LENSAR(US:LNSR)2021-03-10 18:21Financial Data and Key Metrics Changes - Revenue for Q4 2020 was $8.3 million, a 2.1% decrease from $8.5 million in Q4 2019, primarily due to a decline in elective surgical procedures related to the pandemic [20][21] - Net loss for Q4 2020 was $6.8 million, compared to a net loss of $2.5 million in Q4 2019, largely due to increased R&D and SG&A expenses [28] - Adjusted EBITDA for Q4 2020 was a loss of $1.1 million, compared to a loss of $0.5 million in Q4 2019 [28] Business Line Data and Key Metrics Changes - Total procedures performed using LENSAR systems in Q4 2020 were 30,503, down from 32,007 in Q4 2019 [21] - Recurring revenue for Q4 2020 was 80%, slightly down from 81% in Q4 2019, while full year recurring revenue increased to 85% from 79% [22] Market Data and Key Metrics Changes - Worldwide procedure volume for the full year 2020 was 97,071, down roughly 10% from 108,030 in 2019, but showed recovery in the second half of the year [10] - In the U.S. and Europe, procedure volumes in Q4 2020 were 20,872, up from 17,732 in Q4 2019 [10] Company Strategy and Development Direction - The company aims to leverage its technology leadership to grow market share, with a focus on the anticipated launch of the next-generation system, ALLY, in 2022 [8][19] - The integration of femtosecond laser and phacoemulsification into a single system is expected to enhance operational efficiencies and broaden the appeal to conventional cataract patients [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in 2021, expecting to exceed 2019 revenue levels despite potential choppiness in the first half of the year due to COVID-19 [42] - The company is well-positioned to maintain its reputation as an innovator and technology leader while navigating the ongoing challenges posed by the pandemic [19] Other Important Information - The company had cash and cash equivalents of $40.6 million as of December 31, 2020, down from $42.7 million at the end of Q3 2020, indicating sufficient capital to fund operations through the filing of the 510(k) application [30] Q&A Session Summary Question: Outlook for 2021 and revenue growth - Management expects an increase in total revenue from 2019 levels, with a rebound anticipated as vaccines are distributed [42] Question: Q4 to Q1 trends and seasonality - Management acknowledged seasonality in cataract surgeries, with expectations for a less pronounced drop from Q4 to Q1 compared to the previous year [44] Question: Utilization trends and sustainability - Management believes the high utilization rate of LENSAR systems is sustainable due to differentiating features that enhance efficiency and outcomes [46] Question: Confidence in ALLY launch timelines - Management reiterated confidence in the ALLY development timeline, with R&D expenses expected to increase as preparations for the launch continue [51][56] Question: Revenue mix considerations post-ALLY launch - Management anticipates a higher mix of capital sales in the first couple of years post-launch, while still focusing on a razor-blade business model [60][63]