LNSR - Earnings call transcript Q1 2021

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Operator

Good morning and thank you for your participation. At this time, all participants are in listen only mode. Later, we will conduct a question-and-answer session.

As a reminder, this conference call will be recorded. I would now like to turn the call over to your host, Cameron Radinovic of Burns McClellan. Mr. ahead. go please Radinovic,

Cameron Radinovic

financial morning available Results to morning, Conference press of This website overview issued Good ended company's first Quarter XX, the the March the LENSAR's investor XXXX a XXXX. its an providing financial Call. release release www.lensar.com. for and you. the the quarter is welcome press First company statements on Thank at Earlier section this relations

review Officer the on Nick today company's of operational LENSAR, and call will Executive me Joining Curtis, progress. who is the business recent Chief

information, certain Following LENSAR achievements. and/or call future to unknown his regarding cause performances forward-looking statements the of financial Officer Nick or or results, call future comments, as Tom known These unaudited expressed forward-looking results, the results and performance statements Staab, future contain remarks. for well the over back uncertainties Chief the presentation. financial statements, will in Financial of company's and from closing including subject first highlights turning implied any conference which for overview those materially provide may different to actual before risks the and performance to this or quarter an as company's be Today's are company's achievements will

undue should forward-looking You place reliance statements. not these on

For please Commission, Exchange which additional the refer of filed information, factors, the including on Securities and can website. a company's to the documents risk detailed discussion accessed with the company's be

conference pleasure to is this no turn only to reflect time-sensitive statements At after contains X, accurate call it as Nick the over update undertakes Curtis. conference information to broadcast, to time, my this date this of circumstances otherwise or any Nick? the revise this obligation addition, May call live the date of In call. XXXX. events LENSAR or forward-looking of live

Nick Curtis

XXXX which COVID-XX in continued good that half morning the positive Thank momentum, of last pleased call. our us joining on a and you began gradual first the Thank report pandemic. we the listening. everyone have from for year, conference showing to quarter I'm Cam, you, to second rebound

positive observe Furthermore, procedure in quarter to we procedures. in through to markets. increased sold as includes in recovery premium This growth compared in first region cataract to pandemic beginning continue trends regions XXXX. procedures specifically to pre seen operate, the a our see most surgeries, as compared as we're the industry and certain growth largest quarter of our the which in elective XXXX the We of levels recovery US, first of where operating XX%

control. know infection week, until under It's with hope likely fluid we situation their until to elective varying aware sad While continuing out thoughts get suspension people both to and of authorities region. of from May, increasing now, India action, in rates our corrective lockdowns very and these a with normal lives. late return of vaccines, these the April region this their and go encouraging, countries the including a swift the situation to throughout in is globally remains related increase procedures from and the Last certainly we Turkey became lockdowns

in some lockdowns immediate do limits well more new a term, that as markets. partners working business difference have volume it's pandemic, the markets near in should to the but In our impact the quickly placements impacted focusing difficult we we of clearly communicate months, near our coming on importantly is term, to efforts truly reopen. where our with may each more the what can and those procedure and in less growth. continuing This by these that continue our hard While make performance predict are helping as markets with effect in regularly an serve begins stabilize ramping to a delay system happen in on these and while

of XX% than less represented revenue. Turkey and our and XXXX XXXX India However,

So but The without inherent Ultimately, not drastic their cataract we gives lining away to is our cataracts us to do resiliency these believe impact to have treatment. or to revenue. go we the surgery expected reopen, as quarter noticeable silver quarter that treated it resolved cautious patients not performance Overall, the second will of first market. the cataract our markets cause as optimism rest year. these creating relates for return

vaccines COVID new signs seen Although away, gradual normal, is and to as access the we've increase, threat gone in vaccination particularly the return suggest United a to of not continue that to rates States. completely

to an quarter US increase first approximately sold in of XX% XX% last sold procedures X,XXX In up over addition nearly the year, increase of global the were procedure in procedures. QX,

the sign certain person US, at in in medical format. congresses for a Another least of to is the encouraging industry, return

person In or ASCRS Annual fact, Meeting importantly, the Perhaps American Retina meeting. week at Hawaiian meeting Mali. and planned currently an will Surgery, Cataract XXXX be Eye in the of our be next team July, and in Society more Refractive to is in

postponed hand, of have optimistically rescheduled from the country been result year as On rollouts cancelled COVID in vaccine country. meetings in varying and European in later the to degrees several either spikes or a other altogether for of

to end and we believe believe patients. the surgeons outcomes As current use I surgeons advanced the for of enables remains call LENSAR in synergistically and mentioned today. technology most IntelliAxis for X our We performance laser generation in superior was better Streamline March, earnings cataract our Laser that available our year System

to our generation turn Let's ALLY. system next

from and be considerably in We as to surgeons. that opportunities ophthalmic enable. cataracts, efficiencies continue viewed I value and LENSAR refractive cataract earlier. one will community, around the that the we Ally offer able new technological annual mentioned leadership armamentarium meeting the and ASCRS we've Laser our to advancement upon will to generation receive significant ALLY enthusiastic treat the established add builds that a the expands with particularly System the feedback current

and I look to in of showcasing refractive audience proud leading by in only there forward in second series cataract surgeons, August. cataract be key meetings LENSAR our I'm say ALLY surgeons. sharing to we'll we when Laser meeting important demonstrations from appointment the most private industry. a LENSAR System. And quarter of As takeaways refractive for a with that sizable market will results cataract LENSAR Congress our report and to a specific be our

continue make track remain of first quarter We progress XXXX launch on great later the in ALLY the file and of in ALLY to year. XXX-k and to in application the the development

DEKRA, In audit to a addition, in as completed we for well ALLY positioned transitioning toward recently successfully the notified a MDR body and Europe. requirements result EU are

Tom Now the our to to highlights financial quarter. for call let me cover the turn over

Tom Staab

Nick. you, Thank

compared in first in total Turkey increase. of we in particularly XXXX. that the United a aggregate. levels in were driven pre-COVID a in of procedure United and those $X that the States, to exceeded of XXXX, laser growth in going there sold little In shutdowns financial procedure procedure you the volumes by XX.X% remarks, the first $X.X first XXXX of States systems volume markets, our XX,XXX where to have still in add Our I'd XX.X% revenue have increase increase, see to prior written a included were to reflecting but like mentioned The increased in sold, Nick million are the his in quarter and quarter most color quarter Revenue results XXXX, was was particularly India occurred a with million, XXXX forward But procedures release today. returning procedure in volume, press first and procedure to expect licensed first levels. reflecting primarily procedures of the the sales thus to compared XX,XXX levels XXXX, These quarter exceeding sold, quarter XXXX worldwide in remarks.

what the first in placements system some depress had consider we to continues pandemic quarter sales have or we system Although, XXXX, revenue. the nonrecurring of laser

the revenue systems more system l margin retards physicians we our place, and of is, and the razor-razorblade analogous high in streams enjoy recurring depression In long we our the COVID this revenue overhang there's as more As the placements growth. continue purchases model, a as environment, future when to the may persists. the That amongst making are future. uncertainty the subscription pandemic of caution mindset capital

had in due from first sales of the that months April of expenses, for The expense. recurring $X.X system million which expenses million, $X.X shutdown XX, of we US filing business personnel as quarter as the Selling, ended resilient an in quarter were XXXX administrative XXXX. or and we our as development of ended increased Food million, gross decrease attributable XXXX, define attributed other months ended $X.X for for The compensation increase no was elective XX, increase quarter the recurring revenue and expenses gross March increased XX, to primarily upon ALLY much of due Gross $X.X personnel evaluating quarters increase R&D compared margin XX%, in of 'XX. respectively. as in XXXX for cost When to compared ended Total revenue, continued composition for with system was March XXXX, and last compensation XX% system in than margin XXX-k respectively. increase million, our procedure sales, March attributable of stock-based for of XXXX, laser three quarters complete of to of general in stock-based margin which XXXX, reopening XX, quarter to a total the three the revenue, primarily largely Administration was compensation. increase after sources and anticipation sales margin which XXXX XX% XX first our $X.X our year. The lower March, million revenue. an gross additional $X has laser XX.X%, of were have percentage March was in March XXXX, for in quarter. in Drug $XX,XXX and in a all to the revenue the was quarter to recorded or approximately million surgeon the expenses, proven ended well million includes revenue which for the procedures first based stock- to was the the XX% expense Fortunately, $X.X for $X.X an million our practices than the percentage was dollars

expense a represents of going stock-based launch does us fund filing cash non spin affect recapitalization cash expense, not it With and the a and ALLY. off so our ability for the But the forward. is or compensation to of it our company, expense runway, significant

XXXX. will will XX, the Approximately of of remainder March before of have the $XX.X XXXX. stock-based which unrecognized in $X.X we of of compensation end be million As this recognized million recognized expense, be XXXX,

launch increase share, and expect further infrastructure infrastructure Looking forward, our to expand market the XXXX. commercial expand prior we to in to of ALLY then

adding the our are moderating business. judiciously when infrastructure immediately with immediate expansion However, it plans and ongoing our pandemic, contributes we to

without incurring are impacted adjust the needs to our have able costs $X.X and first from are XX, -- pandemic. loss to the to quarter million expenses the to fluctuations result operations effects At development operations, net this is for XXXX, simply to used cash of future for fourth XXXX. Net Consistent which the our ended our meet EBITDA XXXX and base commercial of to EBITDA loss first operations objectives. the $X.X in But been capital loss million of cash and was of add equivalent of accounts, $X.XX monitoring or by our of neutral we XXXX, quarter that loss our working sheet items. R&D we stock-based the zero. loss of of ongoing share, been chain, used to quarter higher adjusted of the normal compensation quarter supply Adjusted quarter immediate the We the has Thus, which when if an XXXX. March $X.X cash also approximates or in you both million, EBITDA, share was XXXX due scarcity with $X.X expense are a the our the cash compares of per in our quarter or $X.X first said, considering $X.XX per first our in adjusted ALLY. of directly loss compared EBITDA a in flow million, balance corresponds point, evaluating

of in quarter compared on million. to had XX, cash million, cash to our ALLY sufficient utilized million was of XXX-k the our Cash cash cash of Based application and believe through operations equivalents XX, XXXX. have As at and of forecasts, we $XX.X XXXX, March of our position December the XXXX we in and $XX.X operational $X.X expected the XXXX. first fund we filing launch

to back like call closing over Nick some remarks. turn Now for to I'd the

Nick Curtis

into refractive is The a Tom. progress expanding the the a have in Thank persistence and you, LENSAR we're the believe quarters last over to market share the technology developed. growth and cataract to in leader we and I team our well three solid positioned continued continue surgery grow market testament to that of space.

patient technology partner to Our everything and producing the practice the industry improving relevant, the the which we tools, outcomes, is our treatment to features and significant leading do. provide efficiencies dedication core for provide surgeons foundation experience

potential forward the surgery surgery to look community. And I'm Our from on the to development care you that forward we treatment cataract to call highly will far. of ALLY opportunity to We to appreciative to and vision thus turn of reception ecosystem and quality have the showcase disrupted cataract we of advancement operator get ASCRS to over ALLY, restore your enable it seen truly look have the expand to And XXX-k. superior to has at to of their patient questions. and filing ability surgeons back revolutionary enthusiasm the the the thrilled the we've provide that the system we've on it I'll market, excitement the updating represent to received I'm available the the closer as the ophthalmic patients. high the to

Operator

[Operator comes SVB Richard Instructions] Newitter Our of first Leerink. from question

UnidentifiedAnalyst

Hey, for and Tom. Nick taking my for It's question. Jamie Rich. Thanks on

you've performance the seeing US Appreciating the the pre-COVID? little the more bit more So the about XQ. maybe obviously quarter? the of quoted that are international through utilization that effect. relative heading some markets levels, you're seen the here just in I wondering, some nice you around can normalized metrics into And trends trending to system how and of talk was is saw comments and then the you -- lockdowns and second US just procedure for in your a you've volume past, how that here taking trend in within

NickCurtis

be Sure, will so sort are, terms here procedure in two they with, to let procedures so with were. the And their interestingly, here about consider about of market come XXXX and And a what they published recently what globally. fill talking me backlog start take where that's normalized order the and has what scope going the the would years forecasted totals get to to to to they're COVID, US the of in back on numbers back levels. -- both how cataract procedures

that is share market that better we time. an during actually So grew and during gain market that performed to that this when what's interesting was the actually in additional we've time contracting X% and X% time, actually

the if that last States, off the critical, is patients premium on work over the given what to in their patients that they're of surgery. they to the pretty patients. masks effect cataract on doctors and, the gotten fact some were today, because and indicates in worse say, in more I in reimbursement And have seen have become year, both but advanced coming increased glasses patient to really me to they're cataracts, and delivering environment the so those had doing they technology so And there's overall they've fewer certainly, the expectations and back outcomes given particularly that in might a we've meeting that for the cases be would conversion wear putting United is relate sort of rates from percentage basis, doing

the that So country. relate United Outside we've States, that different more the a bit it's story regard seen positive a because utilization little it's by the choppy of in little been bit trends to laser.

this, that's primarily system instance, to of terms similar the where in primarily for recovery Germany well, we're seeing patients the some and well directly a potential where they And well. so and procedures can as there as as can trends centered doctors system some so and a the positive market entering receive how business patient for and reimbursement a coming from the reimbursement in offer affect activity seeing of United have there on back, new where we're some States environment as and doctors we're these in

are true and areas. just we're do be so in as lower little be And realize technology, having long market, comfortable the a rate an going going really various to become people more whatnot, us those there IOL about to values focusing system's as doctors has a not IOLs learn patients. the in for the to more with levels these it's to there there, to is options and been lot lot and a longer is a China penetration interesting haven't long with premium the there and and the premium offering been as

little a longer perspective, that's from more So term a play growth for us.

In we terms had, activity, a of in India. potential and India, we quite activity Turkey have bit of

their activity optimistic before so were an And perspective. from here, cautiously we shutdown complete

to for continuing they be we've a pipeline there. and they're get got there to situation where say open pretty stay And upside back that some just close we're if going let's have So to could to us, monitor up, a it.

we're focusing So And more our United on where right lot we're and what control got the a really we term now. we've little going States in can doing and longer Europe, China. a activity in of play in

COVID, impacted was some for there perspective, us, system. concerns they're pretty That's from with was through systems by robust but their reimbursement another Korea working well, South market. a as that whole

bit a to right we're now that's looking instance, ALLY for little Jamie? versus maintain of And so your Did answer question, growing. that And market in forward those of sort markets.

UnidentifiedAnalyst

remainder of about did better then to a couple the moving have the thinking of kind your quarterly I across a Yes, perspective, worldwide, are little of in of improvement thinking and procedure geographically to the strong terms you Or are cadence on have and guess guys I you how very a sense up. being from XQ procedure year me trying sequential performance, a about follow about thinking of growth? just how get helped considering bit, through are cadence calibrate be growth, just

NickCurtis

Sure.

the getting goes been unprecedented at end summer as during cataract on you into when coverage XXXX. vacation in territory since the the of in particularly lot for focused the over the there's last, their an obviously, some obviously, nearly the of well business as are But now people months, and seasonality, traditionally, month time, United So entire cataract, in not in there's look on surgery. that a Europe States, general, cataract

see to and numbers that So traditionally, us, increased procedures to overall, still procedure positive for fewer enough still and the would as right seeing seeing, we're market it's share but third you an relate quarter, small trends relates some now, we're we're it uptake. growth but

to this And seasonality. the so through the grow cautiously sequentially continue business minimize And quarter that would say third optimistic I looking the to that will towards we're we quarter.

TomStaab

at you rest at as EU, we and are looks of regions, sort Jamie, look And operating the which how our US, world. of

come and it's months, we've So, last saying we saw six US have And been for back the that strong. last the XXXX. in months of that six

would to continue as quite first and We mentioned, rest back quarter. of then to in we and then pre-COVID very, India, And part levels. situation a and huge further although as what hasn't exacerbate returned Turkey see of Nick but back the results that of levels. our make consider not our the that the still pre-COVID strong, world, to very has And you EU, choppy business, been returned drag. really to it's going not operating with that part

we'll some very that go, everybody and So fourth if a world. in and we'll would through would into and opens, rest the vaccinations caveat the the I be the there. in underperformance go moderate I guess EU, pandemic procedure And the the growth see -- the mentioned, -- look the there's with we'll have I the third looking particularly strong quarter, sort for for in then United how how probably that reopens of strong States, and quarter, of the Nick would world, as seasonality quarter second you're in

UnidentifiedAnalyst

helpful, Thank for super That's it. that. you Got Tom.

capital the On side. environment

on capital the XQ, just housekeeping was on commenting larger install strong was their current considering if a then could, competitor from wondering another report in base just ending perspective, in and that what XQ, So and was refractive you environment the I laser capital just equipment. there did quarter

hearing year trend the that seeing you the of marketplace in you're well. the how expect rest what wondering and to just as throughout progress So

NickCurtis

So in base some growth our business. overall we saw of

United we did reflected the that States XXX So purchase installed results there. systems couple that on we're was convert approximately to up of quarter the systems were rentals globally, a in in and deals, to for the the

that messaging whatnot pipeline drawing that lot I And been of is our towards ever a previews some is these on right we're of doing in people technologies. getting now. where terms it's that with feature ALLY in been probably change is to interest deepest So to And we've order what and get board in LENSAR of And and going. the creating working think today, LENSAR. the with core these motivating again,

to say we expanded revenue the with still delay little more ramp I there some numbers would some the of expansion there's first there, field would The the here well. So placements, for a And we the And base are although into and was the capital I the Albeit with growing. compounding base, of continue up the fewer in is sales associated of because quarter to getting that recurring expect there in forecasting delay second some the us, capital systems we procedures. sales, quarter. expand although are as base. building the procedures affected of the will

think I this strong quarter the second quarter. in see in placements equipment we'll

UnidentifiedAnalyst

Okay, that's helpful. super

to that Tom about that correctly. thinking, our well calculating XX%. the Nonetheless, Because I come about make higher because of just I through just so to think expected. OpEx heard the was curious bit Lastly, on in ahead it gross how margin should a wanted I I guess, be did I rest XX%. as thinking P&L, was as just And that little sure we said of I year. be than think the

TomStaab

quarter. right, you're Jamie, the is so exactly XX% the XX% the quarter, 'XX at for to the preferred Yes, first XXXX

that as like. And what not would a us. maybe system sales, margin We for of nice we correct. robustly gross are couple had numbers obviously, is your a So as

margin future may sales margin faster much the second And we're placing ultimately systems, systems, the get lower successful benefit than so we to procedure off place because procedures. place as those more couple a But if the the systems gross have growth. you high in we system in mentioned, margin in Nick a quarter take points

sort And other your question, So that's how Jamie? thinking. we're what was of

UnidentifiedAnalyst

higher, Just on a came at the were quarter. the in versus we bit least, what OpEx side little thinking of in things, it

just balance year? the how think to calibrating Thanks. of So us for about on the that

TomStaab

infrastructure. we as we Yes, sales are, strides off. we're significant to States in making number direct so made -- we the And pays commercial a of increasing trying the we some pandemic. kind United mentioned, it's, because with And that build have of we the force, where the that hopes in positions, particularly a of moderated that

So I to run the would be. filing going of going and guess about will think same is rate our the be that is continuing ALLY, get closer And to QX, that because G&A run QX. our the and that rate in starting R&D XXXX expenses higher we and significantly increase you'll QX, start QX then then really uptick seeing the And in in my QX. QX, is R&D to

NickCurtis

to order we're So manufacturing capability activities in on expansion our those all and are facility systems, starting and we're increase now. building going

TomStaab

because that say in thing around one is, you the thing, see I R&D, in we puts for ALLY very as 'XX launch So you more view when that the expectations filing a XXXX. positive would QX should certainty the the that and as investment

NickCurtis

some strategy to on like the at of we're a the a term, big little goes for as now to in we're want the considerations is pay mention dealing chain we to supply ALLY hard it from picture, system. mitigation looking for And that pay I get just given working order we're where as filing more us perspective, the can more right willing chain stay thing, really supply we're other with into and our longer to, far our progress in Jamie to one there. timeline, to,

build continue to to we from source progress hook can timing a order them second We're by done get we in or these systems and we crook parts perspective sacrifice going. And we be if to decided more to now, for few we that that keep need do pay if and of So of can what the these can willing this. or by way in another not to get them. clinical

sort service that now. continue But want that. we of to so right And well

Operator

Madison from next Cai Avenue. of Our comes Kevin question

KevinCai

Hi, closer you right? me, so as all Nick. you is how do ALLY to get my for Nick, competitive Hi, landscape the Tom. launch? hear morning. first Can see we question Good

NickCurtis

rollout. don't as They when ships be well, them there's technologies, medical the of wish but significant competitors, business. business. I still being on don't can LENSAR a device the I on. see -- necessarily there's they are don't come view And one number all it's present that company don't sort out landscape has to brand of they have rise right because after, working it's not that I we attention device that of now a that it's see only have with people other any move I they paying the from a go and to they're competitive a various really have company overseas, towards going market ALLY, present certainly

TomStaab

disruptive it We And potential really to a any devices, competitive as that's view too. as technology. compare disruptive ALLY we

in of in out more pandemic running XX-K putting environment. meet industry, QX, in cost coming are chain and I see a of we you effort a into incurring deadline, the is mean, in the are supply any this 'XX QX making lot So companies sure of a difficult are we which lot And of that a issues. lot lot

ALLY technology. it's get far important so think out that a that, we such because we've And great we navigate so because it's

NickCurtis

the interest for have fruit us think and we today. the terms meetings of terms the and gen of that in getting us and seeding increasing that I And very the product bearing in speaking these market out. think for we of as the timing, various pre great are well are it attending this of We and at pipeline with opportunistic introductions current people as in have some technology,

KevinCai

a we outcomes will helpful launch have of Got help us other range ALLY very question assumed that you you, understand ALLY. Can like that generate? it. what of a Thank we terms successful my are revenue look and of might in

TomStaab

opportunity Because company. we're minds, competition to and behoove best give, than based think we the a Yes, on type that whole we And getting the feedback technology we're where we say the it for obviously that and really as really at in launch the doesn't not remarks, mousetrap very, closer not about out the significant that think guidance a to any there. shared community. a the of there's just get will amongst Nick's KOL, have as prior we it's to give via we to so that of our lot that disruptive broadly ALLY it's us other a we the very just of now Kevin, point view guidance

NickCurtis

Just to for say pretty suffice expectations to our there. we're going that performance high have

Operator

in There the questions time. are no at this queue further

So I Nick. call will over back the turn to

Nick Curtis

I'd like interest and we the today you forward look LENSAR. to and for everyone really Stay to continued tuned. thank also support approach as of launch as So we in updating ALLY. progress We further our make and your you. Thank for call the joining filing

Operator

call. Ladies you for and concludes today's gentlemen, joining. Thank this

You may now disconnect your lines.

LENSAR (LNSR) 9 May 212021 Q1 Earnings call transcript