LNSR - Earnings call transcript Q3 2024

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Operator

Good morning, and thank you for participation. [Operator Instructions] 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. Radinovic, please go ahead.

Cameron Radinovic

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

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

Officer, the will financial Following back provide overview his Chief comments, operator company's turning Tom of any may the highlights to Financial before answering questions call Staab, over the facilitate have. an to you

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

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

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

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

Curtis. that, With to pleasure the to it's my Nick? over turn call Nick

Nicholas Curtis

by Systems mid-third and Europe, record-breaking Starting very an XX was of second standpoint, Systems, quarter recent new an Cam, of part third joining to a of by clearances outside had appreciate was to the market driven placement that XXXX. quarter placed solid total you us, quarter. where the of EU and This and over Taiwan increase we everyone. XXXX XXX% from another Switzerland, excited what you, following increase the been fueled quarter XX% a good XX and report in as I United Taiwan. a System the States, ALLY regulatory ALLY quarter third the had Thank we I'm LENSAR and strong outstanding expansion ALLY performance over to sold in morning third

the The and factors. speaks international launch rapid trajectory success of several ALLY key to

First, commercial planning service the field and after as ALLY partners and well for training, response rapid advanced ship between as allowed clinical applications and assistance on-site collaboration our clearance team our first to in installs a Systems. with distributor

interest performing attending building supporting with multiple learnings Second, experience. surgeons in launch from and meeting we market, prepared our partners clinic properly conferences, by and the demos, shared U.S.

worked X with the distributor in securing larger System our of on ALLY partners commitments. groups PE Third,

KOL venues. I surgeons several fortunate participated clearance to perform in to last, ESCRS and and receiving shortly using the have several in launch to presentations their enough so revenues. which ALLY the And partners U.S. recognize the facilitated expansion a in The network global the meeting continued is result creating commitment to in the ALLY of Barcelona. successful. Four, conference recently, collaboration AECOS and will discussions European of Prague and panel was making thank in our growth to like sites, I'd in customer ALLY distributor for new strong initial in LENSAR and recurring interest our of prior close thereafter, just healthy

and legacy systems, an LENSAR quarter-over-quarter. grown XXX grew a increase on laser total increase XXX% basis, QX base including year. XXX increase systems, the installed X% LENSAR's ALLY reflecting of September XX of to representing Our has overall base, over global installed over to systems a from last XX% XXXX

to of we activity, install XX We over with contracts our finished we next the of pending installations. and our strong to backlog quarter months. expect pipeline to build placement the addition a In continue systems, X executed which

would time a the and installation, with contract around little I bit backlog, training of to beneficial this think color you U.S. it in at the internationally. from provide to and juncture be revenue recognition

takes X online as On-site a expect ship training date, typical reaching and average, ALLY outline staff to the their current surgeons first followed training by from educate the a site of well on Then the allocate an XX on the the a as We surgical live shipping U.S., in convenient and minimum in is of what performing surgical to site all with performing approximately what as as surgeon flow, ALLY day, surgery. perform day determine on We X the we utilizing certify installation install days of staff surgeon. cases each cataract their of and schedule features placement visit agreement as time well in it signed right provide days to well each and to us surgeon and installation. and a their schedule entails. and preferences to surgical initial as order advance ALLY, after specifications surgery the of In a process trained. surgeon

The on in despite on have a et becomes customer installed an under has well not steps dependent this commitment, backlog with flow. of to the system. for take be I as time is the contract agreement removed where installation use. certified need all the perform but backlog system. recognize XX is or minimum be room of surgeons just a competitive electrical state and the a All revenue then, If a system they for requirements could This remains the as it in fully or device signed, time, modification the any Only backlog to as waiting construction a the expiration, some is such unique quarter At cetera. we executed described a cases. must system is work personnel contract, that

dock, of revenue. and ALLY system recognize LENSAR Outside the different. are distributor, when is the LENSAR's the installation from the however, U.S., the distributor system leaves partners the property U.S., responsible Outside very we training; our revenue recognition becomes for and the the

takes run bigger the after still XX to days picture, begin important to that's site it the approximately is and In the it to XX surgeon rate. installation for to a why understand rolling over to get However, procedure placements normalized to and there This the be quarterly recognition and time. driver uneven. staggered process why a is our lumpy or growth as can effect revenue and primary on is

Again, had important in Timing areas a to a close activities and number $XX.X the third This of group as that game quarter, third revenue in in the footprint. can last growth XX of factors. executed of quarter. system many an PE after described, inches, increasing achieved recurring which, was dependent with over the be of on system including is year, million the each of a XX% deal we just large from quarter of revenues through discussed been gaining increase we're procedures just placements, previously, OUS and in market the share gains sales. of robust attributable I We quarter

We and procedures. over procedures to had XX% of U.S. of increasing the volumes quarter XX% Turning strong quarter another year-over-year. XXXX growth third procedure with increasing

to a ALLY ramps trend install, on who on ALLY will moving to procedures this net new a new expect start. On average, see more grow. increase to recurring begin We approximately are revenue particularly converted new systems to XXX% systems the to we having lasers. and LENSAR the utilization LENSAR are continue older procedure LENSAR up, competing from to forward The XX% ALLY, newly users with revenue LLS as we from placed the moving more

We're in ALLY. our transitioning by really converting footprint by to first expanding systems, users focused current on LLS placements followed competitive LENSAR

more X.X% procedure the of healthy in past share we conversion recent rate impressively, ALLY high-volume, adding high of to which summer second with site estimate, multiple entire share of as XXXX. to refer the XX% a additional laser as and market continue in launching well increased X% sites a finally, cataract U.S. XX. overall quarter. our is This systems scope second we have gained what or naive grow of nearly the since is And the September market over the approximately to market as increase According Third as year X.X% surgeons and market. accounts, expansions. to really But

achievement. better U.S. patient this providing have importantly, market securing advancement in it significant increased world. ALLY market. in of System outcomes, procedure aging At competing our U.S. market largest even And we're proud of larger the XX% most and companies U.S. incredibly growth demonstrates competitors. largest share and in premium And much ophthalmology in cataract technology the flow surgeons' succeeded the provides throughput LENSAR, competitive of efficiencies we're The directly against from efficiencies the the achieving recognition in we lasers world, the over financial is and the though the

million increase the XX, last recurring clearance Procedure revenue and With over the XXXX. an grow This on continue alone, rolling add the in XX lasers. passes outside date to growth In to and believe our the revenue volumes basis countries. on ended quarters of X of placed XX XXXX, is correlate than a months XX% XX-month through recurring more we $XX September recent quarter of XX the which third important to third a with is directly systems from our these United in revenue as approximately ALLY continues additional revenue installed very to success. strive share days we measure to effective, forward each our we $X.X material newly million approvals, market way a on ramp trailing a States longer-term systems of recurring we activity with these expect installed basis quarter, rate, in as in highly recurring can and receive totaled

say, it, says precision XXX attended have the As thousand accomplished first team as when workflow of through And team well LENSAR enhanced as and intelligence, benefits and that AAO, become of for efficiencies Differentiating potential quarter over performed picture our sales end, the obvious. as well proud significantly congresses, booth XXXX. incredibly U.S. I of prospects and several as ALLY X that Asia. where partner in words. by a the and the in the as in Southeast the what has ALLY this ESCRS they robotic they we see are a distributors interest. our we demonstrations and significant OUS To number mentioned, I'm the the demonstrating meetings EU reproducibility including new resulted months And U.S. driving a and

the future with Taiwan response. is This to transformative positively universal the States. a We the overwhelmingly of a from now surgery. robotic multiple appeal and potential scale in outside benefit ALLY in positive We're its impact an available and on to testament starting United EU ALLY power cataract geographies of successfully to broader with the launched the ALLY

revolutionize and effectively look As beyond. about robotic is and setting we positioned field the success further very year, the we're our ahead, pipeline the incredibly well and and heading continued excited of which stage the the We're quarter, traditionally laser our surgery. strongest to potential into in innovate the ability fourth cataract for of LENSAR is period XXXX of

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

Thomas Staab

you, Thank Nick.

a third exceptional third on representing $XX.X strong was million Revenue few in XX% performance. of in of XXXX an me third compared Just quarter extremely remarks our million the to quarter the $X.X XXXX, increase. from quarter

a all milestone clearances attributed United strong line growth sold operating and revenue and outside that United years. had items, the regions a XX us, the X represented huge States Taiwan. in While across European fill experienced following outside the to the accumulated systems approvals allowing be opening over to backlog can for last regulatory us These we States largely quarter the Union the

the these system surgeon We in a ALLY expected exceeded were internal clearances. sales regions, Distributor mid-quarter we sheer the and surprised underlying our demand pent-up expectations. little but for given with volume demand

ALLY third we the in to forward, fourth approximate the quarter. XX XX demand expect Looking we lasers States United outside to the sold quarter the

as the interesting million, recurring in of revenue Another This our of a our trailing $XX XX-month in XX-month his trailing XXXX. Nick increase aspect over represented activity remarks. results XX% was mentioned

with date of Thus, recurring marketplace is quarter. see to influence noteworthy the revenue a associated U.S. the Taiwan entirely other too installations. rate from at A plus we aspects with are clip few any and to early growing as the XX% recent it our growth this EU

achieve of surgeons, total XXXX have due for Systems multiple an optimal installed schedules, our steady-state placements. representing rate. Many XX% integration XX the to timing these extended reach summer procedure June vacation and to ALLY training normal optimal surgeons ALLY systems time run procedure approximate transition surgeons have yet and X, We ASC practice since to just their associated of volume with

volume procedure expect stronger we Accordingly, be quarter. even growth fourth the to in and

steady with procedure and fourth when ALLY been share, benefits contribute metric run of consider our we customers. a procedure especially reach placements U.S., XX% as, growth LENSAR expect our very ALLY it recent Lastly, optimal significantly the eyes. XXXX their placements lasers market begin have important further We run U.S. two, these installed customers see one, substantial to supports validates summary, Taiwan we the and and in of new it the In to rate; growth U.S. throughout these our the this continual the when steepen seen in to as recently revenue rate. to surgeon's recurring reach quarter and EU

of third benefits quarter continue expected are quarter XXXX. $X.X XX% placements margin fourth XX% was gross the in into million, gross The these quarter for begin XXXX. realized margin margin and of to million representing compared to $X.X the in the and Gross percentage of a

We percentage of expect a to continue this year. approximately margin for fiscal gross XX%

The fourth of currently I sits sales strongest gross higher from in year-to-date timing but this procedure expect quarter a due down is a to year-over-year expect in volume quarter. perspective the generally the increase seasonal percentage quarter the system a quarter. mix the to would percentage fourth system of placements, pull XX%, and Our margin at healthy fourth we slightly

operating of XXXX expenses. $X.X offset quarter our and $X.X $X.XX operating quarter to EBITDA common compared third valuation, from net The Total million common of to naturally, results. look an primarily to swing results the higher of To us loss income in third our to for for partially in were was due loss $X.X was attributable quarter. R&D XXXX. spend, per $X.XX or us more the evaluate a operating expenses The let gain was or Net share income took $X.X to which million operations million lower the XXXX QX in that expenses loss a the million our per SG&A favorable increase income in net XXXX. a quarter by quarter $X.X million in compared third in at share warrant adjusted

year, a $X.X we million a that adjusted EBITDA negative positive million $XXX,XXX in pleased quarter last as representing were of to the favorable third $X.X We EBITDA a adjusted achieved compared of swing.

XXXX, September XXXX, XX, of December had $XX.X XX, of at and million As cash $XX.X XX, equivalents and as to million compared cash June XXXX. we $XX.X at million

Taiwan quarter, our As increased sales, EU ALLY non-U.S. million all the are in and backlog. filling due the $X.X largely to cash placements third

inventory to and share Going revenue in procedure expand forward, we to also appropriate level continue increase will will ALLY lease U.S. ALLY systems to the respond to United strategically of maintain we and our an foundation. States further demand, recurring global market fleet our

the like Now to operator, to turn answering look the over Operator? and we your forward to I'd call questions.

Operator

Frank [Operator question Instructions] with Your first comes from the Capital. Lake of Takkinen line Street

Frank Takkinen

up QX least picked strong. results. little procedure continue QX. Maybe of on provide things you should lot X be But a Congrats strong more QX. about comments as was around should you a think it out really importantly, I at I'll be I it there to OUS as start good and if the commentary solidly be in like bit anecdotal to expect sounds the volumes with also It

talk think a growth on should bit And for QX? side? we a procedural placement then rate you sales capital thinking what we can healthy expectations little about system do for maybe volume So be more about

Nicholas Curtis

the you appreciate the comment it -- I -- the that given more, per to your way similar will, systems It's one I in QX. expect either of be the activity We're for as going system Frank, not from compared if be you should or question, it's very quarter. in outside going and area, same another. in right thank shipped would way, to terms and U.S. to likely comment, be a quarter so on similar,

of will globally. cataract because number that procedures is procedures, be of highest interesting it's globally quarter the terms of performed In fourth sort

of in specifically, affected have have quarter that other a of of hand, that track. control back. X trying X And they and normal couple the or more there a year, surgery certain of these given number the practices cases. That surgeries quarter committed all the think just that the on everyone's certainly here couple X been doctors are the cases, global to volume procedure a end -- people are is of doctors get getting done get whatnot on fourth gone I and backlog where on highest things to because somewhere events have even X for said, of have the out of anecdotally, doing weeks some have the basically for And hurricanes on in high-volume and deductibles U.S. their weren't done. It's in between and that these their and a fulfilled been important, patients at to lot really and basis,

strong that we're in several a going well like activity holidays fact of as I end the despite see as obviously substantive hurricane think U.S. So the the flurry have the finish towards and to we year. the

a end of it's lumpy, think to We're to system strong into install but given go really with going well I the quarter activity a as number going So the I systems growth. backlog we're that as new flying the with year to working of this little goals a quite seeing and be think we're procedure also well.

I going year. momentum we'll good So into think new the have

Thomas Staab

level it a in assuming X-year be and even color short just we outside a it coming United Frank, said that. was other, full placement It's activity, the for quarter we're shy though of placement was a third difficult my perspective XX increase quarter a was over a you're backlog from And to systems that in ex States, third right us just was fulfilled And us the I is one to period, quarter it expect States the Yes. quarter. because the the to a United quarter, the said for to have off outside such phenomenal the from exceptional. on or further fabulous mean States. remarks, quarter going outside fourth just my maybe in but the activity. the going activity our it In a the placement right probably comments, and XX because in or United on add based be at, of that system perspective, U.S. very a quarter the we I of I would

Nicholas Curtis

is You got really... the activity, but left days the the thing to

Thomas Staab

type really holidays a And volume. stuff. hard Exactly. the on with it's and Yes, that procedure of

activity quarter, the rate. We run we such a receive the lion's of is they're in and volume increase. we've the to the know sites, to with the when strong, including these strong third share But time ramp-up certainly, hurricane with with it don't be expect placement procedure but unknown going of you think going to just a --

hard having third such and for it's as So quarter using exceptional the a an then fourth. foundation that

Frank Takkinen

both I to it. ask Got out question be start to volume start early far, Maybe the how could you pretty growth guys a hoping that know exact can XXXX. a same about placements maybe I but XXXX, That's little well procedure as if perspective. much from we dial helpful. it's as for thinking should in looking

Thomas Staab

Yes.

we I know would Frank, really sure that. think in And you this quarter hit idea don't to project is out. really we way we'll inches, to if wrap good his than when are Nick, going a further a have we we have that to comments, mentioned I when forward guidance the to comments, things general want make up have before of a that, year. so going give the previous right? And I some Nick as But is think full decent about game of

Nicholas Curtis

as think that more that that's We be gain the get since rolling they continue continue a And on expect Yes. installed we've the from the like a measure. end goals it procedure of a means installed as systems, really the we to it's important to be provide have on Tom given day. all systems relates get XX-plus like be to a June, provide little basis, we some here to what -- market to got you the about to I the that granular growth And you number it would year would to the not like of having to into to mentioned, guidance right? Because got you XXXX, -- because grow certainly to going procedure, and -- same would some to share. I procedures. able

of a race days they're and procedure sudden, it's producing then, is rolling. them then And their to numbers. XX all a get This to

way, are then whatnot and systems then they the by no XX we those and all different the at procedures being charge all and and do they -- in training times, training to start them. installed So their and the

recognizing And at so revenue that's talked from normalized it that revenue, part procedure see run about to X rolling. months to the to a And of discussion where my it time really rate. I takes installed X it's whole the get path and

be So number XXXX, what's guidance of the into as we start happening, get and provide I this some to year. get see that would hope the to to of here, this better grown end given I systems we've to as year able we large

Frank Takkinen

think I I That's just Do share it. we little start to you think that your but hoping, prepared time after more Or there? a Got foremost, first it's just bit should market my to little aggressively? like was femto-naive your is you strategy and look from take for still, it about maybe feel How little then then remarks, at bit. and one, a there? go Nick, think And helpful. about last a femto-naive in bit the on it commented

Nicholas Curtis

to foremost, the with part -- first take is and remarks, -- which, in you do sort It sales of if the one, just order the of force. specialized. my We're of of are battle, will, we this number a I gave smaller sites. have has to share. sort And highly And competitive

practice the product robotic here, for there. then the a And we're is nothing lift both as laser cataract heavier moving specialized. very quite given in taking has for as very, honestly, well implementing surgery heretofore and is customer far with Our this someone done that LENSAR where

still with high ground more conversion lasers and X,XXX and alone primary technologies people U.S. X,XXX gaining is are familiarity have very is that these in fertile lasers with on -- through focus the surgeons with you seen that's have very market We're laser the had already people XX% their strategy cataract have some and of lasers And because the so momentum to can a basis, to that rates putting a our because that LENSAR people that's -- share there a robotic surgery. concept where have And bolus and really global grow in there they high-volume also of our heretofore -- and of Ferrari never and business. bringing now LLS this are we've you're of why in grow accepted that moving LENSAR. they why this used

And so that naive helpful -- this critical to because got that femto-naive market that resource, around hasn't as done that it we very and that's we've moving mass requires sure us a lot want more that well in market. make

And want because have us still clarify those do regard. do. early though. thing, say Not -- we so we that in a don't still to I one little that's that for to it's

We makes where right if the are for our and of are than they've have usually sense. has that expressing it's those expressed accounts mining customer come now, sort several interest that but femto-naive, any like rather interest and forth

Thomas Staab

to the the comments trained. Remember, it, Frank, it's X, quarter system weeks of one you other if stuff thing done not United we have of a placement Nick's installed XX, don't the understand for lose December contract, to have a by and you in physicians the States, fourth sort about that XX because quarter, of And with normal holidays. X.X about the or all -- it effectively ship holiday. have recognize have have to us,

said appreciate for fourth placements you're system to important that quarter. looking the at that's I why when So it's

Operator

Curtis will turn I to the Q&A This session. remarks. back now the concludes closing for our Nick call over

Nicholas Curtis

and to I'd your right. everybody certainly interest thank for All joining our for LENSAR. call continued like today in

further update continuing support. good to of I forward forward We in and here, for into continue and exciting look remainder the XXXX. move to you things XXXX, as make as you we we look to to progress Thank your

Operator

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

disconnect. now may You

LENSAR (LNSR) 7 Nov 242024 Q3 Earnings call transcript