RxSight(RXST) - 2024 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - RxSight generated Q1 2024 revenue of $29.5 million, up 69% from$ 17.5 million in Q1 2023 and up 3% from $28.6 million in Q4 2023 [9] - The company reported a GAAP net loss of$ 9.1 million or $0.25 per share, an improvement from a loss of$ 13.2 million or $0.42 per share in Q1 2023 [10] - Gross margin for Q1 2024 was reported at 70%, an increase from 59% in Q1 2023 and 62% in Q4 2023 [20] Business Line Data and Key Metrics Changes - Revenue from Light Adjustable Lenses (LAL) was$ 19.9 million, up 92% year-over-year and 12% sequentially, representing 67% of total revenue [9] - LDD sales generated $8.7 million, up 35% year-over-year but down 13% sequentially [20] - The installed base of LDDs increased to 732 units, up 61% year-over-year and 10% sequentially [20] Market Data and Key Metrics Changes - The company anticipates 2024 revenue guidance of$ 132 million to $137 million, reflecting a year-over-year growth of 48% to 54% [4] - The gross margin guidance for 2024 was increased to 68% to 70%, up from previous guidance of 65% to 67% [11] Company Strategy and Development Direction - RxSight aims to establish a new standard for premium intraocular lenses (IOLs) in the U.S. with the launch of LAL Plus and ongoing educational programs for eye care professionals [14][15] - The company is committed to rapid innovation and plans to expand its international presence, particularly in Asia and Europe, following regulatory approvals [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strong adoption of LAL technology, driven by positive clinical outcomes and a focus on the premium IOL market [39] - The company noted that the competitive landscape is evolving, with a significant percentage of LAL cases coming from patients who would not have selected a premium IOL previously [42] Other Important Information - Cash and short-term investments at the end of Q1 2024 were$ 125.4 million, slightly down from $127.2 million at the end of Q4 2023 [21] - Operating expenses for 2024 are guided to be between$ 126 million and $130 million, reflecting a 21% to 25% increase over 2023 [22] Q&A Session Summary Question: What are the adoption trends and pricing discipline observed in the field? - Management noted strong adoption trends and good pricing discipline, supported by excellent clinical results and increasing references for new doctors [31] Question: How does the company view the competitive environment? - Management indicated that a significant portion of LAL cases are coming from patients who would not have chosen premium IOLs, suggesting a broader market appeal beyond just competitors [42] Question: What are the service revenue considerations as the installed base grows? - Management stated that approximately 80% of customers take a service contract after the one-year warranty expires, indicating potential growth in service revenue as the installed base increases [36] Question: How is the company planning to approach the rollout of LAL Plus? - The guidance for 2024 assumes a methodical ramp-up of LAL Plus, with expectations for continued growth in both LAL and LDD placements [58] Question: What is the outlook for international market launches? - Management confirmed that while the primary focus remains on the U.S. market, they are pursuing regulatory filings in attractive international markets [96]