Release Date: August 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- RxSight Inc (RXST, Financial) reported a 68% year-over-year increase in revenue for Q2 2024, reaching $34.9 million.
- LAL revenue grew by 92% year-over-year, contributing $23.8 million and representing 68% of total revenue.
- The company sold 78 LDDs in Q2, a 16% increase from the previous year, generating $10.2 million in revenue.
- Gross margin improved to 69.5% in Q2 2024, up from 57.8% in the same quarter last year.
- RxSight Inc (RXST) raised its full-year 2024 revenue guidance to $139-$140 million, reflecting strong performance and growth expectations.
Negative Points
- SG&A expenses increased by 33% year-over-year to $24.3 million, driven by higher personnel costs and stock-based compensation.
- R&D expenses rose by 12% year-over-year to $8.3 million, primarily due to increased facilities costs and stock-based compensation.
- The company reported a GAAP net loss of $6.1 million for Q2 2024, although this was an improvement from a $13.9 million loss in the same quarter last year.
- Operating expenses are projected to increase to $135-$136 million for the full year, up from previous guidance of $126-$130 million.
- Non-cash stock-based compensation expenses are expected to rise to $29-$30 million, up from prior guidance of $22-$25 million.
Q & A Highlights
Q: Can you talk about the updated guidance or range with the PMA supplement for the LAL? What is the opportunity size with the new range of minus 2 to plus 3 diopters?
A: The power range prior to this approval was plus 4 to plus 30 diopters. The new range broadens the low end, which is relevant for highly myopic eyes. It's difficult to quantify the exact number of candidates, but it's a significant addition that our customers have requested. (Ron Kurtz, President, CEO, Founder)
Q: What underpins the increased guidance, particularly in the back half of the year? Is it higher utilization from the installed base or a pipeline within the LDD funnel?
A: The increase in guidance is driven by higher utilization rates, which accelerated to 11 units per LDD per month. This growth is due to new customers ramping up faster and existing customers increasing their usage. (Shelley Thunen, Vice President & CFO)
Q: What are you seeing in the field regarding LDD and LAL adoption? Who are the incremental buyers, and are centers adding multiple units?
A: We are still in the early phase of market penetration. New customers are similar to previous ones, and LDDs are being added to new offices serving different patient populations. Utilization trends show continuous growth across all cohorts. (Ron Kurtz, President, CEO, Founder)
Q: How is LAL+ impacting new customer acquisition and utilization?
A: LAL+ provides faster visual recovery and extends the depth of focus, which has been positively received. It serves as a door opener for new customers and helps existing ones penetrate their markets further. (Ron Kurtz, President, CEO, Founder; Shelley Thunen, Vice President & CFO)
Q: Given the strong balance sheet, are there plans to accelerate investment in sales and marketing?
A: Yes, the additional funds from the CMPO will be used to invest more in sales, marketing, and R&D. These investments will enhance customer education, outreach to the optometrist community, and other marketing efforts. (Shelley Thunen, Vice President & CFO)
Q: Should we expect seasonality to impact LDD placements in the third quarter?
A: Yes, we expect seasonality to affect LDD placements, similar to last year. However, the most significant growth will come from LALs due to new customer additions and increased utilization. (Shelley Thunen, Vice President & CFO)
Q: Why not raise the gross margin guidance given the strong first-half performance?
A: While the mix is the most important component, other factors like period costs and higher shipping costs can impact gross margins. We prefer to leave room for these variables. (Shelley Thunen, Vice President & CFO)
Q: What gives you confidence that your success in the US can be replicated in Europe?
A: Clinical ophthalmology is consistent globally, and success in the US is a good indicator for international markets. However, individual market dynamics and regulatory environments add complexity, so it won't happen overnight. (Ron Kurtz, President, CEO, Founder)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
