STAAR SURGICAL CO Q2 FY2024 earnings call

Key Points - STAAR reported record net sales of $99 million, with constant currency net sales reaching $100 million for the first time. - Raised fiscal 2024 net sales outlook to $340-345 million and adjusted EBITDA to $42 million. - Focus on three areas to accelerate EVO ICL uptake: surgeon education, broadening the market by moving down the diopter curve, and driving innovation. - In Americas, US sales growth was 25% YOY with Highway 93 initiative bearing fruit. EMEA saw 10% growth driven by Middle East, European distributors, and Spain. APAC had 6% YOY and 37% sequential growth, with China entering high season for EVO ICL implants. - Operating expenses increased due to investments in EVO ICL market building, with G&A, selling/marketing, and R&D expenses having specific changes.

In the Americas region, sales grew 14%, with US sales up 25% YOY and 10% sequentially. EMEA had 10% sales growth. APAC had 6% YOY and 37% sequential growth. For the quarter, ICL sales increased by $6.3 million, contributing to total net sales of $99 million. Constant currency net sales were $100.4 million, up 9% YOY.

Fiscal 2024 Outlook - Net sales expected to be $340-345 million. - Adjusted EBITDA anticipated to be $42 million. - Q3 net sales anticipated at ~$87 million. - US sales in Q3 expected to be $5-5.5 million due to summer seasonality, with reacceleration in Q4. - Raised full-year adjusted EBITDA by ~$3 million to $42 million, with adjusted EBITDA per diluted share at ~$0.80. - Americas outlook up 15% driven by US growth, EMEA outlook at 6% growth, APAC outlook at 7% growth.

None explicitly detailed in the transcript, but general risks associated with forward-looking statements and market uncertainties mentioned, including risks that could cause actual results to differ from forward-looking statements as described in the safe harbor statement and public filings.

Q: Ryan Zimmerman asked about China's growth profile in the second half of 2024 and views on consumer recovery.

A: Tom Frinzi stated they feel good about China, with minimal impact from competition, anticorruption, PPP, or economy issues, and continue to grow and take market share in a declining market.

Q: Tom Stephan asked about 2025 growth acceleration and M&A.

A: Patrick Williams said they're not giving 2025 guidance yet but believe initiatives will lead to Vision 2026, and Tom Frinzi stated they're focused on execution and not distracted by M&A rumors.

Q: Margaret Kaczor Andrew asked about US sequential traction and when guidance will reflect significant increase.

A: Tom Frinzi said they feel good about the US, with initiatives set to lead to sustainable growth, starting from crawling to running in 2025.

Q: David Saxon asked about Aier's pricing move in China and M&A impact.

A: Tom Frinzi said Aier's pricing move on SMILE isn't significantly affecting them, and their relationship with Aier is strong with continued growth in EVO within Aier systems.

Q: Anthony Petrone asked about China distributors and US guidance increase.

A: Tom Frinzi and Patrick Williams discussed positive integration with distributors Lansheng and HTDK, and the US guidance increase linked to Highway 93 initiative and strategic agreements.

Q: George Sellers asked about Highway 93 growth drivers.

A: Tom Frinzi said it's a combination of marketing pivot, surgeon confidence, and diopter curve movement, with AECOS study showing higher adoption.

Q: John Young asked about US strategic alliances.

A: Tom Frinzi said they've signed 9 new agreements in the US against a 15-targeted list, with more pending and a halo effect from accounts approaching them.