Sight Sciences(US:SGHT)2022-05-14 22:24Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $14.9 million, a 72% increase from $8.6 million in Q1 2021 and a 1% increase from Q4 2021 [31][41] - Surgical glaucoma revenue was $13.9 million, up 70% year-over-year and flat sequentially compared to Q4 2021 [31][32] - Dry eye revenue reached $1 million, up over 100% year-over-year and 33% sequentially from Q4 2021 [31][38] - Gross margin for the quarter was 80%, compared to 73% in the prior year and 87% in Q4 2021 [38] - Net loss for Q1 2022 was $23.3 million, or $0.49 per share, compared to a net loss of $12.2 million, or $1.29 per share, in Q1 2021 [41] Business Line Data and Key Metrics Changes - Surgical glaucoma segment revenues increased significantly, with a year-over-year growth rate of 70% [31][32] - Dry eye segment revenues showed strong growth, with a 104% increase year-over-year [31][38] - Customer retention rate for developed customers was 99.8%, indicating strong customer loyalty [36] Market Data and Key Metrics Changes - The U.S. combination cataract claims grew at a 17% CAGR from 2018 to 2021, while claims that included both cataract surgery and canaloplasty grew at an 81% CAGR [14][16] - Canaloplasty claims had a 71% CAGR from 2018 to 2021, with OMNI shipments growing at 122% during the same period [17] Company Strategy and Development Direction - The company focuses on three primary strategic growth initiatives: increasing adoption of OMNI in combination cataract MIGS, pioneering the stand-alone MIGS market, and developing the market for reimbursed dry eye treatments [12][26] - The company aims to educate the glaucoma community about the benefits of earlier interventions using OMNI [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth drivers and the overall market potential, despite some expected seasonality in Q2 [42][44] - The company has a strong cash position of $238 million, providing flexibility for long-term strategic decisions [12][42] Other Important Information - The company has trained nearly 1,600 surgeons on OMNI, with 105 new facilities ordering OMNI in Q1 2022 [33][35] - The dry eye segment's gross margin was negatively impacted by a one-time program to upgrade smart hubs, but would have been positive without these charges [38] Q&A Session Summary Question: Expectations for Q2 and contributions from new products - Management indicated limited contributions from new products and a conservative view on growth in Q2 due to seasonality and competitive trialing [48][49] Question: Headwinds from COVID and competitive dynamics - Management noted that COVID impacted the initial trialing sessions and overall case load, but the number of new facilities ordered was strong [51][52] Question: Competitive environment and trialing period - Management emphasized the importance of educating the market on OMNI's advantages to potentially shorten the trialing period [54][55] Question: Impact of the "Don't Wait for Too Late" campaign - The campaign has received positive feedback and aims to educate primary eye care providers about the benefits of OMNI [60][61] Question: Reimbursement concerns - Management clarified that OMNI's reimbursement code is clear and well-defined, which supports its market position [81] Question: Sales force build-out - The company has expanded its sales force significantly, particularly with the addition of glaucoma clinical consultants to support stand-alone initiatives [83][85]