Earnings Call Transcript - INMD Q3 2021

Operator, Operator

Hello and welcome to the InMode Limited Third Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. After today’s presentation there will be an opportunity to ask questions. Please note today’s event is being recorded. I would now like to turn the conference over to Miri Segal, President of MS-IR. Please go ahead.

Miri Segal, President of MS-IR

Thank you, operator and thank you all for joining us today. Welcome to InMode's third quarter 2021 earnings call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please download one from the Investor Relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. Therefore, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them, except as required by law. Today we are joined by Moshe Mizrahy, InMode's Chairman of the Board and CEO, who will start us off with a business update. Then, he will turn the call over to Shakil Lakhani, InMode's President of North America, to discuss North American operations. Finally, Yair Malca, our CFO, will discuss the financials of the third quarter in some more detail. With that, I'd like to pass the call over to Moshe Mizrahy. Moshe, congratulations on another record quarter. Please go ahead.

Moshe Mizrahy, Chairman and CEO

Thank you Miri and thank you all, everyone for joining us on our third quarter of 2021 earnings call. With me today are Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer; Mr. Yair Malca, our CFO; Mr. Shakil Lakhani, our President of North America; Dr. Spero Theodorou, our Chief Medical Officer; and Rafael Lickerman, our VP Finance. Following our prepared remarks, we will all be available for Q&A session. We are happy to report again a record quarter of profitable growth, thanks to our innovative unique technology, growing market demand, our excellent employees, and collaborative efforts with our network around the world. We posted record revenue of $94.2 million for the third quarter of 2021, an increase of 58% over the same quarter last year. We continue to closely control our expenses and our net income for the quarter on a GAAP basis reached a record of $44.7 million, reflecting an 87% growth year-over-year. Sales of capital equipment accounted for 90% of our total revenue. Despite some slowdown, sales from consumables and services remain strong, representing 10% of our total revenue at $9.1 million, a 68% increase over the same quarter last year. A strong demand for our consumables shows widespread market acceptance indicating that physicians are buying more platforms and performing more treatments every month. Our minimally invasive surgical technology represents 73% of our revenue for the quarter compared to 59% in the third quarter last year. The U.S. was once again a major contributor to our top clients with total sales reaching $62.6 million compared to $40.9 million in the third quarter of 2020, reflecting a 53% increase. It's worth noting that EmpowerRF was recently launched and is currently limited to the U.S. as we focus on early adopters in the gynecology space. This strategy will lay the necessary groundwork for successful introduction to a global market. Our sales have continued to grow, with total sales outside the U.S. representing a 68% increase compared to the same period last year. We currently operate in 72 countries and expect the number to rise as we seek to expand into new markets. We are currently exploring establishing a new subsidiary in another major European market which we hope to begin operations in Q1 2022. Our ESG efforts continue every day to ensure we maintain excellence in ESG protocols within our industry. Accordingly, we work closely with our suppliers and subcontractors to ensure compliance with the same ESG standards set by InMode. We prepared an ESG activity plan for the fourth quarter and for 2022 which will be published on our website. Now I would like to turn your attention to Shakil, our President of North America. Shakil.

Shakil Lakhani, President of North America

Thanks Moshe and to everyone joining us. It's a pleasure to announce that we delivered a record-breaking performance again this quarter, just as it is to share the news of the launch of two new platforms, EvolveX and EmpowerRF. In the third quarter, our sales of capital equipment continued to be a driving force behind revenue which reached $85 million. As mentioned, consumables and service revenue continued to contribute to the strong performance from the previous quarter. The third quarter of 2021 raised the bar for record attendance at our workshops, enhancing our educational support network for our existing and new customer base. Despite variations in COVID protocols across North America, physician offices are becoming increasingly busy. This reflects a normalization of elevated demand that positively impacts our financial results. Consequently, we see a lot of interest expressed in our existing and newer platforms, accelerating market acceptance. Our history of successful launches combined with market demand fortifies our position to grow different revenue segments even during seasonal and other fluctuations. The soft launch of EmpowerRF has been instrumental in giving us necessary insights to create an effective strategy. As doctors and patients learn to navigate their lives under the COVID-19 pandemic, part of our marketing strategy is to increase the number of in-person events that we host in the coming months. Such events familiarize the medical and wellness community with InMode’s comprehensive product portfolio. Finally, I'd like to thank the North American team for their ongoing efforts and the impressive performance that led to these record results. Their loyalty, dedication, and hard work are very much appreciated and proven vital in supporting InMode’s operations. With that I'd like to hand over the call to Yair for a review of our financial results. Yair.

Yair Malca, CFO

Thanks Shakil and good day everyone. I'd like to review our strong financial results in more detail. Total revenue in the third quarter of 2021 increased 58% year-over-year to $94.2 million with a gross margin of 85% on a GAAP basis. The increase in revenues stem primarily from the new level of demand for aesthetic procedures that we're experiencing as well as recovery from the lower revenue levels recorded during Q3 of 2020, which was significantly impacted by the COVID-19 pandemic. Our minimally invasive and traditional laser and non-invasive segments grew significantly compared to the same period last year. Minimal invasive and subdermal ablative technologies grew 95% while laser and non-invasive grew 85%. International sales were on track with the projected growth rate and increased year-over-year as we are successfully duplicating our U.S. growth strategy across these markets. Furthermore, capital equipment accounted for 90% of our revenue, with consumable business service revenues representing the remaining 10%. GAAP operating expenses in the third quarter of 2021 was $35.2 million, a 30% increase year-over-year. GAAP sales and marketing expenses for the quarter increased 30% compared to the third quarter of 2020. Share-based compensation increased to $3.1 million this quarter compared to $2.4 million in the third quarter of 2020. On a non-GAAP basis, operating expenses totaled approximately $32.3 million in the third quarter of 2021 compared to operating expenses of $24.8 million in the same quarter of 2020, an increase of 30%. GAAP operating margin was 47.8% in the third quarter of 2021 compared to 39% in the third quarter of 2020. Non-GAAP operating margin in the third quarter of 2021 was 51% compared to 43% in the third quarter of 2020. Our record results can be credited to growing customer demand, global trends, exceptional results achieved by our treatments, as well as a lower volume of travel relative to the pre-COVID era. In addition, we are successfully managing component shortages in our supply chain through the various distributor and supply networks established during the pandemic. GAAP diluted earnings per share for the quarter ended September 30, 2021 was $0.52 compared to $0.28 per diluted share in the third quarter of 2020. Non-GAAP diluted earnings per share in the third quarter of 2021 was $0.55 compared to $0.31 per diluted share for the same quarter of 2020. I'd like to remind our listeners that we completed a two-for-one stock split earlier in the quarter making our shares more affordable to the investment community and our employees. We completed the third quarter with a strong balance sheet. As of September 30th of this year, the company had cash and cash equivalents, marketable securities, and deposits of $387.4 million. On the cash flow front, the company generated $50.5 million from operating activities for the third quarter of 2021. I will now hand the call back over to Moshe.

Moshe Mizrahy, Chairman and CEO

Thanks Yair, thanks Shakil. Operator, we are ready for Q&A.

Operator, Operator

And the first question comes from Travis Steed with Barclays.

Travis Steed, Analyst

Hey, good morning and congratulations on a great quarter. When I'm looking at the quarter, it looks like things really shaped up nicely August-September; you didn't really see as much seasonality as you expected. So, curious if you can comment a little bit on how the quarter shaped up and what you're seeing here in early October or late October, and curious if you could comment on the growth in your various channels like dermatologists versus med spas, if you're seeing anything different with your different customer base?

Moshe Mizrahy, Chairman and CEO

Yeah, let’s start. Hi Travis, this is Moshe. Let’s start with the U.S. Shakil will start and I will complement him.

Shakil Lakhani, President of North America

Sure, Travis, hello. For October, we've gotten off to a good start. In terms of last quarter, we typically experience some seasonality, which affects certain product lines differently. Our minimally invasive products performed well, although we noticed a slight decline in our hands-free category, which we anticipated for Q3. We're optimistic about Q4 based on what we're witnessing so far. As for specialties, everything has been fairly consistent lately. Our focus will be on core markets first, similar to our approach with minimally invasive technology, as we aim to establish a strong support framework to ensure the longevity of our devices. That's an overview from the North American perspective. Moshe, would you like to discuss the international side?

Moshe Mizrahy, Chairman and CEO

Yeah, sure. Travis, you know that there are some countries in Europe, for example, that in the third quarter closed operations for at least six to eight weeks like France, Spain, and Italy; therefore, in those countries most of the business came in September, a little bit in early July, and then from the last week of August where everybody came back to work after vacationing. In Asia, I would say we didn’t see any slowdown in the summertime. We had a strong quarter with Korea, and improved performance in India, which is now doing a little better since the COVID pandemic. Australia was mainly in lockdown for most of the quarter, so we didn't see much there. China did quite well in August-September. In South America, Brazil experienced a slowdown in July-August but started recovering in September. Overall, this quarter was better than any summertime quarter that I remember in my 25 years in the industry. We believe this is because we have different products. Traditionally summertime is not the best time for laser treatments, but our minimally invasive technology performed better compared to traditional laser treatments. October started strong in most of the countries, and we see momentum that we believe will continue into November-December. The last quarter is usually the strongest one. Did we answer your question?

Travis Steed, Analyst

Oh, that's super helpful detail. Thanks a lot on that. My next question is really thinking about next year. It seems like you've got a ton of momentum in the base business. So I would say really no change in that $50 million to $70 million growth that you typically see in the base business. But then thinking through the GYN launch, I'm curious if you could add some color on some of the initial feedback on that, and should we expect something like $20 million for next year incremental from the GYN launch?

Moshe Mizrahy, Chairman and CEO

Spero, do you want to talk a little bit about our strategy for launching in the gynecology market?

Dr. Spero Theodorou, Chief Medical Officer

Sure, Travis, that's a great question. We have seen in the past what happened with different GYN products and what competitors did, and we want to avoid repeating those mistakes. We are taking a similar approach to how we launched our plastic surgery and dermatology products. We are focusing first on urogynecologists, equivalent to the plastic surgeons. Part of our strategy is to build credibility with this group before branching out widely. We see early indications of enthusiasm for our technology, but it's a slow ramp-up. We are doing numerous studies to establish credibility before wider adoption. This approach is essential for long-term success, as we don't want to be a company that faces a boom and bust cycle like others in the industry. Does that answer your question, Travis?

Travis Steed, Analyst

Yes.

Dr. Spero Theodorou, Chief Medical Officer

This is the first part and Moshe, you could comment on the rest.

Moshe Mizrahy, Chairman and CEO

Yeah, I would say that right now, we launched the product only in the U.S. and are still working on regulatory approvals in other countries, which is a lengthy process considering the number of regulatory bodies we are submitting documentation to. We hope to launch in Europe around the end of January. To give you a number, estimating total revenue for next year is challenging since the gynecology market is new to us. However, $20 million sounds reasonable based on our current learning curve and market education efforts. We launched this product in the last week of August, so we really only have about one month of experience with it.

Travis Steed, Analyst

Great. Thanks for taking the questions.

Operator, Operator

Thank you. And the next question comes from Matt Taylor with UBS.

Matthew Taylor, Analyst

Great, good morning. Thank you for taking the question and congrats on a good quarter. So the first question I want to ask you, Moshe, was in the past you've talked about the scale of the organization and being able to grow; it used to be $50 million in terms of absolute dollars on the top line. You've talked about some increased numbers in recent months, and obviously this year, you have an easy comp. But you're growing potentially $140 million over last year in 2021. So I just wanted you to frame some thoughts on the scale of the organization, and how much you think you may be able to grow in dollars now with your current size and your products and expansion to international?

Moshe Mizrahy, Chairman and CEO

Yeah, thank you, Matt. Very good question. You know, I would say that in 2020, we grew from $156 million to $206 million, which is about $50 million. However, we all need to remember that was a COVID year. If we normalize 2020, I would estimate that at least $30 million or $35 million of our growth in 2021 was due to 2020 trends. So we need to average both years to understand real growth. I agree that total growth this year exceeded our expectations. If you recall, our initial guidance for 2021 was $250 million to $260 million, and we continuously updated this guidance based on our quarterly performance. 2021 is shaping up to be a great year for us. I cannot promise that we will continue to grow by $140 million every year, but we are optimistic about the aesthetics market and positive trends in gynecology. Our R&D pipeline includes close to 15 projects aimed at enhancing our aesthetic portfolio, which we believe will help us further grow. The total systems sold to date are around 10,000, with about five times that number in the U.S. This is still a burgeoning stage of our business, but we believe that substantial expansion is possible in the future.

Matthew Taylor, Analyst

Okay, thanks Moshe, that’s a lot of good color. I appreciate you walking us through that. I did want to ask a follow-up on the pipeline. Could you talk about ophthalmology and the timing of that and what the ramp would look like there? You mentioned these 15 projects. So are there any other ones that you could give us some color on in terms of the timing or the composition?

Moshe Mizrahy, Chairman and CEO

I can tell you what projects we're working on. We're developing three projects for the aesthetic field. We just launched on the Evolve line and are doing something similar on the Evoke for the face to enhance our hands-free device. We're developing solutions for ophthalmology related to dry eye, which will come early next year. We are performing studies for this. We are also working on a platform for snoring and treatments for turbinate, among others. That will be a separate platform. We are also developing platforms for erectile dysfunction, primarily for men. It's a wide variety of projects, encompassing both new platforms and handpieces as well as new indications.

Matthew Taylor, Analyst

Okay, thanks a lot for the information and thank you.

Operator, Operator

Thank you. And the next question comes from Kyle Rose of Canaccord Genuity.

Kyle Rose, Analyst

Great, thank you very much, and congrats on the success thus far. I wanted to just see if we could talk a little bit more about Empower. I realized that you had a small contribution in the quarter, and you've got a controlled launch taking place. But when I think about what the business looked like several years ago, it seems like you guys were launching the Votiva product; I'm just trying to understand how we should think about the contribution of Empower maybe in the first 12 to 18 months of launch, and can it be what Votiva was on a percentage of sales basis? I am just trying to frame that opportunity, given it seems like you're one of the few companies investing in launching new technologies here?

Moshe Mizrahy, Chairman and CEO

Shakil, you want to start?

Shakil Lakhani, President of North America

Yes, sure. Hey, Kyle. I think the way to look at it is, again I appreciate you noting our controlled release of this product. The one thing we definitely want to do is, as I mentioned before, get it in the right core specialties, the right hands, and ensure it's doing what it's intended to do. We will have a better idea in the next one to two quarters as to what the potential looks like for the longer outlook here. However, we all know what the total addressable market is for this particular segment, and it’s significant. The main hurdle we face is helping women’s health and wellness physicians understand how cash-based procedures work since they're used to dealing with insurance. Luckily, we have a wealth of experience navigating this market over the last four or five years. We want to ensure we have enough statistical data to back up our product claims, especially as we approach urologists or OBGYNs. We are committed to having a controlled release to ensure we can live up to our promises. So far, preliminary feedback has been optimistic, but we’ll have clearer insights in future quarters. Does that make sense?

Kyle Rose, Analyst

It does. Thank you. And then I'll just ask my last few questions at the same time. One, can we get an update just on China and where you stand from a regulatory aspect, as far as the number of systems that are approved there? Secondly, you've had very strong system sales the last 24 months. I guess you have had strong system sales throughout your business, just trying to understand how to think about the mix of consumables and service moving forward. I think the service contracts don't kick in until after 12 months; we're just trying to understand how that mix might change when we think about 2022 and beyond? Thank you.

Moshe Mizrahy, Chairman and CEO

Okay, let's start with China. We currently have three invasive products approved in China, and we expect to have first-quarter approvals for laser IPL and non-invasive products, which we submitted to the CFDA roughly eight months ago. Regulatory processes in China can be unpredictable; timelines are uncertain, but we are managing. We have a consultant to expedite approvals with the CFDA, which usually makes it more challenging for foreign companies. Meanwhile, with the three approved categories, we are generating approximately $2.5 million a quarter in China, and hopefully, we will increase to $4 million a quarter next year. Regarding system sales, we sold 1200 systems worldwide last quarter, surpassing the second quarter by about 100 systems. Disposable sales totaled 91,000, compared to 92,000 in the second quarter, which reflects a healthy trend considering seasonal variations typically result in a 10% to 15% decline during summer. Our disposable sales show strong growth, around 70% compared to last year during the same period. Additionally, the Empower platforms have three or even four different disposables. Sometimes, each treatment utilizes one or two disposables. This is positive for our sales numbers. Most of our ongoing projects will have at least one disposable associated with them, so we project that as our install base grows to about 20,000 platforms worldwide, the disposable revenue could rise to between 15% and 18% of total revenue. Does this answer your questions?

Kyle Rose, Analyst

It does. Thank you very much.

Operator, Operator

Thank you. And the next question comes from Mike Mattson with Needham & Company.

Mike Mattson, Analyst

Hi, good morning. Thanks for taking my questions. I guess I'll start with the international business. You mentioned you're looking at opening a subsidiary in a major European country. Just wondering if you could provide more detail on that, and you talked about the financial implications of doing that?

Moshe Mizrahy, Chairman and CEO

Yeah, of course. Well, I don't want to mention the specific country just yet, but it will be one of the biggest markets. Currently, we have operations in Spain, the UK, and France, and we utilize distributors in Italy and Germany. We plan to establish a subsidiary in one of those two countries. We have already hired a team, which consists of a manager, two sales managers, a clinical manager, and an admin. They are currently being trained, and some will travel to Israel for further detailed training on each system. We are searching for a facility from where we will operate. This should be completed in the next two months. When we sell directly, we establish closer relationships with doctors and customers, gaining a better understanding of their needs. This will also reduce dependence on distributor loyalty. Approximately 81% of our sales today are direct, with two subsidiaries in North America, three in Europe, and two in Asia, including Australia and India. We are also finalizing discussions for a subsidiary in China and another European country. Next year, we will have nine subsidiaries, likely increasing our direct sales as opposed to indirect sales. Selling directly allows us to recognize the full value of our offerings and enhance service quality. I hope that provides clarity.

Mike Mattson, Analyst

No, no, that was great. Thanks, and then just wanted to ask on EmpowerRF. I understand it's early days of the launch here, but what are you seeing in terms of the different handpieces and options there? What's the most popular handpiece, and is the primary focus mostly on SUI options?

Shakil Lakhani, President of North America

Yes, I hand it over to Spero in a second.

Moshe Mizrahy, Chairman and CEO

Okay, go ahead.

Shakil Lakhani, President of North America

From a commercial perspective, we've only been launching Empower for about a month, which is a limited sample size. It's tough to determine clear patterns yet, but based on interest, the SUI option is very popular and something that hasn't had strong options previously in the market. While preliminary data looks promising, we need significant clinical backing and data to substantiate these claims. We believe the VTone handpiece will be a significant driver based on its focus. I’ll hand things over to Spero for clinical insights.

Dr. Spero Theodorou, Chief Medical Officer

Thank you, Shak. That's a great question. We are engaging with gynecologists and general practitioners worldwide, and each group has distinguishable interests. Urogynecologists have shown remarkable excitement about our intravaginal microneedling treatment, the first of its kind, which is generating substantial interest. Gynecologists who are currently delivering babies also see great potential in offering treatments to women post-delivery, incorporating our technologies into a comprehensive postpartum care package. This is a novel approach in the industry, enabling us to offer a complete solution that includes therapies targeting multiple issues faced by women after childbirth. Furthermore, while we enter the market with medical indications, we also bring the aesthetics into the fold, encouraging cash-based and aesthetically relevant options into the field traditionally hesitant about these approaches. This flexibility and breadth provide us with a unique competitive edge.

Mike Mattson, Analyst

Okay, thanks. That's helpful. And then my final question is really just on the supply chain. So obviously demand appears to be really strong in your business, but one thing that I worry a little bit about is that we're just going to see an announcement one day that you had some kind of shortage in terms of semiconductors and some other components to your products. I just wanted to gauge your confidence level and your ability to meet this tremendous growth that you're seeing, given everything that's happening out there with the supply chain?

Moshe Mizrahy, Chairman and CEO

As far as the supply chain and logistics, you are absolutely right. Many companies that previously delivered components in four weeks are now pushing 14-week delivery times. We noticed our inventory grew slightly, as we are proactively avoiding shortages by sourcing components from multiple suppliers across different regions. Currently, we have manufacturing capacity to produce 2500 systems, but we are using only 50% of this capacity. We have established a special engineering department focused solely on monitoring alternative components. As for manufacturing, everything happens in Israel, with logistics handled primarily through sea shipments to save costs. We're monitoring shipping logistics as they have become increasingly volatile, with airfreight costs increasing significantly. We are taking steps to maintain an 85% gross margin, which is critical for our business model.

Mike Mattson, Analyst

Okay, and just with shipping, I'm hearing a lot about ports being backed up and such. So you're not worried about these items getting stuck in a container somewhere on a boat floating around?

Moshe Mizrahy, Chairman and CEO

No, we are not worried, but you can never be too certain about the future. People are learning to navigate this pandemic better, and I expect that manufacturing and supply chain conditions will normalize over the coming year. However, we have put precautions in place, and I believe we are managing well under the circumstances.

Operator, Operator

Thank you. And the next question comes from Jeff Johnson with Baird.

Jeff Johnson, Analyst

Yeah, thanks. Good morning guys. Moshe, it's not too dissimilar from a question I've asked in the past, I'd be interested in the quarter in the U.S. What percentage of your revenues are even qualitatively if you could talk about how many of the systems or handpieces that were sold in the U.S. during the quarter went into current customers, so they were buying a second, third, or fourth handpiece or system, versus how many went into brand new accounts? Just trying to understand penetration and where we are on kind of penetration in the U.S. of the derm and plastic side of the market? Thanks.

Moshe Mizrahy, Chairman and CEO

Shakil, could you please answer that?

Shakil Lakhani, President of North America

Yeah, sure. Hey Jeff, fortunately, we're not the type of company that operates like some of the larger companies where we have systematic sales. We do maintain relationships with existing customers but prioritize ensuring they succeed. Once they see success our sales team is able to offer them newer technologies. Although I can't provide precise metrics, I can tell you that most of our revenue comes from new accounts, supplemented by orders from existing customer accounts. Our focus is on helping our clients achieve their objectives.

Yair Malca, CFO

Hi Jeff, this is Yair. Just to complement what Shakil said, at least in the U.S., over 70% of our sales this year are going to new customers.

Jeff Johnson, Analyst

Alright, that's helpful. Thank you, Yair. And then I guess the follow-up to that and it kind of is an international question as well. Should we think then that Evolve and Evoke didn’t necessarily go into customers who owned the AccuTite BodyTite platform? Were those products going more into med spas and things like that? And Moshe, you mentioned in China getting IPL and hands-free potentially next year, does that move you into China in the med spas, whereas right now with the other platforms you are more focused on the physician hospital category?

Moshe Mizrahy, Chairman and CEO

Let me answer you regarding China; Shakil will address the med spa situation in North America. The Evolve and Evoke platforms were introduced in the O.U.S. only this year, and we're just getting initial approvals in certain regions. It's already approved in Europe but not yet in Asia or China. The Chinese market has three categorizations: hospitals, private clinics, and the spa market, which is the largest. Yes, once we receive approval for hands-free devices in China, we will target the spa market while also addressing hospitals and private clinics. The spa market is well-structured, and we can tap into that demand. Shakil, you can speak about North America med spas.

Shakil Lakhani, President of North America

Yes, absolutely. We have historically approached the market focusing on physicians, but hands-free technology allows access to med spas as well. However, successfully financing these investments can be challenging for smaller facilities, as they typically engage more with physicians. Nevertheless, we do target medical spas. The hands-free technology is suitable for their operational model as they can delegate tasks to staff while treating multiple patients. This setup also facilitates revenue growth for practices utilizing various technologies concurrently. We believe that as we expand our offerings, we will have a broad influence across the medical aesthetics space.

Jeff Johnson, Analyst

Understood. Thank you guys.

Operator, Operator

And this concludes the question-and-answer session. I would like to turn the call to Moshe Mizrahy, Chairman and CEO for closing comments.

Moshe Mizrahy, Chairman and CEO

Okay. Thank you operator. Again, thanks everybody for joining us today. I want to express thanks to all of our employees worldwide. I'm sure that some of them are on the line. We had a very successful quarter but a tough one. We worked very hard on logistics, manufacturing, sales, marketing, and support. I believe as a team we did very well, and we will maintain momentum for the benefit of our employees, all stakeholders, and shareholders. Thank you, everyone. Bye-bye.

Operator, Operator

Thank you. The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect your lines.