• Revenue: $35.3 million in Q3 2024, up 59% from $22.2 million in Q3 2023.
• LAL Revenue: $24.2 million, representing 69% of total revenue, up from 61% in the year-ago period.
• LDD Revenue: $10.1 million, up 28% from Q3 2023.
• Gross Margin: 71.4% in Q3 2024, up from 61.9% in Q3 2023.
• SG&A Expenses: $25.6 million, up 34% from $19.1 million in Q3 2023.
• R&D Expenses: $8.8 million, up 24.5% from $7.1 million in Q3 2023.
• Net Loss: $6.3 million or 16 per share, compared to a net loss of $12.4 million or 35 per share in Q3 2023.
• Cash and Equivalents: $207.1 million as of September 30, 2024.
• Full Year Revenue Guidance: Approximately $140 million, implying 57% year-over-year growth.
• Full Year Gross Margin Guidance: 70% to 71%, up from previous guidance of 68% to 70%.

• Warning! GuruFocus has detected 3 Warning Signs with FOSL.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• RxSight Inc (NASDAQ:RXST) reported a 59% increase in revenue for Q3 2024 compared to the same period last year, reaching $35.3 million.
• The company experienced robust growth in its LDD installed base, surpassing typical seasonal expectations.
• Gross margin improved to 71.4% in Q3 2024, up from 61.9% in the same quarter last year, reflecting a favorable product mix and cost efficiencies.
• RxSight Inc (NASDAQ:RXST) successfully rolled out LAL Plus in the US and received approval in Canada, enhancing its product offerings.
• The company is expanding its market presence by targeting optometrists, who play a key role in patient diagnosis and decision-making.

Negative Points

• LAL sales were impacted by seasonal trends and external factors such as hurricanes, which affected surgery days.
• SG&A expenses increased by 34% year-over-year, driven by higher personnel costs and stock-based compensation.
• R&D expenses rose by 24.5% compared to the previous year, primarily due to increased facilities costs and new hires.
• The company reported a GAAP net loss of $6.3 million for Q3 2024, although this was an improvement from the previous year's loss.
• Despite strong growth, the company faces challenges in maintaining high utilization rates across all practices, with some variability in adoption.

Q & A Highlights

Q: Can you talk about the demand for capital and your ability to grow LDD placements, both in new centers and existing ones? A: Ron Kurtz, President and CEO, explained that the success in growing LDD placements is due to clinical results and practice benefits, including a quick return on investment (ROI) for practices. Existing practices are adding LDD units to other offices to increase patient reach.

Q: How significant was the impact of hurricanes at the end of the quarter, and what are you factoring in for Q4? A: Shelley Thunen, CFO, noted that while some surgery days were lost due to hurricanes, it's hard to quantify the exact impact. They expect some recovery in Q4 as affected markets like Florida are significant for them.

Q: What is your confidence in maintaining pricing levels for LAL and LDD, especially for consumables? A: Shelley Thunen stated that they are confident in maintaining pricing levels. The LAL retail price is $1000, and they don't face pushback due to the value it provides. The LDD pricing has been stable since a 10% increase in 2023, and demand remains strong.

Q: Can you provide any early considerations for 2025 guidance? A: Shelley Thunen mentioned that while it's premature for specific guidance, they aim to grow 50% in the premium IOL market, driven by clinical outcomes and quick ROI for practices. They are less affected by capital concerns impacting hospitals and ASCs.

Q: How are optometrists contributing to the adoption of LAL, and what are the learnings from the optometrist program? A: Ron Kurtz highlighted that optometrists play a crucial role in patient care and refraction, which is central to LAL treatments. They are increasingly involved in educating the community about LAL, which helps in patient referrals and adoption.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.