RxSight(RXST) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company has cut its guidance by approximately 35% since January, now implying nearly a 30% year-over-year decline in sales for 2025 [2][3] - The overall cataract procedure market has seen a drop, with Q1 marking the first actual decline in total procedures experienced in a long time, leading to subpar growth in Q2 [3][4] Business Line Data and Key Metrics Changes - The premium IOL market, which is a specific submarket for the company, has remained relatively flat, with most growth in recent years attributed to the LAL [3][4] - The company has focused on same-store sales growth due to slower growth in recent customer cohorts, affecting ROI calculations for new customers [5][6] Market Data and Key Metrics Changes - The premium IOL market is approximately 50% toric lenses, which are lower-priced options, indicating a potential trade-down by consumers [13][14] - The overall market has shrunk, with competitors also experiencing declines, except for the company which has seen some growth [14] Company Strategy and Development Direction - The company is refocusing on internal factors that can be controlled, particularly on increasing LAL utilization among existing customers [5][6] - A reorganization has been implemented to align the LAL sales team and clinical team under the same management to improve efficiency and drive growth [24][25] Management Comments on Operating Environment and Future Outlook - Management acknowledges that the current environment has not changed significantly and remains cautious about the second half of the year, expecting conservative growth [16][18] - The company aims for sequential growth rather than year-over-year comparisons, focusing on LAL sales as a key growth driver [29][30] Other Important Information - The company has adequate cash to reach profitability, with a significant portion of operating expenses attributed to non-cash stock-based compensation [59] - The company is optimistic about the future of LAL technology, emphasizing its unique advantages over competitors [60] Q&A Session Summary Question: What is the outlook for the business given the recent guidance cuts? - Management indicated that the guidance reflects a conservative outlook due to both macroeconomic factors and internal challenges, with a focus on improving same-store sales growth [2][16] Question: How is the company addressing competition in the premium IOL market? - Management noted that while competition has increased, the unique adjustability of their LAL product provides a significant advantage over fixed lenses [22][39] Question: What are the expectations for international market growth? - Management expects modest contributions from international markets in 2026, with a focus on developing KOLs and local clinical data [51][52]