Release Date: April 03, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the underlying assumptions for guidance, particularly regarding the productivity of LALs per LDD? A: Shelley Thunen, CFO: The guidance reflects a change in the number of LALs we expect to sell, offset by strong LDD sales. Typically, we see sequential growth in LALs per LDD, but given current economic uncertainties, we're cautious about predicting typical seasonality until we see second-quarter results.
Q: How do you prioritize the factors that led to the Q1 miss, and what is transient versus more permanent? A: Ron Kurtz, CEO: The Q1 miss was due to a confluence of factors, including macroeconomic changes and sequential product launches by competitors. These are largely transitory. The macro environment is complex, but we hope for improvement. The product launches are planned years in advance and are unusual in their frequency.
Q: Regarding utilization by cohort, how does the utilization rate of earlier cohorts compare to the average, and where do you see a natural ceiling? A: Shelley Thunen, CFO: Cohorts from earlier years have similar utilization rates, and the decline in LALs per LDD was consistent across all cohorts. The 2024 cohort is not growing as quickly as the 2023 cohort, but this has a minor effect on overall numbers due to our large installed base.
Q: Can you discuss your product pipeline and any upcoming innovations? A: Ron Kurtz, CEO: We continue to innovate with incremental enhancements like ActivShield and LAL+. We recently introduced Low Diopter LAL and will soon launch products addressing higher-order aberrations. These innovations help expand our customer base and leverage existing investments in our technology.
Q: How are you addressing potential cash flow concerns given the revised guidance? A: Shelley Thunen, CFO: We have adequate cash to reach cash flow breakeven and profitability, though the timing may be impacted. We are focusing resources on sales and marketing to stay close to customers, which may delay cash flow breakeven but is necessary for long-term growth.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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