- Revenue: $40.2 million in Q4 2024, up 41% year-over-year.
- LAL Revenue: $28.5 million in Q4 2024, up 60% year-over-year.
- LDD Revenue: $10.7 million in Q4 2024.
- Gross Margin: 71.6% in Q4 2024, up from 61.8% in Q4 2023.
- SG&A Expenses: $28.2 million in Q4 2024, up 33% year-over-year.
- R&D Expenses: $9.2 million in Q4 2024, up 25% year-over-year.
- Net Loss: $5.9 million in Q4 2024, or $0.15 per share.
- Adjusted Net Income: $1.3 million or $0.03 per share in Q4 2024.
- Cash and Equivalents: $237.2 million at year-end 2024.
- 2025 Revenue Guidance: $185 million to $197 million, growth of 32% to 41%.
- 2025 Gross Margin Guidance: 71% to 73%.
- 2025 Operating Expenses Guidance: $165 million to $170 million.
- Warning! GuruFocus has detected 2 Warning Sign with PRCT.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- RxSight Inc (NASDAQ:RXST) reported a 41% increase in revenue for Q4 2024 compared to the same quarter in the previous year, driven by strong growth in LAL procedure volume.
- The company achieved a record sale of 2,969 LALs in Q4 2024, marking a 61% increase from Q4 2023.
- Gross margin expanded to 71.6% in Q4 2024, up from 61.8% in Q4 2023, due to a favorable revenue mix and lower manufacturing costs.
- RxSight Inc (NASDAQ:RXST) ended 2024 with no debt and $237.2 million in cash equivalents and short-term investments.
- The company received FDA approval for additional LDD functionality, enhancing customization options for cataract surgery, which is expected to be released in the second half of 2025.
Negative Points
- RxSight Inc (NASDAQ:RXST) reported a net loss of $5.9 million in Q4 2024, although this was an improvement from the $9.2 million loss in Q4 2023.
- SG&A expenses increased by 33% year-over-year in Q4 2024, primarily due to higher sales and clinical personnel costs.
- Research and development expenses rose by 25% year-over-year in Q4 2024, driven by increased facility costs and stock-based compensation.
- Revenue contribution from outside North America is expected to remain nominal in 2025, with more meaningful impact anticipated in 2026 and beyond.
- The company anticipates operating expenses to increase by 22% to 25% in 2025, reflecting ongoing investments in sales, marketing, and R&D.
Q & A Highlights
Q: How do you see LAL utilization trends evolving in 2025, and how does utilization vary between mature and newer accounts? A: Shelley Thunen, CFO, explained that LAL utilization is influenced by the installed base of LDDs and the number of LALs implanted. Utilization can fluctuate due to seasonality and the mix of newer LDDs. However, cohorts of LDD installs from previous years show consistent growth, with no ceiling observed. The focus remains on driving more LALs through increased LDDs and adoption within accounts.
Q: Can you elaborate on the potential of the new Aspheric IOL functionality and its target patient demographic? A: Ron Kurtz, CEO, clarified that both LAL and LAL Plus are already aspheric lenses. The new LDD functionality allows doctors to modify the level of asphericity, which can be advantageous for different patient populations. This advancement opens the door for higher customization in cataract surgery, similar to corneal refractive surgery advancements.
Q: What are the main areas of focus for growth investments in 2025, particularly in the commercial organization and marketing? A: Ron Kurtz, CEO, stated that the focus is on clinical training, field support, and education within practices and the wider eye care community, including optometry. Shelley Thunen, CFO, added that the commercial organization has expanded significantly to support new and existing customers, with a goal to capture a larger share of the premium IOL market.
Q: How should we think about the cadence for gross margin and spending in 2025, and the mix between LDD and LAL? A: Shelley Thunen, CFO, indicated that LAL is expected to grow faster and become a more predominant portion of revenue, leading to margin expansion. While LDD sales are not held back to manage gross margin, the mix will determine quarterly margins. The company expects consistent gross margin improvements, with potential to reach 80% plus at maturity.
Q: What gives you confidence in maintaining or accelerating LAL utilization growth in 2025? A: Shelley Thunen, CFO, emphasized that the key metric is the absolute number of LALs implanted. The company expects steady growth consistent with revenue expectations, and while LALs per LDD may vary quarterly, the overall trend is positive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.