LENSAR, Inc. Q1 FY2024 earnings call

• Realized 28% revenue growth and 25% procedure growth in Q1 2024 compared to Q1 2023.
• Placed 10 ALLY systems in the first 3 months of 2024, with the installed base at ~65 and backlog of 3 systems.
• Signed contracts for 18 additional ALLY systems in Q2 2024, with installations expected to be completed by Q3.
• ALLY is currently marketed only in the U.S. awaiting EU regulatory approvals, but surgeons in Europe, etc., are awaiting clearance.
• Had highest level of surgeon engagement at ASCRS annual meeting, completing nearly 100 ALLY demos.
• Published data on time savings with ALLY, demonstrating potential $0.5 million annual revenue opportunity to ASCs and $350,000 to physicians.
• Gained 1.5% market share in the U.S. femtosecond laser-assisted cataract surgery procedure market in Q1 2024, with cumulative 4.3% market share gain since ALLY launch.

In the first quarter of 2024, LENSAR achieved $10.6 million in revenue, compared to $8.3 million in the first quarter of 2023, representing a 28% increase. The growth was driven by ALLY systems sales and worldwide procedure volume. ALLY was the key contributor, with 28% revenue growth and 25% procedure growth compared to Q1 2023. The ALLY installed base was approximately 65 with a backlog of 3 systems as of the end of Q1 2024.

• Accelerated momentum in Q2 with 18 new ALLY system contracts signed.
• Expect installations of Q2-signed systems to be completed by Q3, contributing to recurring revenue growth.
• Anticipate additional regulatory clearances in Europe by end of 2024.
• Expect operating breakeven quarters late in 2024 and into 2025.

• Regulatory uncertainties in obtaining EU marketing authorizations for ALLY.
• Potential delays in manufacturing or system placements due to part lags.
• Seasonal cash usage as the first quarter typically has lower revenue and higher cash use.

Q: Congrats on the solid start to the year. Any color on the 18 new orders in Q2, including if they're competitive wins or femto-naive wins?

A: 13 of the 18 systems are replacing competitive systems, 5 are in in-office surgery suites, and all 18 are new business for LENSAR.

Q: Talk about the older laser system install base and the opportunity there?

A: There are ~1,200 systems in the U.S. and ~2,000 globally installed, with competitive devices being ~1,700-1,800, many 12-14 years old with limited upgrades.

Q: Commentary on procedure market health and growth sustainability?

A: Optimistic due to astigmatism management opportunity and replacing older systems, expecting to sustain 20% plus growth top line