• Fourth Quarter Revenue: $16.7 million, a 38% increase over Q4 2023.
• Full Year Revenue Growth: 27% over 2023.
• ALLY System Placements: 31 systems in Q4, with 20 in the US.
• Installed Base of ALLY Systems: Surpassed 135 globally.
• Total Installed Base: 385 systems worldwide, a 26% increase over December 31, 2023.
• Market Share in Procedures: Increased by 7.5% in the US, reaching almost 21%.
• Procedure Volume Growth: 24% year over year in both the US and worldwide.
• Recurring Revenue: $10.8 million in Q4; over $40 million for the year.
• Gross Margin: $7.1 million, representing 42% for Q4.
• Operating Expenses: $8.4 million in Q4 2024.
• GAAP Net Loss: $18.7 million or $1.61 loss per share in Q4 2024.
• Adjusted EBITDA: Positive $478,000 in Q4 2024.
• Cash and Investments: $22.5 million as of December 31, 2024.
• 2025 Revenue Growth Guidance: Expected to exceed 27% growth achieved in 2024.

• Warning! GuruFocus has detected 5 Warning Signs with LNSR.

Release Date: February 27, 2025

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

Positive Points

• LENSAR Inc (NASDAQ:LNSR) achieved significant revenue growth in 2024, with a 38% increase in Q4 revenue compared to Q4 2023.
• The company set a new quarterly high by placing 31 ALLY systems in Q4, with 20 of these installations occurring in the US.
• LENSAR Inc (NASDAQ:LNSR) expanded its market presence in Europe and Southeast Asia, placing 24 systems since the mid-August 2024 launch.
• 75% of new system placements in the US were with customers new to LENSAR, indicating strong adoption of their technology.
• The company achieved a positive adjusted EBITDA of $478,000 in Q4 2024, marking the second consecutive quarter of positive results.

Negative Points

• The GAAP net loss for Q4 2024 was $18.7 million, largely due to a $17.6 million non-cash charge related to warrant liabilities.
• Recurring revenue as a percentage of total revenue decreased from 73% in Q4 2023 to 64% in Q4 2024.
• Gross margin for Q4 2024 was 42%, slightly lower than the 43% realized in Q4 2023.
• Operating expenses increased to $8.4 million in Q4 2024, up from $8.1 million in Q4 2023.
• The company faces strong competition from larger players in the market, which could impact its growth and market share.

Q & A Highlights

Q: Can you provide more details on the mix of placements in the fourth quarter, specifically regarding Femto naive, competitive change-outs, and replacing LLS systems? A: Nicholas Curtis, CEO: In the fourth quarter, 75% of placements were new to LENSAR customers. We displaced only a few LLS systems, with most being moved to other locations rather than decommissioned. About 30% of the systems replaced competitive devices, and approximately 22% were Femto naive, indicating growth in both market share and new market segments.

Q: How is the strategy of taking market share, replacing old LLS systems, and targeting the Femto naive market progressing? A: Nicholas Curtis, CEO: The strategy is working well. We focus on practices already using laser cataract surgery to improve efficiencies and outcomes. The ALLY system addresses shortcomings of first-generation technology, attracting both existing and new users. We continue to target competitive accounts and expect to maintain a high percentage of new customers.

Q: Are there any changes in the competitive landscape, particularly regarding investments by other large players? A: Nicholas Curtis, CEO: While competition remains strong, we do not see any immediate technological threats. Larger competitors focus on bundling and pricing, but our emphasis is on increasing productivity and improving outcomes, which we believe will continue to attract customers to our technology.

Q: How do you anticipate the mix of sales and leases versus procedural or consumable revenue to change in 2025? A: Nicholas Curtis, CEO: We expect a slight shift towards more aggressive placements of systems, particularly in larger groups, resulting in a higher percentage of placements compared to sales. Overall, the sales/lease mix will remain around 60% sales.

Q: What are your expectations for growth in the OUS (Outside the US) markets, and will you consider establishing a direct presence? A: Nicholas Curtis, CEO: We expect steady growth in OUS markets in 2025, with larger growth anticipated in 2026. While we are comfortable with our distributor relationships in the EU and Asia, we are open to considering a direct presence in other markets as opportunities arise.

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