Q3 2022 BIOLASE Inc Earnings Call
[music].
Good day and welcome to the third.
Third quarter 2020 financial results conference call.
This call is being recorded.
At this time all participants are in a listen only mode.
Management's prepared remarks, there will be a question and answer session.
Now I'd like to turn the call over to Todd currently.
The ABC group. Please go ahead.
Thank you operator, good afternoon, everyone and thank you for joining us today to discuss BIOLASE financial results for third quarter ended September 32022.
On the call today from BIOLASE, or John Beaver, President and Chief Executive Officer, and Jennifer Bright Chief Financial Officer.
John will review the company's operating performance for the third quarter, and then turn the call over to Jennifer to review the financials in more detail before opening the call for questions.
Before we begin I'd like to remind everyone that a number of forward looking statements, which are statements that are not historical facts will be made during this presentation and subsequent Q&A session, including forward looking statements regarding the company's strategic initiatives and anticipated financial performance.
These forward looking statements are defined under the private Securities Litigation Reform Act of $19 95, and are based on <unk> current expectations and assumptions and are subject to a variety of risks and uncertainties that could cause the company's actual results to differ materially from the statements made.
Such forward looking statements only represent the company's view as of today November 10th 2022. These.
These risks are discussed in the risk factors section of the company's most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission.
Play of this conference call will be available on the BIOLASE website. Shortly after the completion of today's call.
When listening to this call. Please refer to the news release issued earlier today announcing the company's 2022 third quarter financial results.
If you do not have a copy of the news release. It is available on the investors section of the BIOLASE website at Www Dot BIOLASE Dot com BIOLASE.
<unk> financial results can also be found in the company's report on Form 10-Q, which will be filed with the SEC the.
The tables, we've provided in today's news release offer additional financial information. So we encourage you to review them. The tables include the reconciliation of unaudited GAAP net loss and net loss per share to non-GAAP adjusted EBITDA loss and adjusted EBIT loss per share as well as more information regarding the company.
These non-GAAP disclosures.
With that said I'll now turn the call over to BIOLASE, President and Chief Executive Officer, John Beaver John .
Thanks, Todd and thank you everyone for joining us. This afternoon. We appreciate your continued interest in <unk> before I start I'd like to congratulate the 2022 World Champion Houston Astros as I'm sure everyone on the call is as big of Astro span as I am.
Now to our results I'm.
I am pleased to say that we reported continued increasing demand for our industry, leading dental lasers in the third quarter generating a 26% increase year over year and our total revenue.
Our U S laser sales increased 35% year over year, while U S. Consumable sales increased 22% during the quarter a strong performance, which we have consistently maintained now for the last two years reflects continued positive momentum on several fronts, including continued progress with the Waterlase exclusive trial program is our <unk>.
Success rate the percentage of dentists, who purchase after the trial remains at over 50% year to date in 2022.
We now have sold approximately 100 Waterlase lasers via this program the start of 2021.
This initiative along with our continued emphasis on the ended on at Paradise, pediatric dentists, and dental hygienist continued to generate increase adoption of our laser technology by new customers with over 90% of our U S. Waterlase sales during the quarter coming from new customers and close to 40% of U S. Waterlase sales coming from dental spec.
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Note that these initiatives didn't exist until recently, so momentum is quite encouraging and gives us greater confidence for even greater success in the future.
During the third quarter more than half of our territory managers that exceeded their sales quota is a testament to the entire BIOLASE team that we currently have no open sales territories and I've had no sales turnover during 2020 to the first time. This has occurred in quite some time as our sales team is excited and enthusiastic because our products programs and initiatives.
Create excitement in the dental community.
BIOLASE has an approximately 60% worldwide share of the all tissue dental laser market represented about Waterlase brand. However, despite this penetration level. It still represents less than 10% of the overall U S dental market less than 2% of the adult market outside the U S.
Our objective is to grow the overall market engage with the other 90% and while ensuring we continue to protect our position as a market leader.
To reach this untapped market opportunity, we are intently focused on increase in education and training to build awareness of the benefits of industry, leading laser provides to dentists and their patients.
In the third quarter, we held 150 educational and training events, a 46% increase from last year's third quarter.
As a result of these increase efforts dental practitioners are coming to BIOLASE as they look to upgrade their dental practices and improve their patient outcomes as I mentioned earlier over 90% of our sales. This quarter came from new customers, which represented the highest percentage of waterlase sales to new customers since I joined the company in 2017.
We believe each 1% increase in the adoption of our all tissue laser technology in the U S will equal approximately $50 million in additional revenue for BIOLASE Assembly, we keep our saying 60% historical market share.
This doesn't include potential increased adoption outside the U S, where historically approximately 40% of our revenue has been generated or the consumable revenue that is generated from the procedure is done with our laser systems.
We have a well established three pronged strategy to grow market adoption of our lasers, which has created the growth momentum we are experiencing today.
The first prong of our growth strategy is to get dental specialists onboard in 2021, BIOLASE form specialist academies to expand awareness of the benefits of dental lasers in dental specialists communities specifically.
Specifically, we launched specialist academies prepared honest endodontist pediatric dentists, and dental hygienist to drive further adoption of our lasers and superior outcomes for their patients.
Our plan in 2023 is to combine these specialists academies into a single Waterlase Academy and an epic Academy. We believe that this will not only further improve and simplify training for the specialists, but also give general practitioners, who are interested in adding more specialty procedures to the practices and avenue to pursue pursued further.
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The opportunity that exists for BIOLASE within each of these specialist communities is very meaningful led by key opinion leaders or kols in each of these specialties ollie's as increased education and training to drive expanded awareness and adoption.
Our focus on increase in education and training for these dental specialists is translating into higher demand for our products as they look for safer more advanced alternatives to improve patient outcomes and improve their practices.
By these sales specialist markets represent hundreds of millions of dollars of potential laser system revenue each year, not including the potential for recurrent revenue from the sale of our consumables.
The second prong of our growth strategy and focus on the significant opportunity we have with over 150000 general practitioner dentists in the U S alone.
With an additional 5% of USG piece adopt our lasers, it would generate $225 million in laser revenue not including consumables.
Waterlase exclusive trial program permits GPS who did not have prior experience with our product to evaluate and assess our laser for a 45 day evaluation period at no cost and includes in person training on the device at.
At the end of the 45 days, the GP has option to buy our laser or not.
We have held approximately 30 of these programs. So far this year as I mentioned earlier more than half of the program participants have purchased the BIOLASE laser today.
It's a win win for GPS because a big part of the Waterlase exclusive trial program is teach and additional procedures. They can do in house with our laser so they can keep more procedures and revenues in their practice and achieve superior patient outcomes.
Just due to additional procedures a week they will generate a 200% return on their investment in our laser.
That along with a better patient experience is motivating Dennis to incorporate waterlase technology into their practices.
Training and education, we do through our Waterlase exclusive trial program. The more success. We believe we will have in driving laser adoption.
The third prong of our growth strategy is getting the corporate dentistry universities to adopt our lasers. We currently have ongoing trials before the five largest dsos in the U S. Today, most new dentists are employed by the DSO ride out dental school or goals for them to learn about and begin using our lasers, while employed at the DSO and then make our lasers in the central part of their.
Practices moving.
Become a new dental laser in consumables customers when they go out on their own.
Over the last few quarters, we made solid inroads with some of those dsos.
These relationships are important and we believe that the large dsos can lead to a far greater revenue for BIOLASE in the future.
In addition, we have continued to develop stronger relationships with key dental schools across the country.
During the third quarter, we announced a strategic plan to partner with post graduate dental specialty programs throughout North America to expose new dentist had benefits of Waterlase technology.
<unk> range from one to four years and are generally dentistry and specialty programs.
We have integrated our waterlase laser into several post graduate program is already and plan to expand into many more programs over the next few years.
There is a large appetite among dental residents to utilize state of the art technology in treating patients and we believe the introduction and reinforcement of technology. During postgraduate training is key to the adoption of laser dentistry with this new generation of dentists.
Thinking of increased education during the quarter, we began construction of our new training facility and first ever model Dental office named laser smiles, both of which are expected to open in the first quarter of 2023. This new space are conveniently located next to our corporate headquarters and will expand our ability to drive revenue and laser adoption by training practice.
<unk> and our hands on dental environment. This is a novel opportunity to educate and train as well as produce marketing materials Creek have create content perform studies and test new equipment.
We also are in body and leading international dentist to spend time at our facility next year to work with US as we help to ensure that the international voice of customers hard.
Lastly, I am happy to report that we continued to strengthen our management team I tracked in the latest quality dental professionals, Dr. Russ Morrow, who we recently announced as our new Chief Dental officer brings extensive clinical dental and DSO experienced the BIOLASE to help expand laser adoption globally, Dr morals clinical expertise and knowledge of the.
Dental industry combined with the significant rollout the nation's largest DSO make him, particularly well positioned to lead <unk> clinical team as we pursue our goal of growing laser adoption across the dental industry. Dr. Tomorrow is a strong advocate for laser demonstrated already worked with hundreds of dentists to adopt laser technology, while at Heartland and we look forward to it.
Continued rolling expanding the use of lasers within Dsos and without Dennis.
I would like to personally thank Dr. Saying, the low who has helped.
As our Chief Dental officer since 2016 for the critical role. He has played in developing and expanding laser dentistry globally.
Dr. Lau continues to bring a strong commitment and dedication to laser dentistry and in his new role as Vice President clinical strategic alliances you will continue to be a great asset to BIOLASE as he focuses on building partnerships with expanding adoption of our industry.
Leading dental laser technology, Dr Tomorrow, Dr. Lal more closely with the boards clinical committee headed by Dr. Martha Summerlin to continued to identify and develop strategic approaches to clinical research and product development and to help oversee the company's R&D efforts.
In summary, our growth plan has been generating positive results and we have a very large opportunity and a well developed a roadmap for growth.
Access and continued performance of our sales team gives us continued confidence in our ability to achieve our operating objectives for 2022 and beyond as we set our sights higher with that I'll turn the call over to Jennifer to provide further details regarding our third quarter financial results.
Thank you John and good afternoon, everyone.
Can you provide more context around some of the numbers.
Alright, so many operational improvements we achieved during the third quarter.
Our strong third quarter performance demonstrates our continued business momentum.
This increased traction reflects higher demand for our industry, leading dental lasers.
Directly related to our increased education and training initiatives.
For the third quarter, we delivered net revenue of $12 million, representing 26% growth year over year.
An additional third quarter highlights include U S laser system sales increased 35% year over year.
U S consumable sales increased 22% year over year, driven by increased procedures using BIOLASE lasers.
We continued momentum with new customer adoption in the third quarter with over 90% of our U S waterlase sales coming from new customers.
40% of U S waterlase sales coming from dental specialists.
Lastly, as John mentioned the success rate of our water related exclusive trial program remains strong at over 50% year to date highlights.
Success with this program.
These are all positive indicators that the increased demand we are experiencing in.
Industry, leading dental lasers in the U S and abroad.
Third quarter gross margin, 20% versus 51% a year ago.
Kris and gross margin.
The impact of lower margin OEM products that were launched at the beginning of 2022.
And at $1 7 million charge for inventory driven by the supply chain issues that we've encountered requiring us to change to new suppliers.
Long with end of life designation for certain products and components.
During the quarter, we completed an acquisition of equipment that will allow us to supplement certain third party key component with our own in house manufacturing component.
We expect this will reduce our backlog for these materials.
Reduce overall cost of goods and.
And in free cash flows when production is up and running in the first quarter of 2023.
On the expense line total operating expenses were $10 1 million for the quarter.
At $2 6 million from the year ago quarter.
This increase was due to compensation expenses all territories filled in 2022.
Higher commissions and bonus incentives for achieving sales target.
And an increase in travel related expenses.
GAAP net loss for the quarter with $8 4 million compared to a net loss of $3 3 million for the third quarter of 2021.
Net loss per share for the quarter was $1 10 compared to 54 for the third quarter of 2021 as adjusted for the reverse stock split.
Our adjusted EBITDA loss for the third quarter with $5 6 million compared to an adjusted EBITDA loss of $2 5 million for the third quarter of 2021.
Adjusted EBITDA loss per share for the quarter was <unk> 74, compared to <unk> 40 for the third quarter of 2021 as adjusted for the reverse stock split.
Now, let's turn to the balance sheet.
We finished the quarter with cash and cash equivalents.
$10 million.
We had $6 5 million in operating activities, including advanced purchases of inventory and prepayments to secure material to meet future sales demand as.
As well as $2 7 million invested during the quarter to acquire the manufacturing equipment I mentioned earlier.
Build out our model dental office and training center that we believe will support our effort to improve the adoption of our dental laser technology.
Now moving onto guidance.
For the fourth quarter, we are currently forecasting revenue to exceed $13 million.
It represents 5% year over year.
Yes.
For the full year, we are increasing our revenue guidance and expected and expect full year net revenue increased by more than 20% from 2021.
In summary, we had another strong quarter with significant revenue growth and solid sales execution and are confident that the actions we've taken to strengthen BIOLASE are working.
With that I'll turn the call back to the operator to open the call for questions.
Operator.
Certainly the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.
So while posing your question. Please pickup your handset is listening on a speaker phone to provide optimum sound corny. Please hold just poll for questions.
Your first question is coming from Kyle <unk> with.
Lake Street capital markets. Please pose your question your line is live.
Great. Thank you and thanks for all the updates here congrats on the progress.
Maybe just two housekeeping items.
John can you I don't know if you covered this in the prepared remarks, but.
How many dental specialty program have a waterlase.
<unk> laser and then.
Also it sounds like all the territories are full whats the latest number of territory.
Yes, so right now we're in about a third of the dental schools are about 70% give or take dental schools in the U S and we're about a third of them. However, I would say not all of them are fully active.
So of that third about 75% I would I feel really good about the progress we're making in those schools.
In terms of territories.
We have 25 territory managers and 25 territories. However, two of those territories are what we call pods are larger territories with additional account specialists supporting that you may know Todd.
Colorado, we've talked about this in the past.
Where we wanted to see if this.
This pod concept would lead to additional revenue generation and accelerate the adoption of this technology. The jury is still out there and we have early progress I think is good but we haven't made a final determination.
To expand that strategy.
U S wide yet.
Got it okay.
That in and how has pricing been.
The actual machine, but also disposables does that fluctuated in this market.
Pricing asp's for the machines have gone up.
They are higher than they were last year, both on a quarter to quarter basis and on a year to date year to date basis.
We have an increase the stated price if you will it's really been driven by more pricing discipline and with a more seasoned sales force.
Not always trying to get a deal closed on price, but instead.
Stead of selling.
Selling value to the customer and maybe adding more things that they can buy so thats really helped the Isps and consumables, we've actually increased pricing this year going into 2023, obviously.
Hi.
I am not happy with.
Some of the cost increases we've had from our suppliers understanding we're not alone there and so we'll be looking at further price increases in 2023 two.
Prove our margins going forward.
Got it.
And then just a couple more here so as you kind of prioritize your growth strategy.
<unk>.
How important is kind of a new installment mers is increased utilization of your existing unit.
I know the disposables at a much lower ASP.
And youre trying to kind of drive adoption of lasers in general, but just kind of curious.
And.
Have you prioritized one of these buckets.
Do you envision.
Increased utilization.
Per unit picking up going forward just kind of.
Im wondering about those two items will Fortunately I believe we can do both.
So the prioritization, neither one has to take a back seat to the other we talked a lot about generating new customers and this technology.
Back 567 years ago.
Most of our sales were to people who already had a laser.
Already a customer and thats completely flipped around now so that that increase in adoption.
Is happening. However, we're also making sure that with our education and training platforms at the people who buy the laser dentist, who buy the lasers are actually utilizing it and Thats why were seeing continued momentum on our consumable sales. The other thing that we recognized.
I'd say have recognized for a while but really decided to get after it this year.
There were some dentists that have bought a laser it I would say historically may have not been trained as well as we would today and so we're circling back to them and putting them into.
Optimization integration program and to get them back started and that's been hugely successful for us.
In the last couple of quarters.
The other thing I would say is when you look at that acceleration of the of the.
Adoption curve, which is.
<unk> anything to accelerate that adoption curve I wanted to do.
Tom One thing that leads me to believe that this is working beyond just the financial results.
Use the amount of marketing qualified leads that we're getting.
Those are inbound leads coming in from a webinar, where doing or social media posed or just coming into our website.
And those have been increased substantially this year.
Already through 930.
Through September 30th were already surpassed last year's marketing qualified leads and we're about four acts the number that we were back a few years ago.
So.
I always get the question.
Asked me why now.
And to me it is the future is now.
As a sign that we are.
Getting to the point, we need to be for adoption, we're getting are coming to us wanting to learn about the technology and that's really a seismic shift in the market.
Okay.
No that's great and that makes sense and it's great to see that and I guess, just lastly breakeven how should we think about this.
Look at late next year any update art Shannon. Thank you. So yes. So thank you Kal we're still in the middle of our 2023 budget process.
We are going through the numbers now we still believe that breakeven EBITDA for 2023 is achievable because of the cost increases that we've had over the last six months I think that revenue number before I stated it was about $57 million I think it would be closer to $60 million, but we believe that given the momentum that we have.
Today on the revenue side that will be able to achieve that in 2023.
That's great.
Hey, Thanks for all the updates and great great progress. Thank.
Thank you Carl.
Your next question is coming from Anthony Vendetti with Maxim Group. Please pose your question your line is live.
Thank you.
Hey, John Hey, Jon how are you.
Doing well.
Good.
So yes, so I just wanted to focus a little bit more on.
The installed base and I know there are some that are.
You're reactivating, which I think makes a lot of sense right because you have.
Well established now training program.
And there might be some old systems out there that werent being used.
Can you remind us just how many systems there are out there and I know the penetration and just go over these numbers as I think through compelling rate penetration rate, even though you have 60% of the market penetrate accretion of dentists with lasers.
Is incredibly low right now.
And then.
Mind us on that the opportunity for every every percent increase in penetration.
Yeah perfect. Good question Anthony So we believe.
For numbers out there, but roughly there are about 100 and call. It 70000 dentists.
In the U S. Today.
We also believe that of that amount about 8% have an all tissue laser im going to break your question into two parts one talking about all tissue laser like a water lights and the other talked about diodes.
So on the all tissue side call. It 13000 ish Dennis might have a all tissue laser.
Of that roughly 60% have hours, so call that seven to 8000 dead.
Dennis would have some type of <unk> plus right or express.
On top of Waterlase.
So when you look at the numbers.
Every 1%.
Of that roughly 170000 dentists in the U S. Assuming we keep our 60% market share, which has been historical norm for us is $50 million of revenue basically one year's worth of revenue for us and that does not include the follow on consumables that we know are quite accretive to.
And in.
Revenue and EBITDA.
So that's in the in the U S which represents.
It's been closer to two thirds, but historically about 60% of our total revenue.
The numbers are much bigger internationally, where you have close to $2 million dentist.
Internationally, however, in many of those countries because of reimbursements.
Higher in technology is out of reach to a lot of those countries and Dennis So we have a completely different strategy internationally than we do in the U S and U S. I believe everybody should have a laser and I believe every dentist will have a laser over the next coming years.
Internationally, we really target the top.
5% to 10% of dentist that cater to a lot of.
Yes.
Cash.
For seizure.
Maybe don't go through the insurance.
The various countries, but once again the opportunity is great right because it's still we're catering to probably 200000 dentists internationally and there the penetration is even less in the U S.
With total business in the world.
Probably less than 2% market penetration with all tissue laser.
So with diode lasers.
Which obviously is a.
Lower ticket price than our all tissue laser.
Once again with about 170000 dentist.
That is more highly penetrated with probably 40% of dental offices, having some type of doubt.
Of that about 25% is our diode.
One of the one of the epic type of dialogue that we manufacturer that's still number one but it's more fragmented market.
More competition, there and there as you can imagine the.
The revenue opportunity is great. So, let's say you got 10% of those offices.
Just increase in adoption from going from 40% to 50% as an example.
There you are talking about 170000 offices or Dennis at 10%. That's about another 17000 bind diode at our 25% market share in our average cost of a doubt that's another $30 million to $40 million.
Yes.
Large large numbers larger opportunities.
Just switching gears maybe to the.
To the gross margin I know there was this $1 $7 million charge for inventory.
No.
Supply chain issues, you had switched suppliers and delight designation for some of the parts and components do you feel like discharge.
Is all encompassing meaning this is cleaned out.
The inventory issue and we should we should be good now for.
We can say for how long, but at least for the next 12 months or so yes.
Yes, so I'll break that question down into two parts of my answer.
If you start at the 20% gross margin that we reported the.
Inventory reserve slashed write off.
If you exclude that Brian .
Gross profit up to just about 35% I think close to 37% that I believe is a one time deal.
We had a lot of changes in our <unk>.
Supply chain.
Trunk fiber.
Issues that we've had in the past.
Drove some of that write off as well and so I believe thats, a one time deal that won't reoccur.
Jim mentioned the acquisition that we made in the third quarter to bring some of our components in house, not only will that improve our capacity, which will reduce our backlog in some of these components, but it will also improve the quality of these components.
And also reduce the cost obviously taken all the taken out the manufacturer's margin.
I believe that the quality component.
Probably represented.
15% of our gross margin shortfall from what I would like to obtain.
In the quarter.
And while I don't believe that that will come back in Q4, we do expect to have the production up and running in Q1, and so I would expect that to normalize in Q1.
Okay great.
Excellent. Thanks, I'll hop back in the queue appreciate it.
Thanks Anthony.
Once again, if there are any remaining questions or comments. Please press star one on your phone at this time.
Your next question is coming from Bruce Jackson with the benchmark company. Please pose your question your line is live.
Hi, Thank you for taking my questions.
I know that international isn't as big a part of the.
The revenue story here, but I was wondering during the quarter.
What was the impact of foreign currency on the revenue and can you give us a sense of what geographic areas might've been exposed to and maybe comment.
Yes.
The willingness of Dennis to purchase lasers.
A factor.
COVID-19, lockdowns or is it more of an economic type of thing.
Maybe affecting demand.
Yes, so the the financial impact of the foreign currency of about $150000 loss.
Roughly.
The bigger impact was on I think the revenue side, where with the.
The strength of the U S. Dollar it makes our U S made lasers more expensive in the international markets and that's probably.
I don't know one market that the U S dollar hasnt strengthened against off the top of my head and so that has slowed down our international.
Health now.
Now having said that we're still about we were able to maintain status quo year over year third quarter over third quarter. So it wasn't that bad.
But from a Covid standpoint, we're seeing things opening up I've mentioned in the past that unlike in the U S where we have a direct sales force we have in your international distributor network that really rely on large shows and conferences to drive a lot of the.
Increased awareness and result in demand of our products those are opening back up.
Just had a very nice show.
This quarter well attended we're going to have.
Two big shows next year.
Is back in Cologne next year I believe in early second quarter.
I'm cautiously optimistic about international continuing to grow next year after kind of a.
Flatline in 2022 as part of that.
One of the things that did Bruce this year is spent a lot of time in the field right along with our territory managers meeting customers future customers.
It's been great for me just getting the pulse of the customers knowing how we can do things better and so forth I'll be spending a lot more time.
On the road internationally next year and I hope to gain some insights there and in addition, we've embedded some of the leading international Dennis to come visit US next year.
And as I mentioned to get really the voice of customer on the international side, So that will be a big focus areas for us next year.
Okay great.
The other thing I was curious about was per cube. The Mcguire study you've got some radiology data that's going to be in there.
Any sense of.
How the publication of that is coming along and if that's going to be.
Coming to that.
Yes, it is getting closer always slower than we would expect.
Anytime you have a couple of statisticians talking to each other that conversation takes longer than you would like.
However, saying that I would expect in the first half.
2023.
Part will be published if we're lucky maybe in the first quarter, but I'm confident it will be in the first half of 2023.
Okay great.
That's it for me congratulations on the progress.
Thank you Bruce.
Your next question is coming from Edward Woo with <unk> capital. Please pose your question your line is live.
Hi, it's terrific for Edward Woo.
Quick question about the price increases you mentioned in 2023 are you claimed to phase that in or just too.
One big increase in 2023 and also the second question can you talk about and also some of the successful marketing events similar to the webinar.
Sure so from a pricing standpoint, we haven't made the final decision on that.
We are talking.
Talking internally about the best way to do that either all at launch of phase. It in we should have a decision made there in the next few weeks.
So cant answer that question yet.
In terms of the marketing.
We hit.
Different avenues of marketing all the way from.
Webinars, which we continue to do to trade shows to innovations in dentistry.
<unk> to lunch and learns to a huge presence on social media and so that is really all of the above have driven the number of marketing qualified leads that we've seen in 2023, which is 2022, which is a huge increase over even last year and certainly a multiple of.
Prior years I think that has.
Those marketing qualified leads coming in obviously make it easier to have a discussion with a with a perspective buyer.
This is look at our technology I think that has really helped our sales team I think thats part of the reason that we've been able to retain all of our sales team.
These trying macroeconomic times.
With people changing jobs and so forth, it's never easy I would say to sell a laser but it's much easier to have a conversation when the dentist is coming to you wanted to talk about it first as you just coal Colin So that's been a big difference.
Great. Thank you very much.
Youre welcome.
There appear to be no further questions in queue at this time I would.
Now I'd like to turn the floor back over to John Beaver for any closing remarks.
Thank you operator.
I want to thank everyone for being on today's call also I want to thank the BIOLASE team for their continued commitment and dedication in delivering and elevate the standard of care and safety <unk> laser dentistry.
Jennifer and I look forward to reviewing our fourth quarter results on our next call in the meantime, we will be participating in several investor events, including benchmark 11th annual discovery, one on one Investor Conference coming up on December <unk> in New York City, and Investor meetings around the Jpmorgan Healthcare conference in January if you are participating either.
These events. Please contact Todd currently at T. Currently at EDC group Dot Com to help facilitate a meeting with us. Thank you operator, and thank you everyone for your interest in BIOLASE. This concludes our call have a great day.
Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect. Your phone lines at this time and have a wonderful day. Thank you for your participation.