Rxsight Inc Q3 2024 Earnings Call Transcript

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

Question: Craig Bijou - BofA Global Research - Analyst : Good. Good afternoon, thanks for taking the questions. I just want to start on utilization and maybe utilization by practice. I know you get this question a lot and you have over the last couple of years, but maybe if you can just kind of walk through some of the trends as utilization, as the practices grow, what you see in the trends and utilization, if you've seen any of that change over the last few quarters.

Question: Craig Bijou - BofA Global Research - Analyst : Got it. That's very helpful. And if I can ask about Q4, and the implied guidance or the $40 million that you talked about, Shelley, it's a little bit lower on the sequential basis than what you've done in the past. So I guess a couple of things with that. How should we think about the impact, LALs versus LDDs if there's a way to think about the mix of the revenue in Q4? And then are you baking in some impact from the hurricanes that might have kind of bled into Q4?

Question: Young Li - Jefferies - Analyst : Alright, great. Thanks for taking our questions. I guess to start wanted to hear a little bit more about the global expansion color. We'll hear more in the coming months, I'm sure. But maybe if you can level status on when we can potentially see some full US approvals and which are some of the more important countries to focus on.

Question: Young Li - Jefferies - Analyst : Okay. Great, very helpful. I think early in the year at the ASCO conference, you guys had a panel and there was some PE representation there, wanted to ask a little bit about, how are sort of PE owned practices doing versus sort of the more mom-and-pop shops. Are there any noticeable differences in the way they run their business or utilization rates or growth trends.

Question: Young Li - Jefferies - Analyst : All right. Thank you very much.

Question: Thomas Stephan - Stifel Nicolaus and Company, Incorporated - Analyst : Great. Hey guys, thanks for taking the questions. Wanted to start with LAL trends and I think guidance may imply 4Q utilization growth and maybe the high single digit range, maybe upwards of 10% somewhere around there. And that's down from high 10s to low 20s over the last number of quarters on a year over year basis. So Ron or Shelley, can you talk about, I guess a bit why there would be kind of this much of a deceleration in the fourth quarter and some of the factors that may be at play.

Question: Thomas Stephan - Stifel Nicolaus and Company, Incorporated - Analyst : Yeah, basically when I'm trying out my numbers, hopefully, I'm not too far off here. I'm arriving at utilization growth on a year-over-year percent basis of 8%. But over the past four, five quarters, it's been in the high 10s to low 20s on a year-over-year basis, percentage wise. So I guess I'm asking why there would be a 4Q '24 deceleration? Sorry that was --

Question: Thomas Stephan - Stifel Nicolaus and Company, Incorporated - Analyst : Got it. Okay. That makes sense. Thanks Shelly. And then my follow up more related to share, I guess as we think about long term continued share gains for LAL in the US. You might be at 10%-ish premium today. We think long term to maybe 20% 30% even higher, if standard of care is achieved. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 9:30PM, RXST.OQ - Q3 2024 Rxsight Inc Earnings Call In the per doctor share would assumably have to be a bit higher. So I'd be curious if you could, I guess just elaborate a bit on the call it longer term train surgeons, where share may be stalling a bit. I assume there may be some out there. You just talk about with those doctors, some of the main limiting factors or hurdles. And then importantly how the company and your field reps are working toward removing these ceilings or barriers for those customers where share may be stalling at lower levels. Thanks for taking the questions.

Question: Thomas Stephan - Stifel Nicolaus and Company, Incorporated - Analyst : Super helpful. Thanks, Ron. Thanks, Shelly.

Question: Steve Lichtman - Oppenheimer & Co., Inc. - Analyst : Thank you. Hi guys. Sorry, I've been jumping between calls, but I wanted to ask about the optometrist program. If you can just update us on learning so far and what opportunities you're seeing as you really started to ramp that up.

Question: Steve Lichtman - Oppenheimer & Co., Inc. - Analyst : Great. The other thing I wanted to ask about was, what you're seeing in the field from your customers as far as how they're able to take share from practices perhaps in their region that don't offer LAL. The reason I asked that is -- at least by my estimate maybe in the neighborhood of 1,500 or so surging customers. So you're at a point now where there's -- those that don't have it, I'm sure hear about it. So, what are you seeing on that front relative to sort of marketing that your customers are doing and how that may be allowing them to take share? And that, of course, opening the eyes of those that don't have. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 07, 2024 / 9:30PM, RXST.OQ - Q3 2024 Rxsight Inc Earnings Call

Question: Steve Lichtman - Oppenheimer & Co., Inc. - Analyst : That's really helpful color and obviously tied back into the optometry initiative. So, thanks so much. Appreciate it.

Question: David Saxon - Needham & Company Inc. - Analyst : Great, good afternoon, Ron and Shelley. Thanks for taking my questions. I just have two, one on the customer base and then one on international. So my first question is just what you're seeing in terms of number of active surgeons per LDD and in general, how you think about kind of where the upper limit is on that metric?

Question: David Saxon - Needham & Company Inc. - Analyst : Okay. Got it. Very clear, thanks. And then on international, Ron, I mean, it sounds like you might get some approvals shortly. I think you said maybe a few months. But once you do get those approvals. How should we think about the cadence in terms of investing to build the commercial team and then going out and selling and actually generating revenue. And then I guess also on that topic, are there -- how should we think about the channels? Are you going through distributors or will you have a direct sales force? Thanks so much for taking the questions.

Question: David Saxon - Needham & Company Inc. - Analyst : Great, thanks so much.