Sight Sciences(US:SGHT)2023-11-11 17:38Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $20 million, representing a 7% growth compared to Q3 2022, at the top end of the guidance range [51] - Surgical Glaucoma revenues were $18.4 million, up 8% year-over-year, with over 1,100 customers ordering products, a 16% increase from the previous year [51] - Dry Eye revenues were $1.6 million, down 1% year-over-year and down 24% from Q2 2023, attributed to a shift in commercial strategy [54] - Gross margin improved to 86.6% from 84.3% year-over-year, driven by manufacturing efficiencies and higher average selling prices [56] - Total operating expenses decreased by 18% to $30.7 million compared to Q3 2022, with adjusted operating expenses at $26.8 million [57] - Net loss for the quarter was $13 million, or $0.27 per share, compared to a net loss of $22.2 million, or $0.46 per share, in Q3 2022 [60] Business Line Data and Key Metrics Changes - Surgical Glaucoma segment showed strong customer retention but experienced lower utilization and new account additions due to reimbursement uncertainties [52] - Dry Eye segment had 318 active customers, a 40% increase year-over-year, but total revenue declined due to fewer new customers [55] Market Data and Key Metrics Changes - The company faced challenges in the reimbursement environment, particularly with the final LCD published by WPS, which limited coverage for certain procedures [23][24] - The uncertainty in reimbursement affected utilization across all geographic regions, with a more pronounced impact in areas covered by the five MACs [53] Company Strategy and Development Direction - The company is focused on maintaining and enhancing market access for its technologies, particularly for the Surgical Glaucoma products [22] - A restructuring plan was implemented to reduce operating expenses and improve efficiencies, including a 10% reduction in headcount [47] - The company is actively pursuing new procedure codes with CMS to enhance reimbursement for its technologies [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with the final LCD from WPS and is working to prevent its implementation [23][29] - The company is optimistic about the support from the surgical community and is focused on addressing the LCD issues [73] - Future cash restructuring charges of approximately $1.3 million are expected in Q4 2023 due to the reduction in force [62] Other Important Information - The company withdrew its full-year 2023 revenue and adjusted operating expense guidance due to reimbursement uncertainties [61] - The GEMINI 2 study results are expected to be published soon, which may support the case for continued coverage of OMNI technology [26] Q&A Session Summary Question: Discussions with customers regarding WPS update - Management noted that most surgeons are still trying to understand the implications of the LCD and expressed disappointment over the lack of coverage for canaloplasty [71] Question: Steps to remediate current ruling with WPS - The company is engaging with multiple stakeholders, including MACs and national societies, to address the LCD issues and gather support [82] Question: Timeline for LCD reconsideration process - The reconsideration process can take several months and cannot be initiated until the LCD is effective, which is set for December 24 [92]