ESTABLISHMENT LABS HOLDINGS INC. Q1 FY2025 earnings call

• Juan Jose Chacon-Quiros announced Peter Caldini as permanent CEO. • First quarter revenue totaled $41.4 million, with US sales at $6.2 million exceeding prior guidance. • Motiva launch in the US exceeded expectations with over 900 accounts fully on board and over 700 placing orders. • Progress made in leveraging operating expenses, forecasting first positive EBITDA quarter in 2025 and cash flow breakeven in 2026. • Mia and Preserve products making progress, with Preserve launched in Latin America and Europe, and Mia on track for $8 million to $10 million in revenue in 2025. • Focus on four main priorities: driving growth in the US, increasing efficiency and profitability, launching minimally invasive portfolio, and advancing innovation pipeline.

In the first quarter, total revenue was $41.4 million. US sales in the first quarter were $6.2 million, and outside the US, first quarter sales met expectations. Gross profit for the first quarter was $27.8 million, which is 67.2% of revenue. The gross margin was 160 basis points higher compared to the same period in 2024. Revenue in the first quarter was an increase of 11% from the year ago period, excluding foreign exchange impact, growth would have been 13.5%.

• Reiterated revenue guidance of $205 million to $210 million. • US revenue is expected to meaningfully exceed the $35 million guided in February. • OUS revenue to have single-digit growth this year. • Forecast first positive EBITDA quarter in 2025 and cash flow breakeven in 2026. • Guidance is conservative, taking into account tariff-related impacts.

• Uncertainty in the global economy. • Impact of trade policies/tariffs, though proposed duties on goods from Costa Rica to US have a minimal gross margin impact.

Q: Please confirm the mid-single-digit guidance for OUS and break down consumer sentiment by region, particularly Brazil, Southeast Asia, and China.

A: OUS business has not seen impact on demand. Asia has stabilized, Europe has pockets of growth, and Latin America, particularly Brazil, continues to have challenges but is stabilizing.

Q: Talk about the strategy behind keeping guidance where it is despite US launch outpacing range.

A: Very happy with US performance, driven by best-in-class organization, superior product, and Meghan Trainor program. Guidance is conservative while monitoring progress.

Q: What are you seeing in the field in terms of competitive response to US Motiva launch?

A: Not seen significant competitive response, some price discounting but not impacting much.

Q: Update on U.S. sales force and plans to expand?

A: Currently at 40 reps, planning to expand in larger cities with good penetration, adding reps financially prudently.

Q: Feedback on U.S. surgeons' response to Motiva?

A: Very positive, with strong momentum and expansion of opportunity through social media and surgeon campaigns.

Q: Update on spend profile and operating spend guidance?

A: Modeling $45 million to $46 million per quarter for operating spend, with first quarter slightly lower due to timing, expecting leverage from US revenue growth.

Q: Update on halo effect of FDA approval and OUS clinics utilizing FDA-approved products?

A: Continues to see strong momentum in converting clinics, but specific number of clinics utilizing FDA-approved products is hard to pin down.

Q: Penetration expectations and target accounts in U.S.?

A: Exceeding expectations, aiming to be close to target accounts by end of year, with reordering progressing well.

Q: Mia accounts in Europe and their contribution?

A: Progressing with 75 accounts in 42 cities, with two accounts at $1 million a month.