Financial Data and Key Metrics Changes - RxSight generated Q1 2024 revenue of $29.5 million, up 69% from $17.5 million in Q1 2023 and up 3% from $28.6 million in Q4 2023 [9] - The company reported a GAAP net loss of $9.1 million or $0.25 per share, an improvement from a loss of $13.2 million or $0.42 per share in Q1 2023 [10] - Gross margin for Q1 2024 was reported at 70%, an increase from 59% in Q1 2023 and 62% in Q4 2023 [20] Business Line Data and Key Metrics Changes - Revenue from Light Adjustable Lenses (LAL) was $19.9 million, up 92% year-over-year and 12% sequentially, representing 67% of total revenue [9] - LDD sales generated $8.7 million, up 35% year-over-year but down 13% sequentially [20] - The installed base of LDDs increased to 732 units, up 61% year-over-year and 10% sequentially [20] Market Data and Key Metrics Changes - The company anticipates 2024 revenue guidance of $132 million to $137 million, reflecting a year-over-year growth of 48% to 54% [4] - The gross margin guidance for 2024 was increased to 68% to 70%, up from previous guidance of 65% to 67% [11] Company Strategy and Development Direction - RxSight aims to establish a new standard for premium intraocular lenses (IOLs) in the U.S. with the launch of LAL Plus and ongoing educational programs for eye care professionals [14][15] - The company is committed to rapid innovation and plans to expand its international presence, particularly in Asia and Europe, following regulatory approvals [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong adoption of LAL technology, driven by positive clinical outcomes and a focus on the premium IOL market [39] - The company noted that the competitive landscape is evolving, with a significant percentage of LAL cases coming from patients who would not have selected a premium IOL previously [42] Other Important Information - Cash and short-term investments at the end of Q1 2024 were $125.4 million, slightly down from $127.2 million at the end of Q4 2023 [21] - Operating expenses for 2024 are guided to be between $126 million and $130 million, reflecting a 21% to 25% increase over 2023 [22] Q&A Session Summary Question: What are the adoption trends and pricing discipline observed in the field? - Management noted strong adoption trends and good pricing discipline, supported by excellent clinical results and increasing references for new doctors [31] Question: How does the company view the competitive environment? - Management indicated that a significant portion of LAL cases are coming from patients who would not have chosen premium IOLs, suggesting a broader market appeal beyond just competitors [42] Question: What are the service revenue considerations as the installed base grows? - Management stated that approximately 80% of customers take a service contract after the one-year warranty expires, indicating potential growth in service revenue as the installed base increases [36] Question: How is the company planning to approach the rollout of LAL Plus? - The guidance for 2024 assumes a methodical ramp-up of LAL Plus, with expectations for continued growth in both LAL and LDD placements [58] Question: What is the outlook for international market launches? - Management confirmed that while the primary focus remains on the U.S. market, they are pursuing regulatory filings in attractive international markets [96]

Revenue and Sales Performance - Revenue for Q1 2024 was $29.5 million, a 68.8% increase from $17.5 million in Q1 2023[124] - Sales increased by $12.0 million, or 68.7%, to $29.5 million for the three months ended March 31, 2024, compared to $17.5 million for the same period in 2023[136] - LDDs sold in Q1 2024 totaled 66 units, up from 56 units in Q1 2023, representing a 17.9% increase[119] - LALs sold in Q1 2024 reached 20,218 units, a 92.4% increase compared to 10,523 units in Q1 2023[120] - The installed base of LDDs increased to 732 units by the end of Q1 2024, up from 456 units at the end of Q1 2023, marking a 60.5% growth[119] - The company has implanted over 117,000 LALs since inception through March 31, 2024, indicating strong adoption of the RxSight system[113] Financial Performance - Gross profit rose to $20.7 million, a 99.6% increase from $10.4 million in the prior year, resulting in a gross margin of 70.1%[137] - Operating expenses totaled $31.4 million, up 33.6% from $23.5 million in the same period last year, driven by increased selling, general, and administrative expenses[138] - Research and development expenses increased by $0.8 million, or 11.4%, to $8.0 million for the three months ended March 31, 2024[139] - Comprehensive loss for the period includes net loss and is reported in the consolidated financial statements[133] - The net loss for the three months ended March 31, 2024, was $9.1 million, a 31.1% improvement from a net loss of $13.2 million in the same period last year[142] Cash Flow and Liquidity - As of March 31, 2024, the company had cash and cash equivalents of $32.6 million and short-term investments of $92.7 million[142] - Net cash used in operating activities was $9.3 million for the three months ended March 31, 2024, compared to $17.8 million in the prior year[150] - Net cash provided by investing activities was $24.3 million, consisting of net maturities of short-term investments of $26.2 million[152] - As of March 31, 2024, the company holds cash and cash equivalents of $32.6 million and short-term investments of $92.7 million, focusing on liquidity and capital preservation[165] Future Outlook and Expansion - The company plans to continue expanding its sales and marketing organization to drive revenue growth and increase product awareness[114] - Future expansion may target large foreign cataract markets, including Asia and Europe, to leverage new approvals[111] - The company anticipates significant operating losses and negative cash flows from operations in the future[141] Market and Economic Conditions - Uncertain macroeconomic conditions, including inflation and rising interest rates, are expected to negatively impact financial results and liquidity through 2024 and beyond[163] - The company is exposed to market risks from adverse changes in market rates and prices, which could lead to potential losses[164] - Supply chain constraints and inflation have led to increased delivery delays and higher costs for raw materials, impacting manufacturing capabilities[162] - The company has taken measures to mitigate supply chain risks, including increasing lead times and identifying new suppliers[162] - The company does not have material exposure to changes in the fair value of cash and short-term investments due to their short-term nature, with a hypothetical 1.00% increase in interest rates not materially affecting fair value[165] - As of March 31, 2024, the company has minimal revenue and expenses in currencies other than U.S. dollars, indicating limited foreign currency exchange risk[166]

Revenue Performance - Total revenue for Q1 2024 was $29.5 million, a 69% increase from $17.5 million in Q1 2023, driven by a 92% increase in Light Adjustable Lens (LAL) revenue and a 35% increase in Light Delivery Device (LDD) revenue[3][7]. - The company increased its 2024 full-year revenue guidance to $132.0 million to $137.0 million, implying growth of 48% to 54% compared to 2023[12]. Profitability - Gross profit for Q1 2024 was $20.7 million, representing 70% of revenue, up from $10.4 million or 59% of revenue in Q1 2023, due to a favorable product mix and reduced production costs[4]. - Gross margin guidance for 2024 was raised to a range of 68% to 70%, an increase of 800 to 1,000 basis points compared to 2023[12]. Operating Expenses - Operating expenses for Q1 2024 were $31.4 million, a 34% increase from $23.5 million in Q1 2023, reflecting investments to grow the LDD installed base and support increased LAL sales[5]. - Operating expenses for 2024 are now expected to be in the range of $126.0 million to $130.0 million, reflecting an increase of 21% to 25% compared to 2023[12]. Net Loss - The net loss for Q1 2024 was $(9.1) million, or $(0.25) per share, compared to a net loss of $(13.2) million, or $(0.42) per share in Q1 2023[6]. - Adjusted net loss for Q1 2024 was $(4.4) million, or $(0.12) per share, compared to an adjusted net loss of $(9.9) million, or $(0.31) per share in Q1 2023[6][21]. Sales Volume and Installed Base - The company sold 20,218 LALs in Q1 2024, a 92% increase in procedure volume compared to Q1 2023, and expanded the installed base of LDDs to 732, a 61% increase[7]. Cash Position - Cash, cash equivalents, and short-term investments as of March 31, 2024, were $125.4 million, slightly down from $127.2 million at December 31, 2023[8].

Financial Data and Key Metrics - Revenue for Q4 2023 was $28.6 million, up 78% YoY [143] - LAL revenue in Q4 2023 was $17.8 million, up 98% YoY, representing 62% of total revenue [7][144] - LDD revenue in Q4 2023 was $10 million, up 52% YoY [133] - Gross profit margin expanded to 62% in Q4 2023, compared to 46% in Q4 2022 [32] - Full-year 2023 revenue grew 82% to $89.1 million, with LDD revenue up 43% and LAL revenue up 117% [33] - Adjusted cash use from operations was $33.9 million in 2023, down from $59.5 million in 2022 [34] - Net loss in Q4 2023 was $9.2 million, or $0.26 per share, compared to a net loss of $15.6 million in Q4 2022 [8][145] Business Line Data and Key Metrics - LAL sales in Q4 2023 were 18,071 units, up 98% YoY [7] - LDD unit placements in Q4 2023 were 77 units, up 35% YoY, with an installed base of 666 units at year-end 2023, up 67% YoY [133] - LAL Plus, a new product, is expected to drive further adoption of adjustable IOL technology [142][119] Market Data and Key Metrics - Premium cataract surgery represents about 20% of the US market and 10% globally, with projections to double over the next 10 years [141] - The company targets the roughly 4,000 US cataract surgeons who perform 70-80% of all premium IOL procedures [131] - International markets, particularly Canada, are showing steady growth, though they remain a small portion of total revenue [97][158] Company Strategy and Industry Competition - The company focuses on expanding its installed base of LDDs and increasing LAL procedure volumes, leveraging the clinical and economic benefits of its technology [31][132] - The LAL platform offers superior vision quality compared to traditional monofocal IOLs, with 90% of patients achieving 20/20 vision at distance and J2 at near [64][108] - The company expects to achieve cash flow break-even with a healthy balance sheet, supported by reduced cash use in 2024 [45] Management Commentary on Operating Environment and Future Outlook - Management highlighted the growing recognition of the clinical and economic benefits of the RxSight system among surgeons [31] - The company expects full-year 2024 revenue to be in the range of $128-135 million, implying 44-52% YoY growth [136] - Gross margin is expected to expand to 65-67% in 2024, driven by higher LAL revenue mix and lower LDD manufacturing costs [147] - Operating expenses are projected to increase by 20-23% in 2024, reflecting investments in infrastructure to support LAL procedure growth [35] Other Important Information - The company will host an investor event on April 6, 2024, in conjunction with the ASCRS meeting [11] - The company has no material weaknesses or significant deficiencies in its SOX compliance, underscoring its commitment to financial integrity [34] Q&A Session Summary Question: How is the company thinking about LDD utilization in 2024? [47] - The company expects LAL revenue to grow faster than LDD revenue, consistent with the razor-blade model [14] - Utilization may vary due to seasonality, but the goal is to increase overall LAL procedure volumes [156] Question: What is the company's outlook on cash usage and cash flow break-even? [19] - The company expects to reduce cash use throughout 2024, with the heaviest cash use in Q1 due to year-end bonuses and material payments [45] - The company has adequate cash to reach cash flow break-even with a healthy balance sheet [45] Question: How is the company thinking about the growth of the sales force in 2024? [41] - The LDD sales force is expected to remain stable, while the LAL sales force will continue to grow, particularly in clinical sales roles [15] - The company will add sales personnel as needed, but not at the rapid pace seen during the initial sales force creation [15] Question: What is the company's view on the premium IOL market growth trajectory? [76] - The premium IOL market is expected to double over the next 5-10 years, driven by demographic trends and the growing importance of optometry in premium cataract surgery [77][141] Question: How is the company thinking about the split between legacy LAL and LAL Plus? [63] - The LAL Plus is expected to provide additional motivation for doctors to adopt adjustable IOL technology, particularly for patients who desire earlier near vision [64][119] Question: What is the company's view on the competitive landscape in Europe? [126] - Europe is seen as a large and wealthy market, with individual countries having unique characteristics [91] - Regulatory complexity has increased, but the underlying demand for high-quality vision remains strong [91]

Product Overview - The RxSight system is the first and only commercially available premium cataract technology that allows customization of visual acuity post-surgery [22]. - The RxSight system achieved a 70% rate of patients achieving 20/20 or better uncorrected visual acuity without glasses, compared to about 40% for other premium IOLs [31]. - The RxSight Light Adjustable Lens (LAL) achieved a 70.1% rate of eyes with 20/20 or better uncorrected distance visual acuity in pivotal studies, significantly outperforming Alcon's Acrysof Toric (38.4%) and J&J's Tecnis Toric (43.6%) [55]. - The RxSight system allows for up to three postoperative adjustments, with an average of 1.6 adjustments recorded in FDA clinical trials [53]. - Approximately 60% of patients undergoing multiple adjustments with the RxSight system requested a change from their original spherical target, highlighting the system's customization capabilities [54]. - The RxSight system does not induce higher rates of glare and halos compared to monofocal IOLs, addressing a common concern with multifocal IOLs [57]. - The proprietary technology of the RxSight system is based on photochemistry, allowing for post-operative adjustability of the LAL [45]. Market Dynamics - In the U.S., premium cataract procedures represented about 21% of all cataract surgeries in 2023, generating approximately $780 million in revenue, projected to grow at a 9.5% CAGR by 2028 [25]. - The global premium IOL revenue was approximately $2.4 billion in 2023, expected to grow at an 11.0% CAGR through 2028 [38]. - The U.S. is projected to see cataract procedures grow at a CAGR of 4.5% to 5.9 million by 2028 [38]. - The premium cataract market remains underpenetrated due to doctors' reluctance to recommend premium IOLs and patients' confusion about trade-offs [26]. - The company aims to expand its LDD installed base and increase LAL utilization through enhanced awareness of clinical outcomes [29]. - The company has established an installed base of 666 Light Delivery Devices (LDDs) and over 96,000 Light Adjustable Lenses (LALs) implanted as of December 31, 2023 [28]. Customer Insights - In a 2022 customer survey, 89% of respondents believed the RxSight system delivered the highest quality vision, and 98% would recommend the LAL [31]. - In a recent customer survey, 89% of doctors believed the RxSight system delivered the highest quality vision, with 98% willing to recommend the LAL to others [58]. Financial Performance - The company reported losses from operations of $50.1 million and $63.3 million for the years ended December 31, 2023 and 2022, respectively, resulting in an accumulated deficit of $594.6 million as of December 31, 2023 [156]. - The company has a history of net operating losses and expects to continue incurring losses in the future, raising concerns about sustainability of profitability [149]. - The company expects to continue incurring significant sales and marketing, research and development, and regulatory expenses as it expands its marketing efforts and product offerings [156]. - The average payback period for the LDD was approximately nine months based on an average of nine LALs implanted per month at surveyed practices [57]. Regulatory Environment - The FDA regulates the company’s products and operations extensively, requiring either a 510(k) clearance or PMA application for new or significantly modified medical devices [93][94]. - The FDA's 510(k) clearance process requires manufacturers to demonstrate that their device is "substantially equivalent" to a legally marketed predicate device [105]. - The PMA approval process generally takes between one and three years, but can be significantly longer depending on various factors [112]. - The FDA may require post-approval studies or post-market surveillance to ensure ongoing safety and effectiveness of devices [114]. - The company is certified under the Medical Device Single Audit Program (MDSAP) for the United States, Canada, Japan, Brazil, and Australia, allowing for a single audit to cover multiple jurisdictions [123]. Competitive Landscape - The company faces intense competition in the surgical ophthalmology market, primarily driven by technological innovation and regulatory approval, with significant competitors having greater financial and marketing resources [89]. - The medical device industry is highly competitive, with major competitors like Alcon, Johnson & Johnson Vision, and Bausch + Lomb having greater resources and market share [179]. - The global cataract IOL market is highly concentrated, with the top three players (Alcon, Johnson & Johnson, and Bausch + Lomb) accounting for approximately 77% of the total U.S. premium cataract surgery market and about 61% of the global manufacturer market revenue [89]. Operational Risks - The company relies on third-party suppliers for manufacturing components, making it vulnerable to supply disruptions and price fluctuations [150]. - The company must provide sufficient return on investment for doctors compared to alternative procedures to justify the upfront costs associated with the RxSight system [180]. - The company may incur substantial liabilities from product liability claims, which could adversely affect its financial condition and operations [213]. - The company faces significant cybersecurity risks due to increasing connectivity of medical devices, which may lead to unauthorized access and potential user risks [191]. International Expansion - The company is strategically expanding its commercial operations in international markets, with over 75% of premium IOL procedures in 2023 occurring outside the United States [59]. - The company plans to expand international sales but may encounter regulatory challenges and substantial expenses [215]. - Risks associated with international operations include decreased demand, reputational harm, and potential litigation costs [216]. - Compliance with foreign regulatory requirements and trade policies may hinder the company's ability to market products internationally [219]. Future Outlook - Future revenue growth will depend on the company's ability to successfully market and sell its RxSight system and achieve regulatory approvals for new products [169]. - The company anticipates capital expenditures and operating expenses to increase over the next several years as it expands its infrastructure and research and development activities [158]. - The company faces uncertainties in forecasting financial performance due to the need for regulatory approvals and the development of additional products [154].

Financial Data and Key Metrics Changes - RxSight generated third quarter 2023 revenue of $22.2 million, up 76% compared to $12.6 million in the year-ago quarter, and up 7% compared to $20.8 million in the second quarter of 2023 [14] - GAAP net loss in the third quarter of 2023 was $12.4 million, or a loss of $0.35 per share, compared to a GAAP net loss of $16.8 million, or $0.61 per share in the same year-ago quarter [18] - Cash, cash equivalents, and short-term investments at the end of the third quarter were $131.9 million, down from $147.1 million at June 30, 2023 [19] Business Line Data and Key Metrics Changes - LAL revenue as a percentage of total revenue was 61%, up from 52% in the third quarter of 2022 and 60% in the second quarter of 2023 [15] - Sold 13,657 LALs in Q3 2023, up 107% compared to 6,595 units in the year-ago quarter [39] - Sold 66 LDDs in Q3 2023, up 35% compared to 49 units in the year-ago period [40] Market Data and Key Metrics Changes - The installed base of LDDs increased to 589 units, up 72% compared to the third quarter of 2022 [16] - The average selling price (ASP) of the reconfigured LDD increased to just over $120,000 in Q3 2023 [41] - Gross margin in Q3 2023 increased to approximately 62%, compared to 42% in the year-ago quarter [41] Company Strategy and Development Direction - The company launched a reconfigured light delivery device (LDD) and plans to expand the ongoing Phase IV LAL clinical study to generate more real-world data [12][9] - The introduction of the LAL Plus aims to widen the addressable patient base and stimulate additional procedure growth in 2024 and beyond [22] - The company focuses on continuous improvement of technology to drive adoption by patients and practices [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future potential of their technology to reshape and expand the premium cataract market [23] - The company is not dependent on government reimbursement decisions and caters to a desirable patient demographic with a strong U.S. focus and global opportunities [48] - Management expects Q4 to be seasonally the strongest quarter of the year, with a revenue guidance of $25 million to $27 million [21] Other Important Information - SG&A expenses in Q3 2023 were $19.1 million, up 28% compared to $14.9 million in the year-ago quarter [17] - R&D expenses rose 11% to $7.1 million compared to $6.4 million in the same year-ago quarter [42] - The company raised $11.7 million net of fees in July under its ATM program and used the proceeds to pay off a $20 million debt balance [19] Q&A Session Summary Question: Is Q4 tracking towards normal seasonality? - Management expects Q4 to be seasonally the strongest quarter of the year, which is reflected in the revenue guidance [51] Question: Any noteworthy international sales in Q3? - Management did not provide specific details but indicated ongoing efforts to expand internationally [64] Question: What is different about LAL Plus? - The fitting process for LAL Plus is identical to LAL, and it aims to provide improved clinical outcomes without additional training for doctors [65] Question: How is the penetration of LDDs in the U.S. marketplace? - Management believes there is still significant growth potential for LDD placements as practices develop and expand [70] Question: How is the utilization growth distributed? - Utilization growth comes from both new surgeons and increased procedures among existing customers [72]

Financial Performance - Revenue for Q3 2023 was $22.199 million, a 76.2% increase from $12.615 million in Q3 2022, driven by higher sales of LDDs and LALs [131]. - For the nine months ended September 30, 2023, total revenue was $60.497 million, up from $32.917 million in the same period of 2022, reflecting a 83.7% year-over-year growth [131]. - Sales increased by $9.6 million, or 76.0%, to $22.2 million for the three months ended September 30, 2023, compared to $12.6 million for the same period in 2022 [143]. - For the nine months ended September 30, 2023, sales increased by $27.6 million, or 83.8%, to $60.5 million compared to $32.9 million for the same period in 2022 [150]. - Gross profit rose to $13.7 million, a 156.4% increase from $5.4 million in the prior year, with a gross margin improvement to 62.0% from 42.5% [144]. - Gross profit for the nine months ended September 30, 2023, was $36.1 million, a 159.7% increase from $13.9 million in the prior year [149]. Expenses and Losses - Selling, general and administrative (SG&A) expenses increased by $4.2 million, or 28.2%, to $19.1 million for the three months ended September 30, 2023 [145]. - Research and development expenses rose by $0.7 million, or 11.2%, to $7.1 million for the three months ended September 30, 2023 [147]. - Total operating expenses for the nine months ended September 30, 2023, increased by $13.1 million, or 21.1%, to $75.3 million [149]. - The company anticipates continued net losses and negative cash flows from operations in the near future due to increased costs associated with being a public company [122]. - Net loss decreased to $12.4 million for the three months ended September 30, 2023, down 26.2% from a net loss of $16.8 million in the same period last year [149]. Cash and Investments - As of September 30, 2023, the company had cash, cash equivalents, and short-term investments totaling $131.9 million [157]. - The company incurred an accumulated deficit of $585.5 million as of September 30, 2023 [157]. - Net cash used in operating activities for the nine months ended September 30, 2023, was $33.3 million, a decrease from $45.0 million in the same period of 2022 [169]. - Net cash provided by financing activities for the nine months ended September 30, 2023, was $58.0 million, primarily from common stock issuances totaling $54.1 million [173]. - The company anticipates that its current cash and short-term investments will be sufficient to fund operations for at least the next 12 months without the need for additional capital [166]. - Net cash used in investing activities for the nine months ended September 30, 2023, was $26.7 million, consisting of net maturities of short-term investments of $23.5 million [171]. Market and Operational Challenges - The company is facing supply chain constraints and inflation, which may impact its ability to manufacture products and could adversely affect financial results [183]. - Uncertain macroeconomic conditions, including inflationary pressures and rising interest rates, are expected to continue affecting the company's financial results and liquidity [184]. - The company plans to continue investing in sales and marketing, with a focus on increasing the number of sales representatives and clinical specialists to drive product adoption [120]. - Research and development efforts are aimed at enhancing the RxSight system and expanding its indications for use, with a focus on improving clinical outcomes and customer experience [121]. Product Adoption and Market Position - As of September 30, 2023, the installed base of Light Delivery Devices (LDDs) reached 589, with over 78,000 Light Adjustable Lenses (LALs) implanted since inception [118]. - In Q3 2023, LDD sales increased by 17 units and LAL sales increased by 7,062 units compared to Q3 2022, indicating strong adoption of the RxSight technology [126]. - The gross margin for LALs is expected to improve significantly as manufacturing volume increases, while LDDs have a low gross margin due to high material costs [135]. - The company recorded contract liabilities of $1.678 million related to service agreements as of September 30, 2023, compared to $1.187 million at the end of 2022 [130]. - SG&A expenses are expected to increase in absolute dollars as the company expands its sales and marketing organization to support revenue growth [136]. - The aggregate market value of the company's common stock held by non-affiliate stockholders exceeded $700 million as of the last business day of the second quarter of 2023, transitioning it to a "large accelerated filer" status [182].

RxSight, Inc. (NASDAQ:RXST) Q2 2023 Earnings Call Transcript August 7, 2023 4:30 PM ET Company Participants Alex Huang - Director, Investor Relations Ron Kurtz - President and Chief Executive Officer Shelley Thunen - Chief Financial Officer Conference Call Participants Robbie Marcus - JPMorgan Steven Lichtman - Oppenheimer Ryan Zimmerman - BTIG Craig Bijou - Bank of America David Saxon - Needham & Co Operator Good day and thank you for standing by. Welcome to the RxSight Second Quarter 2023 Earnings Confere ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) RxSight, Inc.'s Q2 2023 unaudited financials show strong revenue growth, improved gross margins, and a strengthened balance sheet [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheet as of June 30, 2023, shows stronger financial position with increased assets, equity, and reduced liabilities | Balance Sheet Items (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $8,753 | $11,834 | | Short-term investments | $138,340 | $93,968 | | Total current assets | $180,445 | $134,555 | | Total assets | $195,261 | $150,164 | | **Liabilities & Equity** | | | | Total current liabilities | $16,565 | $17,237 | | Term loan, net | $19,589 | $40,169 | | Total liabilities | $38,073 | $60,262 | | Total stockholders' equity | $157,188 | $89,902 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The company achieved strong sales growth and expanded gross margins for Q2 and H1 2023, reducing operating and net losses | Statement of Operations (In thousands) | Q2 2023 | Q2 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $20,810 | $11,360 | +83.2% | | Gross Profit | $12,015 | $4,788 | +150.9% | | Loss from operations | $(13,625) | $(15,792) | -13.7% | | Net loss | $(13,804) | $(16,732) | -17.5% | | Net loss per share (basic & diluted) | $(0.40) | $(0.61) | -34.4% | | Statement of Operations (In thousands) | H1 2023 | H1 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | $38,299 | $20,301 | +88.7% | | Gross Profit | $22,380 | $8,549 | +161.8% | | Loss from operations | $(26,720) | $(32,370) | -17.5% | | Net loss | $(27,016) | $(34,328) | -21.3% | | Net loss per share (basic & diluted) | $(0.82) | $(1.25) | -34.4% | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations decreased in H1 2023, with significant financing activities offsetting investing outflows | Cash Flow Summary (In thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(25,310) | $(29,808) | | Net cash (used in) provided by investing activities | $(43,970) | $28,985 | | Net cash provided by financing activities | $66,196 | $480 | | Net decrease in cash, cash equivalents and restricted cash | $(3,081) | $(357) | - Financing activities in H1 2023 were primarily driven by **$54.1 million** from a public offering and **$30.5 million** from at-the-market offerings, offset by a net **$20.0 million** repayment of the term loan[31](index=31&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's LAL and LDD business, significant capital raises, debt refinancing, and revenue recognition policies - The company raised approximately **$53.6 million** in net proceeds from a Public Offering in February 2023[40](index=40&type=chunk) - Through its At-The-Market (ATM) offering, the company sold **1.7 million shares** for net proceeds of **$29.9 million** during the six months ended June 30, 2023[39](index=39&type=chunk) - On June 30, 2023, the company entered into a new **$20.0 million** loan agreement and used the proceeds, along with other cash, to prepay its existing May 2022 Term Loan, subsequently repaying the new loan in full on August 4, 2023[88](index=88&type=chunk)[89](index=89&type=chunk)[128](index=128&type=chunk) | Revenue by Product (In thousands) | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | LDD (including training) | $7,720 | $5,683 | $14,195 | $10,253 | | LAL | $12,411 | $5,349 | $22,806 | $9,453 | | Service, warranty, accessories | $679 | $328 | $1,298 | $595 | | **Total** | **$20,810** | **$11,360** | **$38,299** | **$20,301** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong Q2 2023 performance to its 'razor and razor blade' model, driving LDD and LAL sales, improving margins, and strengthening liquidity [Business Overview and Key Metrics](index=29&type=section&id=Business%20Overview%20and%20Key%20Metrics) The company's 'razor and razor blade' model drives LDD adoption and LAL sales, with key metrics showing strong growth - The company's commercial strategy is a "razor and razor blade" business model focused on driving new customer adoption of the LDD system to generate ongoing LAL volume growth[135](index=135&type=chunk) | Key Metrics | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | LDDs Sold | 67 | 49 | | LDD Installed Base (End of Period) | 523 | 294 | | LALs Sold | 12,622 | 5,400 | [Results of Operations](index=33&type=section&id=Results%20of%20Operations) The company achieved significant year-over-year improvements in Q2 and H1 2023, with robust sales growth, expanded gross margins, and reduced operating loss | Financial Highlights (In thousands) | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $20,810 | $11,360 | 83.2% | | Gross Profit | $12,015 | $4,788 | 150.9% | | Gross Margin | 57.7% | 42.2% | +15.5 pts | | Loss from Operations | $(13,625) | $(15,792) | (13.7)% | | Financial Highlights (In thousands) | H1 2023 | H1 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Sales | $38,299 | $20,301 | 88.7% | | Gross Profit | $22,380 | $8,549 | 161.8% | | Gross Margin | 58.4% | 42.1% | +16.3 pts | | Loss from Operations | $(26,720) | $(32,370) | (17.5)% | - The increase in sales for Q2 2023 was driven by incremental sales of **7,222 LALs** and **18 LDDs** due to strong adoption of the RxSight technology[159](index=159&type=chunk) - SG&A expenses increased by **26.8%** in Q2 2023, primarily due to higher headcount, sales commissions, and marketing costs to support growth[161](index=161&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company maintained strong liquidity, bolstered by equity offerings and debt prepayment, with sufficient capital for operations - As of June 30, 2023, the company had cash, cash equivalents, and short-term investments of **$147.1 million**[173](index=173&type=chunk) - The company raised net proceeds of approximately **$53.6 million** from a public offering in February 2023 and has utilized an ATM facility, which was fully drawn down for gross proceeds of **$50.0 million** as of the report date[175](index=175&type=chunk)[177](index=177&type=chunk) - On August 4, 2023, the company prepaid its Term A Loans in full, including accrued interest and fees, using cash from the ATM facility and cash reserves[180](index=180&type=chunk) - Management does not anticipate the need to raise additional capital or incur additional debt in order to reach profit from operations[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, RxSight, Inc. is exempt from providing disclosures on market risk - The company is not required to provide this disclosure as it qualifies as a smaller reporting company[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[205](index=205&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[206](index=206&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially affect its business or financial condition - The company is not currently a party to any legal proceedings that would individually or in the aggregate have a material adverse effect on its business[209](index=209&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from limited operating history, RxSight system reliance, competition, supply chain, IP, regulations, and increased compliance costs - **Business Risks:** The company has a limited operating history, a history of net losses, and its success depends heavily on the RxSight system, facing significant competition and global economic conditions[216](index=216&type=chunk)[221](index=221&type=chunk)[233](index=233&type=chunk) - **Third-Party Reliance:** The company depends on third-party, including single and sole source suppliers, for components of the RxSight system, making it vulnerable to supply disruptions and price fluctuations[215](index=215&type=chunk)[450](index=450&type=chunk) - **Regulatory Risks:** The business is subject to extensive government regulation by the FDA and other bodies, where failure to obtain or maintain regulatory clearances, or potential product recalls, could harm commercial operations[214](index=214&type=chunk)[363](index=363&type=chunk)[389](index=389&type=chunk) - **Intellectual Property Risks:** The company's ability to compete depends on its ability to obtain, maintain, and enforce patent and other intellectual property protection for its technology and products[213](index=213&type=chunk)[297](index=297&type=chunk) - As of December 31, 2023, the company will be considered a "large accelerated filer" and will cease to be an "emerging growth company," which will result in the loss of certain reduced reporting requirements and increased compliance costs[468](index=468&type=chunk)[471](index=471&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=100&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales, no use of registered proceeds, and no issuer purchases during the period - The company reports no unregistered sales of equity securities during the period[501](index=501&type=chunk) [Item 5. Other Information](index=101&type=section&id=Item%205.%20Other%20Information) On August 4, 2023, the company fully prepaid its June 2023 loan with Oxford, primarily using cash from its ATM offering - On August 4, 2023, the Company prepaid all outstanding loans under its June 2023 LSA with Oxford, using cash primarily raised from its ATM Facility[503](index=503&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40690 RxSIGHT, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 94-3268801 (State or other jurisdiction of in ...