LNSR - Earnings call transcript Q1 2022

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Operator

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

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

Cameron Radinovic

of Good is financial welcome at this results a section XXXX. company's an company Operator. quarter the for first March of on ended morning, the the quarter www.lensar.com. issued XX, overview providing release XXXX conference press press site financial morning, you, results to the release and This LENSAR the its available Thank Web call. Relations Earlier Investor

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

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

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

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

Nick Curtis

everyone to morning good XXXX call. conference us first for and joining Thank listening. Cameron, you, on our you quarter Thank

critical XXX(k) for strategic start FDA for well impressive and submission, delivering milestone by previously-promised the an review returning as with trends, subsequent to as filing our our on ALLY. historical achieved growth our the XXXX have acceptance We to substantive

volumes XX% more than first revenue to procedure first worldwide Our of quarter the each XXXX. quarter increased compared

procedure other procedures experience femtosecond the innovation overall marketplace. leading U.S. our Systems steady strong an to our with lease to LENSAR many and increase enabling a additional to This systems. with Capsulorhexis to generation as both even continue Laser comparison we and for them the and and average. launch in from greater patient year-over-year to procedures. Streamline placed system placements system basis in addition giving surgeons the in the efficiencies available XX, by are growth technology their of which device ALLY, to procedure continue sales current IntelliAxis advantages on technology These see the based System we associated XX-system better at In heart the performance cataract reason systems feature in Thereby, approximately patient cataract validation performed twice improvement of the increasing commitment intend advancements refracted ALLY. highly provide a System worldwide volumes, These continued a by why provide Laser current XXX Refractive the continuous represents LENSAR optimized in placements and core foundation XXXX. Furthermore, LENSAR lasers industry March procedure to of outcomes to increase and as upon represent increases of surgery

U.S. This than I person. in few Attendance attending made congresses with weeks as the ALLY, the was in ago. and ASCRS meeting Furthermore, the of higher field. as tremendous surgeon headway with well-represented is also would significantly podium ASCRS a and and of highlight not recently surgeons awareness nearly that improved laser opportunity patients' is they one measured have largest some seen with astigmatism precision technologies. arguably year relevant outcome in last and it's X,XXX surgical our of manual LENSAR most metrics demonstrating We to eight deliver the other confidence that the like because recognized and broadening with patient from to on provides at can presentations of in surgeons reproducibility broaden use mostly management cataract they acceptance their more these treat advanced to their procedures. the LENSAR have lasers patients,

a also deep attendees experiences human cases our new which to ALLY. data, clinical the LENSAR meeting, user performed sessions comprehensive the three to experts opportunity of with current dive the review We with invite LLS, had consisted first and and of covering

first a adoption the the ALLY. of non-LENSAR opened include KOLs time, attendance to of LENSAR with in group small For we interested

Over facilitating their booth are and the one our ability thankful better gratifying total of the shared experiences, We surrounding XX% conducted completed. performed surgeon demonstrations all System's interactive XXX to delivering the busiest recognized as ALLY turnouts sessions for very surgeons the as expanded at demos customers. technology LENSAR LENSAR and encouraging, attendees. XXX were with the results the ALLY. recognition non-LENSAR and presented well commitment were awareness these care. cutting-edge role system and Scope capabilities key Over in of Market enthusiasm of in of to for demonstrations that as The play was patient ASCRS, their of a to to these the our

FDA the regulatory major company's also submission of history the acceptance in the obligation of a clearance and subsequent February. milestone XXX(k) with in our ALLY We for achieved

FDA launch with undergoing filing. the cleared, second-half XXXX. review the we productive to track FDA. and are And continued is to of if We our application look forward on substantive by ALLY interactions in the Our and

verge market. look and beginning meaningful to XXXX, of excitement flax this We settings, advancements surrounding I time the significantly to off. platform have combine of is look pay system world-leading substantive We core condition, ALLY faster of potential phacoemulsification is optimized a build savings dual surgery the with minutes for cataract Swiss-made fragmentation technology of work more ALLY innovation laser excited to revolutionizing as as indicator astigmatic the treatment strong at appears a patient a delivering look to excitement a surgeons of It to guidance that is that thought grade density to on number femtosecond in move including the every we to that this forward commitment The imaging, the our Now treatment ALLY to turn a re-prep patient able next procedure. that to-date having represents ALLY generated incisions shared the surgery. the technology pulse with market to laser and on preference our has over believe for time. and cataract the were remainder that first and surgeon by demonstrated allowing patient prep ALLY SDRS, ALLY adapt in in to be ever, customized updating environment. off and our at not financial LENSAR XXXX next the been in in in cover the features, quarters. that Tom generation refractive scanning fully call the demo you than coming cataract first and quarter. LLS we integrated a to the to the transformative case. XX I'm confirmation a we're system, the time, experience patient, current the to integrates beliefs cataract to a indicated per our energy highlights going surgeons Tom? our to momentum filing wants to And and forward and the now, perform proprietary is treatment sterile a

Tom Staab

Thank you, Nick.

to to I'd with the the issued some quarter first the XXXX. In very like revenue, Revenue were quarter this XXXX, in press color for our total was sold individual and first financial XXXX. driven increased service increasing take over the this that total volume. was results quarter on remarks. adding in of by in expand was of first quarter increase a first those compared quarter sold, release procedures first of It All are quarter to morning, $X.X XXXX XXXX, XX,XXX earlier from procedure the quarter information Our components procedures in XXXX of million of product, of compared the strong first XXXX. but revenue The XX,XXX primarily included first XXXX. million XX% lease, increased revenue opportunity quarter there to $X us in of to by

in the an first of approximate XXXX. By a to XXXX represents performance. all Our XX% procedure our first of Gross measures, for compared quarter increase margin and million a XXXX. quarter. outstanding an strong increase representing the for a quarter $X.X was or and percentage the quarter the revenue us, impressive quarter of in XX% quarter such over in volume both $XXX,XXX for $X.X increase procedures, XX% Congratulations increased team the first margin with gross realized was to XX% a million

year The percentage to include year manufacturing previously. a us a latter represents in percentages system lead than inventory, a and XXXX in our Looking of with obtaining us of approximate first to to we the the of generation XX%, margin supply the having raw gross which higher challenges to year our a year. rest chain year, ALLY than lower materials the expect the of gross XXXX and achieved and the difficulty from our percentage percentage first-half the of transition expect transition gross margin for cost margin for higher part

and realize years begin continue expect to XXXX future in gross We able improve of are scale efficiently. margins manufacturing to absorb overhead purchasing more to in economies and and improve annual to we as

manufacture The In costs was costs. was inventory purchased approximately and quarter, ALLY, the Also quarter relatively and on considered expenses and first were our to based compensation amounted million The first the in by an was XXXX cost were non-cash inventory and of of to increase operating the somewhat in XXX(k) this replacement for installed receive ALLY magnitude expense FDA the million until for in was expenses due ALLY inflated prototypes to of R&D $X clearance the expenses stock R&D included activities the the in service addition XXXX our $X.X as operating these expensive which first and development the unusual. of the we XXXX. well filed compared XXXX to to of ALLY expensive increase XXX(k). QX due as our Total quarter materials largely to that the will increase million. negatively parts R&D purchased parts gross for quarter Approximately margin XXXX impacted quarter the first occurred be related these expensed for expenses additional respectively. operating we $X.X to and for which of continued were quarter these as $X.X expense purchases. $XXX,XXX in Accordingly, million, of in million in for higher our built systems, unique replace R&D first and in $XX.X is XXXX in was of first components incurred quarter several

the this expect compared $X.X effects a XXXX. of of the in obtain $X.XX continue quarter of We million quarter quarter for to loss first per the or and in share first XXX(k) stock-based $X.XX share compared a on situation earlier, compensation XXXX. up XXXX, to the Net loss million per the XXXX we loss was for first Adjusted $X.X filing. quarter excludes until loss clearance loss second a was mentioned to of of which in a $X.X EBITDA expense or our million $X.X quarter the million

As flow and profit you flow have from we When evaluate R&D EBITDA operations. cash our operations. or a consider adjusted cash reminder, from deduct and use our positive we a expense, to profit

of ALLY launch less and positive we had a December With $XX XXX(k) of FDA, million the our by momentum review was into at a March than XXXX, second XXst, cash the for Cash sheet and fiscal the ALLY cash accepted March million $XX in have XXst, million utilized strong burn quarter equivalents in which as XXXX to XXXX. balance $XX.X we at $XX compared cash quarter. million. $X.X million cash of XXst, have going in to for in As

taking Now, questions. over the to we I'd Operator, our back turn look to your like to call forward Jerome, and

Operator

the line of Zimmerman first from BTIG. Instructions] comes [Operator with Your Ryan question

is open. line Your

Ryan Zimmerman

the what very while, talking utilization the grow with utilization really looks installed -- if volumes are a those relative newer is been again the April be how Good encouraging, just -- kind I on of about users? it system trending I I your about continues I of and to for you ramp to users their talk am procedure have to morning. wanted newer nicely, Nick, comment helpful little understand. could think a questions. the And bit. is very it kind taking kind base if that just kind their just also early the see. how start on in mean, system would I you up? of of and curious, with encouraging some to Thanks And procedure volume mean to for May? takes for could and of And users to

Nick Curtis

Those Thanks, questions. good Ryan. Yes. really are

we at getting is look staffs a a So, of into And staff period is that very to to the prior the understand account, let's of important, the operators may with the had getting the between the once [IN] six has the usually call differences it, things getting LENSAR been doctors support system the comfortable clinical the System and a and just the getting people for, [Ph]. features the because new customer trained, ramp period. trained kind there using they primarily trained up point have LENSAR getting where ramp a like consists up -- system months they system,

And period they are month to we we look procedure six to four operating that that time from that very to months to ramp After see in going so, in four of we're then -- up sort good within efficiently first start we procedure putting by were where LENSAR they is volumes. practice usually in to revenue out, the little procedure period, volumes prior were very beginning which there to at there, the growth. XX-day at the get and XX-day, to generating and six that where about

they either growth efficiencies, that continue and system see management more continue X% As the and through and preoperative that comfortable. They the well. as continues existing within organically they these types within nomograms we in grow their as whatnot. procedures the rates just adding is adding annually to be that And as from astigmatism conversion comes evolve accounts grow continue grow surgical to that of to cataract we of general. surgery whatnot, by area other what's They devices, then, of particularly to in happening and been practice to optimize the rate

any know, given particularly backlog -- real shutdown, slowdown will do still from time to surgical that any a we appears in predict, as as it to there variances something we any be to there able surgical their to real that procedure or is COVID for COVID -- continue available be of see volumes strong, doctors just cases. result You second your question, unusual that can't a

we from surgical So, we a would expect that to continue at be least strong that procedure there. perspective will

Ryan Zimmerman

all -- And right. very encouraging

Tom Staab

really, And States, the Ryan, one first other strong add just to in to comments quarter. Nick's thing is, outside United procedure really volume the was

May quarter, from the 'XX. All is into U.S. go and in we expect robust quarter but and that a April from a May, second slight the very a volume. or you you'll is procedures little they seeing up early of would As you're from of downtick bit has you'd first would increase the picked it's increase see the bit, second XX% procedure quarter, see still a the little volume, the our but States or U.S. and United outside all, off backed

Ryan Zimmerman

for Very thanks my questions. helpful, taking

Tom Staab

Ryan. Thank problem, you. No

Operator

your line with SVB. And the of question comes from Danielle Antalffy next

line Your open. is

Danielle Antalffy

ALLY, think anticipation we rollout time non-current about that do some users, the morning, see demos good about the so about approval a think showing Hey, for you that particularly really data the so, at wondering there? of Thanks strong much ASCRS. and as can think new on Congrats a so how much [booth] think upcoming Nick, thank is taking FDA about I I guys I quarter ALLY, number or strong you high. the [Ph], of the guys. the at question. spent was and for we on and as

are "When you understand doctors So, us guessing asking, just one?" how are I'm ALLY of we get help a can rollout of So, the guys approaching once approved. lot these it's

Nick Curtis

by for Hi, at call seeing the Danielle. coming well. and getting and the today, system Thanks on ASCRS as thanks for

in full our into rather of So, obviously we particularly their are control practices our we're piece very be an we a on see ALLY part, from and technology that brand-new sooner a That [indiscernible] that's want that imprudent excited, and cautious with R&D know enthused we said, launch. moved it are that later. manufacturing, to surgeons than would to

and we few friends as users, this and the forward. LENSAR been we begin to our ALLY planning begin clearance. what we're users of when a existing some so, new we refer course, that KLL sites will that we've shortly after the And current on with in as of family XX rollout along with consist user to process with And working move of whole KLLs with, sort of,

to few everything in to perspective, how training putting from a And so, a order advertise, then, looks that that we somewhere systems, expected launch looking what what to and speak. understand get in to following then those adapting at so, XX into we into are performing mode place, be phase, for months getting XX expand we're we're we'll before surgeons XX sort sites exactly which we we're full that in And so sites it, between those there additional we in and that is the and doing of comfortable be another XXXX. from

Danielle Antalffy

it. Got

Okay.

that So, question. was next my

So, XXXX [indiscernible]. you can measured, this will right be let think the to about more as 'XX,

Nick Curtis

Yes.

as Assuming relates chain that force, don't to it but have issues supply yes. to we continued

Danielle Antalffy

Sure.

versus significantly theoretically, hasn't And I Ryan's about then, you how should but And ALLY, just think efficiencies improved utilization on guess move the could about okay. up the higher on I we to that utilization utilization, have following yet, so system. on when on know question utilization Okay, current launched think thinking there, given the it with system ALLY. TBD,

for much taking are be just even the Thanks or it, questions. theoretically thinking guys you about So, so helpful? how would qualitatively

Nick Curtis

keen get answered as quickly questions, and that Those things Hey, as as well. we're no on are to possible very obviously wanting problem. great

more sterile in from, you that move you're to a I've recall environment, matter faster. operating take situations of to phaco perform advantage a have here, to the with sterile a ALLY, in full company you said efficient system to using different today that if flow system weren't into they're perspective the even outside because and to much couple able And the the a systems and switch want phaco Femto room. that these switch So, to sit using you procedure efficiency we're of room, today, no the from system, of may most of the past, you of whatever operating in you're what opportunity the from LENSAR be becomes if phaco certainly, using to working

one in And we to have groups happening group, to then, a what XX with for some will is these much patients fact order And will basis as us, and ORs how answer these experiment going in accounts time, clinical we'll room. comfortable really, few patient rooms. you'll transport of a accounts have that today continue two put with to few likely do the do. patients transporting in were become see testing was and done, where because their next really of flow we're that their that on the the so this two the a we months doctor or so, laser the of treatment ALLY efficient. another reporting doing practices, broader And system. where the in operating scenarios, cataract in private to really each patient part and in and I first equity the fact on Does that your and faster we use you'll that had about our those each we an faster And be time with of that we that see efficient of put the working minutes, one of the in if to into have the them have and journey those much prepping laser and three in analysis minutes of study out. much whatnot eight that actually things the resource going terms are have more better minutes, human alluded we're to XX private accounts right we wants And that question? interested about that in and they equity in to saving and with a the is be in they're we'll so more there, well, that, just put you will, operating the it

Danielle Antalffy

did. It guys. was Thanks, you, That Nick. Thank helpful. sure so

Operator

hand you. Thank I'll Curtis. call the Nick to back

Nick Curtis

you, for today. Thank joining call everybody our

on As certainly here as we to you update forward you can We tell, as appreciate at further look interested fact well, continuing the we're make quite to enthusiastic and about going LENSAR. we you're that progress. what's

Operator

you. thank all you And right, that concludes conference. All joining. today's Thank for

disconnect. now may You

LENSAR (LNSR) 9 May 222022 Q1 Earnings call transcript