RxSight, Inc. Q4 FY2024 earnings call

• Fourth quarter and full-year 2024 financial results were highlighted, with growth driven by LAL procedure volume and LDD installed base expansion. LAL revenue mix increased, and gross margin expanded.
• RxSight's system has a growing impact on the US premium cataract market, with adjustable IOLs accounting for nearly half of the growth in US premium IOLs in 2024.
• About 1,500 of the ~10,000 US cataract surgeons are trained on the technology, with a long runway for LEDD placements. Novel business models will expand access to adjustability.
• FDA post-approval study and Japanese clinical results validate the technology's refractive precision. FDA approved extended diopter powers for LAL plus, and a new LDD functionality for adjusting LAL asphericity will be released in H2 2025.

Fourth quarter 2024 revenue was $40.2 million, up 41% year-over-year. LAL sales saw strong growth with 29,069 LALs sold in the period, up 61% from Q4 2023, and LAL revenue was $28.5 million, up 60% year-over-year. In Q4 2024, 83 LEDs were sold, generating $10.7 million in LDD revenue. The LDD installed base ended 2024 at 971 units, up 46% from 2023. LAL revenue accounted for 71% of total revenue in Q4 2024, up from 62% in Q4 2023. Gross margin in Q4 2024 was 71.6%, up from 61.8% in Q4 2023. Full-year 2024 revenue was $139.9 million, up 57% year-over-year. LAL revenue grew 78% and LDD revenue grew 24%. Full-year gross profit margin was 70.7% compared to 60.4% in 2023. Net loss in 2024 was $27.5 million, less than the $48.6 million in 2023.

• Reaffirms 2025 full-year revenue to range between $185 million to $197 million, representing 32% to 41% year-over-year growth.
• Expect 2025 full-year gross margin to be in the range of 71% to 73%.
• Operating expenses are expected to be between $165 million and $170 million, an increase of 22% to 25% over the prior year.
• Revenue contribution outside of North America is expected to be nominal in 2025, with more meaningful impact in 2026 and beyond.

Actual results may differ materially from forward-looking statements due to certain risks and uncertainties, which are more fully described in the company's press release and SEC filings.

Q: About LAL utilization trends and differences between mature and new accounts?

A: Ron Kurtz explained that LAL utilization is affected by the installed base of LEDs and LAL implants in the current quarter. Different accounts have different situations, with small accounts possibly using LAL for most premium IOL cases and new accounts ramping up LAL volume. Cohorts of accounts act consistently and are expected to continue growing though there may be quarter-to-quarter variability.

Q: About isobaric IOL, potential patient group and time to realization?

A: Ron Kurtz clarified that LAL and LAL plus are already aspheric lenses, and the new LDD functionality allows doctors to adjust the asphericity of LAL, with clinical situations depending on the physician.

Q: 2025 LDD purchases and revenue mix?

A: Shelley Thunen said LDD sales are expected to be higher in 2025, LAL revenue will grow faster and be a more predominant part of revenue, and gross margin is affected by mix and costs.

Q: R&D allocation and innovation opportunities?

A: Ron Kurtz said R&D is focused on continuing to innovate for the technology to provide long-term benefits to customers.

Q: Main areas of OpEx growth investment in 2025?

A: Ron Kurtz said it includes clinical training, support, education, etc., with education being key to expanding adoption.

Q: 2025 revenue rhythm, LDD and LAL mix and R&D?

A: Shelley Thunen said LDD sales are expected to increase, LAL revenue mix will rise, and R&D is for continuous innovation.

Q: Gross margin rhythm and business model replication?

A: Shelley Thunen said gross margin will have stable improvement, and business models may be replicated to increase accessibility to doctors and patients.

Q: LAL progress and pipeline?

A: Ron Kurtz said LAL progress includes improvements in optics, functionality, etc., and innovates in response to customer needs.