significant media impressions and positive feedback from the plastic surgeon community [20][21] Q&A Session Summary Question: OUS outlook and consumer sentiment by region - Management confirmed mid-single digit growth guidance for OUS markets, with Brazil stabilizing but still facing challenges [42][44] Question: Details on the positioning of Preserve versus Motiva - Preserve is positioned for day-to-day use, leveraging technology from Mia, with strong initial responses in various markets [45][46] Question: U.S. launch strategy and competitive response - The U.S. launch is exceeding expectations, with no significant competitive response noted, although some price discounting has occurred [53][58] Question: U.S. sales force expansion plans - The current sales force consists of 40 reps, with plans to expand in key markets as needed [63][64] Question: Gross margin outlook and tariff impact - Gross margins are expected to improve as U.S. sales grow, with minimal impact from tariffs anticipated [87][89] Question: Account penetration expectations in the U.S. - The company aims to reach a high penetration rate among top plastic surgeon accounts, with strong reorder rates being observed [102][104]