LNSR - Earnings call transcript Q2 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 Lee Roth. Mr. ahead. go please Roth,

Lee Roth

overview Good press quarter once at call. XXXX issued Investor XX, of providing the Bridgette. the section results the ended Relations is quarter Earlier welcome available LENSAR's www.lensar.com. company June an release press second financial and a website its morning you financial again for this and XXXX to today, of release Thank our results the conference on

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

Tom line will to before over comments, financial your for turning of his highlights Staab, an company's the back call Nick Following questions. our for Chief Officer, the quarter the provide closing Financial for remarks second the opening overview and

and today's company's uncertainties future I results to will or implied materially statements and/or any from subject results, unaudited Before would call statements, actual which different statements achievements as performance that to risks information, expressed future the financial performance presentation. company's the you like well regarding conference known in including begin, or as performance or results, and future are forward-looking contain cause be may These we unknown achievements. forward-looking this and

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

be For factors, accessed can of with on additional please website. discussion SEC, information, risk the our including the refer which company's a detailed filed our documents

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

Nick Curtis

pleased for in procedure from the first it the a worldwide this quarter you gradual operate our us to increased which pandemic. XXXX. we in report XXX% continued on quarter their and which was volumes XXXX call. morning in you Evidence of Thank as U.S. joining be seen markets good of completed very in quarter to second a Lee over second strong XXXX I up to recovery listening. conference that am everyone Thank of compared have second as the on COVID-XX the the basis, while recovery could we XX%

sold sold In increasing placements practice the leased the in value is In to quarter tools an once patient only number bring outcomes manage and as system we of again X advanced addition an to in in to and by to additional practices invest second systems procedure in four seeing we volume. managing surgeons new future better of indicator with efficiencies. their an them uptick are volumes, that beginning procedure assisting and technologies XXXX. of providing astigmatism are system Increasing also can the quarter three four systems shipped second systems installed and compared to

Rectal world. Overall, reported when While beginning light American at the Society that for about are these optimism which the of results recently the and in we the quarter, aware just Colon we the certainly in in of mentioned Surgeons encouraging, July. first believe Delta situation, particularly it's of well various regions to took displayed holds effect talked variant are enthusiastic fully quarter of May founded ASCRS specifically the we to we and LENSAR. fluidity medical was the about future trends across the or place venues Last remain I and in-person congresses of what and end return

system well by report been While LENSAR as the I to have attendees System LENSAR ALLY the the more am ideal XXXX. Laser for showcase couldn't coming quality the The attendance present conference and meeting us. to there. levels, pleased timing our of excited team in the significantly was content below our as displayed that pre-COVID was the was future, energy

few studies announced current First, during weeks technology generation ago, presentations a meeting. utilizing as a were our the we dozen featured different in

presence a in our our the IV considerable scientific robust In System surgeon IntelliAxis. include addition interest and was there program, practice Laser to and in current to Streamline LENSAR

positive appointment-only interested improving our systems On performed virtual to hall parties. based that patient We was partner Treatment LENSAR The addresses prospects came feedback overwhelmingly technology with Equally in considering look of potential that we ahead. performance. sales using and leading ALLY however strong our XXX were generation floor, needs these utility Adaptive featuring strongly to generation forward room, the important a customers engagement outcomes in demonstrations they some customers and others' competitive the for out of ALLY hosted workflow other our potential Cataract refractive significant the room We for experience. providing partner with in multiple a number of with most surgeons to surgeons the references efficiencies, surgical more operating presently in-person prominent well exhibit for ability conference demonstrations and affirmation with changing the System. than months further and field demonstrations of enhances next received private weeks surgeons new as current cataract new was the and provide improve technologies the the as on from we the

optimize femtosecond patients through is the LENSAR we cataract unique for In goals the ALLY. the technologies press that Laser content. demonstrate the and that cover they for will that integrates tissue-specific to refractive members with that a next print, questions unique transformative had in and the level so and best be innovation while video taken which cataract had any represents and see the Fundamentally, treat believe feature digital ASCRS, significantly We ophthalmology including to industry-leading well-attended and firsthand. to to able physicians cataract delivered. features core addition, highlight fact efficiency the address functions of reducing the ALLY procedure these cataract in we next event patient removal as for they We their core maximize ALLY reinforce also great two imaging to hosted cataract to the laser to It's system and femto surgery. ALLY total for energy and fragmentation density System a during were promise the refractive customized

four, proprietary times laser Second, four in guidance and iris faster placed data revolutionize patient the operating experience. of technology using or Three, in can true treating and world-class This multiple astigmatism room is small registration from in a device complete the treatment surgical of suite. next surgeon devices. and cataract femtosecond will lens. And diagnostic capable number that cornea times be any phacoemulsification integration preoperative the two a faster transferred generation system electronically in a adapted in-office that

are with are to That next positioned we to the in year. ALLY XXX(k) chapter industry of entire of the leverage of LENSAR to Overall, to We optimally story continue drawing progress removal the great near the release treatment still submit toward trends first launch industry remaining LENSAR make term that application XXXX the support FDA necessary with for milestones We quarter favorable to cataract completing well and the and release believe is the and way every ALLY. the our day. in truly closer the in growth of the submission. on the to plan the key development later and XXX(k) commercial disrupt

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

Tom Staab

Thank Nick. you

for Our EBITDA as was quarter margin, our are second utilization. release I us adjusted a short, would those results quarter little revenue to cash XXXX but like and you procedure to in included strong color it today gross press a financial In add at and look remarks. growth,

the Specifically, particularly quarter the and driven volumes States a and exceeded levels reflecting in million XXXX to in as extent procedure Procedure of increase. its second to a world. three volume, by each quarter XX% robust rest But over is in the growth in XX% market was expansion. by increased was sold of the XXXX. increase States, pandemic from This procedure increase sold XX,XXX impacted with history in compared of and and $X.X COVID-XX were growth over of United growth of a XXX% of of XX% quarter that procedure quarter the States, the share quarter United it second lesser quarter procedure percentage In our the operating primarily the revenue reflected undoubtedly showing is quarter-over-quarter. returned particularly there placements. was second increase the S. to second XX,XXX was the company second XXXX, The but pre-COVID United million regions, XXXX, XXXX. lease in $X importantly Procedure increased EU U. the compared second XXXX of

included XXXX of ALLY compensation expense. June, expenses of personnel quarters approximately U. XXX% reflect XX, was normal increase and with which towards months quarter revenue million June compared ALLY progress an quarter to costs respectively. additional was as system as The million the revenue, increase to development expenses rate XX, recurring furtherance million Total and second compensation for compared ended the S. XXXX XXXX at the million, and personnel increase to system the XXXX. Food XXXX all first stock-based the due and largely to a for $X XX, margin $X.X compared laser in for respectively. XX% stock-based the to returning administrative in margin June continued costs quarters R&D. for revenue This XXX(k) gross the which XX, XXXX. and the for was attributable XX% well or XX% $X.X the the $X.X million costs were of and $X.X for June was expenses stock-based aspects Drug we in Gross were define as totaled XXXX. the and recorded planned significant filing primarily our than expense eased. revenue, gross Research for a ended procedure or to increase was grew million Administration $X standalone quarter-over-quarter. well our revenue pandemic ended our XXXX $XX,XXX of company the total ended the three of XX% Our and with other Both for which increase which quarter sales, public general to were three operations million million compensation The of months was development sales XX% the increase an expenses as XXXX $X.X primarily Selling, as of increased of from increased $X.X ended quarter and of of quarter second and June to in percentage margin as continued restrictions a XXXX. being associated due attributable increase

the fund and cash non cash expense it a and a the and of for going us or compensation is does our ability re runway spin-off stock-based to affect but the expense company, capitalization thereby costs filing our significant represent of With not launch ALLY. forward

As of be $X will end in $XX.X of June stock-based have which of XXXX expense million million unrecognized of we XXXX. recognized by the XXXX, will remainder the compensation XX, recognized approximately which be of

Looking commercial United market in ALLY forward, we expect expand our XXXX. to infrastructure our share and geographic of increase broaden States coverage prior in launch the our to

ongoing However business. to pandemic, when with it contributes immediately judiciously the adding we our are infrastructure

second or ended per of was share of net million incurring as monitoring development materials of certain for are of loss ongoing XXXX. quarter quarter second able of on million by adjusted per been supply have a We $X.X pandemic. of sourcing our was $X.X compensation in are loss to the the second effects chain the continued stock higher we million ALLY. business million loss June which meet loss ongoing associated we the to with $X.XX also impacted XXXX. At XXXX a our our and to Net of but been our the a and or costs has the pressures due excludes of future adjusted compared operations a in chain share as for to immediate of for EBITDA to $X.X Adjusted based XX, compares loss quarter $X.XX, which needs the well XXXX expense materials objectives adjust supply both loss $X.X the quarter this point,

For cash flow fluctuations directly ALLY. zero. cash of our XXXX approximates capital quarter based without balance the from the EBITDA, consecutive accounts. neutral development used if you deduct cash result the said, corresponds our adjusted quarter, R&D. the our third for operations our adjusted in EBITDA Simply working second normal in considering when expenses commercial EBITDA our evaluating sheet Thus, cash to of operations our used or

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

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

Nick Curtis

you public ago months a Tom. Thank entered arduous the nine environments. into markets unique We an

commitment the technology as we strength that While the of persistence, all utilize certainly in this faced with have time, physician our testament partnership of share LENSAR made our progress operations. have of team the our developed to well and skill is System facets we and have our in as networks challenges Laser importantly advanced also during technology. the significant we the that a our progress This of

of surgery LENSAR as and continue refractive will technology to filing in regulatory ALLY. the clearance the cataract look position space forward advanced We to the leader and

surgery forward I received meaningfully advancement the ongoing invaluable closer asset ALLY commitment questions. and I will the practice to as for procedure of represents look patient to back and look from to filing and consistent energy better that of the community surgeons to on development potential of call the superior appreciative very of team. patient at surgical flow improves reception process. outcomes opthalmo has significantly ASCRS your When market. am cataract to the XXX(k).. over cataract our efficiencies, system an ALLY turn in you in ALLY get available, we the treatment. updating the back will forward the experience now and Bridgette truly we and ALLY beneficially provide the grateful revolutionary disrupt the a We a enable the become Our and to and

Operator

Instructions]. [Operator

from a have first question You [indiscernible].

Jaime Morgan

Hi. we I correct? This is believe were Is rich. Jamie, on for that that called on.

Tom Staab

and are was as Nick us your ahead. questions. go well. for It I for to Jaime, ready Yes. hard understand

Jaime Morgan

quickly a on just quarter. I Congrats on nice to guess ALLY. I start guys. Hi wanted

I risk chain potentially be some around does is any if XQ to what that timeline that be the that? is impact, at challenges You thinking and said supply navigating the course, risk being obviously press your are am And release that challenges. of supply all about persist? filing material the of delayed pointing, you should Tom, chain some long to are costs, just here your potentially comment if there How curious,

Nick Curtis

That's a great question, Jaime.

we looking have very at closely. obviously We this very,

risk to And mitigate the so we doing are quite filing. to a bit that

in get terms that in of out some We need able built out our do manufacturing have to been order four going our the acquire have to FDA to and be creative and we of prototypes being very of filing. to to do those to parts able testing proper to

in timeline And parts more including all to to so, get being we devices protecting possible get we in are ways humanly filing able to for those willing that order done. that be pay to the

your now risk there's a so we If sort And the commercial I really, our ongoing, filing. see don't of placing any are orders to risk requirements. on based

can are after important. get we timelines. get approval And fast we approval. relates it we it how so protecting product later if very It's the the But as there's the any on would risk, to be out

Jaime Morgan

Okay. about perspective positive. But the system. And some you like current recent feedback to this users mean surgeon That's have into a the just and could phaco-femto I surgeons? at competitive an surgeons your around sales if you bit talked existing prospects from new commentary new curious just doing been generation from helpful. especially curious device? on the looks that around competitive at the the And needing versus demos, combination demos, dive ASCRS am I that what interest reception overwhelmingly little more, just the

Nick Curtis

questions. insightful So another

not that ALLY currently So customers. device surgeons to LENSAR. were They users viewed LENSAR new XX% or and the that were the surgeons of were came

what that their was, there And demos. of had took actually demos was appointments because had and some encouraging place, was that actually of word what was than mouth. really We doctors to happening it was other so, fewer and were doctors mouth scheduled word scheduled bringing one, number

meeting. lot enough, to a was around of because that the So fears, there at that. last a fair to the not there doctors minute the number were COVID come of of decided Interestingly excitement

cancellations that had the the them coming existing set appointments as result demonstrations. meeting had attending up yet, And more And than of in terms of so some of at that not doubled actually to people a all. we we been

was other of And we of approximately over then current practice those media would and business. And so that and be then equity doctors users like like type new would I of in private in-surgery the XX% folks be potential operators, XX% then the XX% some I which that the said, staff, would physicians suite, XX% sort roles administration, were operate users classify from about and had some to folks were the of of the to LENSAR X%.

XXX well we so And in have over total.

in fits mean that of the it the how you shot temper we laser room for and two first because the So had c is and actually comments into, the the when we in the of could see some eye. to see and were and seamless between product And the like, as you I the the it switch comments. of some flexibility the could product. just a the room scale had amazing off, scale how to looked test to

we any fast today laser see the any is faster could there how how and it femtosecond our and market could scanning so see it they the did of on all than efficient including And have in system. laser and current technologies system is much the experience the does

other specific the really going to be figure and to that the was be of wanting what going out switchover, couldn't we course to are was try with be we that business to super competitive. model to so, impressive. And went And people immediately

they fact perspective current are why system always pretty reason the an from to from a we early on is this some to in current commercial same the out get have current have so in it's substantially to interesting the a begin because rollout, game and it is of our introduced but when out got XX our number and later, we are build were of as as with prioritization that are and years sort doctors. On now the adopter they willing sort LENSAR that rather systems, market industry that kind limitations it there's feeling that other get you And were make of than pathway we sooner are product get people evolve lots the the so that technology is seen competitive into rollout to you that the the growing people field. you and ago. of changing to There a the they that familiar ALLY system if our it available. systems want a the getting in interest to appears when of with we are system, consider continued And around to system your changer a even

wordy So I apologize for you but give trying I to getting kind color. some with there you was of

Jaime Morgan

helpful outlook. were That's half around a more the than how summer second know of thinking guess to know I questions due came vacation. about light half or some we and in I re-emerging, the Nick. ramp? say obviously potential Delta could have just second back seasonality be causing I set and variant then we should of you COVID don't is in us it. to give And of just you the guidance. thinking of provide XQ actual my Got you guys But sense better

but Just perspective procedure thinking side back about curious just the from outlook as from particularly the how well? you half ramp, capital also are

Nick Curtis

in of third year Yes. sort think, summer fourth highest year also the but fairly until the But card, are and quarter This is Europe, instance the are of I on globally just then not for is very in better that back the variant and little because are your the with the the surgeries whatnot, now quarter in and performed. of because people on was typically Europe weakest the our numbers are COVID, in because and months comes a being quarters because volumes strong fourth that contact the that, they other you on and vacation have bit coming despite business typically, do have customers. and quarter. your interesting half of cataract a it's it and of fourth you a only vacation interesting are And distributors vacations. quarter, up in with a predictable the It's of wild variant

third So there I bit a quarter. would the in say, of a wild it's card terms of

You go ahead, Tom.

Tom Staab

we half X, have other looks say, would back what I like. call about optimistic this extremely would if is thing the been The right, July on we Jaime, had

recommending However regulatory CDC a pretty you have COVID. perspective from the with masks indoors changed now things and have associated radically

be comments, look We And things the at to the up But to so the air, of are predict or of external were by who back half world. And in we rest guidance, can be predict the And the pandemic. dragged United United the the to normal, and what's confident States the is in guidance. going least very are of down certainly being the to it rest give going pandemic that States. want the operations when happen, like. that that what so we to Hopefully, the it's were latter world we whether in continues. to out in is environment difficult frankly, coming that Nick's thinking

Nick Curtis

S. U. some said meetings meeting of other a looks to being pulse of of perspective some about actually a I venue in-person in presence. see When that think little the the DOC If in some of place. to take of those. I take a able have we that an and we in-person to we have have those of what's as we will the S. We outside United U. to and optimistic States our feel better from you is efforts. where are say going that's since on exit got placements been and still summer emphasis ASCRS of lot the obviously of direct where haven't we whether putting meetings right it, take because That's those on want in the because areas that's we here. do going are to these sort have travel we meetings. those in don't remain we I it do terms putting are have fairly obviously sales those. the activity of we like place, the being U.S. there, more a in There's then If where Germany systems, bullish there. and show. lots one then begins and We of have lot potentially meetings the system of place one another

Jaime Morgan

Got we you maybe to you saying sort of you the trends the since any it. are have second would that the is weeks? starting maybe a a clear marketplace there be look like. of couple started any help now of guess to the kind But your be the I sense about things give to sort you couple that out the that little half more things able last July seen a quarter of thinking last of within picture cadence? are of maybe seen that was in what change, could in might Tom, bit of point, call beginning of should how the us of weeks X

Nick Curtis

of though fair would in-person meetings first attended ASCRS, So and thousand come still of thousands the meeting we users have there like attendance that come a was even at people. many the number, when like significantly in-person have down you people the the back to typically and meetings back, the several you would and Jamie, were

your drops is off what in a So that volume then see week. we typically,

week-by If you back it everybody are then to work a again. looking week-basis at and up on and starts it gets

volumes, surgery forget and almost schedule overall surgery level reasons, things, are of so well they have everybody's busy cataract patient and procedures moment, you from are come the doctors premium they done, and not management being surgeries. the overall procedures those volumes fogging for procedures the XX% out like when wearing the cataract in down since look for fall maybe and astigmatism or all some their efficiencies sweet whatnot. And people cataract glasses to that LENSAR as a our overall obvious more able to all scheduling and reimbursement keeping spot, particularly spent are pressures we do having volumes having motivated volume, to and do so masks capacity issues cataract the to surgery are related time. at of providing into pretty as But down have surgery Overall interest outcomes

not So down I seeing again. have It work. that it, are go goes we we the say, volume we meaning a unexpectedly, meeting, busy are week gets, to would people back

Tom Staab

point, thing one The I very volatile. Jaime, say, to will Nick's it's

had You holiday. the

the had meeting. You

We change haven't drastic in procedure volume. seen any

forward back our going tightening to somewhat system Inside know continuing are because I placements can't they States, weak what However about United than it's came and have whether been what's the we were certainly system don't up visibility. cautious happen. am getting were. I back. of going because States, continuation heavier Things we placement just of it pandemic. outside better weak or with was until the Delta predict variant we will restrictions Certainly that the the United the and coming see

Nick Curtis

because get of outlook of as the to you that we will I better terms through a have let's through the quarter all we next couple be months sort of jammed of, activity up. the give much able that in say,

the So I there. to a a great and us to through halt came existing you will that's out doctor's indication to idea That, degree, sentiment as are be whether able progressing going those they give whether things to to give following are or some an of is through. some as to

Jaime Morgan

expected. back questioning that it from since jump And any off second since sort half get how lastly point? better in that reason of so That's you gross Thank kind on believe to so helpful. that marking hop was came in just, strong? you on in potentially the All queue. actually might Tom, a is right. much. the Similar then and think about to back I we quarter Is of Or than there down the will

Tom Staab

Well, continue. that margin And revenue. would versus procedure was our capital gross by the heavily higher again, to I influenced once consider percentage revenue

is six percentage in what without I any think probably to I the placements system the regards of latter margin mid information better in months. gross would predict XX%s

second say is expect. half mid the would the that I So XX%s the and around what first I quarter would percentages

Jaime Morgan

Okay. much. so Great. Thanks

Operator

further And remarks. questions for it Thank at Mr. this time, no presenters. there now Curtis back are I to Nick will turn you. closing

Nick Curtis

the today we interest really of appreciate attending and the as in continue launch We for your everyone filing look progress LENSAR. attention call you and to continued forward the and updating your to ALLY. approach make We today. Thank

Operator

conference have Ladies wonderful much, day. and presenters. you Thank today's a gentlemen, call. participation this you and your concludes so Thank for

disconnect. all may You

LENSAR (LNSR) 9 Aug 212021 Q2 Earnings call transcript