Can you tell us more about Venus Concept and its history?
Rajv: Venus Concept dates back to around 2011, evolving from earlier technologies developed in Israel, a hub for innovation in energy-based aesthetics. This field involves delivering energy in various forms to enhance appearance, whether it's facial, body, or hair treatments. Venus Concept stood out by innovating a business model that broadened access to expensive aesthetic devices, especially for med spas. This approach involved financing for start-ups, significantly contributing to the industry's growth. Our merger in 2019 with Restoration Robotics introduced unique AI and machine learning-based technologies, expanding our reach to both female and male customers with diverse needs. Our portfolio is distinctive not just in its variety but also in our advanced robotics platform.
What is the "gateway product" into your company for consumers?
Ross: For Venus Concept, the entry point varies with age and gender. For a younger demographic, it's more about beauty treatments like nanofractional radiofrequency for skin texture and tightening, which is popular in the UK. This contrasts with other companies where hair removal is often the first step. Our VivaMD and TriBella procedures are particularly attractive, catering to both genders across various age groups. We also offer a wide range of products for different needs, including color, pigment, vascular concerns, fat reduction, contouring, and more.
How important are aestheticians and practitioners to Venus Concept?
Rajiv: They are crucial to our success.
Our business model goes beyond just selling devices; it's about delivering a comprehensive experience that includes training, business development, and leveraging data from the devices. This approach focuses on enhancing the profitability and efficiency of practitioners' practices.
Ross:
Our strength lies in staying connected with our customers through various means, including IoT, clinical training, and practice development.
We prioritize post-sale support, as evident in the feedback for our new product, VersaPro. Our focus has shifted from device performance to practice performance, integrating both human and artificial intelligence into our services. This holistic approach is fundamental to our brand and future developments in aesthetics.
Could you elaborate on the role of aesthetic intelligence and data in Venus Concept's strategy?
Hemanth:
Aesthetic intelligence is central to our rebranding and future vision. We have a growing network of connected devices that provide us with valuable data on system performance and usage by physicians.
This information helps us optimize treatment protocols and identify regional trends in device usage. For example, we can observe seasonal patterns like hair removal or skin tightening preferences. The data allows us to advise practitioners on marketing strategies and trends in their area, providing them with a competitive edge. Our approach also integrates artificial intelligence and machine learning, especially in our robotic systems, which are essential for precise, repeatable treatments. As our data set grows, we foresee significant improvements in both our devices and the practices using them.
What is the significance of robotics in your company and its future in aesthetics?
Hemanth: Robotics is a key differentiator for us, moving beyond traditional energy-based aesthetic treatments. Our focus is on automating procedures to increase efficiency and patient experience. For instance, envision a future where robots perform multiple aesthetic procedures simultaneously, such as laser treatment and botox injections. This automation will enhance the profitability of practices and patient experiences.
Rajiv: Robotics is integral to our strategy. We acquired Restoration Robotics for its ARTAS Hair Robot, which automates hair restoration with high precision. This technology exemplifies the benefits of robotics in aesthetics, ensuring consistent results regardless of practitioner skill levels. We're also applying these technologies to other aesthetic procedures, like micro-coring, with our AI.ME device. This approach allows for precise skin treatments that surpass human capabilities. Looking ahead, we plan to integrate various technologies like IPL, RF, and laser into our robotic systems for combination procedures that a human couldn't replicate. Robotics, alongside data, represents the future of aesthetics, and we're excited to be at its forefront.
What are the key trends that will increase demand for your products in the next three to five years?
Rajiv: Trends from the COVID era, like the 'Zoom boom', are likely to persist. The shift to virtual workspaces has made people more conscious of their appearance, as they're frequently seeing themselves on screen. This awareness is expected to continue fueling aesthetic needs. Additionally, the flexibility offered by working from home allows more people to undergo aesthetic procedures, as they can recover without the need to appear in public or at work. These trends, combined with a growing focus on feeling good, are pivotal in driving demand.
Ross: Men's aesthetics, particularly hair restoration, is a significant trend. Men are increasingly concerned about hair loss, and this is evident in the growing popularity of our robotic hair restoration systems. This trend is not limited to older men; even younger men are seeking solutions, indicating a broadening market. The emotional impact and the boost in confidence these procedures offer are profound, akin to transformative medical treatments in other fields. This is a clear indicator of the increasing demand in men's aesthetics.
Hemanth: The trend towards non-invasive procedures is also crucial. Technology is advancing towards treatments that are less invasive, have faster recovery times, and are more affordable. Our robotic micro-coring technology, for example, is used for treating scars and stretch marks without the need for surgical intervention. These advancements make aesthetic procedures more accessible and appealing, contributing to the growing demand.
Looking at the future, what are key milestones and concerns for Venus Concept?
Rajiv: The future of Venus Concept is anchored in the concept of Venus Aesthetic Intelligence, blending human and artificial intelligence. Our goal is to transform how aesthetic practices operate, making them more efficient and effective. A significant focus will be on evolving our robotic technology for broader use in aesthetic procedures. We aim to have our robots in every dermatologist and plastic surgeon's office. However, our challenges include navigating the current economic environment and optimally allocating our limited investment resources.
Hemanth: Aesthetics is ripe for the integration of robotics, a field yet untouched by this technology. Our systems are designed for continuous improvement through feedback from practitioners, enhancing the overall ecosystem of our devices and services. However, the discretionary nature of aesthetic procedures means that economic downturns can impact our growth. Despite these challenges, the potential in aesthetics, particularly with the integration of robotics and data-driven insights, is enormous.
