RxSight(RXST) - 2023 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - RxSight generated third quarter 2023 revenue of $22.2 million, up 76$12.6 million in the year-ago quarter, and up 7% compared to $20.8 million in the second quarter of 2023 [14] - GAAP net loss in the third quarter of 2023 was$12.4 million, or a loss of $0.35 per share, compared to a GAAP net loss of$16.8 million, or $0.61 per share in the same year-ago quarter [18] - Cash, cash equivalents, and short-term investments at the end of the third quarter were$131.9 million, down from $147.1 million at June 30, 2023 [19] Business Line Data and Key Metrics Changes - LAL revenue as a percentage of total revenue was 61$120,000 in Q3 2023 [41] - Gross margin in Q3 2023 increased to approximately 62%, compared to 42% in the year-ago quarter [41] Company Strategy and Development Direction - The company launched a reconfigured light delivery device (LDD) and plans to expand the ongoing Phase IV LAL clinical study to generate more real-world data [12][9] - The introduction of the LAL Plus aims to widen the addressable patient base and stimulate additional procedure growth in 2024 and beyond [22] - The company focuses on continuous improvement of technology to drive adoption by patients and practices [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future potential of their technology to reshape and expand the premium cataract market [23] - The company is not dependent on government reimbursement decisions and caters to a desirable patient demographic with a strong U.S. focus and global opportunities [48] - Management expects Q4 to be seasonally the strongest quarter of the year, with a revenue guidance of $25 million to$27 million [21] Other Important Information - SG&A expenses in Q3 2023 were $19.1 million, up 28$14.9 million in the year-ago quarter [17] - R&D expenses rose 11% to $7.1 million compared to$6.4 million in the same year-ago quarter [42] - The company raised $11.7 million net of fees in July under its ATM program and used the proceeds to pay off a$20 million debt balance [19] Q&A Session Summary Question: Is Q4 tracking towards normal seasonality? - Management expects Q4 to be seasonally the strongest quarter of the year, which is reflected in the revenue guidance [51] Question: Any noteworthy international sales in Q3? - Management did not provide specific details but indicated ongoing efforts to expand internationally [64] Question: What is different about LAL Plus? - The fitting process for LAL Plus is identical to LAL, and it aims to provide improved clinical outcomes without additional training for doctors [65] Question: How is the penetration of LDDs in the U.S. marketplace? - Management believes there is still significant growth potential for LDD placements as practices develop and expand [70] Question: How is the utilization growth distributed? - Utilization growth comes from both new surgeons and increased procedures among existing customers [72]