RxSight, Inc. Q1 FY2025 earnings call

• Factors affecting Q1 revenue: weakened premium IOL market, sequential launches of new premium IOLs extending into Q1 2025, and abrupt changes in consumer sentiment. - Actions taken: refined clinical education and practice adoption programs for existing and new customers, continued rollout of product enhancements, strong support for new customer business models (including centralized third-party light treatment options), European regulatory approval for LDD and LAL, and progress in Asia with regulatory approvals and early clinical experience in Japan, Hong Kong, and South Korea.

Preliminary first quarter 2025 revenue was $37.9 million. LDD segment: 73 LDDs sold in Q1, up 11% year-over-year and down 12% sequentially from Q4 2024, with an installed base of 1,044 LDDs at the end of Q1. LAL segment: 27,579 LALs sold in Q1, up 36% year-over-year but down 5% sequentially from Q4 2024. The LDD installed base grew 43% year-over-year and 8% sequentially.

• Revised 2025 revenue guidance from $185 million to $197 million to $160 million to $175 million, reducing implied growth from 32% to 41% range to 14% to 25%. - Gross margin guidance unchanged at 71% to 73%. - Operating expenses revised from $165 million to $170 million to $150 million to $160 million. - Noncash stock-based compensation expense revised to $27 million to $30 million from previous $22 million to $25 million.

• Weakened premium IOL market and sequential new premium IOL launches. - Abrupt changes in consumer sentiment impacting LAL procedures. - Macroeconomic trends affecting consumer decision-making for LAL procedures.

Q: Ryan Zimmerman inquired about guidance subcomponents and LAL productivity.

A: Shelley stated that the typical significant increase in March LAL procedures didn't occur, and the second quarter is a risk until economic impacts on customers and patient responses are understood.

Q: Young Li asked about LDD cohort utilization.

A: Shelley said cohorts of installed LDDs moved in concert, '24 class LDDs grew slower than '23 class in comparable quarters but had little impact on LALs per LDD due to large installed base.

Q: Robbie Marcus questioned market trends vs utilization.

A: Ron said LAL procedural growth didn't meet expectations, overall premium market was negative, leading to underappreciation of market softening and competitive trialing impacts.

Q: Steve Lichtman asked about new customer business models and competitor recall.

A: Ron discussed supporting third-party innovators with marketing, training, and clinical support, and competitor recall isn't significantly impacting RxSight.

Q: David Saxon asked about LDD demand and pricing.

A: Shelley said LDD sales expected to be higher in 2025, and Ron mentioned pricing stable due to value and U.S. manufacturing.

Q: Danielle Antalffy asked about LAL penetration confidence.

A: Ron cited ongoing market penetration with many practices not yet adopting the technology, believing market penetration is still early.