LENSAR, Inc. Q3 FY2024 earnings call

• ALLY System Placements: Third quarter 2024 saw 24 new ALLY System placements, an 118% increase y-o-y and 41% q-o-q. This was fueled by market expansion to EU and Taiwan with 11 systems sold post-regulatory clearances in those regions.
• International Launch Success: Advanced planning, collaboration with distributor partners in training and field service, market preparation via conference participation and demos, working with PE groups, and KOL surgeon involvement contributed to the successful international launch of ALLY.
• Installed Base and Backlog: Global installed base of ALLY systems exceeded 100, and the company finished the quarter with a backlog of 24 systems expected to install over the next 6 months.
• Revenue and Recurring Revenue: Q3 2024 revenue was $13.5M, up 38% y-o-y. Trailing 12-month recurring revenue was $38M, up 22% y-o-y. Procedure volumes increased 29% y-o-y, with US procedures up 22% y-o-y, and US procedure market share reached ~20% as of Sept 30.
• Conference Participation: Over 100 ALLY demonstrations at US and OUS congresses generated new prospects for the sales team and distributor partners.

In the third quarter of 2024, LENSAR achieved revenue of $13.5 million, a 38% increase from the third quarter of 2023. Recurring revenue for the quarter was approximately $9.9 million, and the trailing 12-month recurring revenue was $38 million, a 22% increase from the 12 months ended September 30, 2023. The installed base of ALLY systems grew to over 100 globally, representing a 170% increase from September 30, 2023. The overall installed base, including legacy LENSAR laser systems, reached 355 systems, a 20% increase over Q3 2023 and an 8% increase quarter-over-quarter. The revenue contribution from the ALLY System placements, especially outside the US, was significant in driving the overall financial performance.

• Q4 Expectations: OUS system shipments in Q4 are expected to be similar to Q3. Procedure volumes are anticipated to be strong despite external factors like hurricanes and holidays, though there may be some lumpy nature due to various timelines.
• 2025 Outlook: The company will provide more granular guidance as the end of the year approaches, focusing on procedure growth driven by newly installed systems and their ramp-up to optimal run rates.

• Uncertainties in procedure volume ramp-up due to factors such as surgeon training duration, practice integration, and external events like hurricanes and holidays.
• Timing issues in revenue recognition for non-US sales as installation and training timelines can vary, leading to a rolling or staggered effect on procedure growth and revenue recognition.

Q: Frank Takkinen asks about Q4 system placement expectations and procedural volume growth.

A: Nicholas Curtis and Thomas Staab state that OUS system shipments in Q4 are expected to be similar to Q3, and procedure volumes are expected to be strong though affected by holidays and hurricanes.

Q: Frank asks about 2025 placements and procedure volume.

A: Thomas and Nicholas mention that the company will provide more granular guidance as the end of the year approaches, focusing on the rolling growth from newly installed systems.

Q: Frank asks about strategy for femto-naive market.

A: Nicholas states that the focus is on taking share from competitive sites first as femto-naive market requires more resources, but the company does have some femto-naive accounts expressing interest.