RxSight(US:RXST)2025-04-03 19:54Financial Data and Key Metrics Changes - Preliminary first quarter 2025 revenue was $37.9 million, up 28% year-over-year but down 6% sequentially from Q4 2024 [18] - Sold 73 LDDs, an increase of 11% year-over-year but a decrease of 12% from Q4 2024 [18] - Sold 27,579 LALs, up 36% from Q1 2024 but down 5% sequentially from Q4 2024 [19] - Revised full-year revenue guidance from $185 million to $197 million down to $160 million to $175 million, reducing implied growth from 32%-41% to 14%-25% [19] Business Line Data and Key Metrics Changes - LDD installed base reached 1,044 units, up 43% year-over-year and 8% sequentially [18] - LAL sales experienced a year-over-year increase but a sequential decline, indicating a shift in market dynamics [19] Market Data and Key Metrics Changes - The premium IOL market showed signs of weakness, impacting LAL sales and leading to a year-over-year drop in same-store LAL sales [10][14] - The overall premium IOL market has been less sensitive to macroeconomic trends historically, but recent changes in consumer sentiment have affected decision-making [11][14] Company Strategy and Development Direction - The company is focusing on refining clinical education and practice adoption programs to address procedural declines [15] - Plans to expand into European markets while building clinical expertise and pursuing regulatory approvals in Asia [16][17] - Emphasis on leveraging customer interactions and product enhancements to drive growth [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need to reset 2025 guidance due to macroeconomic headwinds and competitive product launches [17] - Confidence remains in the long-term opportunity to reshape the premium IOL market despite current challenges [17][22] Other Important Information - Customer satisfaction is at an all-time high of 97%, indicating strong support for the company's technology [22] - The company is committed to aligning operating expenses with revenue growth, reducing operating expense guidance from $165 million to $170 million to $150 million to $160 million [20][21] Q&A Session Summary Question: Guidance and underlying assumptions - Management indicated that the lack of significant increases in LAL procedures in March impacted guidance, reflecting changes in customer behavior [26] Question: Components of the miss in Q1 - Management noted a combination of factors including weakened premium IOL market, new product launches, and macroeconomic dynamics as contributors to the miss [32] Question: Utilization rates by cohort - Management confirmed that utilization rates have been consistent across cohorts, with no significant disparities noted [37] Question: Product pipeline and competition - Management expressed confidence in their product pipeline and noted that they do not see direct competition to LAL technology [42] Question: Impact of competitor recall - Management acknowledged the potential for opportunity but stated that the impact of competitor recalls is uncertain [70] Question: LDD demand and pricing strategy - Management expects LDD sales to increase in 2025 but acknowledged that overall demand may be affected by the premium IOL market's softness [76] Question: Confidence in market penetration - Management expressed confidence in continued market penetration, citing many practices that have yet to adopt their technology [90]