LNSR - Earnings call 3 2023

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Operator

Good morning, and thank you for your participation. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Cameron Radinovic of Burns McClellan, Mr. Radinovic, please go ahead.

Cameron Radinovic

Thank you. to Third welcome Results XXXX and Call. Conference morning, the Quarter LENSAR Financial Good the a quarter company an morning, this Earlier issued its XXXX. results XX, overview press financial for September the ended of providing release This press Investor of company's the on at Relations www.lensar.com. section website is release available the

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

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

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

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

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

Nicholas Curtis

we for ALLY on systems primarily with good adoption systems of maintained new have of in the XXXX Through and everyone. volume, have this quarter XXXX, the Thank third joining first year-over-year that exceeded the year, and of our pleased stated I'm you, Cam, quarter by morning X to ALLY procedure through momentum of third to States. report previously Thank strong growth the XX us in months objective continued and our conference call. driven installed XX United our placed installations. XX we you ALLY

Additionally, quarter backlog a pending of XX we ALLY end September exited the with installation. X systems

quarter and was the XX% an third by Our revenue over quarter revenue. same XXXX, increased lease in system robust in sales increase which both supported

patient improving practices core revenue efficiencies. ALLY accelerated treatment We leads strategy to remain scale treatment into private or most and groups, return reducing continue based an their other the equity-owned and and headway This is to investment competitive increasing significantly -managed systems. growth workflow, to times, ALLY improved on throughput importantly, and and of make for on compared to EBITDA ASCs. focus ophthalmology on size, our which their

facilities place As a result, installations ALLY we're with ALLY in seeing unit OR. in in each multiple

Our ALLY third of surgical end of than XX X more in installed base totaled sites, the the X quarter XX having with systems system sites use. as across

demonstrate in certain XX patients their to with nearly as spending savings well, We up studies that time up up patients for and savings staff in of time time during of as hour X compared procedure. systems. are cataract to competitive realized minutes less to surgical These the facility present several results trend to and multiple motion minutes continue expect this of conducted X surgeons to facilities the savings

among increased have X. In particularly users the down driven third LLS an or that remarkable over which near U.S. added in term, deployment LENSAR posed XX% substantial the we volumes from increase while the procedure XX% given to ALLY Importantly, revenue previous transitioned during the quarter over total in Korea, the focus looking growth existing who when increased year. ongoing procedures in third-party is XXXX. our ALLY XX% our market, to area compared last of at third revenue of X primary quarters year-over-year observed payer growth challenges Laser the of of to to remains region This a generation our in System when South by globally, reimbursement first XXXX, XXXX quarter issues which

procedure the comparison, adoption in in launch. X.X% the from According using of equates continued the market Importantly, XXXX, ongoing This performed and a of year U.S. in laser-assisted were share yielding of ALLY share utilization MarketScope, growth femtosecond recent to further all XXXX in third third we was XX.X% quarter gains third for quarter. a surgery data first estimated and when were growth system. By the quarter market XX.X%. share the our cataract an the consistent ALLY's to market is ALLY, LENSAR in procedures most LENSAR launching of

conducted advantages sales team's footprint. the STR within development has the key our and and last clinical we clinically important the Ophthalmology impressive delivering the business potential This for role qualified an LENSAR begin turnout ALLY's pipeline. Furthermore, the successfully several are identify, quarter Given to remarkable The the demos deliver size, surgeons. We new process in us their overall to This representatives hiring educate, is ALLY organization. confirm to enthusiasm cultivate achieved centers spanned value one we underscores managers ambulatory gains recently ALLY in and XX and have eager sales weekend. enabled is to scale institutions of and a These in explore growing our ALLY and objective meeting for the LENSAR the the to our demos. exciting And are practices managers. over moderate, initiatives leads economic of additional economically, brings. that further of demonstrations the is expanding while and sales financing operationally various American across our and of These the was Academy Congress that participated surgery practices, XX and centers.

in engaged the the marketing cultivating sales surgeons relationships and our are competitive -- femtosecond a of femto-naive sales with have appointments in efforts to surgeons high-volume for expands campaigns cataract premium STRs set meaningful initiating shorten who laser-assisted with for cycle personalized our way. Specifically, high-volume these discussions initiative responsible targeted up surgery our digital and cataract managers. This goal our

competitive outreach to XX% The of femtosecond the approach who allow and laser femtosecond were expand during continue will resulted competitive being a procedure sales Our system users. This in force share. installs of our the targeted laser, using in our in XXXX expansion XX% and will were surgeon the with market our in lead footprint market our to demos previously STRs conducted market. accounts to us our in AAO an strategy to has of and increase nearly

months, the first ALLY in to commercial authorizations distribution receive expanding addition launch we expect ahead, and to the Looking in coming U.S. ALLY's U.S., ALLY's the marketing international footprint our begin partners. through in the outside

old in a refractive is recognizing look potential disruptive getting lasers. technology forward Union certification the their enthusiasm ALLY quarter we a replicate ALLY's closer, is there We toward to success We third premium in As full is femtosecond in need in Surgeons positioned the and abroad. We our that significant. for early the application elsewhere, submitted reminder, ALLY that system remain surgery. and of Europe of U.S. we've to by for their the in are femtosecond be the European laser contact dominant close cataract time respective realizing begin seen the to XXXX. our replacing becoming distributors and believe to with well a global markets we're

initiatives a addition, surgery in is that beginning LENSAR's the first-generation of aimed believe have ALLY understand past. practices market addressing at strong that We to strategic executing key in the limitations ALLY. been femtosecond In on are lasers is laser LENSAR the success performed of continue to the maximizing never that how have the predominant system in position our

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

Thomas Staab

Nick. you, Thank

was financial a provide press earlier release in I'd quarter increase. reflecting but to million XXXX, certain our of third included items Our on XXXX third to results detail. issued some quarter this in additional make $X.X the million to XXXX the are XX% compared morning, in third of $X.X brief remarks like Revenue quarter

sales, was exceed quarter. well. a quarter to We installed in placements of in increased the ALLY in to revenue the mentioned, quarter due expect demand. had ALLY service Nick lease solid as Accordingly, based and upon XX As we the systems to more even generated primarily systems the growth and third increase we place system expect but system fourth

installed XX systems systems of a XX through ALLY's from ALLY of XXXX have the total of in We and first last August X launch months year.

small of As operating results. over represented some increase regions as would United a Once as European continue clearance we cleared We X our limited Nick look we mentioned, small Korea ALLY. in to and significant been our approximately Korea in revenue, in revenue significant as for clearance has which South our other be third-party forward placement to nonexistent region issues receive significantly in States well clearance be region to in the receiving in regions. as from to in only then numbers has to operating on reimbursement XX% expect Historically, drag operating some are XXXX. a South this we Europe, ALLY year. Furthermore, sell -- quarterly

and Korea South once to significant are reimbursement in the again pursuing to clearance us to significant revenue the we to watch that It too. to prior region, a future. for issues, was a and continue We third-party region contributor return operating our in previously expect being region

like million Korea are nature matches due XX% the will of of of ongoing than in and that margin cannot a to predict $X.X significance low-XXs compared when lower carry previously quarter We and we would reimbursement of the gross resolved, cleared sales in are However, to percentage the guidance the issued the was margin a third-party third quarter and the that procedure to have margin gross This XXXX. $X.X Korea issues of when million, mix sales. margin representing preparing ALLY larger for ALLY of a gross eventuality. Gross represents South XX% revenue South dispute. for our the prepared and and realized launch timing return to to we

for expect third to reimbursement organization credit quarter quarter the to $X months. Total XXXX quarter, with at the million continued low-XXs that lower million for the scale was to expenses and program. were and ALLY We operating credit an million We to approximately and our expand X this third of percentage fully intend primarily growth. administrative a costs sitting selling selling, currently for the reported in gross the XXXX. with employee retention expenses no recording third operating of $X.X significantly associated compared to ERC XXXX The is offset and of in general business XX% attributable continue future the for are expense. so expected our in decrease of drive This margin was $X.X

for investment will our relatively in R&D development, but to and quarters, research in mentioned we approximate share income third expect $X stable to As increase annual prior quarter or million. Net be was per our the XXXX. continue quarter-to-quarter, of we common million a $X.XX with the and share, ALLY expenditures a reflecting an $X.XX and loss per over invest million to in common $X.X XXXX innovate R&D quarter $X loss in

our was of net $X.X created Our for in change the income warrant a gain value quarter liability, attributable in quarter. which the fair to million a

liability in and be our warrant complete of presentation adjusted will EBITDA results. related quarterly understanding reported to the Our quarterly a our adjustment continue and allow transparency to

look As of compared I'd Krista, $X.X Cash of to on we back ends quarter like XXXX. And remarks. to as we the million cash to turn to $XX.X had cash the XXXX, over September was questions. equivalents used and call now December your XX, in my million million. That forward XX, and $XX.X

Operator

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

Ryan Zimmerman

your metrics ALLY, to just you the good Nick, hearing on in you're having base, about And feedback use start guess to the more start, giving. user and it I on think other time-saving have context I what field of But mean, of sounds existing qualitatively, really about of kind follow-ups. ALLY, systems? just of for from the kind then ALLY how I I you're all appreciate Maybe maybe they their you're like on here. other some momentum it

Nicholas Curtis

questions. the Appreciate Ryan. Thanks, Sure.

using those of about to business today -- our have users been coming So the new LENSAR. And older of is competitive systems. customers most half from

and T, motion and many to the staff are time practice and And and whole either how efficiency letting have go more people are to the significantly higher and maybe the the equating day a they by there or reducing a given how -- finish in depending users to on so savings their early. doing they day early, surgical better a satisfaction overhead cases ability busy

practice not there's same so a hasn't that experienced that in way. And the

the to months, installed would each We I or X to The system operating happen expect accounts, other that which in thing the where already moving in before more XX than to have months that's significant, X first is mentioned XX in idea X that practice didn't the that. do room. putting close XX% they're people

-- systems quickly, I like pretty sitting the so with And were in outside with where system very operating feeder would the the be of invested felt people model room. their competitive

desire in Given the if room even operating this with is ALLY, ergonomics and to into staff and what want more the to the you will, they're seeing time touches, and move evident. save

So competitive user on from board side, the are the that across perspective, they anxious.

not like on so sense kind their might really are it win, make to figure out And the when for if, it's make to like of them it it's switchover. people own based a economics trying

Ryan Zimmerman

step mean like looks it. this think there seeing I base, I'm if would still And of capital to that particularly to leasing -- was I just impact the keep but back on system people customer of Nick. maybe going leasing you I Tom, couple mean, like the terms have people But it great, to maybe could No, more sale guess limited And yes. quarter, want it here. not limited I would health to in demand, the I your was of Okay. lease then relative lease. rolling you're outright others. dynamics kind -- grew think a I of about and any seems of then

practices that's what comment not macro case. base? on kind about of in terms of kind demand curious sales think your lease the customer and maybe higher, if you about mix in of of of says how rates you environment with I'm kind capital Although versus just the the can today ophthalmic

Thomas Staab

just think I because there's for overall soured environment X One the the observations, macro Well, Ryan. and economy. has purchases interest capital is certainly large rates of

users a or competitive what is strong us appreciation think the just as desire there desire there's an that by system. users use I So is ALLY systems. to -- And to over significant that those the strong the or for shows benefit distinguish competitive

and just now, has they go seeing more do on the the mix and earlier to they get in successful ALLY ability procedures. even higher to going predict where I ALLY percentage you're is successful see the see to But to and converting, is cross-pollination sales, to go. going you're environment, high I going press the think cases between I and that contingent much right for the what going and going the percentage how heavier to obviously, launch, the and past, and that if we the be mix. there, probably see do discount because is practice a we've those physicians future the -- you of these that more a me, macroeconomic of that that sure heavier physician so for become the out better better and just -- how economics. not a leasing a us. But systems -- want that in faster would users been And headwind can't is very in say you to part think the it's I'm can hard you're in very, femto volume more the they faster

observation peer-to-peer is it's And and so best that conversation can in its just happen. the weight and -- gold marketing it's worth

And when somebody else just so expands he and the commercial it's like there. -- from tells it that

just see cross-pollination. we because systems more the you're get of demand ALLY going more to out, for the So that

Ryan Zimmerman

And Very for then Okay. a me. good. couple

submitted its XXX(k). So I saw [indiscernible]

potentially the future? wondering, plans how that they the the market customer want impacts maybe be think at with or base commercialization if when I AAO was that week kind I'm and for of comment in it either the component. to on on phacoemulsification last public Nick, you just could

Nicholas Curtis

Yes.

Ryan. XXX(k) the question, submit Faros Thanks. their phacoemulsification they for let's Faros say, good our -- is going They the to so to be And optional, the did predicate device. for Another ALLY. option device

I'm the it much a relates can on the to going-forward this -- they to so FDA say basis. We what on and device order with. order under the their way, and [indiscernible] too And or But LENSAR [indiscernible] to their is and business clearance suffice into questions -- if when a to comment retrofit reticent as can can they -- response file, for of XXX And will has ALLY Either without the the that that a phaco be they field Faros ALLY on really current with customers days have response. would when the optional little it. either today device. begin control move depending slightly with that ALLY in the it customers expect their system with early

to would days, own so our then XXX ALLY. suffice And in if get clearance. data and between to for take submission they're use they their we And going and the the would somewhere data now just a that clearance, get XXX(k) say,

customers assuming be there later So sort would under it much an -- I that option expect until gets for that wouldn't LENSAR of XXXX, sometime in yes. a timely [indiscernible]

Ryan Zimmerman

Okay. enough. salespeople these then some your on of hire you're roles, planning And in color me. I additional last new The to for one Fair appreciate that.

Just you we that XXXX. just productive be those move when impact what as to expect potentially to people salespeople when from think the people help into understand us cadence additional how of like about looks could that have in and place, -- they those kind

Nicholas Curtis

Yes.

where had them in and interest right wish that sort of activity to ALLY I the we're it's be seeing yesterday. honest, level Given now going, the I

I about say with have year-end and let's holidays quarter from of cycle current end it's board say, bonuses I'd bringing so we're their and stuff. on that the the whatnot, also And here the fact XXXX people in scaling. interviews, say cleanup between first the, and sort And realistically, bit. going of now given and the jobs, pretty to now, would scale excited that I'm of a between quite and coming

the STR the XX of quarter, several actively the not so. should that I next we or then. we have within end so be new before days in hires by place there. We're on second would And bringing would first here -- a if And expect

And leads is position They and setting large terms hard been they so key the -- in salespeople. because geographies up the an for and causing us to run have sales current really STR the interesting and cover really our of now. generating which of has appointments,

leads over. these all are coming so from And

there several So reach employees. really mix in distributor up has excited a upper direct states with different that. up considering also in Midwest into area sort a about our that of We're the good a and

Operator

may will questions the the in to this turn no further remarks. We Instructions] at have over queue [Operator call time. for I now Curtis closing

Nicholas Curtis

I you. joining our everybody appreciate today. call Thank

you I tell, updating And progress on can folks. XXXX. to we're As doing. in with continue we our to we're excited remainder you tuned, going appreciate -- interest further make exciting the for here really really of your look continued as now. LENSAR forward what's Stay what We of

Operator

participation, This and disconnect. concludes call. Thank now may today's you your for conference you

LENSAR (LNSR) 9 Nov 232023 Q3 Earnings call transcript