Rxsight Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Robbie Marcus - J.P. Morgan - Analyst : Great. Thanks for taking the question. Congrats on a very nice quarter. Two from me. Maybe first to start, volumes both in LAL and LDD were really strong in the quarter, but also so was pricing, if I do my math correct here. Maybe speak to what you're seeing in the field in terms of both adoption trends as you continue to place more than expected LDDs and utilization, but also on the pricing side because it continues to be robust for both of them. Thanks.

Question: Robbie Marcus - J.P. Morgan - Analyst : And, great. Maybe as a follow-up, I wanted to talk on the competitive environment by my math they're closing in on 10% or so of the premium IOL market. I imagine that's a pretty disruptive market as you look at your competitors, you're starting to take larger shares and not just some early adopters, but hitting more of the mass market appeal. What, if anything are you seeing in terms of a response from your competitors? And how do you feel about your ability to continue to grow and take share as you're moving up the adoption curve? Thanks a lot.

Question: Robbie Marcus - J.P. Morgan - Analyst : Thanks a lot.

Question: Ryan Zimmerman - BTIG - Analyst : Good morning and or afternoon. Excuse me, too many earnings calls. Just wanted to ask about a couple of things. So the install base now is past 700. You've had a number of units, an appeal now for numerous years as that install base grows. I'm just wondering if there's any service revenue considerations we should be thinking about. I would imagine that can start to grow and maybe step up a little bit over the course of this year and in to 2025.

Question: Ryan Zimmerman - BTIG - Analyst : Okay. And then Shelley, margins were fantastic this quarter, probably the most, I think, encouraging thing for long-term investors. You're guiding a little below 70%. You did over 70% revenue this quarter, just a hair, why does that regress in the rest of the year below 70%? Because I mean, you're just on this fantastic trajectory with more LAL sold to drive market desire?

Question: Ryan Zimmerman - BTIG - Analyst : Thanks Shelley.

Question: Patrick Wood - Morgan Stanley - Analyst : Fantastic, and thank you for taking the questions. I guess the first one. I know you guys don't split the guide down, but just qualitatively for LDD placements, would you expect that kind of similar growth that we saw year on year and LDD placements in Q1. Would you expect that to be a similar kind of growth trajectory through the year or a bit of an uptick in that and a drop in the LALs. I'm just trying to work out roughly the passing of those two things out even just qualitatively.

Question: Patrick Wood - Morgan Stanley - Analyst : Makes sense. And I thank you. Then again, qualitatively of the LDD placements you've seen in the last three, four, five months out side of things. Can you give us some sort of flavor how much of that is new accounts, existing accounts buying a second system, just how that's trended over time very recently would be helpful.

Question: Patrick Wood - Morgan Stanley - Analyst : Brilliant. Thank you so much.

Question: Tom Stephan - Stifel - Analyst : Great. Hi, everyone. Thanks for taking the questions. Maybe I'll start with LAL+. Could you maybe I guess, qualitatively explain a bit how LAL+ was contemplated in 2024 guidance, maybe in terms of the cadence of the rollout. I guess in other words, this guidance assume kind of a methodical ramp of LAL+. Is it a fast ramp up, maybe somewhere in between any color there would be helpful.

Question: Tom Stephan - Stifel - Analyst : Got it. That's helpful. And then just my follow-up, I guess on gross margin, Shelley, can you maybe level set us on where gross margins stand between your different products? Because when I run a low 30% gross margin on the LDD sales, I'm arriving at maybe 85%-plus gross margin on the rest of the business. Are those fair places to be on both sides? And I guess I'm mainly curious about where LAL gross margin is tracking toward? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2024 / 8:30PM, RXST.OQ - Q1 2024 Rxsight Inc Earnings Call

Question: Tom Stephan - Stifel - Analyst : That's great. Thanks Shelley. Thanks Ron.

Question: Larry Biegelsen - Wells Fargo - Analyst : Good afternoon. Thanks for taking the questions. So on the Q4 call, you said you'd be talking more about international markets later this year. And today I heard spending is going towards O-US clearances. And Ron, you spoke more about Europe and Asia in your prepared remarks today that are occurred on the Q4 call. So my question is, does this imply you're closer to other major market launches? And what are you including in the

Question: Larry Biegelsen - Wells Fargo - Analyst : Got it. And one follow-up question from me. Utilization, it looks like it was about 9.2 LALs per LDD per month in the first quarter and it grew about 5% a year. It looks like it's a little slower than what we've seen in the last few quarters. Why is that and how are you guys thinking about utilization for the rest of this year? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 06, 2024 / 8:30PM, RXST.OQ - Q1 2024 Rxsight Inc Earnings Call

Question: Larry Biegelsen - Wells Fargo - Analyst : All right. Thanks Shelley.

Question: Steve Lichtman - Oppenheimer & Co - Analyst : Thank you. Hi Ron and Shelley and congratulations. Wanted to ask, Ron, I think you mentioned targeting optometrists in terms of driving awareness. I think you talked to that ASCRS as well. Can you talk a little bit about what that looks like in this field in terms of how you approach that and some of the potential benefits in terms of referrals and things like that from a targeting net backwards? Thanks.

Question: Steve Lichtman - Oppenheimer & Co - Analyst : Great. And then just as a quick follow-up, are you adding to the sales force on the LDD side this year? And if so, how much are you increasing that?

Question: Steve Lichtman - Oppenheimer & Co - Analyst : Got it. Great. Thank you.