Apyx Medical Corporation (NASDAQ:APYX) Q4 2022 Earnings Call Transcript

Charles Goodwin : Yeah, thank you. And you are correct of talking about it in €˜23 and ’24, because it will be a multi-year program to upgrade everybody. I think the important thing for the Apyx One, and the important thing to remember there is that this for the first time is really a console, a surgical consult that was designed by members of this community, i.e., plastic surgeons to be able to function and do the body contouring procedures that they’re looking to do. And so, we will be upgrading for a fee to our existing users and we will not be giving any of those, any of those away and we are right and we’re building production as we speak in 2023 and we right now are continuing to offer both the Apyx One and the RS3, but we intend to be selling the Apyx one fully by year end and we’ will continue to sell the RS3 generator internationally.

But the upgrade itself will be a new revenue source that we have actually never had here at Apyx. So, we’re excited about what this means for us. What this brings to our customers. And the other thing too about Apyx One is, it will drive all future new instrumentation also.

Matthew O’Brien : Very helpful. Thank you. Thank you.

Charles Goodwin : Thank you.

Operator: Our next question is from Matt Hewitt with Craig-Hallum Capital Group. Please proceed.

Matt Hewitt : Good morning. And thank you for taking the questions. Maybe just a follow-on on the revenue side a little bit, as you have launched these new marketing campaigns here recently, what has been the feedback and the response from the markets that you’ve been specifically targeting, are you, are you seeing that in the sales and the utilization or any color that you could provide there?

Charles Goodwin : Yeah. Look, we are still in the initial months of our direct-to-consumer campaign. So I want to be clear there and make sure that, you know, we’re, as we sit here today, we’re two and a half months into this, but, the feedback that we have gotten from surgeon customers and patients has been very, very positive that the This is Me campaign is resonating with them. And when you’re looking at this campaign and really if you’re stripping things down from this campaign, what really is hitting home is the fact that people want to look like they look, they want to look natural, they don’t want to be full of fillers and all kinds of things. They want a natural look. They just want to look younger and that’s exactly what the Renuvion technology is allowing doctors to do is to bring that. And that is the whole – that is the whole genesis, if you will of the This is Me campaign and its really resonating both with the consumer side and the physician side.

Matt Hewitt : That’s helpful. And then maybe my follow-up, in the, OUS markets, it sounds like you’re starting to see some recovery in the utilization, but that it’s the generators that that are the lag there. What are you hearing from your distributor partners as you’ve received a couple of approvals? I mean, are they literally just waiting for this last piece and they – and at that that point they’ve said they’ll come back? Or what do you think is going to be the catalyst to get them to come back for? Thank you.