Earnings call transcript Q1 2023

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Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the STAAR Surgical First Quarter Financial Results Conference Call. [Operator Instructions] This call is being recorded today, Wednesday, May 3, 2023.

At this time, I would like to turn the conference over to Mr. Investor, and President, STAAR Development Vice Surgical. Moore, Media Corporate Relations for Brian go Please ahead.

Brian Moore

and everyone. this good joining operator, XX, for you, Thank afternoon, ended quarter the the financial March Surgical the discuss first us Thank STAAR conference to call afternoon XXXX. company's results on for you

Frinzi, On Financial Officer. Tom Chief Officer; President call the are and Executive and today Patrick Chief Williams,

STAAR's after website first X:XX of www.staar.com. The our quarter now results available issued is press on Eastern p.m. just at Time and release was

Before company events the today's materially do the to call associated actual uncertainties public harbor forward-looking the STAAR's The statements. to statements results described described in obligation in we historical future as periodic from quickly of statements is me you remind outcomes you of Except this that that and as intend expectations, actual are the These cause no course the statement and and begin, are let in well important projections, This call forward-looking fact webcast by in uncertainties statement this caution risks and during is conference will plans, this not beliefs so. filings SEC. We forward-looking or and based STAAR forward-looking statement required a the numerous call, statements. could a reflect press judgment any the of made forward-looking that to assumes with does as not includes are make statements remarks date analysis conference law, of and risks release that as to these update and conference prospects. with the those to safe on about subject company's statement. differ

press table sales adjusted historical supplemental in non-GAAP numbers, numbers constant to information we A meaningful supplement in reconciling provide non-GAAP the future per to today's currency. information and included net share and the non-GAAP information helpful assessing and addition, In our believe the We these adjusted GAAP release. and is earnings that income performance. provided in have GAAP are

to references refer all growth call brevity, rates stated. unless growth today's on year-over-year For to otherwise

line initial follow-ups. our we We two for re-queue Following remarks, questions with questions, to ask open this from thank analysts. then limit their analysts to everyone in themselves process. any will publishing with We cooperation advance prepared the

like President And STAAR. Frinzi, and with would the that, Tom I turn over now CEO call of to to

Tom Frinzi

you, Brian. everyone, Thank thank afternoon, on you Good joining today's for and us call.

are we markets. gains was first refractive EMEA results growth States. quarter for first and reported total EVO market of and XX% our ICL across broad-based surgery The procedure continuing challenged for volumes family as declining up illustrate in or both the United units in sales share lenses quarter, even the many ICL APAC, today Global

our globally that and These confirm strong momentum experiencing are the results in we the year. further confidence

our XXXX the $X to raising we therefore, in other outlook million million, fiscal reported net sales approximate sales QX. are, approximately $XXX for We which includes product

Our raised sales ICL growth. represents outlook XX%

result, commenced for back. first the back. in in are which has unit ICL certainly of XXXX. continued China as mid-January indeed driven million our to first by million of in outlook. China, a were quarter, ICL of above $X.X million were end quarter the growth China was quarter And and unabated. sales million a procedures China XX% procedures the is For Results USDXX in $XX.X ICL USDXX for restorative high ICL global

surgeon our events, practice training To advanced conferences the surgeon often customers. with in strong and marketing and consumer results team in partnership our hosted academic deliver China, development activities,

X,XXX clinical over doctors by attended was and training surgery staff. stream live One

ophthalmic clinical attended university over hospital account surgeon by in Another over the staff. X,XXX conference and doctors by attended and young X,XXX doctors collaboration with and conference was residents the was key

from Toric lenses EVO-ICL received Consumer the over and sharp, One vision by our for and million with influencers during in clear developed overall importance hosted ICL quarter. provided as emphasized marketing leadership we weeks meeting, our channels largest growth specifically high-quality ago, custom reinforced content California X myopia customer headquarters. And with that Two digital their in-country was China, of the our marketing well IRI's diversified strategy to IRI during the views astigmatism. leadership across program globally. Lake as Hospital Forest, at

well a units As for industry quarter States, ahead and in solid the relatively in grew the U.S., volumes delivered were first overall, X.X%. in quarter which region, first XX% our United the in Refractive XX% XXXX. Surgery U.S. sales flat. APAC performance, for sales the Sequentially, reported ICL XX% of first units In the up the quarter, Council declined of

coming confident for the remain U.S. sales However, projections full off of the QX our a and we are in in a and year. strong doubling March

on markedly During has commercial across additions planned we U.S. better of will U.S. continue customers. infrastructure commercial are executed driving quarter, and grow to appropriate. The to our the first we personnel markets which believe application practice increased clinical growth important development our specialists organization in executives, organization, number the serving our targeted and when to account and

in of we will We eighth month the entered XXXX become team This even our of that. U.S. more new launch expect supported the our the half second beyond and in direct-to-consumer month, productive EVO additions so

primarily awareness patients, DTC future ICL the Our which to the efforts, XX marketing of working and target to ages build are funnel patients. potential XX,

U.S. saw visitors multicenter CEO more learning like their U.S. we procedure would from of increase who In for visits an to about you chain clinics. EVO ICL finder. I e-mail a their the one doctor share of of in a customers selection. with of that our a freedom visual begin is XXXX, will surgeon to our discovery, of anticipate and the quarter We journey first these XXX%

"I be team with reads and to lot know I a let email that to marketing off follows, There's awareness. just as The STAAR's ICL. seems EVO you more paying your wanted consumer quote, and really

less For convert the and sell and to to of quite it has staff, surgery. surgeon easy a become is patients

is surgeons staff but getting are it I because with low, comfortable think more but we still EVO miles ICL, higher volume the is are and Our our ICL. targeting still for relatively

gives have reduced comfort ICL. us anxiety the of by level in reduce myopia iridotomy. with We the need are peripheral to patient treating number the we This for eliminating comfortable appointments of laser

plan your ICL thanks for make friendly. docs and to website STAAR do forward marketing, STAAR to whole to EVO Thanks effective putting to DTC the having Our patients crew is more our and foresight for thinking being first."

ICL procedure California, surgeon lower. to told that a coming doctor, minus in tells year surgeon the his Another he and me his in based the me expects see significant mix he share market expects young past to utilization year. Xx XX% ICL This cutoff increased over has practices, even approximately of move diopter X gain his to

just market I we for shared anecdotes ICL are U.S. examples just in The that two are building EVO the the

have about the last will in which investments New influencer in and on with shortly. are finalized. and call, with consistent talked These customer or be Patrick co-marketing also soon our will we've exciting you the budgeted partnerships U.S. cover investments

Overall, where decades and the ophthalmology in that launch are I'm accelerate based will ICL and we pleased at to awareness, status, our continue surgeons quite in this patients on of my point in of selection with and experience I'm U.S. my knowledge by EVO time. adoption confident

fourth with ICL sales Turning headwinds. six first regions the track XX% were the units we major to European EMEA up standout as regions Five in currency markets quarter region. in quarter, to growth made have of first by were up of investments. impacted of in where in just growth our XX%, quarter six which compared in EMEA two the We positive had XXXX. saw we hybrid the

pure then market and XXXX and Italy a reminder, XXXX. European in distributor European in the first Benelux markets outperformed hybrid As our STAAR in its These markets. hybrid invested consistently in France have

the XX%. saw unit For XX%, and quarter year-over-year in example, the XXXX, up of up first we Benelux, growth Italy, XX%; up France, ICL in

Foust Officer; as and Dr. for each make and the ophthalmic focused forward we for and team are highly priorities our Officer. STAAR, Medical In added the against that Chief Affairs and two executing our we on Warren globally growth our important is customers leaders confident patients. Chief to targeted contributions will look March, team, and Operating Regulatory STAAR to Clinical our Magda customers The to regarded shareholders. We as are Michna

The for business favorable. big remain our picture highly growth drivers

First, lens and Millions large to market the due have and which contacts the every hassle year continues number EVO further addressable of lens increases former these ability contact wearing discomfort, pay many grow, globally. of the like, ICL. with stop myopia intolerance, to people wearers wearers of to for our already contact

preferable have solution, chosen we that which EVO contacts an surgeons a have And economics have great and a and profitability. Second, procedure favorable have they that free third, is eyeglasses. determined many from break to patients offers product we

over of April, customers approximately quality agreed. China and exposed STAAR EVO, quality completed statement, over am globally. the responding U.S., agreed In with patients surgeon product survey clinical ICL am statement, they and and surgeons responses EVO the XXX I In XXX response this surgical with deal to is In just our customers product with when agree. outcomes. are overwhelmingly customer surgeon of XXX% with Surgical to the from I real outcomes, we clinical customer XX% satisfied STAAR early surgeon respondents a XXX U.S. satisfied

and we'll EVO patients to to faster and is faster the rise. focus growth awareness Our freedom. continues to first We're drive visual as EVO make continue of seeking confident doctors choice for

I is the for As have EVO many occasions, now. on said time

Patrick?

Patrick Williams

good Thank everyone. afternoon, and you, Tom,

on sales net offset compared to XXXX sales, product decrease basis sequential in a in partially in attributable $XX.X XX% from million. of XXXX for sales a XX% in net XX% XX% as XXXX Total was other million increase QX net were sales of sales million, a increase up year-over-year up net The $XX.X by sales. $XX to QX ICL QX and the

Other million for ICL $XX.X quarter total product the quarter. the sales total quarter. compared ago net XX% as year company in sales for of first the sales of net were to of first sales represented million company $X.X XX%

noncore product fiscal and continue IOL we a of sales as of represent move and sales percentage to our support through expect business. net take We other smaller cataract the smaller will XXXX

the with XX.X% QX XXXX higher XXXX. sales The partially mix. QX due fourth mix for basis QX period of of XX basis in costs XXXX XXXX point and increase to to million QX due gross of net geographic $XX.X or profit the primarily gross XX.X% margins net mix, to is XX.X% in sales for XX $XX.X or sales is as compared increase gross million as QX manufacturing geographic quarter profit million The point XXXX and and sales Gross by to ICL of offset $XX.X compared associated of projects. product was in from net for sequential increased margin or

XXXX, For full fiscal margin and we expect gross will the for year each be approximately XX% continue to quarter.

have XXXX statement. were and QX plans, for million QX was expenses. G&A as continue that some for anticipated at XXXX. XXXX XXXX million which $XX.X Taking in be million booked expenses down had $XX.X Moving and to closer moving in for G&A sales QX XXXX operating for consistent $XX.X expense and QX expenses QX were to we XXXX million forward. did XXXX. Total operating the a marketing being up ended compared QX $XX.X look our compared million income we with for expenses operating Total million though QX for $XX.X for to $XX.X and will QX

The increased to G&A related IOL expense services. expenses, business compensation-related to increased is was related compensation-related and business outside severance XXXX severance Japan, a our year-over-year increased to due QX increase expenses due increase including cost. from and to The outside in our increased in sequential facilities IOL expenses, services $X.X million

prior quarter. expect The expense approximately For stock-based per primarily million we relates additional outlook XXXX, to executive and now fiscal our hires. will G&A increase higher from be compensation $XX

expense expense The $XX.X XXXX. trade and of million was expenses, QX prior for to meetings. increase $XX.X advertising in XXXX the compensation-related XXXX compared and year million expenses and marketing shows was for from million $XX.X selling for marketing due and increased to and and QX Selling QX promotional

advertising The marketing compensation-related and due selling and was expenses and sequential expense expenses. increased increase to in promotional

We continue million will the of marketing be the and selling for approximately each expense for expect year. $XX balance and quarter QX to

increased to increased for associated $X.X Research the QX million and increase XXXX and development expenses expense million is for R&D year-over-year XXXX with $X.X The compensation-related primarily is increase trial sequential the to to clinical The expenses in compared XXXX. and study. in QX EVO R&D expenses. post-approval in due U.S. was due compensation-related QX X-year $XX.X million

each fiscal expense be we expect for to continue approximately million For XXXX, R&D $XX quarter. will

year margin and initially XXXX compensation, expect income for margin $X.X million X.X% We of be to will $XX.X in track QX XXXX and XXXX, QX of is positive million the operating of other annual anticipate sales for the range continue XXXX fiscal balance Due company. for million was as in increase STAAR quarter and net GAAP net approximately or for stock-based profitability $X remain of which now the Operating we or per XX.X% the XXXX. sales in proud generation, of a aforementioned will compared X-year achieved cash approximately of device of we year. growth the and middle be investments anticipate profitability to operating and the our X-year in at high-growth XX% record to our rare we medical average. income

information QX million release. A XXXX included to adjusted income or On XXXX. million table $X.XX net QX net net diluted per in QX $X.X adjusted information million QX the today's share GAAP non-GAAP or XXXX compared compared in in or $X.XX diluted of $XX.X a income to financial $X.X was the $X.X in $X.XX diluted diluted $X.XX per basis, Net non-GAAP reconciling share is income per or for per to income was share of share XXXX. million

we expect rate no will change to to valuation approximately effective our to fiscal tax XX% XX%, For continue in XXXX, allowance. our subject significant be

to sheet. balance now Turning our

Our The totaled cash, as annual end fourth $XXX.X XXXX. overall cash of of is in investments of occurred the million at that decrease equivalents XX, cash first sale for to million the due and to the as $XXX.X the compared XXXX, of available quarter payouts compensation quarter. in timing March

approximately expect property million $XX will continue invest We and we equipment. to in

year balance cash anticipate with We cash also XXXX operations positive ending of generating in higher for fiscal fiscal from XXXX. the the balance a and

$XXX $XXX million XXXX, fiscal sales raised $XX of mentioned approximate Tom ICL sales approximately sales approximately for million from our As to million contribution. today million we including and an $XXX U.S. net outlook ICL earlier,

outlook China sales of we approximately a our XX% of and $X.X sales QX, in year For sales to half XXXX of of fiscal expect including second and $XX be half total first in We million, sales the anticipate ICL year. approximately ICL approximately U.S. growth million. the XX% sequential in the generating the

will panel Company to California American William Tour Surgery, Brian out and XX. in both STAAR X, STAAR attend. Refractive May Conference Investor Growth Healthcare Company if the Bus Barclays on host in a Cataract and Society Friday, surgeon Diego. Conference May be Virtual also participating Virtual Chicago the San June Annual lunch would X the and to Investor and on in June reach conference this Finally, Conference of will Blair during Southern & on Benchmark in Moore XX, Sidoti you the ASCRS Relations Investor like Please

This concludes prepared remarks. are our we now to ready Operator, take questions.

Operator

from first Our Instructions] open. Group. now line today ahead. for go [Operator question comes from Anthony, Please Petrone Mizuho Anthony is your

Anthony Petrone

look then normalized you. years? follow-up here Thank the the for strong quarter it number? Patrick. peak, A performance And seasonal there normal follow-ups versus seasonal Thanks. that to does here have a I'll year back be be be, Is would just first describing also this as peak, backlog and prior to XQ, China, congratulations which XQ it I'll in any of that's obviously, going start how with out in play would a And Tom, levels. one, the as couple Maybe we into on result.

Tom Frinzi

you, No, back the we for Anthony, good QX and to hear thank indeed as and question. QX and strong. anticipate from China equally being you is

as the China. high we're So for run into we poised a enter season, in good

Anthony Petrone

percent in then ramp we the one and a if is on provide XQ. year Excellent. quick And quick in data the there. than a actually in China be where maybe ICL sales bit one, I refractive the of the as maybe lower aspirational was And target? just you little it would maybe marketing and Patrick could Can a sneak total this for just expense expected

and how the year thinking congratulations. as should Again, progresses? thanks about it wondering be Just we

Tom Frinzi

market a around a think to point it's comfortable again, moving think as we're Sure. number of and kind of From target growing. confirm view, we're the look I but I of we procedures, share XX% that refractive

Patrick Williams

and then, gave back original be in in on expenses late we per have prepared to that And my when comments, as Anthony, February. going did guidance were side, sales my we thought we some marketing the

G&A. up booking in ended We those

We a compensation. saw increase stock-based also slight in

dollars so and quarter and you'll at And sales QX, $XX see QX we're in and about that absolute as marketing, said, in QX. for a million I what

think if the back get reference it to you so guys remarks, models And go should and line. very much I prepared in the

Anthony Petrone

again. hop thanks right, Thanks. queue. in I'll All

Operator

Thanks.

Kaczor William go question comes Please open. next now Margaret, is Our ahead. line from from Blair. Margaret your

Margaret Kaczor

Hi, good U.S. afternoon, I guys. wanted on specifically Thanks I for if the guidance, could, taking question. and to the start side. on

sequentially? maybe you if being to $X.X million, And close flat end maybe sequentially So maybe referenced first, confirm million. also number in the up, think then the year, about which it's you're to $X you doubling gets $X the of me like $X.X it And can QX I QX maybe sounds million by to million.

that could wanted make walk Thanks. to would if sure correctly. that around about just that, I So you that useful. thinking And any drivers that provide and through I'm be

Tom Frinzi

XXX%. by to look their the QX, Yes. they your some his Sure. year double add think to up the we're of QX EVO up day-to-day And we'll more the well. Thanks, procedures visits Patrick Finder let for basis in XXXX. remain and Margaret, what continue over in entire total refractive and good were conversions we that a where in was, very continue for of assumptions happen will see metrics correct QX in to more the business on of as question. both are we color doctors encouraged such at, ICL. I'll we committing as Doc our go U.S. confident But we

Margaret Kaczor

I appreciate Great. that. Okay.

for the diopter few most the in side. the quarters? maybe examples you more really guess, when the few initiatives a those important utilization, same. do appreciate expect down Tom, EVO next additional curve. and on And the of particularly on a We've or little accounts? them bit heard And so could a even going impact you most But the terms speak in maybe calls successful provided maybe, on right, you practice to I deeper, have going U.S. I kind development material on of to Thanks. borderline accounts

Tom Frinzi

as we're time, trend as to we're people I confident seeing headcount see clinical and They're can calls adding and labs to investment EVO. Margaret, a people, users end and change quota-carrying we almost really salespeople development for takes their brand practice continuing coming you in that but and that bear I Sure. you made we're Yes. the U.S. the push know, They're on the have diopter asking starting And from get to with see continuing awareness, tell in, weekly that are fruit. pleased basis, outcomes. down. in

I and think more month, to the U.S. want to So we cracking monitor continue as very each confident more, remain going I very be. we're those, confident where we and we remain is it to and code optimistic be the that that

Margaret Kaczor

Okay, great, you. thank

Operator

you. Thank

question next open. Ryan Our your is Please from of go ahead. Zimmerman comes Ryan, BTIG. now line

Samuel Durno

on for XXXX Sam Hi the Ryan. guys, Thanks questions. taking operating margin for This this is one on guidance. is my

U.S.? operating brought guide high now, ramp too operating but I operating know XXXX. but to a Street You margins down too. you. expectations? you're margin into to it's XX.X% spend spend also thoughts what And XX%, XXXX. the or previously too follow-up, the your low given right are think you is margin And on consensus the that in XXXX will I Thank have in XXXX, commented Do around at sitting have expectations Street to that not going

Patrick Williams

continue through the primary adjustment was said, on not to you we're to operating the But as quarter some see this move as look mentioned, if compensation. as into noncash move color a year driver XXXX. to Sure. income, to which going we stock-based going the through Yes, we a We'll want I was XXXX. we on give and as comment, take

a of cash Street we at of adjusted free some more that EBITDA what metrics so doing the cash know I flow, certainly the look op internally, as And flow does lot and number. is type are we well, of other with and an

honestly, to and very have other we want world appropriately now. being the grow hold off on the share. But And sure able where that satisfied specifically. But still we'll low we we're with going, at and I'm XX% commercial U.S. of we're into the revenue to anything when market I going the look those, make across where XXXX investing very

Samuel Durno

the for of development how we as you. really Thank helpful. XXXX companies you. impact you with Thank China? That's remainder ICL the in ahead of and are thinking about look the into of some XXXX, Then competition domestic

Tom Frinzi

question. for ability don't really our Yes. Sam, forces China. see the thanks we grow to in competitive impacting continue Again, to

efficacy of been I continuing sold think has worldwide, well our unabated. that and to established, the X implants move million the technology forward see we safety,

Patrick Williams

to just clear, you we're I say heard clarify, domestic. And

sure want to were the So but U.S., China if you make PMA are or a I talking we device.

in to investment going anyone to on here long a road so as is And the U.S., do as if there's high well something that. go dollars

clear. be to So

Samuel Durno

you. Thank

Operator

Thank you.

comes your question next Bill Our go ahead. is Please Plovanic open. from now line from Bill, Canaccord.

John Young

said out I'll Hi it mentioned call of you quarter. you out for bit on back were about evening. how I color XX bit know saw it's just a but do reps put what original can of than lot Thanks. little this And you John to circle the probably last XX bit Tom, hired? the guidance any And on the focus you was for you planned And a the on you're taking expect a the more those Thanks you had last productivity saw talk hires? Patrick, of the little for seeing? Bill little had gains what a a questions. many quarter. where our March, strong just is, U.S. lighter productivity in you

Tom Frinzi

we've in certainly, have of very about quarter appreciate think, and of about the have two talked think we will people and to attracted call. calls, productive. about and No, that as those posted it previously, for said we've a feel those be take the we we Yes. good the people I openings job XX% previous And quality or I filled,

good half the year. second feel we So of about the

that the which will gives a conversions for was March we reiterated we in we the us believe XXXX. think I think we our and see confidence fact business where month. April, happening, will be strong that double QX to year we in continue

were being a quite growing takes we of it this years my in think be. where and again, in right market, only ophthalmic spend business, to started to into though When really when infrastructure. we our you're when about we're mode, seven you up about creating we're to market gear the year approved even frankly, direct-to-consumer So creating brand and awareness, need months time. our it, really increasing ago, six launch a we And our

the you So confident, to keep need context, from it right when month look to we be. remain or we we're to at we I where be, month, think viewpoint that right month think were that very where and rate And at I time. need that growing as we're where feel confident in a to growing at that we you context, a the greater be. in were in we China point at we're U.S. in further in it similar growing rate back China when we should U.S. is XXXX, Put about than the in

confident. another being for again, reason So

John Young

about are context that trained? to And versus into maybe surgeons bit a KOL deep the you strategy many talk new little just I Tom. is engagement, today any strategy. know then also deeper just focus and just a how go Thanks. for you, bit Can And Thanks. around a go Great. new account which

Tom Frinzi

comes demand deeper ICL XXX ensuring the comes in. to But certified already demand to on visual the freedom. are is I are But there. first focused be as fabric trained goal, that today on seeking support, that we're trying practice application that wider. going process really and really as practice to and our we're going surgeons programs not We're clinical to reducing the surrounded quota more carrying said, XXX it to We'll sales we being I concentrate Obviously, of ensure have certify choice get their new there. aspirational with in people, Surgeons moving approaching, think, they surgeons development are to do EVO than range. think into us towards are support the patients we the the That's support and when to there. this but

John Young

Thank you.

Operator

you. Thank

of Yang from Li Jefferies. comes question next Our

is line open. ahead. Your go Please now

Yang Li

quote you press All patient's right. one are a surgeon release an on Is EVO that? Maybe Great. of experience? for Tom, becoming there choice. point taking our for patient the awareness Where inflection the first increasingly Thanks questions. just about or first in in terms seeing

Tom Frinzi

the for I we're in say more and and the suggests door and starting would up patients XX-plus percent Well, year-over-year the are convert. I thank more fact but mean, are more docs you we're question, to more that growing, that walking

As to I be the is We're there goal aspirational choice. said, first not our yet.

of vision is has in in while. market I I inertia in around need to right we right remain this The be. be. we're launch LASIK where a previously but think as correction stated, U.S., confident, we been to Laser is the its as And stated, real. early very particular EVO phase We're and we're where that previously need growing.

We feel have momentum, and we really good growth. about U.S. the

Patrick Williams

be exactly about. on surgery. hearing a And about doing we here, we're takeaways and patient what panel there first to Friday, a talked a more Yang, asking to in going about door hear just from we're think that are people ASCRS thinking going when to I'll I excited asked, surgeon add, to be just the refractive for which going to is lot the And go to you're start and that, doctors EVO talk walks they're you which

Yang Li

Great. Okay. Yes.

Looking forward a the little since it's the to U.S. Maybe that. follow-up be I year guess, I'll there. Patrick. a approval. more than for bit for been

expected? little Just high think been than a is Or challenging more level, than going to going better relative expectations? you launch how your what's U.S. What's expected? bit the do

Patrick Williams

Yes.

on what right, I heard to now is think a the think, a you in I new as you're head, Tom on first to go the figure things launch listening from the nail make in along. trying out hit into Tom And focus whenever market, prepared comments you we are you learn to that definite to a choice. and order to down the trying that voice EVO need of what and knock those customer

year so with good very We're we're how off of really and where yesterday we're year excited better up. we end the how I'm pleased were starting will and a certainly and And ago, feeling at. we're today than about

Yang Li

Thank you.

Operator

you. Thank

next David, Please from of David now go comes is Our question open. line ahead. Needham. your Saxon

David Saxon

on Tom, by Yes, for whole Congrats volume Thanks I share. really hi market. for mean, thanks. U.S. strong questions. tracking start Maybe math, the That's the Hi quarter. around one I'll on with my my Patrick. the taking X% think you're right I

So seeing Can that of talk do the see into once then internally? what deep the approach is I since taking account? you you ask, going wanted get you're about wide. share an to ramp you're versus And you

Tom Frinzi

out today? we for that say the the let's I thinking procedure way, would I No, should Yes. earn is think there we're we those Are are refractive I continuing types of volume. practices. going way put not. the are of total their into Do should our procedures And absolutely of goal XX. ICL? we Look, practices EVO XX% approaching to to The that that grow it XX% accounts, team, put refractive have we

moving said, to you're not STAAR EVO across no a all and I takes had is as and be dinner market, just calls of how at by EVO performing. I'm the But inertia when I'm launch market, you're this when creating that going And you're think changing different. the But opposite it the when is I phone the LASIK, anything excited discouraged frankly, with encouraged meetings KOLs is quite we're about country. what They're seeing, I've doing is time.

David Saxon

Okay. That's helpful.

Tom Frinzi

final Let one comment you. make me just for

very are year-over-year. that, close a testimony to Xx that top our As to we up customers XX further stay

see, to future. of us seeing we very we're want the and again, bullish it kind keeps feeling about So growth the

David Saxon

in helpful. super the then That's you think grow than Europe, for markets. in I you're script, that. distributor Thanks And markets faster seeing hybrid talked about Okay.

And hybrid Viva how is think launch, of distributed September. the I'll converted talk big one then to So on Maybe markets launched markets? in maybe growth more Europe. of to just I tack opportunity was about for wanted that get another ask to that your I a

how So is And And time that much. U.S. Viva for going? on the thoughts so thanks getting into the then line

Tom Frinzi

responsive market versus be Yes. market what find. Look, trying I the on depending to We're we the and to what most. the it's think hybrid distributor, moves

work, a company, very is pleased speaks performing, mentioned, grow we're lot with global continuing where put I'm distributor to the you aren't Benelux excitement quarter. we're around As we to some to a France focused in it you three seen of Europe Asia the the in general, think had fruit. we're continuing dollars pleased it world. But that frankly, I world. be we're the remarks, were that and that's and China, said markets to we've EVO and Italy, bearing in I the get with on to quarter. investment again, those particular, a because, Pac, it of mean in we've EMEA, and very U.S. quite The around U.S. and a what seems grow, and our great had doesn't prepared but great glad

David Saxon

Thank you.

Operator

Thank you.

Our from Lichtman line next question comes Steven open. Oppenheimer. your Steven, ahead. Please go is now from

Ron Feiner

ask Steve. growth. on really you do continuing of Ron I a is this This to can for long wanted How great I guys guys. China is think part Hi big on revenue. growth see continue? to China, very mean, high STAAR's obviously,

any your in is there in So the how to have favor? shift countries that be market do that going similar? targets you think trends refractive and like far other would guys do And you over

Tom Frinzi

have China. normal we demand. as runway earlier, indications established are, there. think very to good boy, seeing We're China in-country continued for But back I is well in opportunity it's great all back, levels. big said We're growth. the we is

is So limit. the sky the

Patrick Williams

And on I'll just one. add that

had one here, in earlier we size highs. million remarks. market addressable big the our a little supported is total the X.X his now customer are X.X lines of a just talked They talked think as million prepared what Hospital Group, along things the we've is more that. the about I talking to largest of We IR and Tom that

million. But starting we're of to that Tom even vet we obviously that very some have long that just a we're hear they're numbers And fact, X runway, out. In much approaching said. trying are higher, to as

Ron Feiner

Okay. Thanks one guys. And follow-up.

if between our keep any Sorry and to change what lower they regard growing down generally that diopter seeing And ICL know talk going you specifically, missed Can the and with tell at look use seeing ICL I on your U.S. getting and diopter countries can that about? ranges. down. markets range. diopter We trends are you across this lower anywhere ranges using recommendations you're maybe in you trends as us updated you

Tom Frinzi

more speak it's EVO in will down to trends. of the the know experience on what gain diopter if and tell I But to don't naturally start confidence curve. as I coming begin is, they surgeons you use appropriate ICL,

was, trial treated a pivotal was I X. diopter Our think, the in U.S. average the minus

some arbitrarily more surgery. LASIK being Xs, refractive versus Xs, minus we're my prepared think have treated. more kind of heard that Xs seeing X minus in And people and minus remarks, You is established a minus period lens-based they cutoff when

staff, curve. surgeon trend So seeing coming the to I I happy down, think moving the predicated gaining think experience, equates confidence diopter on of happy the patients, happy but down usually it's is the

Ron Feiner

Thank you, guys.

Operator

Thank you.

is Our comes open. now go of ahead. line question Sellers George Please next George, your Stephens from Inc.

Harrison Parsons

Thanks days ramp for guys. compare that afternoon. during the to that I for to And Hi first wondering where the My see was the George. surgeons Good was China you as in that investment question. you taking higher? early about, utilization how specifically opportunities of was on does launch? investment needed in see drive Harrison This U.S. is utilization, what

Tom Frinzi

Yes. I days in early on we're investment. would investment the I And tell is appropriate. forward we've of year But confident relative that put the this China. return the you that in wasn't to here

utilized versus well stage think are our process monies we where U.S. I at So in that are in this of XXXX when we being started China. in the

Harrison Parsons

laser-based should success? biggest the to X anything we Yes, your I million a most in then it. awareness some know had reaching direct-to-consumer Got the on surgeon the of? campaign, found was practices you've order of side that practice, from but lot you viewers, sense. practice convert of the And hurdles? are in be I have wondering, a makes secondly, what success aware the U.S. And lens-based where to

Tom Frinzi

Again, I or it's situation. really think don't a

it's an I end situation. think

build well it. ICL or LASIK awareness, in it educating so think and spending I We're be, we're about is ICL? why coming practice. inquiring into time doesn't very it fits are EVO that's And to have brand EVO a trying comprehensive refractive is patients to It training surgeons.

So to the practice. a meet they're comfortable offering a range of modalities needs of

comfortable. The more surgeon are you inflection staff the level, and the that even not begin the see see their around that But at that kinds confidence level patients that? that comfortable, staff as Clearly, et practices globally? cetera. point. we patients quality postoperatively, we those goes the No. severing as other and removable, the story much maintain it's to gets level their approaching cornea, are becomes can manifest you of Are outcomes the and corneal fact markets more more up, nerves, of in we there particularly like U.S. you're in

think process, Again, in months I've as be we 'XX. And QX I QX we're seven stated. six, particular, QX, And into a will as our it use stronger Yes. move it. my if you experience, into about, in mind, China, international was about X.X-year

two-year to we point. we're to and really achieve we're that I a about where to be going to get have able we confident think right that. inflection And So run to be that need

Harrison Parsons

you, Thank quarter. the and Great. congrats on

Tom Frinzi

appreciate Thank I it. you.

Operator

you. Thank

open. Our from line Tom Stephan your next question from Tom, Stifel. Please comes ahead. is now go

Tom Stephan

Hi that recovery to trends maybe more I the has there guess to looked China. you guys. asked. what year-to-date the to apologies so wanted questions. in we three when and you down, March? of calls, two between did in bit of I a were past kind of think Great. that, in believe how maybe But months to for the 'XX? stand of had and ongoing, benefit that ultimately the a And Hopping of slope like. Tom, terms start want date And the relative these elaborate Thanks this I if if some to backlog in on work guess if to then a XQ April we already? the early not follow-up. I 'XX XQ do recapture look we be still see as have deferred then if follow-up is procedures to where do

Tom Frinzi

to say very I very it really that in it's there for procedures we levels Tom, the the and as positioned QX, season real if record had a suggest in high We very saw confident Thanks, we're we as And enter to quarters. well a the particular me relates being fact the QX was strong into as market, market remain of we end would QX. Yes. that to backlog, would stated, some QX that that that question. record handled. backlog, have

as early previously then than So kicks was than a off the stronger February we solid of is has April. We're February. going March stated, July, obviously, the September. to And We much QX been high real coming stronger really think into growth be much really very in consistent is August season January, strong.

feel is. where continue we to about So good China

Patrick Williams

completely. want out right? some and just QX. a It Yes. into was very off figure surgery sensitivity And back But policy. to the the there I'll Tom, if sure just challenge to a there's we're the when someone there we're great is start we make was question QX, good it is understand off put off I to add, sometimes as start record-breaking said, Tom QX, in in to a that no-COVID QX, quarters.

what weeks we customer moving and minds, as it of again said that our their just reiterating here we've and continuing ago are affirmed specifically. by robust there. being their is said so ICL a biggest market build very, of EVO into focus a once China, in And in And our prepared couple along investment for market, with very comments things the to

Tom Stephan

in implied start confidence, asking really that gives making, but our came a especially think year a at bit U.S. sense. versus of XQ number on I what guess good of the that Makes really doubling And to a But I'm encouragingly guidance. to then the the to U.S. below And metrics bit. down given also the you looks Tom, this, you're ramped some shift It helpful. XQ. you've given want 'XX and is but full hasn't Very for lot harp and investments sales slowing XH, people sorry basically know upward it's docs least utilization. and lot maybe pretty Patrick, and color. direction the had I pretty reiterating there's are And a for does inflection, I maybe of the in a meaningful XH launch, you I number significant imply just hoped. what still I'm that train finder with and a And estimates, docs

about you to in XH particular. that And the Tom, in but strong then think, confidence inflection? to I you guided million gives what $X in XQ out, So late I a wanted called you ask February. March,

the guide. miss on the disconnect I'm the Thanks. just in is So where XQ terms curious of slight

Tom Frinzi

Sure. the question. Again, I appreciate

being confidence years And different it doing the in knowing right received. and ophthalmology we're think we've of where think and things I of well in investments, comes surrounding we're certainly technologies of it's all I what how takes. customers, from my made launching terms

We're seeing those spend an targeted cities. we are of DTC targeted kind dollars the in spending impact in having cities. to Our is want where we see growth

we to have programs, it and we us place in fruit. going are the right that right people, the bear have the that we processes gives confidence So right have

Patrick... I it Now and think, a back doing part half I with of you, right off, we it's to puts take the right? question big would agree things time. other to relative think pull that of to going year. think to the or the be number QX we're the was, on But just able your I

Patrick Williams

what here $X you've thousand heard make or Tom. right? Street dollars would know when heard Clearly, you've approximately Brian the you're Rates that at you had in me, from a as March. doesn't we was Tom, told that little shy well ended And or in. I March a product million. with couple comment, us, what we pleased Look, break like hundred a from tell launching fair But it's it a I are very of we where there is this, of

continuing do we're that believe things. we And to the right

right imply but $XX had approximately and for a we the discussions we're saw. the sticking about full year. and hadn't second the are for second the in QX, clearly, million the came we've does You through confident internal in we which a we what but on half with before, it this, ramp and number gave we're half, doubling up in given And

Tom Stephan

Got it. Thanks for taking the questions.

Patrick Williams

Appreciate Tom. it,

Operator

you. Thank

your Please ahead. go Jim now Our is next question Sidoti Company. line Jim, open. comes from & from Sidoti

Jim Sidoti

know phased for Thanks in products afternoon. it but Was than quarter. you good Hi, revenue about have questions. the higher being would be? $XX are of said the taking did I out, other million that thought you you

Tom Frinzi

thought. A higher bit Yes. we than little

clearly, I exiting to think wanted the buy customers as business, talking we about started more.

any maybe guidance Jim, not spread And so as would and out business. a this reminder, into our QX we QX. other product even did But into imply IOL thought

add bottom So to the But it's low the It line. for definitely, revenue yes, doesn't sure. take lot a margin. we'll

Jim Sidoti

Is I looks if of at up $X you be when it's $X updated year, to you was on, to or to end change like were then relative today the where going the stock-based million G&A And look that be line, the is which maybe the guidance million from only real thought guidance. the Okay. last where it at gave compensation? related going you on all to

Patrick Williams

for as majority Primarily. of and We But of increase bit the stock-based number that things. of some ourselves in on did added I did lookover talk not modeling changes executives the lot it infrastructure of It's about a a a year, gave the fact for little in of little well sure. that but other full maybe couple an the head. bit a yes, G&A. high there's nail hit you the we compensation, And is and of

Jim Sidoti

Right.

as quarter same in So it upside revenue and exactly issued your it time guidance change pretty much the the last it. the this other is the was in seems than of like you G&A,

Patrick Williams

we in that we're was QX, beat say would correct. if the clearly, with I can our guidance we that. are side, about that that debate upped right? you that. you So revenue want But feeling on good But the associated to say then

model, margins, the everything else of we steady. very rest kept OpEx, the On

Jim Sidoti

right. you. All Thank Okay.

Operator

you. Thank

ahead. Our question Bruce Jackson line of from go Benchmark comes Please is open. Company. now your next Bruce,

Bruce Jackson

for my sales it rest little sequentially trails revenue super the help Can you the for year? quarter pacing strong to some get like the half was hoping think to on thanks the year that back contribute is us up the off to on U.S. of for of of year. for the question. do clarification Historically, going guidance? give growth Hi, guidance. you the is a I rates the sales rest second the the of and year, the This then taking

Patrick Williams

Yes.

the being million. being $X.X So in the we approximately second all about quarter talked $XX U.S. million with

year, at you're in compared the the on see looking that to that not going I of models, a to other at the the when some bit we've you talking was and in the some or is model as do million QX think with outsized by math now, about quite three $XX as perhaps been U.S. second large which the to do out, I the least has about to call quarters has of the what half.

up call revenue to QX. to sort that QX what I more even of And what of between making so hit a that's X.XX would spread

Bruce Jackson

Okay. Perfect. you. Thank

Operator

further you. this Thank time, no At questions. have we

So the for Tom closing back I to any remarks. will Frinzi hand call

Tom Frinzi

upcoming for look weeks meeting Thank call events with you, and today. this Thank our later in operator, you you. in other our We the of the you days week and and Diego thank ASCRS speaking forward at San many joining ahead. to

Operator

all you joining call. Thank for today's

You may now your lines. disconnect

STAAR Surgical (STAA) 3 May 232023 Q1 Earnings call transcript