• Total Revenue: $19.1 million, a 2% increase compared to the same period in the prior year.
• Surgical Glaucoma Revenue: $18.8 million, up 9% year-over-year.
• Dry Eye Revenue: $0.3 million, a decrease from $1.6 million in the prior year.
• Gross Margin: 87%, an increase from 85% in the prior year.
• Total Operating Expenses: $28.5 million, a 5% increase from the prior year.
• Adjusted Operating Expenses: $24.4 million, a 9% increase from the prior year.
• Net Loss: $11.8 million or $0.23 per share, compared to a net loss of $10.7 million or $0.22 per share in the prior year.
• Cash and Cash Equivalents: $120.4 million at the end of the quarter.
• Debt: $40 million, excluding debt discounts and amortized debt issuance costs.
• Cash Generated: $1.8 million in the fourth quarter, including a $5 million drawdown under the term loan.
• 2025 Revenue Guidance: $70 to $75 million.
• 2025 Adjusted Operating Expenses Guidance: $105 to $107 million, a 4 to 6% increase from 2024.

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

Release Date: March 05, 2025

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

Positive Points

• Sight Sciences Inc (NASDAQ:SGHT) reported a 2% increase in total revenue for the fourth quarter of 2024, reaching $19.1 million.
• The company achieved a 9% growth in surgical glaucoma revenue compared to the same period in the prior year.
• Sight Sciences Inc (NASDAQ:SGHT) made significant progress in achieving equitable market access for its tier care technology, with an increased number of claims reimbursed under commercial plans.
• The company published three-year stand-alone clinical data demonstrating the long-term effectiveness of Omni in managing primary open-angle glaucoma.
• Sight Sciences Inc (NASDAQ:SGHT) reduced net cash usage by 62% for the year, reflecting disciplined expense management and improved working capital.

Negative Points

• The new Medicare LCDs had a more pronounced impact on surgical glaucoma revenue than expected, leading to lower utilization.
• Dry eye revenue decreased significantly from $1.6 million to $0.3 million in the fourth quarter of 2024 due to fewer smart lid sales.
• The company faces potential tariff exposure due to a 20% tariff on goods from China, which could impact gross margins and results of operations in 2025.
• Sight Sciences Inc (NASDAQ:SGHT) reported a net loss of $11.8 million for the fourth quarter, compared to a net loss of $10.7 million in the same period in 2023.
• The company anticipates an industry-wide decline in total utilization of MIGs devices due to Medicare LCD restrictions, impacting revenue guidance for 2025.

Q & A Highlights

Q: How is the market development on the standalone MIGS market evolving, and what is the long-term trajectory? A: Matthew Link, Chief Commercial Officer, explained that there is good momentum in adopting an interventional mindset across the continuum of glaucoma care. The company is focusing on engaging thought leaders and building educational materials to drive this shift. Paul Badawi, CEO, added that developments like sustained release pharmaceuticals and increased awareness of SLT laser interventions are helping drive the adoption of standalone interventions like Omni. The company has published compelling three-year standalone clinical data to support this effort.

Q: Can you provide any updates on the reimbursement progress for tier care and what milestones should be watched for? A: Alison Bauerlein, CFO, stated that while specific claim numbers haven't been disclosed, there is increasing traction with payers regularly paying claims. The company is leveraging the recently published budget impact analysis and upcoming Sahara data to support reimbursement efforts. They expect to achieve some tier care policy or payment decisions in 2025, which could significantly impact revenue.

Q: How have surgical glaucoma trends been affected by the new Medicare LCDs, and what is the current market outlook? A: Alison Bauerlein noted that the first quarter is tracking as expected, with more clarity on responses to the LCDs. The company has engaged with customers to position Omni effectively within the treatment paradigm. The guidance takes into account the impact of the LCDs, and while the market is expected to face headwinds, the company is confident in Omni's comprehensive procedure.

Q: What is the expected impact of the new Omni Edge product, and what patient cohorts will benefit? A: Paul Badawi explained that Omni Edge represents the latest iteration in the Omni technology, focusing on increasing viscoelastic volume while maintaining safety. The product aims to meet varying physician preferences and patient needs. Matthew Link added that the Omni family approach will address a wide range of patient needs, and the company is excited about the potential of Omni Edge and future developments.

Q: How quickly can the dry eye business ramp up following policy establishment, and what commercial investments might follow? A: Alison Bauerlein stated that the ramp-up will depend on the specifics of the reimbursement wins, such as covered lives and pricing. The company already has a foundation of 1,500 eye care providers and 65,000 tier care procedures, which will help hit the ground running. Matthew Link added that current guidance includes investments in operational infrastructure to support scaling the business.

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