Establishment Labs at Jefferies Conference: Strategic Growth in U.S. Market

On Wednesday, June 4, 2025, Establishment Labs (NASDAQ:ESTA) presented at the Jefferies Global Healthcare Conference 2025, outlining a robust strategy focused on U.S. market expansion and innovation-driven growth. While the company highlighted strong performance and a promising product pipeline, challenges remain in international markets, particularly in Latin America.

Key Takeaways

• Establishment Labs aims for 25% revenue growth in 2025, targeting $205 million to $210 million.
• U.S. market expansion is a priority, with revenue expected to exceed $35 million this year.
• The company plans to reach EBITDA profitability by year-end and cash flow breakeven next year.
• New product launches, including Preservae and Mia, are central to its growth strategy.
• Macroeconomic factors have not significantly impacted the company, but vigilance remains.

Financial Results

• Revenue Guidance: Establishment Labs is targeting revenue between $205 million and $210 million for 2025, representing approximately 25% growth.
• U.S. Market: The U.S. is a focal point, with significant revenue growth expected to exceed $35 million. The company benefits from higher margins in this market.
• EMEA (Mia): Revenue from Mia is projected between $8 million and $10 million.
• Gross Margin: The company anticipates a 200 to 300 basis point expansion in gross margin this year.
• Profitability: Establishment Labs aims to be EBITDA positive by the end of the year and achieve cash flow breakeven next year.
• Expenses: Operating expenses are expected to stabilize following significant investments in late 2024 and early 2025.

Operational Updates

• U.S. Expansion: The company has onboarded additional accounts and increased sales, highlighting strong market performance.
• Organization: Establishment Labs prides itself on a best-in-class organization, attracting top talent from competitors.
• Mia: Now available in 75 clinics, with 40% of users new to breast augmentation, indicating market expansion.
• Preservae: Launched in Europe and Brazil, generating strong interest and expanding market reach.
• Recon (Reconstruction Indication): Currently in 60 accounts, with plans to file for FDA approval by the end of the year.
• GEM Program: In early development stages, with testing planned in Latin American markets.

Future Outlook

• Innovation Pipeline: A super cycle of innovation is anticipated over the next two to three years, with new products like Preservae and Mia driving growth.
• Market Expansion: Preservae is expected to contribute significantly to growth in OUS markets.
• Financial Discipline: The company maintains strong financial management and operational efficiency, focusing resources on the U.S. market and innovation pipeline.

Q&A Highlights

• Macroeconomic Impact: No significant impact observed yet, but the company remains cautious.
• China Market: Establishment Labs is using a distributor, expecting gradual market penetration.
• Competitive Landscape: No major competitive pressures noted, with pricing strategies addressing any activity on a case-by-case basis.
• Pricing Strategy: The company maintains a premium pricing strategy, emphasizing product safety and innovation.

Readers interested in more detailed insights can refer to the full transcript below.

Full transcript - Jefferies Global Healthcare Conference 2025:

Matt Taylor, Analyst, Jefferies: Good morning, everybody. Thanks for joining us here for our first session in the med tech track. I’m Matt Taylor, the US medical supplies and devices analyst here at Jefferies. And I’m joined by the management team on my left here for Establishment Labs. So we have Pete Caldini, who’s the CEO, and Raj Denhoy, the CFO.

And we’ll have about a half hour for moderated q and a. So I always like to start high level, especially for these conferences, there could be folks who are newer to the story. So maybe you could just start with a little bit of an overview of your portfolio, talk about how your products are differentiated, and maybe give us a look at the pipeline and some of the stuff you’re excited about coming down the pipe.

Pete Caldini, CEO, Establishment Labs: Yeah. Thank you, Matt. It’s pleasure to be here. Know, regarding your question, I think you know the broad portfolio that we have on global basis, know, I think what’s really driven our success outside The U. S.

And what I think is going to be a key driver for our success in The U. S. Is that we have a portfolio of differentiated products that are really unmatched in the industry. We have the safest products that’s really supported with clinical data in The U. S.

We have our five year data from the FDA study that supports that. It’s a far superior safety profile than what’s in the market. And also we’re the real leaders in innovation in the industry. And so what we’ve been able to develop really outside The U. S.

Is a wide spectrum of products from our round product to Ergo to Ergo two to our minimally invasive platform that contains Prezervae as well as our premium product Mia. So each one of the products creates value and differentiation at different price points. But they’re all really founded and really built on superior performance and superior safety. And so in The U. S.

Where we are today, it’s really the early stages. We have around an Ergo one product in the market. But over the next two to three years, we’re expecting to launch really a super cycle of innovation. We’re going to have the recon indication. We’re also going to be launching Preservae.

It’s part of the minimally invasive platform. And then a little bit further out, once we do the PMA supplement for Ergo two, we’ll be able to launch Mia. And so all this will be in the next two to three years, which is going to enable us to build a very strong business in The U. S. We have already a best in class organization and we’re seeing a lot of success in the market.

So it’s really going to kind of build out that portfolio.

Matt Taylor, Analyst, Jefferies: Fantastic. So maybe we could start again high level on the market a little bit and talk about some of the key trends there. There’s been a lot of investors talking about macro pressures and how that could impact consumer discretionary purchases. And I would love to just get some insight into how the market’s been growing, how you’re doing within it, and what you think the outlook is for the

Pete Caldini, CEO, Establishment Labs: Yes. So I think that’s a fair point in terms of the OUS market. In general, in what we’ve seen, it’s been pretty stable. But obviously there’s a lot of uncertainty around the macroeconomic situation, especially with the tariff discussions. But as I said before, you know, we haven’t seen a real impact in terms of the level of procedures.

Obviously, I think this is more of a lagging indicator. It’s something that we’re staying very close to. And also put ourselves in a position to course correct when we do see changes in the different markets. I would say that so far we haven’t seen any material impact to that. But obviously we’re very close to it.

You look at the different regions, I would say Asia Pac for us is stable and we’re seeing pockets of growth. And then we highlighted in the earnings call, China is a market that we had a pipeline fill the last year and we’re not looking to get any sell in for the first half, so probably in the back half of the year. And then in Europe, I think it’s a stable market. We see areas where we’re having good growth and then we have some challenges. Very happy with our performance in The U.

K. And Spain, also in some of the distributor markets such as Poland and Russia. And so we’re really gaining share in those markets. And what’s really helping us drive the business where we’re very confident in 2025 is we roll out the PRESERVAY minimally invasive products. There’s very strong interest.

We started that rollout at beginning of this year and continues to have a lot of interest. And so that’s going to help drive our business in Europe. And then for us, Latin America has been probably the biggest challenge over the last twelve to eighteen months, in particular when we talk about Brazil. However, we have seen some stabilization in that market the end of last year. And I think with the we’re also launching Preservay there.

So we’re going to see some sequential growth, but I think that still continues to be a market and a region overall that’s a little bit challenging from a macroeconomic standpoint.

Matt Taylor, Analyst, Jefferies: Great. And as a reminder, you guided to mid single digit growth guide in 2025. Maybe you could talk a little bit about how that guidance was constructed and how confident you are in hitting the high and low end of the guide given the trends you saw in Q1?

Raj Denhoy, CFO, Establishment Labs: Yes. Think as Peter noted, we continue to be very vigilant to any changes in the underlying market conditions. But thus far, we really haven’t seen anything meaningful at this point. And the overall guidance of $2.00 5,000,000 to $210,000,000 roughly 25% at the midpoint, we’re still very confident in those numbers. And again, our philosophy around this is to be conservative and see how things play out over the course of the year.

But as we sit here today, we remain very comfortable with the outlook we’ve given.

Matt Taylor, Analyst, Jefferies: Now, and part of that has been the strong performance in The U. S. And obviously, that’s a big focus for investors. So you talked most recently about 900 accounts and it seems like you’ve been adding about 100 a month. So I was curious if you could talk a little bit about the ramp in The U.

S, how things are doing there. And you said on the last call that you’re confident that you could get some upside to the guide, but it seems like you’re still remaining conservative there. We’d love to get any more if you want to give us a new account disclosure, that would be great.

Pete Caldini, CEO, Establishment Labs: Yes. So we probably won’t, okay? I think we gave a lot of details in terms of the performance, and we did that for really make a lot of the investors feel comfortable in terms of where we’re tracking with the business in The U. S. But what I can say is we continue to be incredibly happy with the performance there.

It continues to exceed our expectations. We’ve added additional accounts. We’ve got onboarded additional accounts. They’re ordering, increasing our average sales on a daily and weekly basis. But what we mentioned in the last earnings call, I mean, we’re not going to continue to provide that information.

I think, as I said before, that was something that we shared just to give people comfort in terms of the progress. But we continue to be very positive and bullish with our opportunity in The U. S. And as I mentioned before, I think we have a great product, but I think we’re really coupling that with a tremendous organization. I think it’s a best in class organization we have in The U.

S. And so we feel very confident with the guidance we’ve provided and then certainly exceeding that.

Matt Taylor, Analyst, Jefferies: I’d love to hear more about the organization because I have heard qualitatively that you’ve brought in a lot of really good salespeople and have been able to get talent from some of your competition. So we’d love for you to give some texture to that and maybe talk about the type of folks who are coming over, why they’re attracted to this, and how much of a difference a good commercial organization like that can make?

Pete Caldini, CEO, Establishment Labs: Well, think so first off, as I said, I think we have a best in class organization that has a lot of experience in the industry. And I think you know, when you look at the competitive set and the companies that they’re coming from, it’s not necessarily a priority to them. And I think that they saw Establishment Labs as a company that’s dedicated, focused to the aesthetics space. And they saw this as a tremendous opportunity. And I think because of that, from Jeff Earhart and to the leadership team down, we’ve been able to attract some of the best talent in the industry.

And I think that obviously has a huge benefit. I think they have established relationships in the marketplace. They know what good looks like. I think that’s critical for us. I mean, we’re doing everything from the ground zero.

And I think when you have a leadership team there that knows what good looks like, I think it’s been very easy for us to assemble what we think is the best operating models in The U. S. So for us, I think that is one of the key drivers for our success. I mean, it’s not only the products that we have and the safety profile, it’s also the capabilities of the organization.

Matt Taylor, Analyst, Jefferies: How would you compare how The U. S. Launch is going versus some of the other markets that you’ve launched in historically? Has it been easier to take share, harder to take share? Is it similar?

What’s different or similar about The U. S. Versus some of the other analogies?

Pete Caldini, CEO, Establishment Labs: I mean, think the first thing, I mean, market is a little bit different from the competitive set in terms of the trends, in terms of the market dynamics, and I think also ultimately in terms of the capabilities. I think when you look at outside The U. S, I mean we’re in close to 90 different countries and I think we have a leading share in a number of those markets. But I think what really determines the success in a market is if you have a superior product that really meets the demands of the patients as well as the surgeons, and you couple that with very strong organizational capabilities. And I think that’s what we’ve done in a number of markets that we’ve had overseas.

And because of that, we’ve been able to attract a dominant share. And I think in the case of The U. S, I think that mirrors that And I think that’s why we’re very confident with our existing products as well as the pipeline that’s coming that we’re on track to becoming a leading player in The U. S. Market.

Matt Taylor, Analyst, Jefferies: Can we just compare that to China for a second? You mentioned before that you had the sell in in China last year and you were thinking in the first half of this year, we’re going to have much of that repeat yet. Why has China been slower maybe than I would have thought? And how do we think about the ramp in China over the next few years?

Pete Caldini, CEO, Establishment Labs: Yes. I mean, I think in China, obviously, it’s not a direct market for us. It’s through a distributor. I think those are decisions that we made based on really the resources that we had, both financial as well as organizational. So I think in the China market, you know, having full control and going through a third party, they’re also building capabilities in that market as well.

I mean, it’s a huge market. It’s not an easy market. It requires a lot of resources. There is also the backdrop a little bit in terms of what we’re seeing in terms of the market. It’s not as progressing as much as I think we originally planned.

But what we’ve seen with our distributor as they continue to build up their capabilities that we’re seeing good sequential growth quarter over quarter. We’re very confident that’s going to continue, but it’s going to be a longer process.

Matt Taylor, Analyst, Jefferies: Maybe talk about the choice to use a distributor there. This is one that you know. And as a reminder, they made a big investment that was announced alongside the company in Q3 of last year. So can you talk about some of the capabilities they’re building?

Pete Caldini, CEO, Establishment Labs: Yes. I think, I mean, whenever you go into a market, you need to assess, are you going to do it direct or are you going to do it through a distributor. A lot of that boils down to what is the financial requirement, the financial resources required to do it, as well as your organizational capabilities to do it. And, you know, quite honestly, any time you make an investment in a direct market, which we’ve done in The U. S, it’s a significant investment from a financial as well as organizational.

And, you know, for us at the time, evaluating the opportunity, we felt that it was best suited to go through a distributor so we can really allocate and dedicate our limited resources to The U. S. To also driving the innovation pipeline. Generally, Matt, in most of the markets outside The U. S, we generally start with the distributor, get established proof points, and then over time we acquire that distributor.

You know, for us at the time, I think it was the right approach. And, you know, we continue to think in terms of our priorities and, you know, how we want to manage the resources, the limited resources we had, it was probably best to go through a distributor.

Matt Taylor, Analyst, Jefferies: And maybe switching gears, I wanted to talk a little bit about Mia and Prezurve. And these products that you’ve talked about being market expanding, you’re now guiding to, I think, 8,000,000 to $10,000,000 for EMEA this year. So I guess could we talk about the two products, how they kind of compare and complement each other? Sure. And I’d love to hear any proof points about how you think they’ve been market expanding to date.

Pete Caldini, CEO, Establishment Labs: Yes. So EMEA, we’re very happy with the progress. I think we mentioned in the last earnings call the number of cities and we’re in 75 clinics. That continues to expand. So we’re really seeing good progress on the EMEA business.

I mean, keep in mind this is, you know, we haven’t been in the market for a long time, but we continue to build that out. You know, what we’re seeing in terms of market expanding is, you know, in our studies, close to forty percent of Mia users are patients that really never considered a breast augmentation. So I think that really demonstrates that it’s certainly market expanding. Also we get very positive NPS scores, customer satisfaction scores. So I think it really demonstrates the potential of that market.

But where we see a huge value is really looking at this on a broad basis with the minimally invasive platform with the launch of Preserve. So Preserve is really something that can be used across more procedures. So it really expands the market. You can have larger cup sizes. You can have mastopexy.

It’s more procedures. It’s also available to more clinics. It’s a process that I think a lot of the surgeons are already accustomed to. So we’re really using Preserve to complement what Mia has and really build out the minimally invasive platform. As I mentioned, you know, we rolled that out in Europe earlier this year and the interest has been extremely strong.

Also we did that in Brazil and we had very strong interest. I mean in some respects more than we expected. So a little bit of a scramble to get to make sure we have the right supply. But I think this is really the wave of the future is minimally invasive. And you see that across a lot of different procedures.

I think we’re really on the forefront. And I think combining Prezervae with Mia is for us the right way to do it.

Matt Taylor, Analyst, Jefferies: And just wanted to be clear on the 8,000,000 to $10,000,000 does that include Preservaes or not?

Pete Caldini, CEO, Establishment Labs: That’s just Mia.

Matt Taylor, Analyst, Jefferies: And could Preservaes be material this year or next?

Pete Caldini, CEO, Establishment Labs: I think our expectation it would be material this year. I think it’s going to drive a lot of the growth that we have in some of our OUS markets.

Matt Taylor, Analyst, Jefferies: Got you. So I’d love to touch on recon as well. You mentioned before that as part of the super cycle of innovation. So I’d love to hear more about where you are with the tissue expander. I know you’ve been getting into some accounts there.

And then could you talk about the pathway for recon in general and when you would expect that to be a contributor?

Pete Caldini, CEO, Establishment Labs: Yes. So as we mentioned in the last call, we’re in 60 accounts. We’re going through the VAC process and another 100. So we continue to expand that business. You know, what we’re trying to do, Matt, is to really get a presence in maybe one or two key institutions in each of the geographies just to have a really strong presence.

But most of our focus in the sales organization is really around the odd business because we don’t have currently the indication, recon indication. So we’re trying to do a lot of this to set up so we have a good foundation so when we do have the recon indication. Where we are with that is we’re going to be getting our three year data during the summer. We’re going to be filing soon after that, the end of this year. And obviously, it’s very dependent on the FDA, the timing, but we would hope to get recon indication back half of twenty twenty six and or the early twenty twenty seven.

But a lot of that is going to be very dependent on the FDA.

Matt Taylor, Analyst, Jefferies: Great. And then beyond recon, can we talk a little bit about the GEM program and anything else you would highlight in your pipeline?

Pete Caldini, CEO, Establishment Labs: Yes. So I think, in terms of the pipeline I mentioned, on a global basis, we have a number of excellent products that are still really have not entered The U. S. So I think we’re going to have a nice pipeline of innovation over the next two to three years. I think beyond that, GEM is something that we’re very excited about.

It’s still very early stages. We’re going to be looking at going to market really in test basis in some of the Latin American markets,

Raj Denhoy, CFO, Establishment Labs: where I

Pete Caldini, CEO, Establishment Labs: think the approval process is going to be a lot easier for us. And we really want to test out the concept, build out the capabilities and really understand the go to market, what would be the most effective before we start introducing that in some of our bigger markets. So that’s some of the innovation we’ve talked about. There’s other innovation that we haven’t really talked about. I mean, this company is built on innovation.

We continue to drive that. But I think for the next two to three years, we have a lot that we can use to continue to drive growth. And it’s really going to be about our ability to execute and putting together the best organization to do that.

Matt Taylor, Analyst, Jefferies: Maybe going back to the market, could we talk a little bit about the competitive set and anything that you’ve seen change with competition? I know Sientra has had some challenges and has changed hands. Are you seeing anything different from the larger companies or innovative, anything changing the landscape?

Pete Caldini, CEO, Establishment Labs: No. Mean, think listen, I think in general we would say we haven’t seen a real concerted effort by, let’s say, two major players. I mean, there’s pockets of activities. There’s a lot of claims that are being made by different sales reps. I think in certain cases, they’ve been pushing in terms of some pricing activity.

But so far, we haven’t really seen we’ve seen some responses, but I would say it’s not been to the level that’s aggressive enough and it’s concerted that it’s really impacted our business. So I think we continue to be very confident and bullish in terms of what we’re doing. And we’ll see over time if that changes. Obviously, as we start penetrating and get more share, I think that creates you know, greater threats and then probably more aggressive responses.

Matt Taylor, Analyst, Jefferies: How have you been able to do with price in The U. S? We’ve heard from some of our checks that you’re at sort of a modest premium, kind of a mid or high single digit premium. And I would love to hear about pricing internationally, too, and how that’s holding up.

Pete Caldini, CEO, Establishment Labs: Yes. I think the pricing is what we’ve always wanted to do is have a slight premium versus the competitive set. That’s how we try to do it, you know, not only in The U. S. But in a lot of the OUS markets.

You know, I think we believe we have a far superior product, superior safety profile. We are the leaders in terms of innovation. So that really warrants that premium pricing. Obviously, where you do run into some challenges is depending on how the competitors react to it. If they’re going to react to a significant price discount, then you really have to say you have to look at and value it in a particular market, does our product warrant that type of premium?

And what we really try to do is just avoid any type of price competition because I think that erodes the real capabilities and what we are all about is focusing on a superior product that with a superior safety profile.

Matt Taylor, Analyst, Jefferies: Got you. And Mia is sort of a different animal. Can you talk about how you’re able to price that and what that means? And I want to get into some margin discussion with Raj, too. So this is all sort of a You can hear the

Pete Caldini, CEO, Establishment Labs: pricing stuff, too.

Matt Taylor, Analyst, Jefferies: But, yeah, maybe talk about Mia and package compares in terms of the economics you’re able to extract and what it means for the margins.

Raj Denhoy, CFO, Establishment Labs: Well, think as Pete noted, you know, if you look across the portfolio from round ergonomics to ergonomics two to Preserve and up to MIA, right? At every step along the way, there’s additional value for the patient, to the surgeon, and we as a company benefit from higher ASPs and higher gross margins. There’s no sacrifice as a patient moves down. You know, the round implant has all the same surface technology, the same construction. There’s no compromise one needs to make.

And surgeons and patients can select as they want to along that path. And as Peter noted, in The US, we have the earliest part of that. We have rounded ergonomics. And so we have these other steps still to come. And you asked about Mia.

Mia is at the upper end, right? There is no visible scar. There’s no general anesthesia. Patients are running out in fifteen minutes. It’s a very unique offering.

And we price it as such, right? And as noted, we are seeing good traction. We’ve been in the market for less than two years, and we’ll do 8 to $10,000,000 as we mentioned this year, and it’s growing very nicely. So I think having that portfolio and really that spectrum of products allowing both surgeons and patients to select where they want to be is the right strategy.

Matt Taylor, Analyst, Jefferies: And then furthering the margin discussion. So you’ve talked about some goals now to become EBITDA positive by the end of the year and cash flow positive. Maybe talk about your confidence in those goals and remind us what’s driving the profitability this year and your ability to achieve that.

Raj Denhoy, CFO, Establishment Labs: Yes. Think to the question on the confidence, I mean, are very confident. It’s also it’s become I think for us as a company, these are goals which are as important as achieving our revenue targets and other things, right? So it’s become really part of what we’re really organizing around is delivering on these profitability metrics we’ve put out. If you think about what drives it for us this year, it’s really it’s a couple of things, right?

It’s The U. S, right? The U. S. Revenue is increasing very rapidly.

We’ve talked about meaningfully exceeding the $35,000,000 number we’ve given for this year. The margin structure in The U. S. Is significantly higher than outside The U. S.

We’ve talked about the realized pricing for us on a blended basis in The U. S. Being more than 2x what it is on a blended basis outside The United States, where we’re in a lot of distributor markets. So we’re realizing much higher prices in The United States. And the cost of making those products is essentially the same.

Comes out of the same facility we have in Costa Rica, and there’s not a lot of differential in that cost of goods. And so that significant gross margin increase is then married with an operating expense base that we’ve talked about being relatively static over the course of the year. We made the heavy investments in the fourth quarter of last year in the first quarter of standing up The U. S. Operations.

So we have the 40 plus salespeople. We have our office in Austin. We have the back office function, sales management team. There will be some incremental increase as the business scales in terms of shipping and other types of variable costs, but not significantly. And so as the revenue increases, your operating expenses are relatively stable.

That’s what drives us towards that EBITDA profitability in the second half of this year, and we remain very confident in our ability to hit that. And then if you look at below that, the big expense items for us are really the interest on the debt we have and then what happens with working capital and CapEx, which are generally stable. And so as the revenue continues to grow into next year and we’re leveraging those other two major expense lines, we see a pretty line a pretty good line of sight to cash flow breakeven at some point next year as well.

Pete Caldini, CEO, Establishment Labs: Yes. Mean the one thing I would add to that, what Raj said, I mean, think there’s been a lot of great work done over the last twelve to eighteen months in terms of really rightsizing the business, rightsizing the corporate infrastructure, and just instilling a very strong discipline around financial management, operational discipline to really create a lot more efficiency in terms of how we operate. And I think we’re starting to see the benefits of that this year. And we’re going to continue to look at ways how can we, as you scale a business, you have to operate very differently than you do when it’s a small company. And I think we’re instilling that discipline in the organization.

We’re seeing those benefits. And you know, as Raj mentioned, we built out a structure in The U. S. That was quite expensive. We have top talent and putting together the best infrastructure, while at the same time you know, reducing a lot of expenses.

So it really didn’t have a material impact. And I think as we continue to grow from a revenue standpoint, higher margin products as well as higher margin markets, I think that’s what’s really driving that mix. So I think it’s, as Raj said, mean, it’s really a combination both of revenue driven in higher profitable higher gross margin markets and products as well as how we’re being very disciplined in how we manage our expenses.

Matt Taylor, Analyst, Jefferies: And you referenced this, that mixed flywheel should stay kind of in your favor for a long time here with The U. S. And EMEA and all these things that are coming. I know you haven’t really committed to this on an annual basis, but could you talk about kind of the quantum of margin expansion that we could expect year in and year out? And you’re still a growing company, so how do you balance the desire to deliver leverage and earnings growth with investments that you want to make to continue to grow the top line?

Raj Denhoy, CFO, Establishment Labs: Well, so this year, have committed to two two hundred to 300 basis points of gross margin expansion, right? And again, we feel very comfortable with that outlook. We saw a nice margin expansion even in the first quarter. And as The U. S.

Continues to build over the course of the year, that’s what’s going to drive that number higher. We haven’t given much beyond that. But as you noted, you look at what is coming in terms of Preserve, MIA, Recon, continue to grow in The U. S, these are all margin accretive endeavors for us, right? And so there should be a continued tailwind to our gross margin over the next several years.

Matt Taylor, Analyst, Jefferies: Raj, maybe talk about balancing that with growth.

Raj Denhoy, CFO, Establishment Labs: Yes. So I think the balance there is, as Peter noted and I tried to highlight as well, I mean, achieving these profitability targets for us are kind of nonnegotiable in a way, right? I mean, we will get to be EBITDA positive this year and we’ll achieve cash flow breakeven next year. These are things that are as important to us as driving the top line. And so we honestly hope to be in a position where we have to make those kind of decisions as to what we want to invest and where we want to let to flow through, but we need to cross those lines first.

Those are really kind of hard targets for us and we expect to achieve them.

Pete Caldini, CEO, Establishment Labs: Yeah, I mean, I think, Matt, it’s all about choices when you’re running the business. I think, you know, to use an example when you asked regarding China, I mean, we could have gone direct and there’s a lot of resources tied to that, but these are choices you make to kind of say, all right, you have limited resources, where are you going to effectively allocate that? And where can you benefit from that, you know, make a different decision later on? So I think that I don’t think there’s been any situation that we’ve actually reduced investment and something that we believe is a key priority to drive the business. And that’s why I think we’ve been very selective in terms of how we do manage our expenses.

And it really, as I said before, it really boils down to choices, but you have to make those choices.

Matt Taylor, Analyst, Jefferies: Very good. Well, I think that’s our time. But gentlemen, thanks so much for your time and thanks everybody for your interest in Establishment Thank you.

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