RXST - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the RxSight First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Oliver Moravcevic, VP of Investor Relations. Please go ahead.

Oliver Moravcevic

operator. you, Thank RxSight are Chief Officer, Executive Presenting President Dr. today and Chief Ron Thunen. Financial and Shelley Officer, Kurtz; today, Earlier financial XX, released RxSight XXXX. ended X March months results for the website. is A on press of release copy the the company's available

results comments other Before we begin, today, differ management's implied to including would may and like May reflect estimates, information. X, during call expectations as will predictions, uncertainties. and include of opinion those you today's forward-looking from to questions views expressed responses a inform as I Actual certain that and of XXXX, and plans, risks materially and statements or result

These uncertainties and filings our in described in our press SEC. release with the risks Exchange more today and and are issued Securities fully or Commission,

found website. on the be or can website SEC's our filings SEC Our

cautioned update these or we undue forward-looking reliance Investors to revise place to on disclaim obligation are statements, not any forward-looking statements. and

Disclosures reconciliations measures We found financial non-GAAP financial release. measures. will GAAP comparable non-GAAP most including discuss also can the the press regarding measures, in certain be with

conference that replay audio our on note available for will website. Please Investor be this

will turn I Ron our over Ron? call Executive Officer, that, With Dr. President and Kurtz. to Chief the

Ronald Kurtz

commercial Light updates with launch Adjustable Refractive first our In of Adjustable provide guidance, Good the you thank for financial review Surgery Light return full newest included joining performance I our believe American once results an some which the the platform. of we which member sustained from Shelley's Society Lens financial technology. moment, Cataract meeting, After recent afternoon, Lens and Shelley the will LAL+, of will of and us. review, our clinical update to and XXXX quarter and a our demonstrates again

away, Shelley. it take Please

Shelley Thunen

million revenue million of good compared the generated Thank $XX.X in to X% compared afternoon, of year in $XX.X to everyone. XXXX quarter XXXX. the RxSight you, million, quarter ago up up Ron, and XX% $XX.X quarter first and fourth

up this LAL XX% an XX% in and and respectively. and fourth of sold of XXXX, of revenue, the XX% During and first and represented generated of XX% XX,XXX quarters in year, we $XX.X to revenue LALs XXXX, quarters from XX% fourth QX the first the compared revenue, increase million total quarter, In respectively.

sold to in quarter ago up first of XX LDDs, XX units XX% period. the XXXX, the we year During

expected, quarter basis, of typical quarter quarter were sales the equipment As capital for first sold therefore, the in reflected the XX compared seasonality, XX% a LDD the down on units our sequential units to fourth XXXX.

respectively. and the revenue XX% million, of quarters sales XXXX, quarter, down fourth generated $X.X of up the versus and LDD first During XX%

units, base XX, As our installed versus of XXXX, up quarters of March at XX% respectively. stood the XXXX, and XXX XX% first and fourth

the of first the first to Gross in Lower higher-margin in reflects with margin margin the quarter. respectively. gross contributed and both XX% the XXXX the The the shift XXXX, increase in and XX% cost primarily fourth to mix, to quarter product and also compared expansion LDD revenue to LAL XX% revenue. advancing of of our quarters LAL was in XX% manufacture

costs. increased and Phase additional compensation costs, personnel On commercial million $X of primarily study sequential and were stock-based the of This in number an quarter. year of increase XX% the higher $XX.X million, was marketing SG&A ago basis, first SG&A in change expenses XXXX due XX% or a representing higher in increase personnel quarter an primarily a spending. to versus expenses to IV $XX.X expense study million year-over-year due

by the allocation X% of change by quarter R&D-related in of R&D compared XXXX. year-over-year quarter rose year, quarter the of change $X.X primarily rose $X XXXX. to to This of first in salaries compensation in costs. in certain a compared and quarter stock-based million first expenses the reflects an to this XX% driven During first the primarily R&D fourth expenses increase million onetime

of million reported first loss or of quarter in $X.XX basic million $XX.X unaudited $X.XX basis today's weighted loss more Note share shares. million net for loss non-GAAP a $X.XX basic shares GAAP per a stock-based shares in a We and in or million of outstanding diluted the on comparative to disclosure compensation the diluted Please loss basic ] compares GAAP and press of the using included in XXXX. non-GAAP a million release [ XXXX first of or net and was and average information. $X.X diluted also a of quarter first in per $X.X $X.X that refer XX.X quarter shares. loss This of a resulting reconciliation to of per the

first equivalents XX, quarter XXXX. stock cash by million the December $XXX.X We of Cash quarter to on net investments short-term million for cash, ended cash the in offset and $X was from million operations option of $XXX.X used of XXXX received exercise. compared with

usual cash from option have were the While of than some stock stock option exercised XX% were open transactions. related generated Approximately price. increased and the to we window given always stock longer exercises, exercised than normal stock shares more options XXbXX

access dates year, and We campus X a of Viejo, of California, additional options, our Aliso and in at the we to expand facilities. in to this that facilities, for new footage are existing lease acquire rental our end align our into lease announce terms leases manufacturing each and entered square ensure to continued April to pleased amended the to X long-term extend

on our Moving XXXX to outlook.

sequential and summer vacations margin doctors. the assuming $XXX quarter revenue, from $XXX follows: due $XXX implying with of We are seasonality up XX% year-over-year to increasing growth quarterly our million, as to in $XXX of XX% both patients revenue growth third to and guidance million XXXX by expense million, of previous million operating normal and guidance continued gross to

previous during LDD of in revenue and vary driven year of X on to and pricing XX%, the quarter. between and XX% cost contributions to to new for XX%. LAL launch guidance discipline up reductions our the our produce LAL from with depending The is continued modestly both guidance the margin from by Gross along XX% primarily to margin any slightly Gross revenue higher-than-expected mix LDD. likely LDD continued our LAL is

guidance our $XXX to $XXX implied $XXX over previous Operating and $XXX up XX% XXXX. XX% million, to an of expenses of of increase representing million million from to million

Our to efforts expense on expand our pipeline momentum, as approvals includes continuing noncash our develop leverage and estimate that is expenses efforts, and $XX commercial are our internationally focused operating and regulatory grow educational compensation million spending Note the million. stock-based between $XX obtained.

the I'll to that, turn With Ron. call back

Ronald Kurtz

largest performance continued X,XXX of at Thank the Cataract was over American ophthalmic attendees. conference with Lens the RxSight's Society quarter in strong Meeting second Annual Refractive Surgery, you, Light Shelley. keen our by and of interest technology Adjustable followed first recent U.S. the

from of was XX its presentations, session Newsom settings common LAL patients approximately able LAL X,XXX XX% better, attained over clinical both or implanted XX/XX prominently in read forums. data XX% bilaterally presentations to featured were was discussion with of a uncorrected at The vision on eyes. Dr. reported and LAL collected while Hunter X.X In various one formal JX of use subjects XXX in Dr. practices. these binocular nearly Approximately topic in over or

the both platform, better. Doctors LAL+ comparatively LAL+ LALs from excellent practices from attained discussed groups vision newest achieving XX of the data cataract and vision monocular improvement of LAL+, groups group XX/XX over initial corrected vision, compared distance presenting eyes. outcomes high more choose XXX or have clinical visual XXX the a most than to also to Newsom patients now surgery. With line that eyes LAL at the while Both in rates near. customized possible demonstrated exhibited X distance with after achieve excellent binocular -- RxSight both member

leading eye patients, growing the as in the of uptake RxSight's establishing by adjustable number With are This fixed full to are practices technology includes and enhance a and LAL+, we potential full doctors lens their the base adjustability, LAL+ care that offering professionals, programs when choose the are the momentum, We thereby of benefits in optimize LAL the rapid alternative only of and ophthalmologists, are to commitment an understand clinical the believe even our likely U.S. Based technology. that this ongoing served to insertion thereby advancements expanding ways our includes premium not opportunity. for unique the to new and IOL maintaining commercialized by standard more LAL exemplified LAL by we also public. to patients believe also informed them. Reaching optometrists and to and we as a knowledge a full on meaningful over of that better committed they reaching but more LDD vision premium recently increasing well potential and offerings innovation, market other

forward adjustability to programs, and and can Canada addition, replicated feel in and that, particularly with the and regulatory believe further in major along positive our markets Europe successful year's results, operator the premium standard the Asia that support U.S. quarter cataract call for to the I'll both to ask following our vision LAL the approvals. Overall, the we continue strong first building at we of most surgery. With replacement this success very for be international open in questions. look make In to reception ASCRS the lens

Operator

is question JPMorgan. the going Robbie from come to first Our of Instructions] with [Operator line Marcus

Robert Marcus

a in so math me. Maybe but quarter. in Congrats to nice the first LAL very on Two quarter, my really start, for correct was were do if also I strong pricing, LDD and volumes, both here.

because and but on what than field both in also place utilization, both it to continues as more side you the speak of maybe continue the to trends adoption So be of terms in you're for robust LDDs pricing to seeing expected good them.

Shelley Thunen

Why trends, the I'll on and follow Ron start up adoption we Okay. don't ASPs. on with the

Ronald Kurtz

Yes.

the with positive. now the that, adoption We the very to LAL+. think as be LAL Robbie, you trends outcomes of a I clinical and think that's noted, the combination continue

market in focus as the well reimbursed areas. revenue on the that IOL base customer potential losses our they're the continued to and seeing As offset of the their premium

maintain So strong been discipline. adoption. with we've to able that, continued pricing good And overall, we anticipate

Shelley Thunen

and fact the certainly the at first Thank year-end, quarter. The and particular ASP don't in sales about clinically, you think, was LDD, as increased we like really by XXXX. the that was continue our we And hold references quarter. more the bolstered to think at it's time the or about item to in they when LDD. that the as fourth force Ron. to we our how go good by discipline are, into felt again, third price and going new And newer We any that of know, Robbie, whether it we saw compared doctors excellent you, quarter, large I are I pricing recall again have ASP as XX%. for customers, results increased that would more as much through that that to. $X,XXX And up introduced the the third from second mix and

Robert Marcus

early premium IOL environment. wanted as take competitors, I talk you larger of continue to closing so your the the and -- are -- not the on in disruptive look you're do to anything, I more adoption about follow-up, or appeal. share some starting shares to your ability the that's market. response And in math, and you're market maybe how And if adopters, to mass the What, a terms XX% hitting moving just at as up your great, my competitive feel mark from imagine of on you as pretty you a By you're of but seeing grow take curve? competitors?

Ronald Kurtz

not would we've cases or from say a premium otherwise because have from focus And LAL correcting the would from either are coming in significant competitors selected percentage our that that, IOLs, IOL. a the have while presbyopia a coming of which some I toric are premium of very IOLs. tends patients Well, of other before, IOLs to less noted are large space, as standard than monofocal numbers who coming percentage

interest add? you that So as that the I you Shelley, XX% otherwise. anything that, as do quoted number may want to have much not think you might generate

Shelley Thunen

so. I No, don't think

kind I in think talk at had -- ASCRS of ASCRS. the as we a traffic number are at number had of that. should papers just booth notice you of taking presented as the of that booth we well presentations Certainly, we people about had the and

has to certainly for visibility led that think us. higher I

Ronald Kurtz

Absolutely.

follow and technology where I competitors, practices there the time, for I terms that of are more they've think and more and that excellent in RxSight to that word results aware some getting of But travels. continue been that are using and it. think we'll

Operator

question our come going the And line is Zimmerman BTIG. Ryan from to next with of

Ryan Zimmerman

couple to ask a just things. want of I about

past base installed is the XXX. So now

for You've had now the numerous field number in years. a units of

thinking As XXXX. I'm just imagine and any revenue up should wondering considerations about? there's the and bit be to this if start that a maybe that grows, base step little grow into installed course service would I of we over year can

Shelley Thunen

Yes.

LDD P&L our GAAP, question, you year addition, the we revenue. ASP out service about and When it's carve tend is our contract for when We into with and of accordance period revenue out good line exactly with we a talk a their we material. and have time primarily service service LDD that's customers think sell us, XX% expires, I over about do Ryan. find warranty a $X,XXX and on about X-year the in the accessories, what that service of amortized XX% use line. And and to take in the other a and

should continue we line our grows. so base And see grow installed to that as

Ryan Zimmerman

And fantastic Okay. for then, long-term this margins think, the thing most, Shelley, were Probably quarter. investors. encouraging I

little guiding XX%. You're below a

sold the to you're over a hair. higher. XX% rest just this did You Because with this regress margins trajectory the below Why just that on fantastic in of drive mean quarter, I LAL does year more XX%?

Shelley Thunen

Yes.

margin percent quarter in which high LAL was as given see driver percent of we quarter, I you any did. of the sales, it for think sales, because first quite a lower the LDD revenue. the that is capital typically, primary In

has and think course, as much go mix than LAL. I is percent well. might the of first shifts you given material able usual well. And LDD. be mentioned, So we as had some in of LDD of nice lower a unusual we've than LAL course, a I think to of And to the well. bump more been X did through margin I roll see as That ASP the lower gross be we really in quarter percent in quickly quarters, And But different planned. could cost as the have difference as that we components next quarter any going the or

Operator

Morgan Wood Our going with Patrick next come to question the is of from Stanley. line

Patrick Wood

of year-on-year work that out or of first guess for split that the qualitatively. qualitatively, just a the kind and similar I'm Fantastic. a expect even trajectory in growth LDD LDD an know similar growth don't we of kind that would X year out, I you placements through you the LALs? placements, but to of I be those would things in the in saw that in one, the you just to uptick trying a down, guys bit drop QX, roughly guide expect just passing

Shelley Thunen

as existing new is but Yes. the course, customers only them qualitatively, to faster grows expected just not to LDD, be our the as in new up of to primary getting and than to and penetrate faster LAL that's much grow. our getting focus get because customers, customers continuing well continue

that. base So we have years the get, seen X to X this of want increasing indicative shift between the LDD of LAL and we've of you what I to faster than LDD. The more get do. that you general in we much or trends out, last breaking is been installed terms the LALs kind for in But it with continue think

Patrick Wood

how sort over system? helpful. Makes is X, second that's placements us last new buying Just sense. you recently of accounts, would existing seen And all Could then, outside of flavor things. LDD accounts, give how X, again, some a in of trended time much the very the be X qualitatively, that you've that months

Shelley Thunen

to Yes, what still up be want it's to bit is the right? doctor LAL. the office, you're accounts little following wouldn't And practice in may Because sense -- I now owners see because doctors predominantly selling each underlying is them call accounts. the the sale the you in new to a the or that although individual same, the pick an repeat primary

doctors offices. and in have they start partners might or then their second have in different third one, X separate offices. but Some They X

that majority sales. brand-new would are haven't those are installed or people their are individual each customers that say we part but in But that There buying vast in network our are know in their I of other see and the footprint buy to a You of larger that their a base. had us we really some expanding network. always they're just or practices group

Operator

Needham of next question the David line Saxon & our with from And Company. going come to is

Joseph Conway

for This Joseph on David. is

Just launch coming competitive how kind Pro the Odyssey about of guys the and early thinking wanting landscape and with are to PanOptix in future? know an you

Ronald Kurtz

being competitive those fixed categorize the as would I offerings in of you. part fixed very marketplace. to lenses the that thank lenses other similar Well,

some of the than, more they be say, gain while going so to attention they're Adjustable Light similar products compared And may those the day, end against Lens. at the

continue So offerings, we new expect to that but continue patients. the market see that to set will of LAL the will benefits a unique for have

Joseph Conway

color are how Okay. about around Got balance you you. give a And some flow you and just then quick guys one. thinking to runway profitability? free cash Can sheet maybe

Shelley Thunen

Yes.

What use think and we've most a in had is for seen us to this revenue the we percent but bottom we we that careful in think in the OpEx, both increase is you gross OpEx been increase absolute did gives I continue but we've guidance continued I quarter bit. that margin big dollars balance margin, as margin in both. each a in and margin. pretty in in balance gross did also you of fall increase guidance And let gross this reduced in cash see line, gross between guidance increased an think have will what opportunity. We our growth continue this very with to but those I investment dollars

Operator

Stifel. to of our line Tom with come from next is question Stephan And the going

Thomas Stephan

a Maybe words, rollout. with the does cadence Maybe ramp-up? methodical Any LAL+ fast somewhere you I'll contemplated kind be there color bit a terms Could other how in start a assume of of Maybe would maybe, in guidance XXXX guess it of ramp LAL+. LAL+? the guess, of in explain between? I was I qualitatively in Is guidance? helpful.

Shelley Thunen

Okay.

at unit, are them, we of strategy, Part bit and for of $X,XXX in that Ron results this of Ron? doctor on concept I patient the priced with LAL pick year think our think that that same adjustable. And just of had comment if per the our the additional mix a the guidance pricing that the LALs and can And original you I know in the comment course, that to terms part ideal on X family of us more. is they're anything this we want the little strategy right? both to and amount LAL+, we for that, In would or having between knowing at quarter are overall. don't first product lens

Ronald Kurtz

approved IV in the fall. initiated -- initial No. was the some studies in clinical I mean, Phase was it recall that XXXX, and we some -- LAL+ had

So certainly our minds in XXXX that we have developing guidance.

Thomas Stephan

Got is guess I it. then can the LDD both your be XX% helpful. gross my the set us And on plus I different And products? those to stand margins sales, the curious when That's Are I fair follow-up. run tracking toward. sides? low a on I'm just places maybe Shelley, I'm maybe Because you gross margin on between margin, on where gross about arriving margin where level margin gross business. XX% LAL on at rest of guess mainly gross

Shelley Thunen

Well, we've some Yes. break provided Certainly, don't overall. them. information out of we both

always XX% As gross our equipment LDD, on XX%. and this we try the between piece and capital get I've stated, of margin

for this ASP As you would go XX% back I just into right and contributed above in the percentage quarter gross we above or at. overall. early first And the the the LDD. 'XX, X call little to we $X,XXX were well increase a margin about higher are in XX% point below Today, what

discipline than we a we -- to of would as in that contribute I good fact with product our material pricing force, some to a that earlier. roll little on as trending higher a And able costs sales the the bit ASP value lower bit were the we're well the otherwise. So one,

something in of in comment, this we become out over probably that product product. XX% that's the likely of believe there. a to way a time and side, that, we range don't On But the but kind long kind very range, XX% is LAL a

You've happen. get that got to to your up volumes for

Operator

Fargo. Larry with And our come to the next line from question is going Wells of Biegelsen

Larry Biegelsen

today Europe I be international about spoke QX clearances, QX and more OUS more than your heard on in and Asia is remarks call. prepared towards this the you today, spending said you I heard call, the about talking year. you'd And markets on So Ron, going later

for imply So follow-up. this question And launches? had market markets in to is, in one closer my does you XXXX? other the including you're what major OUS And guidance are I

Ronald Kurtz

I think Yes. Larry. anything has don't changed,

the as filings regulatory markets, on but primarily certainly make focus be pursue our U.S. attractive to progress updating U.S. continue in outside We we and market, will we we those. the in

Shelley Thunen

and as grown us. market revenue been think I far in that nicely has Canada, And goes as good us obviously, XXXX, in a for for

of are terms regulatory markets, long. in cycles other think getting I the these pretty

and XXXX would in to if longer we Canada originally get pushed have minor. Europe, would expect than seen it I For we we've outside pretty continues out. of anticipated be in And instance, internationally, anything

Larry Biegelsen

in per per question rest grew few was it's follow-up Why quarters. one And a the looks LDD how about a it last like what it the in thinking than little are X% quarter, It and the it. Utilization, looks X.X utilization it about seen Got for for slower first we've year. me. month that? guys of you like this about And LALs year? is

Shelley Thunen

you back, overall. But at at in And in the terrific say, lot think beginning over of the at calculate LALs is right? numbers don't I were I of my of kind difference we go we by kind numbers in think XX.X number normal as quarter, if LDD quarter, let's back LAL I and the we the look were LALs number we to, installs. your in So XXXX, if which of XX.X fact, were taking the the fourth about installed get So of that is and quarter, per you the of out new a of LDDs of revenue the number X.X. QX of between first

sequential third we've dip that in for a although little quarter gotten the seasonality. 'XX of think I growth, So good

Operator

Oppenheimer Co. question Lichtman Steve comes & of next Our line from with the

Steven Lichtman

driving mentioned Ron, Ron, in terms I Shelly, Wanted ask, you of optometrists to think congratulations. targeting awareness.

how terms a talk the that think like that Can and benefits you approach in of and things I some that talked potential referrals you about from well. in terms to in of little of what as you the field looks group. targeting that bit like that ASCRS

Ronald Kurtz

Yes.

want cataract part obviously manage them technology. experienced are their both So optometry meetings, about through the to through minded their patients and in of integrally preoperatively of have involved significant care, our that's of just the that overall events particularly course and is just with in optometrists technology, of driving well as educational the surgery, of it terms patients eye very counseling certainly vision. want ethos of as to a which periods. helping we in post-op ophthalmologist U.S. and as their in And optometrists very or present that become to optometric conjunction support offices with attractive those practices knowledgeable that the of ophthalmic them or and with our can quality as and our obviously, optometrists closely of well. important something ophthalmic They as more fits have for with optometrists, community practices. And because that's separate certainly work independent support technology, either academically with Many and have is to respective in work of it within very that. And them. we And their be awareness practices see are ophthalmic then practices, very like be their that, at can we many to we of fundamentally we generally

Steven Lichtman

the to year? if follow-up. And much Are side LDD as force Great. this the a you increasing are quick just on And that? so, you adding then sales how

Shelley Thunen

Yes.

headcount closely add on at We ] [ planned LDD. the work not certainly in and our our clinical they're to rate we but at LDD with the those look primarily add to we folks other may if a that adds, X groups. that applications few think LAL I

Operator

remarks. for hand Kurtz, to like Ron And back conference I now would the CEO, closing to

Ronald Kurtz

today. interest Well, in all RxSight, and for forward thank Goodbye. you to time attention in our progress quarters. you on your updating look appreciate and your We future

Operator

This participating. you concludes for today's conference call. Thank

You disconnect. now may

RxSight (RXST) 6 May 242024 Q1 Earnings call transcript