Sight Sciences, Inc. Q4 FY2024 earnings call

• Surgical Glaucoma: Progressed with increased ordering accounts, account re-engagement, and publication of three-year standalone clinical data for OMNI. Focused on surgeon education, re-engagement efforts, and upcoming OMNI Edge launch in H1 2025.
• Dry Eye: Advancing reimbursement efforts with engagement of payers, completion of SAHARA study phase 3, and publication of TearCare budget impact analysis. Established commercial infrastructure with 1,500 eye care facilities and 65,000 TearCare procedures done to date.

Surgical Glaucoma: In the fourth quarter of 2024, surgical glaucoma revenue was $18.8 million, up 9% year-over-year and 1% sequentially. The MIGS market faced headwinds from Medicare LCDs, but there was sequential growth in ordering accounts and account re-engagement. For 2025, revenue guidance is $70 million to $75 million, factoring in MIGS market impacts. Dry Eye: Fourth quarter 2024 dry eye revenue was $0.3 million, down from $1.6 million in the prior year due to focus on reimbursement. Expected revenue for 2025 dry eye segment is ~$1 million, not accounting for reimbursement success.

• 2025 revenue guidance: $70 million to $75 million, accounting for MIGS market impacts from Medicare LCDs.
• 2025 adjusted operating expenses guidance: $105 million to $107 million, reflecting investments in Pseudophakic standalone market and TearCare market access.
• First quarter 2025 revenue expected to be down low to mid-double digits, due to full quarter impact of MIGS procedure restrictions.

• Tariff Impact: 20% tariff on goods from China affects manufacturing costs of OMNI and certain TearCare components, potentially impacting gross margin.
• Alcon Patent Infringement Case: Ongoing with uncertain outcome, including judge's final ruling and potential appeal, which could affect cash utilization if monetary damages are awarded.

Q: How is market development on the standalone MIGS market going?

A: Matt Link and Paul Badawi discussed momentum in capturing interventional mindset, engagement with thought leaders, and educational efforts. Paul noted clinical data on OMNI's performance in standalone glaucoma patients.

Q: Any color on TearCare reimbursement claims?

A: Alison Bauerlein said there's increasing volume of claims with early traction, but claims are still processed individually; progress expected in 2025 with budget impact analysis and SAHARA data supporting coverage.

Q: Glaucoma trends year to date?

A: Alison Bauerlein stated first quarter trended as expected, with clarity on surgeon behavior post-Medicare LCDs, and OMNI still used across glaucoma treatment paradigms.

Q: Details on OMNI Edge launch?

A: Paul Badawi discussed OMNI Edge as iterative advancement for surgeon preferences, focusing on safety and efficacy; Matt Link emphasized OMNI family approach to meet varied patient needs.

Q: Dry eye business ramp post-reimbursement?

A: Alison Bauerlein said ramp depends on reimbursement wins, but existing commercial infrastructure with 1,500 eye care facilities and 65,000 procedures provides a base to start quickly.

Q: Tariff impact on gross margin?

A: Alison Bauerlein explained only portion of COGS from China is affected, with mitigation efforts in progress, but modest impact expected in 2025.

Q: Alcon infringement case status?

A: Paul Badawi said case is ongoing with judge's final ruling pending, subject to appeal; cash utilization would be prioritized for commercial expansion and R&D if damages awarded.