Q1 2021 Inmode Ltd Earnings Call
In the call for the question and answer session on.
I'll now hand over the call to Mr. Moshe Mizrahi shape. Please go ahead.
Yeah.
Thank you Mary and thank to all of you for joining the first quarter of 2021 financial results conference call.
With me on the call today are also booked on microcline than our cofounder and Chief Technology Officer, Dr. The spirit duo our Chief Medical Officer, and Rafael <unk>, our VP of finance all of us will be available for Q&A later.
In the first quarter of 2021 in more of the generated revenue of $65 5 million of.
The 62% increase over the first quarter of 2020.
First quarter record net income on GAAP basis was $26 6 million and $29 3 million of net income on the non base on the non-GAAP basis.
In Q1, 2020, one we derived approximately 69% of our global revenue from <unk> proprietary surgical technology.
<unk> engaged in minimally invasive and sub dermal ablative treatment.
24% derived from our hands free platform and 7% from our traditional laser and non invasive RF platforms. We're happy to report the debt all segment continue to grow.
The impressive growth in the first quarter was driven by demand for our minimally invasive for proprietary platforms and the hands free platforms.
For the growing number of doctors are using our system in fact during the past year. The number of consumables sold as reached a new record every quarter overall, we have more than doubled the numbers of consumables sold in the last four quarters. This is an indication.
Of an ever growing use of our system, we continue to see demand from new and repeat the patient seeking to improve how they look and how they feel.
On a global scale, while walking to duplicate our success in the United States.
By expanding our sales capability and engaging with new distributors and countries to expand our international presence since the beginning of 2021, we have added five new distributors and 10, new countries to our international net network.
Our excellent first quarter include international revenue growth of 123% year over year.
As our revenue outside the U S grew from 24% in Q1, 2020% to 33% in Q1 2021.
Currently our U S installed base total.
Total approximately 4200 50 system, which represent about 53% of our worldwide installed base of approximately 8050 system.
While we expect continued growth in the U S. We also anticipate even faster expansion in the out in the O U S market.
As we have yet to fully penetrate many market across Asia, Latin America, and Europe, Our North American sales team consists of 135 fully trained specialists specialists and our global team totaled.
156 individuals as for our installed base, we expect these numbers to organically increase as we expand our innovative technology.
Two other part of the award and enter new verticals, we're constantly working to get more regulatory approval across the globe to expand our product offering in each country.
Any given time, we're engaged in at least 12 to 15 of the regulatory project on.
All the way from Brazil to China, We're also expanding our verticals beyond aesthetic.
Our R&D pipeline include over a dozen projects for other medical areas, such as gynecology ophthalmology, E&P urology and several others as part of our strategy. We expect to launch two new platform this year in which our advanced bipolar RF technology.
<unk> will provide significant significant quality of life improvement one of this platform is called the power, which we expect to lounge in the third quarter of 2021 and power will be the gold standard in women health and wellness and we are excited to announce that it has.
The FDA approval for all of its applicators.
Based on our successful performance in the first quarter of 2021 and the visibility we have into the rest of 2021, we're increasing our full year 2021 revenue guidance range to be between $270 million to $280 million.
And we intend to maintain our non-GAAP gross margin of 84% to 86% Lastly, we continue to support and augment our team worldwide, while complying with all local local and regional health and safety guidelines for the welfare of our employees and customers.
The most.
With that I would like to turn the call over to Shaquille, Our president in North America Shaquille.
Thank you Marcia in the low everyone. We delivered an impressive performance in the first quarter with sales, reaching an all time high in March as momentum for our minimally invasive and hands free devices carried over into the new year the.
The strength of our capital equipment sales during what is typically a seasonally slow quarter was driven by underlying demand for our in office based procedures. This was demonstrated by another consecutive quarter.
A record consumable sales in North America, which more than tripled year over year Dr.
Doctors are using our systems with increased frequency, which is a great indication of the growing acceptance endorsement and the implementation of our technology.
In North America, we continued to build on our sales force and seamlessly integrated our new hires from 2020.
Leveraging our online platform the mood University, our sales team was easily able to disseminate and expand knowledge of and modes, leading technology and stay connected to consistently across the country.
As a result, the team successfully fulfilled the growing demand for our products as physicians and patients pursuit of effective easy and frequently use of social distancing friendly aesthetic procedures in an office based settings.
Additionally, our now fully staffed post sales support team was a significant driver of our consumable sales growth this quarter as mentioned each quarter. The volume of consumable sales continues to grow and we believe that this trend will continue.
Looking further into 2021, we're excited to see the growing number of in person events scheduled yielding of abundant opportunities for us to connect with the medical and the aesthetic communities as we bring our solutions for the market.
Currently with the upcoming launch of our women's health and wellness platform, we expect to introduce this technology for the women's health and wellness community. Later this year in order to build awareness and educate practitioners on the various medical applications available for.
Furthermore, we will continue to recruit industry sales talent over the course of the year to fuel our ongoing growth we're on.
Extremely proud of our North American team for all of the hard work and dedication they put it on the daily basis, the ability to execute and maintain a positive attitude during challenging times in the industry and our world has been extremely impressive.
The strength of continuing to move forward now let me handover the call to your to review our financial results in detail.
Thanks again, Dave.
The one.
Total revenue in the first quarter of 2021 increased 62% year over year to $65 $5 million we.
I mean, the gross margin of 85% on the GAAP basis.
The increase in revenue was primarily attributable to continued strong demand for our platforms in the beginning of the new year.
<unk> seen significant growth in each of our technology is.
Minimally invasive and subdue amount of basically the treatment grew 75%, hence free platform increased by 33% and laser and non invasive grew 68%.
The growth in each of these technologies exemplify how we've learned to adjust and operate in the world with COVID-19, and maintain growth across the board.
In addition international thing.
The increased dramatically year over year.
As we successfully replicate our U S growth strategy on a global Nathan.
Geographically, we saw the highest growth rate in Asia, and Europe, which increased by 273% and 63% year over year, respectively.
Our capital equipment accounted for 88% of our revenue, while consumables and service revenue were 12%.
GAAP operating expenses in the first quarter of 2021 total of approximately $28 $7 million.
A one five per cent increase from the first quarter of 2020.
Sales and marketing expenses increased six 8% in the first quarter of 2021.
For the first quarter of 2020.
But based compensation decreased to $2 7 million going on in the first quarter of 2021 compared to $6 1 million in the first quarter of 2020.
On the non-GAAP basis operating expenses total approximately $26 2 million in the first quarter of 2021 compared to operating expenses of $22 3 million in the same quarter of 2020, and the increase of 17, 6%.
GAAP operating margin was 41% in the first quarter 2021 compared to 15% in the first quarter of 2020.
Non-GAAP operating margin in the first quarter of 2021 was <unk> 45 per cent compared to 30% in the first quarter of 2020.
This increase of derived from the March 2020 interruption of the sense like in by the COVID-19 outbreak and consequently marketing expenditure of did not result in sales at the end of the first quarter of 2020 on.
Also in the third quarter of 2021 marketing activities in the United States, such as event and conference participation. We're still minimum due to public health restrictions wanted by the COVID-19 pandemic and everything is on expenses were on over.
GAAP diluted earnings per share of in the first quarter of 2021 with 63% compared to 15 cents per diluted share in the first quarter of 2020.
Non-GAAP diluted earnings per share in the first quarter of 2021 were 69 cents compared to 30.
The true for the same quarter of 2020.
We've completed the first quarter with a strong balance sheet.
As of March 31st 2021 on the company had cash and cash equivalents marketable securities on deposits of 293 points for millions of dollars.
Yeah.
On the cash flow for the company generated $24 $8 million from operating activities for the first quarter of 2021.
Lastly, I would like to highlight the this quarter, we have implemented additional metrics.
Including the breakdown for revenue streams by geography category and technology. These data is available in the tables that accompany of filings.
We believe the publishing this information will provide better transparency and will enhance investors' understanding of our business.
Is that we tend to call back over to move share.
Yeah.
Oh, Thanks for everybody. Thank you for a year. Thank.
Thank you <unk>. Thank you Mary.
Believe now we have to start with with the Q&A.
We will now begin the question answer session for us.
The question you May Press Star then one on your Touchtone phone.
Youre using a speakerphone, please pick up the handset before pressing the keys.
The withdraw your question. Please press Star then two.
At this time, a little pause momentarily to assemble on our roster.
The first question today will come from Matt Taylor.
With UBS. Please go ahead.
Hi, guys. Thanks for taking the question and congrats on a really nice Oh.
On the in the quarter.
So I appreciate you mentioned that.
March was the record month for the company I was wondering if you could talk about any trends into the second quarter and maybe just offer some views on.
How long do you expect this elevated demand of you've been seeing some kind of the zoom boom or the the pandemic lasting.
Checking maybe you'll start for North America, and then I will continue.
Sure, Absolutely Hey, Matt How're you doing.
So yeah I mean.
Obviously, we expected some pent up demand post pandemic, but I think based on what we've been able to do on accomplish with ours.
We don't think it's really you know theres, obviously, a lot of good things going on with the post pandemic demand and patients wanting to get things done, but I do think that sticking to the core fundamentals of the business.
But we've always kind of followed there's just nicely kind of out of doing as we've added on different different new talent and develop some of the people that we when we went on our hiring the frenzy. So I think it's kind of pay dividends moving forward I do think that you know moving forward for the rest of the year I think we do anticipate to see similar demand from patients.
But again I think of it goes back to the fundamentals of.
In motor on how we've always kind of operated that debt.
We've just kind of put our heads down on kept doing what we do best and I think that's why we've been able to continue to show such good growth.
Hi, Matt this is more share.
Well absolutely was the very strong months.
Internationally and also worldwide.
I mean, usually as you know the second quarter is better than the first quarter as far as seasonality on this business.
And we expect for the second quarter to be strong as well, although we have some countries worldwide like Canada, India are some of the European countries.
And of course, Latin America, Brazil, and Mexico are not in a good shape, but the has to say the unlike a March April of 2020, our people our people learn how to live with the coffee.
And they don't stop seeing patients doctors do not stopped seeing patients and do not stop for walking in the clinic. So maybe it's a little bit slower than in certain countries than what we expected.
But as I said, the Apple was the good months and we believe debt for example in Europe now they start to vaccinate on the full scan things.
Things will get better in the in May and June and the second quarter would be a good one as always.
Yeah. Thanks, Thanks Moshe.
So I wanted to ask one about your sales force and the addition of the use distributors.
It seems like you continue to expand on North America I was wondering if you could give us a more specific update there.
Can you talk about the expansion into these additional countries impressive O U S growth this quarter.
It sounds like you continue on or you're going to be out of any other countries. This year.
Well yeah.
Yes, we're adding countries since the beginning of 2021 as I said in my in my talk we added the tenet of new countries relatively small countries because of all the big countries are already covered.
And all of those small countries are.
The being handled by our by our five distributors, mainly in Europe, one country in Africa, and other one country in the Middle East.
We do not neglect them, although the small country, but you know we believe that if our presence will be covered now of covering 63 countries 63 countries, including our subsidiary. In addition to that as you know we have bought out the partners in our joint venture company.
In China, and also building the United K and the U K. So none of these two subsidiaries of wholly owned by us that will enable us to invest more in these two countries. Since we are controlling the companies and the distribution and we would like to add in all of our subsidiaries more salespeople the only subs.
<unk>, which is now a little the stock is India, everybody know, what's going on in India. We have the small subsidiary the six people but.
But unfortunately, you know the situation in India right now, it's the standstill hopefully a within a months of too.
They will overcome it we'll support them with any help that they need we'll do not file of them or not laid them off because we want to keep the operation, we'll see a big potential there, but in other countries like in China and Korea, we are growing fast.
As far as the establishing a additional subsidiaries, yes, we have a plan for another one in Europe, and maybe and maybe another one in Asia.
I'm not sure if it will happen in the second quarter of the third quarter, but this is something that we're planning to do.
Selling the direct right now most of our revenue coming from the left I would say that the if the international market.
The $22 million out of the 65 $11 million came from direct operation and $11 million came from distributors and we would love to increase the direct part as much as we can sales when we sell the rest we will recognize the full value and we have a higher gross margin.
Thats the plan.
Did I answer your question.
Yeah that was great. Thanks, a lot and thanks for answering the questions.
Thank you very much.
Yeah.
Yeah.
Okay.
Our next question will come from Kyle Rose.
So that's with Canaccord genuity.
Please go ahead.
Great. Thank you for taking the questions are in the.
Congrats on a really strong quarter everybody.
I wanted to see if we could touch on the one big picture question with respect to guidance and then just a follow on for for some of the shacks comments on the Big picture, you've obviously got major product launching this year empower it sounds like that's moved out a little bit from the Q2 into the Q3, So maybe just help us understand what your.
Guidance for the contemplates from the contribution of new products in in 2021, and how that mix shift of the of the.
Technologies between the M. I asked a hands free will shift to include.
You know the new empower platform and the Jack you talked about.
Really the the post sales support team, helping drive consumables, maybe just help us understand what that team looks like and in kind of the contribution you can expect that focus the half moving forward on the consumable side of things.
Chuck you can start.
Yes, so I'll start with the post sale and then I'll hand, it off to Moshe two to handle some of the guidance related questions.
So yes, so we actually of two directors of client operations have done a phenomenal job putting together the teams.
That we Couldnt rollout just all at once and had to be something that was done nicely gradual so.
For my comments our teams are fully built out we look to expand those as demand keeps on rising as consumable business keeps growing but I think that was the major driver for what we've been able to accomplish for for.
And their teams and it's again the.
Main thing that we're trying to do for our physicians and for our owners of our equipment is to basically provide them with the ability to try and pay off their units as soon as possible to generate the maximum amount of return on investment in the shortest period of time, we try not to the promise of anything crazy, but it is very important for us to try to do that and in turn you know just like anything else on.
Life.
If you do well on your first investment Youre going to reinvest in the we do have several positions that are re investing with us because they are very happy with their first purchase and the support that they were given most of the did you want to handle the guidance question for Kathy.
The new guidance that we gave.
$270 million to $2 8 million are mainly based on the existing portfolio. Even if we were lounge the empower in the third quarter, which we will sometime at the towards the end of the third quarter for us.
For the fourth quarter, we do not expect to sell many because when you launch a product the are you.
Do you do of soft lounge and gradually increase.
The numbers of.
Users you want to make sure that everybody's well trained you want to make sure that everybody know the protocols. We want to publish studies continue to publish study studies on the product we want to introduce the product to luminary doctors each of process. It's not it's another concern.
More product, it's not fire and forget it's not something that you can put on the Internet and then you'll get I don't know.
Many millions of dollars of revenue every product that we launched in the U S for US and then in Canada, and then internationally, it's a gradual process, which we do at the very carefully to make sure that there was enough training centers to make sure that there was enough doctors that can help other doctor.
To do the first treatment. So I don't anticipate a lot of revenue coming from the empower in the in the in the in the fourth quarter. If we would allow for it in the third quarter, but in 2022, hopefully it will become and not one of our in.
Important.
<unk> in our in our portfolio.
I mean kind of sorry, just add a little color on that.
Adding to what Moshe said when it comes to empower we know that this market is a huge market. However, like everything we do at <unk>, we'd like to appropriate we'd like to approach it very calculated and we don't want to rush anything. So we're going to make sure that patients are going to be able to get exactly what they expect physicians are going to be able to get.
On the patients that they're looking to treat and help change their lives and it's it's a it's a gigantic segment that has had a lot of eye off the ball for the last few years now.
So I think we're like most of you said for 2022 I think we look at it is as of <unk>.
Very large potential for this year with the.
Current products that we out of the minimally invasive the hands free and some of our traditional sporadic we of our hands full right now so as we scale out and build out of our sales force for the women's health and wellness, we do see some really good future upside, but I think we're going to be able to capitalize on.
Okay. Thank you for that that's very helpful.
And then just my last question was I appreciate the the updates as far as system placements of obviously, making good progress there can you.
Maybe just give us an update on the on the U S installed base.
You've seen the really strong demand for consumables and procedures you both on your business, but then the broader aesthetics market how much of those of that.
The 4050 account base in the U S is.
On multiple machines.
How much of the core vs quote unquote non core physicians, just trying to really understand that particularly as you launch these products that are going to expand into additional medical specialties.
Sure did you want on did you want to chime in on that.
So we have 40 to 50.
The installed I would tell you about 220 per cent of other accounts.
Other than that.
One the system and most of them.
The comfort that you said that the core physicians.
Okay, great. Thank you for the.
Taking the questions today, Thank you Kyle.
Our next question will come from Jeff Johnson of R. W. Baird.
Please go ahead of good morning, guys.
Good morning, guys. This is dana on for.
Jeff Thanks for taking the questions.
My first one is kind of piggybacking off of Matts earlier.
Just wondering if you can provide a little bit more insight kind of on the gating of revenue over the remainder of this year.
I mean, even if we kind of assume fairly stable sequential revenue in <unk> versus <unk>, which I know Moshe mentioned <unk> seasonally higher that even implies kind of year over year revenue growth of 5% to 10% in the back half of this year.
That's the right. So obviously, we know <unk> recovered very quick in force Q of last year songs strong growth as well.
But of that 5% to 10% growth kind of on the way to think about the second half for now or is that a little bit of conservatism applied in there.
Despite the 10%.
The 5% to 10% of is not exactly the right way to go for it because if you think about it in the second half of for 2020, and there was a little pent up demand following the free months of freight of the ban on for electric procedures that we had in the U S win for mid months too.
The June one of the way to June so none of the businesses was supposed to happen during the quarter was pushed out of the second half of <unk>.
For you so I'm not sure if you look at the.
The second half of the widespread too to analyze the business it will be better to look at the full year picture could give you a better indication of what the growth would look like.
It makes on let let me.
Michelle Let me, let me add to it.
We have seasonality in our business.
Of course, the fourth quarter is the strongest one but the third quarter is the summertime.
And in the summertime certain territories are totally closed like Europe and in some some others are.
And therefore, I said the second quarter is better than the first one but the third quarter is slower.
The 'twenty 'twenty was not a typical year of thought so we cannot we cannot determine the seasonality based on 2000 22020 of the third quarter was strong because nobody everybody was locked down for.
For three months and and and they wanted to go to work instead of growing vacationing on the summertime.
And therefore, I hope the 2021, hopefully once the COVID-19 will.
We will now will disappear will start to be more typical year.
What I said is that the second quarter is better than the first one this is typically what happened in the aesthetic market now the 270 to 280 <unk>. This is what we see right now based on visibility that we have adjust the remind everybody that we don't have backlog, it's not the backlog company, we don't have the backlog for the.
The second quarter everything that we sell on the second quarter, Tom on the second quarter is not something that we have the backlog and we started the quarter with wood.
That's the amount of for U S dollars.
As far as revenue.
I hope the tide small clarifying it now.
Yes. Thank you that was very helpful.
And then my second question was just kind of be from a geographic perspective following up there I'm just wondering on so you can provide any details on markets that you think could.
Could be probably the most meaningful growth drivers for this year and then maybe even into next.
Oh, Okay. That's a good question.
Well one of the most important driver on the international market is the regulation per country.
I'm sure you know that are in the United States. The one regulatory body, which is the FDA, but internationally. We're building at any given time with 27 different well the regulatory body all of the way form on visa in Brazil to see of the AA in China.
Now.
We are where we are.
We submit approval for all of our platforms, but expect some time and we cited the longest one in Brazil, China is becoming very long process.
I can tell you right now in China, we have only three out of our nine platforms already been approved and we're working on the other six how long it will take we don't know in on visa the say three out of the nine and we continue to submit.
That is an application and all kind of test that they require once this is once the regulation is cleared per country. Then you open additional market. It's not just territory. Even if you have the territory is depend how how big is your portfolio in this country.
So so the three growth drivers that we have internationally right now that most of the big countries are already covered.
Is regulation.
And second establishing a very Ah.
What we need this is the base of luminary doctors that will use the system and the training centers for other doctors debt stack time exactly the same process like we did in the United States. What I said in my talk is we believe that the international market.
The market percentage wise.
It will grow faster than the U S market.
<unk> in the U S market was started in 2015 once we got the first FDA on the international market. We started three years later basically we saw here on deal, but we started to invest money three years later and and the right now.
All of U S versus U S is the <unk>.
66% versus 33% I believe that within two years it will be 60 40.
Yeah.
Okay. Thanks, just wondering if are there any specific countries that maybe you haven't touched on earlier before the day I think it's the kind of additional growth coming from.
I did the thus for countries, which are which we believe in 'twenty, one will deliver well for us China Korea.
For the zeal.
And hopefully Germany. These.
These are <unk>.
Low countries in 2020, and I hope that in 2021 day will deliver better we invest heavily on those for countries because there was the big market, though.
Okay. Thank you.
And then if you'd like to ask the question today. The Star then one.
The Star then one to ask the question.
The next question will come from a soft borough.
Sure.
Oppenheimer. Please go ahead.
Hey, guys. Thanks for taking my questions and again.
Congratulations on the exceptional performance.
So I guess kind of echoing other people's statements. We appreciate at the higher level of disclosure on segment reporting.
Staying here on international we know it takes some time on.
Some of the approval in other regions and you made it very clear that Brazil, and China are particularly challenging but hands free remains a very small portion of the international business, what kind of opportunity you guys see over the long term and introducing some of the hands free product.
Okay. Thank you. Thank you for the question of how are you.
Yes, you're right the hedge.
And free devices are not yet penetrated on the international market and the and the reason for that is debt in 2020, the international market all the way from South America.
In Europe, our hit the heavily by the Corona and we have decided we have decided internally not to launch this product that debt and free product.
This country and.
And spend the marketing money that we wanted to because we felt classics not the.
Timing is not good.
Right now, we're starting to do it again.
And and and we take it into the countries.
Evoke and evolve are not yet approved in most of the countries in Europe Asia and also on South America, we're in the process for.
For example, in China, and Brazil, our two main.
The market, it's not yet approved but it's in the process in.
In other countries, it's already been approved in.
In Europe.
The only part of it is approved and we're still waiting for the approval of the others.
But once we get the approval country by country, if the opportunity will present itself as far as.
As far as the status of the COVID-19.
Lounge the platforms. These two platform evoke and evolve and hopefully it will be the same success like in doing that the state, but the delay was made because of the situation of the covered and because of the decision we made not to spend the marketing money that we had budgeted for the Vulcan evolve on the international Mark.
Net because we felt like the we will spend the money, but the acceptance will not be as high as we want.
Okay, Great that's very helpful.
And this is a pretty broad question, but I imagine it will become the kind of increasing importance as we move forward.
The company has demonstrated.
Very clearly that it all kind of develop.
Technology for.
For the medical aesthetic market and deliver very strong sales performance on it.
How should we be thinking about Europe for Roche to the non aesthetics market, whether it be in terms of.
The the target kind of use cases.
How you've gone about selecting them, maybe if there are any kind of critical differences in your sales approach and just any color. There on on how you guys would be looking to execute it.
It's been a real I think this question is for you can you answer that.
Sure.
My understanding is so the good question is how we approach you the non aesthetic market is that your question.
Yes.
So one of them we have the reminder of the large part of those sales force came from cynosure shock could actually.
The comments on that a little more detail it gives them the color.
That's important because <unk> and I worked.
With Sino back of the day and with the launch of one of the lease at that time low.
As part of the sales force is really comfortable and used to actually selling the product in women's health.
No.
Shockey, <unk>, certainly talked about that part, but as far as the of the.
The kols in the network, we put together to go into that it's very different than the aesthetics, you'll need some.
Neil.
Of the duty research because the.
Aspects of what we're trying to accomplish on not a static for the board of functional I guess July and stuff like that so.
About two or three years ago of two years ago, when all of the issues happened with the FDA.
Moshe.
And the whole team doubled down on the other studies instead of running for the for the gates and Thats, what youre going to see coming out. This year is the is the benefit of doing that so investing in the studies investing in the research and accomplishing things we believe the feel very strongly about.
Moving forward is going to be a combination of that so very strong calwell network that's already in place.
And I say top notch and an experienced sales force that's already done.
Women's health and wellness in the past shocks you might want to give a little color on that.
Yeah. So you know very good question I think the the main thing to understand is the we've we've always although on the consumable growth has been on pricing and it's continuing and we will continue to do that.
We've always been the capital equipment company and as long as we can provide physicians with treatments of patients are seeking whether it's <unk> or it's medical.
The cash pay cash credit payments for the treatment sorry.
We know how to position that side of the business and how the basically helps physicians generate additional revenue and income. So when you look at what's going on with reimbursements and managed care medicine.
There hasn't been one year for I don't know, how many years, where reimbursements havent stayed the same or gone down. Meanwhile, people have their overhead and expenses staying the same or if not right now.
And so I think of as long as that's still stays in place and things don't change on that and which I don't see any of that happening. We're always going to have a place to be able to get any help some of these physicians generate additional revenue to their businesses on to their practices and at the same time, helping patients achieved certainly.
Things that they wanted to do so whether it's in the <unk> market or the ophthalmology market of wherever we're going we are of very good understanding of how to distribute its equivalent that's not an issue. It's a plug and play with everything else that we do right now, but I think like Spiro said a lot of it and like most of you said earlier a lot of this is going to come down to building. Some awareness in terms of proceed.
<unk> and what type of treatment options that you can get out there and we also have an expertise in that so frankly, it's it's pretty it's different I'm not going to say the identical it's different but it is of plug in place and it is not our first time doing it because we have experience with debt.
On previous products of the previous companies.
Okay, Great that's very helpful.
The last question on my end.
The company has done really an exceptional job selling the kind of executing and performing.
COVID-19 just once again point out kind of some of the other medical instead of comps.
Maybe struggling on a relative basis, what is the company doing.
In terms of online sales presence that may be can carry through.
Post COVID-19.
Yes, So you know I discussed the mood University, obviously, it's a platform that we have which not only helps train the people internally, but it also provides physicians with the updated techniques and tips and things of that they can actually apply to their practices. So as the interest rate.
We'd prefer to stay away from talking about on the comps because I think when you kind of stand out in our own way.
I think from our perspective the way we look at this as you know.
It's actually back to the business as usual pre COVID-19 in terms of our approach and how we're actually targeting and marketing to doctors. So we've made some changes to obviously catered to the it would be the.
The new World as you might call it but at the same time I do think it's very important to note that we are now seeing business and activity getting back to exactly are very similar to what it was beforehand. So the online stuff and we've obviously been able to do like I said within all of the University and getting that out there and invested in the platform of course, and it's paid off.
Very well, but you know you you now have.
Things in them.
And in my script, but.
In person meetings and events you know those things are starting to happen almost like back of the business is regular rights of different things that we're doing and just keeping people safe when we do have crowds of people.
We've taken all of these kind of precautions in terms of of how we actually implemented into the business and our business World. So I think thats helped out in the C suite continue that way and again, we'll continue to assimilate as things change.
Oh, Yeah, yeah yeah.
Another reason why our successful now post COVID-19 is the way we treated all of our employees worldwide.
Some of our competitors.
I was mentioning name.
When the crisis started decided to save money by firing of the salespeople R&D people and others.
Because they said they don't know what will happen, we decided differently, we decided that we want to keep everybody as the family even if it will cost us money and even if for three months, we did not sell but we continue to work as the Shakil said on training on the inward University will continue to develop.
Product we continue to.
To train the sales team and the doctors on.
On the virtual way.
And and we waited to see what will happen and once the crisis on June of last year.
Start to show some of you know <unk>.
The point it was the lack of bullet train everybody on to the market and and capture market share while.
While the other competitors of what you call the comp start to hire people and retrain them and lose another three months I think that towards the very good on important decision in the United States made by Shaquille and.
Supported by myself and at the end the payback, we see the payback.
Post COVID-19.
And in the Big way.
Okay, great Yeah really of credit to you guys you know really the whole team for a proposal for the very difficult period.
With that thank you very much like the thanks guys. Appreciate the thank you.
Thank you.
Our next question will come from Steven Kay with steep K financial Please go ahead.
Thank you very much I'm.
I'm one of your users in the United States called the Roes clinic.
And it looks like there.
Got some kind of a.
A dual approach and helping some of the.
The clients there.
The protocol renewal beyond skin tightening.
They are using with the Morpheus eight.
Or do you have a product like the renewal of beyond.
The to compete.
With them. So that you were capturing that both the processes that are being offered so they're some of their clients where patients. Yes, we actually do do that I'll, let the doctor Theodore I'll comment on the other will further.
Oh wait.
Radio frequency, what we specialize in of course in our body type of platform is our is our star product right, which we started off with in winter of patents protect which is bipolar radiofrequency.
The biggest differentiator here is you're able to control the temperature of acquiring and control it and taking that energy and cause the skin tightening and contraction of your tiny.
So of course, there are other companies are trying to do the same followed on that line, but unfortunately, we don't when you don't have an endpoint and the temperature of scientific temperature that you know that youre getting tightening the basically all over the place.
So.
Theres definitely when you are in the front and you're leaving plenty of lot of that for any of the research they're going to be companies are trying to come out for us trying to duplicate that sort of thing.
So very different products from ours and the respect.
So not necessarily.
What I would recommend for my patients because I'm also practicing plants of surgery. So to answer your question.
Certainly the company interesting product, but they are of a long way to go to catch up with what 10 years of research we put in place to accomplish what we needed to do.
Okay. Thank you.
Follow up if I may.
A lot of the pharmaceutical companies are advertising heavily and have been doing so for some years directly to the public with the apparent.
The Fair result were hoped for result, being that those patients will then go to the doctors and say do you have such and such a drug that you can.
Saw advertised on TV it looks like it's of great drug.
Is that type of marketing to drive sales to your physicians been considered.
Yeah, Great question, Steve. So we were never if you look at our balance sheet, we're never going to be that company that is going to spend more than what we made great interest.
The fundamental DNA of the word company. However, we do you know if you look at some of the celebrity endorsements that we've had in the past Paula Abdul.
The other other.
Organic ways of using social media to really grow the business and doing that for our.
For the physicians is definitely a big part of what I mentioned earlier with the pro sales support team.
They are all over that so we definitely do taken approach again, we're not going to be the company to go out and.
Spend more than what we can make.
You know throw on all kinds of money on advertising to listen, but I do think that we've done on what we spend a lot of time actually looking into those types of things and how we can effectively get the rest of the consumer in the smartest and quickest way as possible. So I think we've looked at some of our of our options that we have and we have started to utilize them and if you looked at what we talked of.
Through our consumable growth the reason, it's doubling and tripling.
Over time is simply because we are starting to apply some of these things on that.
Does that answer the question, yes. It does.
10 million Americans, turning 65 every day it seems like your market its got a long ways to go.
We hope so.
Well.
I think it's important just to add some color here the Holy Grail of plastic surgeries, the ability of the Titans skid without causing scars.
And there is no one that's gone farther along the path, we're not there yet, but we're further along than anyone else. So that's something that that's the take home message is where we're where we're heading and what we've done so far and that's why it's resonating so well with physicians and especially to your marketing question. We allow the physicians when he had the good product and the pay.
<unk> like it on the Guinea results the push it out on their own social media on their own channels and that's a lot more effective because first it's true and second it saves us money in many ways because we allow our customers to speak for us So going down the road of the huge budgets for consumer marketing certainly puppies.
The other successfully but I think that getting on organic base and foundation of what we're doing sort of adoption is actually quite effective. So we're quite we're quite content with that.
More credible too I would add.
[laughter] share.
Thank you.
Very welcome.
Good day.
Ladies and gentlemen, this will conclude our question and answer session I would like to turn the conference back over the motion Israhi CEO for any closing remarks.
Oh thanks.
Again. Thank you. Thank you all for joining the all in the first quarter, earning call.
I want to thank to all of our employees worldwide. The help us to achieve what we have what we're achieving quarter over quarter.
I also want to thank our investors for the trust they are giving us I hope that we will continue to place them and to deliver what they expect I want to tip of my management team with me on the line today or participate in the call.
And help to facilitate that Ah I want to see all of you again.
Of course in the second quarter, earning call, which probably would be on the first the first week of August.
Thank you for everything.
Now I will turn it to the operator.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Okay.