Q1 2020 Earnings Call

[music].

Ladies and gentlemen, thank you for standing by and welcome to establishment Labs first quarter 2020 earnings conference call. At this time, all participants are not listen only mode. After the speakers presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.

Leaves me advice at today's conferences being recorded.

You require any further assistance please press start zero.

I would not like to turn the call over to watch speaker today.

Jose <unk> Chief Executive Officer.

Thank you operator in thank you everyone from joining us today.

Well, we begin I would like to introduce Davies Ericsson, whereas recently joined establishment labs as vice President of Investor Relations.

Many of you already know David from his many years of experience in the medical device industry and we are very pleased to have him on the G.D. that.

Thank you want Okay. Let me just quickly say how excited I am to be working with the management team here at establishment labs, and I look forward to engaging with our analysts and shareholders in the days and weeks ahead.

Moving on our presenters on today's call our one Jose enter Chief Financial Officer Renege Adam.

Following their prepared remarks will take your questions.

Before we begin I would like to remind you that comments made by management. During this call will include forward looking statements within the meaning of federal Securities laws.

These include statements on establishment labs financial outlook, and the company's plans and timing for product development and sales.

These forward looking statements involved material risks in uncertainties and the company's actual results may differ materially.

For discussion of risk factors I encourage you to review our quarterly report on form 10, Q. now we plan to file with the S.C.C. Tomorrow and will be available on our website and establishment labs dot com.

The content of this conference call contains time sensitive information accurate only as of the date of his live broadcast May 720 20.

Except as required by law establishment labs undertakes no obligation to revise or otherwise update any statement to reflect events or circumstances. After the data this call.

With that it's my pleasure to turn the call over to our Chief Executive Officer, One Jose's <unk> one Jose.

Thank you David and good afternoon, everyone. Thank you for joining us today.

You in these unprecedented times, our hearts go out to the families affected by this pandemic and we applaud the health care workers and the other fluently wanders.

Selfless efforts and bad this crisis.

There's a women's health company establishment labs is committed to helping our plastic surgeon in their patients around the world in whatever weekend.

I'd like to take a moment you think each other employees, who have donated their time and resources to support local response efforts well at the same time working tirelessly to help keep our operations running smoothly and efficiently as possible given the current circumstances.

Particular, I would like to acknowledge or employees in Costa Rica, who have assembled in distributed several thousand protected be shields to the health care workers from the Ministry upheld and it local organizations, who care for the elderly patients recovering from major illnesses and other at risk individuals.

I like to spend a few minutes discussing our first quarter performance, but I'm sure you're just as interested in how we expect to beat 19th went back to our outlook. So will provide you with as much information as we can to help framed the remainder of 2020.

We are pleased to report their first quarter sales were $24.5 million.

End of the 23 25 million dollar range, we guided towards during our last earnings call.

Reflects 18% growth over the year ago period, as plastic surgeons and their patients continued to adopt multiband plans.

Even though or March sales were measurably impacted by copied 19 or first quarter still represented another record quarter for established maps and illustrates the string and momentum of our product in brands into market overall sales in Q1 were strong, but there's one would expect during the month of March.

And at different speeds of Crosby areas geography, we began to see is steep decline in breast enhancement procedures as countries began to curtail none essentially activities, including elected medical procedures. While most countries were shut down in April procedures did continue in some countries Oh bait greatly reduced rate.

We are now seeing a number of countries begin to come back online.

Procedures are receiving at varying rates across countries and it appears that those countries that face could beat earliest and those who took aggressive steps to control that spread are coming back more quickly. It is also important you remember that the majority of breast enhancement procedures are not performing hospitals, putting private clinics.

Often which are owned or controlled by plastic surgeons for this reason, we would expect a more rapid return to normal procedure volumes, then you might see with other hospital based elective procedures that compete for author weightings in time.

It's a reminder, revenue base geographically diverse with sales in over 80 countries, except for Brazil, No single country represents more than 10% of our sales.

Global diversity helps the spread risk. It also makes it extremely difficult to forecast 2020 sales accurately as each country has its own path on the we turned to normalcy for this reason, we have decided to forgo providing full year seals guidance at this time.

Hopeful that as a global outlook becomes clearer, we will be able to provide guidance later India.

Given the global impact of could lead 19, Q2 sales will be negatively impacted however, we are seeing evidence of conditions beginning to improve inserts in geography and for this reason, we do believe that we will sequentially see increases in Q3 into for revenue.

As we think about the balance of this year. He may be helpful to note that into two we are seeing many procedures b. was schedule for the second half of this year rather than being cancelled out right.

Savior seems consistent with the deep consideration, we believe most women hate when considering breast augmentation surgery or research suggests that many women take several years to research rest on Mondays and exhaustively in once you have made a decision to proceed are very determined to follow through with researching this has been true.

Vote through previous recessions and also when or industry has undergone a period of significant negative headlines.

Our industry has been very resilient and this is very much a testament how important this procedure is to woman who choose to habit.

He did some press it into time, our commitment to women's health and unique safety profile of Motiva resonating strongly with patients, making a long term decision to invest in themselves.

We are seeing does determination layout once again in Brazil. For example are data shows at 76% of patients that chosen with P. by implants before dipping demick have decided to postpone not cancel their breast enhancement procedures.

Even with the uncertainty around the speed of global recovery, we remain competent in the fundamentals over business and the strength or product portfolio, which up until now has resulted in would bust. Your two year grow in market share gains are executive team has decades sub experience address aesthetics and reconstruction and we will navigate.

Is troubling time, just as we had before.

Divvied 19 does not appear to have had much impact a woman beginning their breast augmentation research as evidenced by do relatively steady rate of web searches and social media activity. We are seeing there is a slow where pickup in woman scheduling you face to face consultations in plastic surgeons are.

Adapting by offering more online and some patients and incorporating could beat specific safety particles, where their patients in office staff.

We have weekly converted or G. badge in person training programs and seminars to Webinars on line in have seen large increases in attendance. Some of these webinars have had over a thousand registers in nearly all the very best routinely attract at least several hundred participants plastic.

Surgeons are taking this time.

Think about how they can improve their practices and learn about innovations in their field and this is very much in line with establishment laps message of innovation and pressing patients around the sides of restoration management.

Despite or long term bullishness about the rest infant business. We have taken early indecisive steps to prepare a company to whether to use on certain times decision us very strong recovery.

Murder market share gains specifically, we have reduce or plan when he when he expenses by approximately 20% by eliminating unnecessary travel and non essential discretionary spending scaling back or manufacturing operations, lowering headcount and temporarily reducing management and <unk>.

Rene will provide greater detail about these actions in a few moments.

While reducing certain expenses. We are also investing strategic areas for example, you're expanding or business excellence program manufacturing to our entire global organization to enhance efficiency and productivity as well as reducing waste since 2017. This program has Jenna.

Rated.

$5 million in cost savings, including $1.7 million <unk>. We can you normally 2020, we will be investing more resources, you know digital equipment or digital marketing team is focused on initiatives to strengthen our social media presence and leverage other digital channels that for.

Wide valuable insight into patients seeking breast a static procedures. We are all sweaty dancing with our plans to support plastic surgeons were restarting to practices in select countries by linking them to patients interested indeed improve safety in the static outcomes of M.T.V.

<unk> remains an entrepreneurial in our job organization that can adapt quickly to dynamic in complex environments.

I believe that the combination that these actions would result, even stronger company that is well position for continued growth in success, even as navigate uncertainty that has resulted from <unk> endemic.

Establishment maps has the most comprehensive portfolio advance smoothing plants worldwide, we're continuing to invest in the future by developing new products in entering new markets.

Clinical trials of medical devices currently being studied in U.S. hospitals have understandably been impacted by could be 19 as centres focus their energies and more critical needs. Although we continue to activate trials sites and secure I.R.B. approvals depend damning has delayed enrollment in the reconstruction.

Cohorts affirmative up people try it which could at least six months to a timely.

As you already know woman in her steady cohorts was completed last year.

Presently in the follow up phase, you're modifying or patient monitoring follow up plans. According to the F.D.A. School beat 19 guidance and several of our sites and <unk> are already conducting virtual consultations with patients that's part of their follow up protocol.

As a reminder, roughly 80% of <unk> <unk> marketing is comprised of a static procedures.

We continue to work toward or bowl of receiving F.D.A. approval fourth floor tissue expand.

You still expect to receive you see marked for flora and begin market development activities in Europe. This year.

Believed that proprietary features of Laura of for compelling advantages to currently available products in will be an important part of our product portfolio.

<unk> or minimally invasive breast augmentation initiative, we began proof of concept cases in Asia last December we are very pleased with the results. Although could be 19 has load the piece of additional surgeries.

Surgeon Impeaching feedback has been positive and we are working to expand our initial patients series in additional countries. We continue to believe that the introduction of a minimally invasive breast augmentation procedure has the potential to grow the total addressable market for breast aesthetics and contribute to our long term growth strategy later.

This year, we are expecting to publication highly respect to scientific journal of a groundbreaking study on the biocompatibility about Proprietaries <unk>. This paper will add to the growing body of evidence you reviewed publications onto unique safety profile of <unk>.

Applications like this combined with surgeon experience and positive patients feedback R.Q. reasons for success to date and should help drive continued market adoption in market share gains.

Two other developments during the quarter, we announced the issuance of a us patent that protects to proprietary surface technology of or monkey by him.

We believe this innovative technology is one of the key aspects of the exceptional safety profile of makita.

Provides our company with a strong competitive advantage will continue to dedicate resources to developing innovations that improve patient outcomes and protect those innovations robust IP portfolio.

Finally, we are pleased to welcome was Lyndon Shelley.

<unk> will lead or clinical in medical affairs effort Roslyn was more than 20 years of experience <unk> industry will initially focused for energies on the U.S.I.D. for <unk>.

Approximately 50% of the global breast enhancement market <unk> represents a large growth opportunity for a company and look forward to bringing or innovative and keep around in ergonomic implants to woman, who seek outstanding static results with that I'd like to turn to call over to <unk> to discuss different.

<unk>.

<unk>.

Thank you <unk>.

As stated earlier, our first quarter reflected both strong sales growth and expense control and we're very pleased with the results.

Expense production, we've implemented in response to <unk> will provide sustained expense controlling during Q2 and Q3 of this year and gives us a solid financial footing as business conditions were capper you can find additional details about our first quarter of financials in our <unk> <unk>, which we plan.

Out tomorrow for the first quarter total revenue with $24.5 million and E.P. per cent growth rate over the $20.8 million report it in a year ago period.

This strong growth rate with this this steep decline in breast enhancement procedures seen toward the end of March breast implant sales, which accounts for over 90% of total sales grew 23%.

Mr. Versailles, we're responsible for most of our growth this quarter led by the Latin America, and easy Pacific region, and Representatives approximately 60% of total sales.

Growth indirect market was down year over year do almost entirely too <unk>, resulting from a strong here every year comparison and exchange rate pressure.

In a year ago period, we recorded higher than expected sales, while a major competitor with temporarily off the market.

I'm, a regional perspective sales in Europe comprised of 40%.

The Pacific in Middle East was 30%.

A lot in America with 30%.

Villa counted for 10 per cent of sales this quarter as compared to 17.7% in the year ago period.

Gross profit for the first quarter with $15.5 million or 63.2% of revenues, which is a significant improvement over gross profit of $11.3 million or 54.2% of revenues in a year ago period, increasing gross margin percentage was driven primarily by the reduction in the.

<unk> related to the fair value of inventory recorded from our distributor asked that acquisitions in Q. for 2018 and cost savings from increased manufacturing efficiencies.

<unk> negatively impacted by 1.1% in Q1 of this here.

In comparison to 7% and you want of last year.

To this amortization related to the fair value than into her.

Excluding its impact our gross margins improved by 3.1 percentage point here every year total operating expenses for the first quarter were $23.2 million, an increase of 18% compared to $19.6 million in the same parity your account as teenage expenses this quarter increase 2.9 million.

Dollars or 18.2% to 19 marine dollars compared to $16.1 million in the first quarter to definitely team.

The increase in S.G.N.A. is primarily due to the increasing competition costs as a result of hiring additional sales marketing and <unk> no.

Only last spoke to you in mid March we were just beginning to make covina related expense production and daring q. on those reductions amounted to approximately $1 million, mainly coming from travel commercial event and consulting costs.

R.R. and D. expensive increase $600000 were 17.2%.

$4.2 million in the first quarter.

This compares to $3.6 million in the same quarter a year ago, we intend to continue to invest in research and development to strengthen our product portfolio and drive teacher Crow.

Net loss from operations for the first quarter with $7.7 million as compared to net loss from operations and $8.4 million in the year ago period.

For the first quarter of this year, our total net loss was $17.8 million, which includes several noncash items related to the change in fair value of our Doctor evidence and unrealized foreign exchange losses as a result of the current economic environment.

These noncash items total $7.7 million.

From a balance sheet standpoint, our cash position remained strong within net proceeds from our January follow on public offering our cash balance it marks 31.

It was $93.6 million compared to $37.7 million at December 31.

During the corner, we used $6.8 million to fund operation compared to $4 million for the fourth quarter of 2018 and $8 million for the first quarter or 2018, the quarter over a quarter increase with digits inventory purchases in line with our original production pork huh.

Employee incentive program pay out.

We communicated in March that we're focused on reducing our tosh burning 2020, and we remain ontrack for improvements from 2018 level.

However, we expect to see fluctuations quarter to quarter, depending on the impact of the <unk> on our sales levels.

Overall, and especially with the global response to <unk>, we remain very focused on controlling operating expenses as we manage our way to break even and cash flow positive before I conclude I would like to provide additional details on the axis. We have taken to produce 2020 spending in light of Kobe.

Team.

Reacted early and decisively with a comprehensive review of our 2020 budget and these actions will result in a reduction of planned expenses by approximately 20%.

The majority will be realized in a second and third cores that this year.

As we monitor the <unk> impact we remain flexible to make further adjustments if necessary.

Some of the steps taken include an approximate 15% reduction in employee had count and a temporary adjustment of approximately 25% of base salary across the company for all employees and 50 per cent for the C.E.O. through these changes we have retained the vast majority of our sales force.

And customer facing employee who remain in close contact with plastic surgeons by offering web based training programs, an online tools to stay connected with their patients.

In April we took our manufacturing sites offline and successfully completed our routine.

Annual maintenance program that are typically conducted in India.

Provide greater manufacturing flexibility for us as we move forward and enabled us to provide the opportunity for many of our employees to self quarantine.

We are now back on line.

Are being careful to match product supply with projected demand.

The ability to adjust production further in either direction in order to quickly respond to changes in the market.

We estimate that we presently have more than six month product and then Tory on hand.

Overall, we continue to monitor the Kobe situation very closely and we have a number of additional strategies to employ if the pandemic continues to disrupt our business for an extended period of time.

As you heard from one Jose the fundamentals of our business are strong and together weapon engaged workforce that is committed to helping our company succeed. We believe we are very well positioned to whether this storm and emerge stronger than any of our competitors I will now tend to call back over upon Jose person.

Including remarks.

Thanks, Renee before we open it up for questions I like to say once more how proud I am of the employees of establishment lapse and their commitment to women's health by transforming this industry through science and innovation.

Although the world is facing someone certain times right now our company has successfully whether challenges into past and I am convinced that establishment labs will come out of this as a leaner and stronger company that as well precision for continued growth in success.

We have a tremendous opportunity to drive near term growth in the more than 80 countries. We presently served in the major on tap markets of the United States in China represent a significant growth potential in two years to come with.

With that I will turn Nicole over to the operator for the <unk>.

Thank you Sir as a reminder to ask a question you will get depressed star one on your telephone to withdraw your questions. Please press the pound cake.

Oh, well, we compiled a culinary roster.

Yeah first question comes from Josh trainings with calling your line is open.

Hi, good afternoon. Thank you.

What I'm, saying her name is so great to hear David toys <unk>.

I was hoping to to start off about once your results.

Solid numbers clearly strong numbers in the sending of this is coded storm it back.

So the quarter.

If we could help us get a sense sort of momentum in the business pretty cold it.

Could the quarter have looked like a 30% cross quarter or 40 per cent growth quarter, if the cogan storm hadn't hit in March.

Yeah. Thank you Josh for that Yeah, we come off of significant momentum in June for 2019, and we started the year very strongly.

And like just like the rest of a while we got hit with this pandemic you know most strongly in March. So yeah definitely you. We we think that you know the quarter could could have been bigger and stronger without the the effects of the pandemic, especially in the month of March.

[noise] Gotcha, and just thinking about recovery period or you send your prepared remarks.

<unk>.

Talked with us historically about the potential for a maybe a speedy recovery within a set extra partition and breast implant procedure volumes.

A set of cases are done in private clinics by plastic surgeons and totally understand that but as you discuss with your.

Surgeon customers their plans into recovery period, I mean, how how how are they thinking about wrapping back up and increasing their daily volumes are they talking about accelerating back through their historic daily breast implant surgery numbers for a period of time to clear out there backlog or they expect to get back to their history.

Crime rate any help you can give us just in terms of your discussion. So I'll just have one one last question.

Yeah that is a complex subject is we we sell our product and not more than 80 countries and what we are seeing is that you know a number of these countries are putting plans in place to come back slowly, but you know those things are going to happen at different dates and definitely.

You know different rates of speed.

We are seeing you know an improvement from April, though and you know I'm talking to plastic surgeons in Europe Latin America in Asia over the last few weeks and I think they they are seeing some promising signs of you know them going back to work in some countries you know we.

Are seeing you know a service is already a beginning.

Operations and and follow ups with certain patients that means you know what quicker access to you know just surgery and so I'm not expecting to have you know like primary augmentations and things like that coming on board later, but you know as I said before it's it's a very complex complex subject because.

The speed at which this is going to happen, it's going to vary like literally you know not only country <unk> almost region to region.

I will tell you, though that for instance, I you know I spoke to a Thursday in Madrid, which is one of the cities that have been hit the hardest worldwide, but there's been dynamic and a t. perform his first primary breast augmentation. This week and they have been putting in place very sophisticated particles to ensure.

See the other patients so we're going to be watching this very closely and that we're going to be communicating with you as as we get more information that is meaningful as and as it aggregate.

Oh excellent thank sweat that color than just last week.

On the F.D.A. try all these cynics cohort enrolled and we're coming up I believe in August on one your follow up data any update or for the special T.F.T. about whether that data will pretend to be able to be released publicly or sex. It is still too early to.

To disclose that thanks a lot.

Yeah. Thank you Josh well one of the good things and bread you know we have been able to work with the F.D.L. A's could beat 19 guidance and we'd have resumed patient follow up compliance and you know on site money train visits virtually and that's a you know that's a really good good.

It was for US as we are following our patients up yet that aesthetic cohorts now when it comes to the P.M.A. submission.

And also other things regarding the you know one your data stops being released I will remind everyone that our 12.4 data. We eat out is at 24 months and that is in the second half from next year. So we we have still not being able to.

You get you know to the point with the F.D.A., where we can actually respond that but you know we will get there.

[noise] type scam.

Thank you went on next question comes from <unk> with Jeffries Caroline is open.

Hi that evening hope everyone's a safe and healthy.

Just wanted to to follow up on something you mentioned, one Jose you said, 76% of cases in Brazil in April were pros postponed what I wanted to prove that was correct and I'm curious how that compares to what you saw in some of your other markets. You know also Latin America Europe Asia, you see similar levels of of of procedures are frozen April.

Yeah, I think you know as I said before April was you know shut down pretty much you know all over the world and you know one of the interesting things about this you know this industry is that patients stake you know.

A good amount of time to do their research well once they've made the decision to go ahead with surgery, they're very committed to it. So you know one of the promising things that we see is you know like those numbers from Brazil, where 76% of patients are just saying well I'm going to have it later when you.

No when things like social distant, saying and and the ability to have elective surgery is again you know a possibility now we are seeing some of those same signs in in other countries in Europe. So we do think that it's going to help the recovery to have this groups of patients that did not have to her surgery you know in the.

Previous month, you know habit ads you know these market started coming back on line. So definitely it is one of those promising signs.

Understood.

Follow up on Brazil, as well I think you also noted members walk she rene about how as a percentage your revenue would actually call from 17% down to 10% like which implies about a million dollars of of lower revenue in Brazil, this quarter versus a year ago.

That you know things were different there with the recalls and the like but I'm curious what that says about your ability to hold that share the when when when conditions moved away from.

Withdrawn implants, you weren't plants do you have have they switched back now or what what happened with that lost revenue.

Yeah. Thank prize you know it definitely was sort of two factors in Q1 of 2019, we definitely benefited from the sort of an uptick in in competitor the computer being temporarily Austin and some of those have gone back or or have now a nick in their practice, but we are also that's.

<unk> that fluctuation that Brazilian <unk> for the quarter. So you know our our commercial team is definitely focused on maintaining no customer acquisition and very focused to it you know I think it's just one of those market dynamics that that is hitting us. This time, but we we are I mean resilient and that those doctors and patients you know.

Understand that the benefits of our implant and especially one right now patients would definitely be looking for the safe alternative we're we're shining not message and and it it's fascinating.

I just 30, maybe just one more few rene as well I think you're also noted.

Commentary the clan to reduce operating expenses by 20% Yeah. I'm curious, how we should think about that Sir operating expenses and a quarter, we're about $23 million.

Seem about a 20% reduction off of that in the second quarter.

And then kind of continuing until revenue picks up again or how how to think about that that that cost reduction initially.

Yeah. So when we took a look at it you know we took a detailed look at our for 2020 budget for the year and of course focus the efforts for our cost cutting take you to like you free given you know what we expect initially for the impact and and knew we were going to have been in April and potentially may and so you know it is.

20% for the full year, but it is I would say load it into a cute too in Q3, but we we've also really taken a hard look at our business excellent programs and manufacturing volume adjustments just to make so that we really are sort of leaner and stronger going forward and find a specialty throughout so it's been a really collaborative top.

With our organization and I'm I'm really proud to say that you know, we're making they cracked adjustments now, but also to be able to be maintain our ability to quickly a job.

You know if things do come back online quicker than we attacked.

<unk>, just just to put a fire point on it so which we should think about you know if you spent $85.8 million in roughly $86 million, an operating expenses last year, we should assume a 20% reduction for the full year 2020 simultaneous seventeenish. It's finished million dollars, what's saving this year versus blast.

Yeah that would it in the middle part of the year.

That is correct you know it's around that range that we we picked up a little bit that we mentioned about a million dollars in Q1, but certainly the rest of it is going to primarily B. and Q.T. 123, and a slight tale of it still in Q. for and then as we mentioned if we need to make further adjustments, where we're in a position where we could do that.

Right now that's that's how are playing it out.

Understood. It maybe I can just squeeze one more in for a one Jose you know on the on the meeting plants are the minimally invasive series you did in Japan. You know you got you had very good outcomes are very positive results, you're looking to expand it anything more you can provide in terms of how many implants were actually done and what the plan is to to do additional implants in Japan.

Yeah. Thank you and of course, we're Super excited with me, especially because the results of the proof of concept cases that we did a happy endings phenomenal and you know we've had very good surgeon on patient feedback, but I'll tell you you know at this point, we cannot give you the a number.

Up surgeries, remember d.'s or a K.C. or even though you know they're done by the surgeon on in Japan themselves you know at their own responsibility now we are looking to expand our initial patient series in additional countries, especially in Asia and you know we we are very strong believers in the.

Potential market development opportunity with me.

Okay. Thank you.

Thank you and our next question comes from Murray for both.

With P.T.I.G. your line is open.

Hi, Thank you for taking the questions and great corridor.

I didn't want to dig into a little bit more you you've kind of frame that the customer pretty well that they take you know several months or maybe years to do their research and are very determined to get the breast augmentation, but I'm curious about what you're customers are hearing the clinics themselves or hearing from.

Patients in terms of has a tendency any I guess going back Oh for elective procedures and also any concerns around discretionary purchasing this patient grip a little bit more immune to some other concerns that we know are hitting kind of around the world like unemployment.

Oh.

Yeah. Thank you Maria and I think that's that's one of the most interesting things about this industry and that as I said before and you know that no woman in this in it you know in in breast a static do take you know quite some time to do the research and make that final decision usually.

By the time, they've made that decision you know Dave looked at their different opportunities for discretionary spending and they realize that this is you know something that they put at the top up their list with you know what everything going around with the pandemic, we'd been asking surges how did they see things.

Moving forward and I think they see it very similarly to what would they have seen you know in previous economic crisis remember that we selling overeating countries. Some of these countries have had you know very severe financial problems over the last decade, her and more I'll give you the case of grief.

Probably you know compared to to what the you know went through a few years ago disciplined dynamic is is not you know hitting them as hard economically. So you know it really various countries the country, but what I can tell you is that the patient in the static and what past recessions have shown us is that he stations.

Are very resilient and we'll put at the top of their list when making their choice as some of these procedure. So we remain confident and the strength of this market.

Okay, that's really helpful and great to hear one thing you said in the commentary kind of sparked my interest I hadn't heard it before you are helping surgeons restart their score restarting their practices, you're actually linking them with patients that are interested can you talk a little bit more about that person it sounds like a pretty efficient maybe digital theater programs I'd love to.

Mm.

Yeah of course, and I have to start by saying that Motiva has it commanding presence in social media and we've done this over the years, we built no compelling story around improve safety, an aesthetic outcomes and that really resonates well with patients who are doing research and you know talking to him.

Answers and and other groups of woman, who have gone through these procedures. So definitely that is something that we are building on with additional efforts that come to our digital platform. So just to give you. An example in you know in April we conducted several months, you buy health and beauty sessions and Instagram, but <unk>.

More than 280000 woman in different market, we've been having around 20000 unique users per week on Instagram and you know that's the strength of you know of our efforts then we plan to continue growing but I have to say that you know, we we think that in the past in many countries.

We have taken market share a from others not only because surgeons believe in our in our technology, but also because they see the excitement from women that come to their practices and asked them about our brand. So of course, we are you're basing our our efforts on on our technology and the differentiation.

But we have chosen to invest even more on them now.

Great to hear and good luck out there.

Thank you.

Thank you I'm showing no for the questions at this time I would like to turn to call back over to the company for closing remarks.

<unk>.

Thank you for joining us on today's call, we look forward to providing our next quarterly update in August.

Left for the day and please stay healthy thank you.

[noise], ladies and gentlemen, just concludes today's conference call. Thank you for participating you may not disconnect.

[music].

Yeah.

[music].

[music].

[music].

[music].

[laughter].