RxSight(RXST) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - RxSight, Inc. reported Q4 2024 revenue of $40.2 million, up 41% year-over-year, driven by strong growth in LAL procedure volume and expansion of the installed base of LDDs [10][12] - LAL revenue reached$ 28.5 million in Q4 2024, a 60% increase compared to the same quarter in 2023, with LALs accounting for 71% of total revenue, up from 62% in Q4 2023 [11][13] - The gross margin expanded to 71.6% in Q4 2024, up from 61.8% in Q4 2023, reflecting a favorable revenue mix and lower manufacturing costs [13] - For the full year 2024, revenue grew 57% to $139.9 million, with a net loss of$ 27.5 million, an improvement from a net loss of $48.6 million in 2023 [16][17] Business Line Data and Key Metrics Changes - The company sold a record 29,069 LALs in Q4 2024, marking a 61% increase from Q4 2023 [11] - The installed base of LDDs increased to 971 units, up 46% from 666 units at the end of 2023 [12] - Full-year 2024 LAL revenue increased by 78%, while LDD revenue grew by 24% [16] Market Data and Key Metrics Changes - The company anticipates that revenue contribution outside of North America will remain nominal in 2025, with a more significant impact expected in 2026 and beyond [19] - The company estimates that adjustable premium IOLs accounted for nearly half of the overall growth of premium IOLs in the U.S. in 2024 [23] Company Strategy and Development Direction - RxSight, Inc. aims to expand access and accelerate adoption of its adjustable IOL technology, focusing on partnerships and clinical collaborations [29][30] - The company plans to continue investing in sales, marketing, and R&D to support projected revenue increases in 2025 and beyond [20][21] - The company is also pursuing regulatory approvals in key markets in Asia and Europe to expand its reach [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of LAL utilization as the technology becomes more widely recognized and adopted [22] - The company expects typical seasonality in revenue, with the first and third quarters being seasonally weaker [19][20] - Management highlighted the importance of high-margin private pay LAL procedures for the financial sustainability of eye care providers [24] Other Important Information - The company ended 2024 with no debt and$ 237.2 million in cash and short-term investments [18] - The company raised $107.5 million net from a public offering during 2024 [18] Q&A Session Summary Question: Trends in LAL utilization and growth expectations for 2025 - Management noted that LAL utilization is expected to grow, influenced by the installed base of LDDs and overall market growth [34][36] Question: Insights on aspheric IOL and market opportunities - Management clarified that both LAL and LAL plus are already aspheric lenses, with new functionalities enhancing customization for different patient needs [47] Question: Growth investments and focus areas - Management emphasized ongoing investments in clinical training, sales support, and education to drive adoption [61][64] Question: Guidance on top-line growth and seasonality - Management indicated that the first quarter is expected to be seasonally weaker, with a focus on absolute LAL implant numbers as a key metric [70][72] Question: Competitive landscape and impact on guidance - Management acknowledged potential impacts from competition but emphasized the unique advantages of their technology [76] Question: R&D spending and innovation opportunities - Management highlighted a focus on continuous innovation and upgrades to technology, benefiting customers over the long term [85] Question: Margin cadence and future expectations - Management expects consistent gross margin expansion, driven by a higher mix of LAL sales [92] Question: Business models and implementation across centers - Management noted increased interest in LDD-focused treatment centers, which could enhance access for doctors and patients [98]