STAAR Surgical(STAA)2024-08-09 15:49Financial Data and Key Metrics - Record net sales of 100.4 million, up 9% YoY [5][12] - Gross profit for Q2 2024 was 70.7 million (76.6%) in the prior year quarter [12] - GAAP net income for Q2 2024 was 0.15 earnings per diluted share, compared to 0.12) in the prior year quarter [16] - Adjusted EBITDA for Q2 2024 was 0.45 per diluted share, compared to 0.37) in the prior year quarter [16] - Full-year 2024 net sales outlook raised to 345 million, with adjusted EBITDA expected to be approximately 6.3 million to the 200 million in 2024 [9] - Japan sales grew 14% YoY despite currency headwinds, with unit sales significantly higher [10] - South Korea sales grew 20% YoY, with the first ICL-only clinic opening earlier in 2024 [10] Company Strategy and Industry Competition - The company is focusing on three main areas to accelerate EVO ICL adoption: surgeon education, broadening the EVO market opportunity, and driving innovation in technical and product areas [6][7] - EVO ICL lens technology continues to outpace the growth of laser vision correction procedures globally, including LASIK, PRK, and SMILE [10] - The company is working on harmonizing label indications globally and advancing AI-based protocols to guide measurement and size selection [24] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about growth in China, despite macroeconomic headwinds, and expects to achieve 10% annual sales growth in the region [9][29] - The US market is showing strong momentum, with the company expecting to reach 20% market share, equating to $140 million in annual sales [22] - The company is raising its fiscal 2024 outlook, reflecting confidence in its growth trajectory and market position [6][17] Other Important Information - The company plans to open a new EVO ICL Experience Center at its Lake Forest headquarters, serving as a hub for surgeon and ophthalmic practice education [23] - A new US-based head-to-head study versus laser vision correction procedures is in the final stages of development, expected to further demonstrate EVO's advantages [24] Q&A Session Summary Question: China's growth outlook and consumer health - Management feels positive about China's performance, with minimal impact from competition, anticorruption, or PPP issues, and expects continued growth despite economic headwinds [29] Question: Growth acceleration in 2025 and M&A strategy - The company is not providing specific 2025 guidance but remains confident in its Vision 2026 target of 15%-20% CAGR, with growth initiatives expected to drive adoption globally [31][32] - Management is focused on execution and growth, dismissing M&A rumors as speculative [33] Question: US market traction and guidance - The US market is showing strong sequential growth, with Highway 93 accounts growing 29% YoY, compared to 19% for non-Highway 93 accounts [36] - Management expects the US business to accelerate further in 2025, with initiatives like the Stella Ordering System and STAAR University driving adoption [36] Question: Aier's pricing strategy and M&A impact in China - Aier's pricing adjustments for SMILE have not significantly impacted EVO ICL sales, with the company maintaining a strong relationship and growth trajectory with Aier [38][39] - Aier's recent M&A activity is not expected to have a significant crossover impact on STAAR's volumes or pricing [41] Question: China's second distributor contribution and stimulus impact - The integration of the second distributor, HTDK, has been smooth, with both distributors contributing positively to the business [46] - Potential stimulus measures by the Chinese government could positively impact the business in H2 2024 and beyond [45] Question: US Highway 93 growth drivers - Growth in Highway 93 accounts is driven by increased surgeon confidence, marketing focus at the practice level, and pricing adjustments closer to laser vision correction levels [53] Question: Clinical data and marketing impact - The company is in the early stages of leveraging clinical data to drive global sales, with initiatives aimed at accelerating adoption and improving surgeon confidence [55] Question: US fast lane accounts and strategic alliances - The company has signed nine new agreements in the US in 2024, with a target list of 15, and is seeing increased interest from other accounts due to the halo effect [57][58]