LENSAR Q3 2024 Earnings Call Transcript

Quartr
Provided by Quartr
November 7, 2024
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Operator

Good morning and thank you for participation. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session. As a reminder, this conference call will be recorded. I would now like to turn the call over to Cameron Radinovic of Burns McClellan.

Operator

Mr. Radinovic, please go ahead.

Cameron Radinovic
Vice President, Investor Relations at Burns McClellan Inc

Thank you, operator. Good morning, and welcome to the LENSAR 3rd quarter 2024 financial results conference call. Earlier this morning, the company issued a press release providing an overview of its financial results for the quarter ended September 30, 2024. This press release is available on the Investor Relations section of the company's website at www.lensar.com. Joining me on the call today is Nick Curtis, Chief Executive Officer, who will review the company's recent business and operational progress.

Cameron Radinovic
Vice President, Investor Relations at Burns McClellan Inc

Following his comments, Tom Staub, Chief Financial Officer, will provide an overview of the company's financial highlights before turning the call back over to the operator to facilitate answering any questions you may have. Today's conference call will contain certain forward looking statements, including those statements regarding future results, unaudited and forward looking financial information as well as the company's future performance and or achievements. These statements are subject to known and unknown risks and uncertainties, which may cause the company's actual results, performance or achievements to be materially different from any future results or performance expressed or implied in this presentation. You should not place undue reliance on these forward looking statements. For additional information, including a detailed discussion of the company's risk factors, please refer to the company's documents filed with the Securities and Exchange Commission, which can be accessed on the website.

Cameron Radinovic
Vice President, Investor Relations at Burns McClellan Inc

In addition, this conference call contains time sensitive information that is accurate only as of the date of this live broadcast, November 7, 2024. LENSAR undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this live call. With that, it's my pleasure to turn the call over to Nick Curtis. Nick?

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Thank you, Cam, and good morning to everyone. I appreciate you joining us, and I'm excited to report that Lenzar had another record breaking Q3. Starting from an Allied system placement ally system placement standpoint, the Q3 was fueled by the recent market expansion to the EU and Taiwan as we placed a total of 24 new ally systems, an outstanding 118% increase over what had been a strong third quarter of 2023 and a 41% increase over the Q2 of 2024. This was driven in part by very solid performance outside of the United States, where we sold 11

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Allied

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Systems following mid third quarter regulatory clearances in Europe, Switzerland and Taiwan. The rapid trajectory and success of the Allied International launch speaks to several key factors. First, the advanced planning and collaboration between our commercial team and distributor partners in training, field service and clinical applications, as well as our on-site assistance with first installs allowed for a rapid response after clearance to ship Allied systems. 2nd, we properly prepared the market, building interest by supporting our partners in attending multiple conferences, meeting with surgeons and performing demos, shared learnings from U. S.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Launch and clinic experience. 3rd, worked with our distributor partners on 2 of the larger PE groups in securing Ally system commitments. 4, facilitated U. S. KOL surgeons using Ally to network and perform presentations in several of the conference venues.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

And last, I was fortunate enough to have participated in several panel discussions just prior to receiving clearance and shortly thereafter. The ACOS European meeting in Prague and recently the EFCRS in EFCRS in Barcelona. I'd like to recognize and thank our distributor partners for their close collaboration and commitment in making the initial Ally launch so successful. The strong global interest in Ally is creating a healthy expansion of new Talendtar customer sites, which will result in the continued growth of our recurring revenues. Our total installed base of Ally systems grew to over 100 on a global basis, reflecting 170% increase from September 30th an 8% increase quarter over quarter.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

In addition to our strong placement activity, we continue to build our pipeline of executed contracts and pending installations. We finished the quarter with a backlog of 24 systems, which we expect to install over the next 6 months. I think it would be beneficial at this juncture to provide you with a little bit of color around backlog, the time from contract to installation, training and revenue recognition in the U. S. And internationally.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

In the U. S. On average, it takes approximately 50 days from the time of reaching a signed agreement to installation and 1st surgeon trained. We schedule and perform a site and surgical visit in advance of shipping the Ally in order to determine the right placement and specifications to install Ally, educate us on their current process and flow, their surgeons and site preferences in performing their cataract surgery as well as what a typical surgical day entails. Then we schedule a convenient ship date, provide initial online training as well as an outline on what to expect after installation.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

On-site training of staff as well as the surgeon is followed by we recognize revenue on the system. Only then. We recognize revenue on the system. Only then, all personnel that work with the device need to be certified for use, all surgeons must perform a minimum of 15 cases. If a system has fully executed contract, but is not installed in the quarter the agreement is signed, it becomes a backlog system.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

This backlog is dependent on the steps I just described as well as any unique installation requirements such as an electrical modification or the room is under construction or they have a competitive system to be removed or waiting for a contract expiration, etcetera. The backlog could take some time and despite the customer commitment remains in a state of flow. Outside the U. S, revenue recognition from LENSAR is very different. Outside the U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S, our distributor partners are responsible for the installation and training. However, when the Ally leaves LENSAR's dock, the system becomes the property of the distributor and we recognize the system revenue. However, it still takes approximately 60 to 90 days after installation for the site and surgeon to begin to get to a normalized run rate. In the bigger picture, it is important to understand process and thus why there is a rolling or staggered effect on procedure growth and revenue recognition over time. This is a primary driver as to why our quarterly placements can be lumpy and uneven.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Timing with the number of activities can dependent on many factors. Again, previously we discussed a large PE group deal that had been executed just after the close of a quarter. This is a game of inches and we're gaining each quarter in the important areas of increasing recurring revenues through procedures and market share gains in footprint. We achieved $13,500,000 of revenue in the Q3, an increase of over 38% from the Q3 of last year, which as I just described was attributable to robust growth in system placements, including 11 OUS system sales. Turning to procedures, we had another quarter of strong growth with procedure volumes increasing 29% over the Q3 of 2023 and U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S. Procedures increasing 22% year over year. We expect this trend to continue moving forward as utilization on newly placed systems ramps up, particularly with users who are new to LENSAR having converted to Ally from older competing lasers. On average, we see approximately a 13% increase on a LENSAR LLS moving to Ally. And the new to LENSAR allies are net 100 procedures from the start.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

The more systems we install, the more procedure revenue will begin to grow. We're really focused on expanding our footprint and placements by 1st converting competitive systems, followed by transitioning current LENSAR LLS users to Ally. 3rd is adding 2nd or multiple systems with high volume, high conversion rate sites and surgeons, as well as additional site expansions. And finally, what we refer to as cataract laser naive accounts, which continue to grow the overall entire market. According to a recent market scope estimate, our share of the U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S. Procedure market increased to approximately 20% as of September 30. This is a really healthy increase of 1.5% over the 2nd quarter. But more impressively, we have gained 3.5% market share in the 6% since launching Ally in the summer of 2022. The U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S. Is the largest premium cataract market in the world and even though we're competing directly against the largest ophthalmology companies in the world, we have succeeded in achieving market share growth and securing 20% of the U. S. Procedure market. At LENSAR, we're incredibly proud of this achievement.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

And most importantly, it demonstrates U. S. Surgeons recognition of the technology advancement in providing better patient outcomes, increased efficiencies and throughput and flow and financial efficiencies the Ally system provides over the aging competitive lasers from our much larger competitors. With recent approvals, we can strive to add market share outside the United States as we continue to receive Allied clearance in additional countries. Procedure volumes directly correlate to our recurring revenue rate, which we believe is a highly effective, very important measure of our growth and longer term success.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

In the Q3, our recurring revenue totaled approximately $9,900,000 with $38,000,000 in recurring revenue on a trailing 12 month basis through the Q3 of 2024. This is an increase of 22% over the 12 months ended September 30, 2023 and with more than 40 systems placed in the last two quarters alone, we expect recurring revenue to grow in a a material way on a rolling forward basis as each of these systems passes 90 days from installed date and activity continues to ramp on these newly installed lasers. As I mentioned, As I mentioned, we attended several U. S. And OUS Congresses, including the EFCRS and AAO, where we performed over 100 Allied demonstrations and booth meetings that have resulted in a significant number of new prospects for our U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S. Sales team, as well as our partner distributors in the EU and Southeast Asia. Differentiating Ally by demonstrating the robotic intelligence, precision and reproducibility as well as the significantly enhanced efficiencies and workflow are driving the interest. And as they say, a picture says a 1,000 words. And when they see it, the potential benefits become obvious.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

To that end, I'm incredibly proud of what Valensa team has accomplished this quarter and through the 1st 9 months of 2024. We successfully launched Ally in the EU and Taiwan with an overwhelmingly positive response. This is a testament to the transformative power of Ally and its potential to positively impact the future of robotic cataract surgery. We're starting to benefit from the universal appeal on a broader scale with Ally now available in multiple geographies outside the United States. As we look ahead, LENSAR is incredibly well positioned heading into the Q4, which is traditionally our strongest period of the year and we're setting the stage effectively for continued success in 2025 and beyond.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

We're very excited about the potential of our pipeline and the ability to further innovate and revolutionize the field of robotic cataract laser surgery. Now let me turn the call over to Tom to cover our financial highlights for the quarter. Tom?

Thomas Staab
Thomas Staab
CFO at LENSAR

Thank you, Nick. Just a few remarks from me on our extremely strong Q3 performance. Revenue was 13 $500,000 in the Q3 of 2024 compared to $9,800,000 in the Q3 of 2023, representing an exceptional 38% increase. While we experienced growth across all revenue line items, the strong quarter can be largely attributed to the 11 systems sold outside the United States following regulatory approvals in the European Union and Taiwan. These clearances represented a huge milestone for us, opening operating regions outside the United States and allowing us to fill a backlog that outside the United States and allowing us to fill a backlog that had accumulated over the last 2 years.

Thomas Staab
Thomas Staab
CFO at LENSAR

We expected pent up demand for Ally in these regions, but we were a little surprised with the sheer system sales volume given the mid quarter clearances. Distributor and underlying surgeon demand exceeded our internal expectations. Looking forward, we expect the 4th quarter Ally demand outside the United States to approximate the 10 to 11 lasers we sold in the Q3. Another interesting aspect of our results was our trailing 12 month recurring revenue of $38,000,000 as Nick mentioned in his remarks. This represented a 22 percent increase over the trailing 12 month activity in 2023.

Thomas Staab
Thomas Staab
CFO at LENSAR

Thus, we are growing our recurring revenue at a 20% plus clip rate with this growth to date entirely associated with the U. S. Marketplace as it is too early to see any influence from the recent EU and Taiwan installations. A few other noteworthy aspects of the quarter. We have installed 38 ally systems since June 1, representing an approximate 75% of our total 20 24 ally placements.

Thomas Staab
Thomas Staab
CFO at LENSAR

Many of these systems have yet to reach optimal steady state procedure volume due to surgeon summer vacation schedules, the extended timing associated with training multiple surgeons, practice and ASC integration and just normal transition time for surgeons to achieve their optimal procedure run rate. 4th quarter. Lastly, 79% of our 2024 U. S. Placements have been with new to LENSAR customers.

Thomas Staab
Thomas Staab
CFO at LENSAR

We consider this metric very important as one, it supports the continual and substantial growth we see in our U. S. Procedure market share, especially when these customers reach a steady procedure run rate. And 2, it further validates the benefits of Ally as seen in the surgeon's eyes. In summary, we expect these recent Ally placements to begin to contribute significantly throughout the Q4 and our recurring revenue growth to steepen when the recently installed U.

Thomas Staab
Thomas Staab
CFO at LENSAR

S, EU and Taiwan lasers reach their optimal run rate. The benefits of these placements are expected to begin in the Q4 and continue into 2025. Gross margin for the quarter was $6,300,000 representing a gross margin percentage of 46% compared to $4,900,000 50 percent gross margin realized in the Q3 of 2023. We continue to expect a gross margin percentage of approximately 50% for this fiscal year. Our year to date gross margin percentage currently sits at 51%, but we expect a higher mix of system sales to pull this percentage down slightly in the 4th quarter is generally the strongest quarter from a seasonal perspective and due to the timing of system placements, I would expect a healthy year over year procedure volume increase in the 4th quarter.

Thomas Staab
Thomas Staab
CFO at LENSAR

Total operating expenses for the Q3 of 2024 were $7,500,000 compared to $6,900,000 in the Q3 of 2023. The increase in operating expenses was primarily attributable to higher SG and A spend, partially offset by lower R and D expenses. Net loss for the quarter was 1 point $6,000,000 net income or a $0.13 gain per common share in the net in the Q3 of 2023. The income in Q3 2023 was due to a 4.7 $1,000,000 favorable swing in our warrant valuation, which took us from an operating loss to net income in that quarter. To evaluate our results and operations more naturally, let us look at our adjusted EBITDA results.

Thomas Staab
Thomas Staab
CFO at LENSAR

We were pleased that we achieved a positive adjusted EBITDA of $429,000 as compared to a negative $1,400,000 adjusted EBITDA in the Q3 of last year, representing a favorable 1,800,000 swing. As of September 30, 2024, we had cash and cash equivalents of $18,600,000 as compared to $24,600,000 at December 31, 2023 $15,400,000 at June 30, 2024. As all non U. S. Ally placements are sales, our cash increased 3.1 $1,000,000 in the 3rd quarter, largely due to filling the EU and Taiwan backlog.

Thomas Staab
Thomas Staab
CFO at LENSAR

Going forward, we will continue to maintain an appropriate inventory level to respond to global Allied demand, and we will also strategically expand our Allied fleet of lease systems in the United States to further increase U. S. Procedure market share in our recurring revenue foundation. Now I'd like to turn the call over to the operator, and we look forward to answering your questions. Operator?

Operator

Your first question comes from the line of Frank Tuckettnen with Light Street Capital. Please go ahead.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Great. Thanks for taking the questions. Congrats on the really strong results. Maybe I'll start with a little bit more commentary around Q4. It sounds like you provide a lot of anecdotal comments there about you expect it to continue to be strong.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

But I think if I picked out 2 things importantly, it was OUS should be at least as good as Q3 and the procedure volumes should be up also solidly in Q4. So maybe can we talk a little bit more about system placement expectations on capital sales side? And then what do you think we should be thinking about for a healthy procedural volume growth rate for Q4? Thanks.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Hey, thanks. Hi, Frank. I appreciate the question and thank you for the comment on the quarter. We're so I would expect very similar to per your comment, similar activity from outside U. S.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

In terms of system shift in the quarter as compared to Q3. It's likely not going to be more and it's going to be it should be right in that same area, if you will, given a system either way, one way or another. In terms of procedures, it's interesting because Q4 globally is the highest sort of number of cataract procedures that will be performed globally. And I think and on the other hand, there have been couple of events given the number of hurricanes and things that have gone on here in the U. S.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Out of everyone's control that have certainly affected doctors and anecdotally and even more specifically, certain high volume certain high volume practices where they basically weren't doing surgery for somewhere between 1 3 weeks in some cases. And then in a couple of cases, 1 or 2 people are just getting back. That said, because the Q4 is the highest volume normal procedure quarter on a global basis, these doctors are committed to trying to get all of their backlog done and on track. It's really important at the end of the year for a lot of these patients that have deductibles that have been filled fulfilled and what not to get their surgeries done. So I think we're going to see like a strong flurry and finish despite the hurricane activity in the U.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

S. Well as the fact that we obviously have several substantive holidays towards the end of the year. So I think it's going to be a little lumpy, but I think we're going to go flying into the end of the year with a really strong procedure growth. We're also working to install quite a number of systems as well with goals this quarter given the backlog and new system activity that we're seeing as well. So I think we'll have good momentum going into the new year.

Thomas Staab
Thomas Staab
CFO at LENSAR

Yes. And Frank, just to add further color on that. In my comments, I said, we expect 10 or 11 systems coming outside of the United States. It's going to be 1 or the other, but because we fulfilled the backlog over a 2 year period, even though it was a short quarter and we're going to have a full quarter outside the United States, you're right in assuming that the level outside the United States is probably right at maybe a system shy of the Q3. And the activity, I said in my remarks, our placement activity in the Q3 was exceptional.

Thomas Staab
Thomas Staab
CFO at LENSAR

I mean, it was just a fabulous quarter for us from a placement perspective. And it would be very difficult for us to increase off of that in the Q4 from a placement perspective, just because it was such a phenomenal quarter based on the ex U. S. Activity.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

We got the activity, but the thing is the days left to really

Thomas Staab
Thomas Staab
CFO at LENSAR

Yes, with the holidays and that type of stuff. Yes, it's a bigger Exactly. And it's really hard on a procedure volume. We expect it to be strong, but with the hurricane and with the unknown ramp up time of the lion's share of these sites, including with such a strong placement activity in the Q3, you just don't know when they're going to receive a run rate. But certainly, we think the procedure volume is going to increase.

Thomas Staab
Thomas Staab
CFO at LENSAR

So it's hard having such an exceptional Q3 and then using that as a foundation for the 4th.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. That's helpful. Maybe if I could ask pretty much the same exact question for 2025. I know it's maybe a little early to start looking out that far, but hoping you guys can start to dial in how we should be thinking about 2025, both from a placements as well as procedural volume growth perspective?

Thomas Staab
Thomas Staab
CFO at LENSAR

Yes. I think the way I would think about that, Frank, is we'll give some decent guidance going forward when we wrap up the full year. But as Nick's mentioned in his previous comments, this is a game of inches, right? And so we really have to make sure that we have a good idea of when things are going to hit before we really, really, really have to make sure that we a good idea of when things are going to hit before we really project further than a quarter out. And I don't know if you want to have general comments, Nick, to that.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

Yes. I would like to be able to provide you some as we get to the end of the year and into 2025, it would be I would like to provide you some a little more granular guidance as it relates to the procedure, what we expect from a procedure growth because that's going to be a really important measure. We certainly have goals here to continue to gain market share. And that means that we've got to continue to grow the procedures. And given the number of systems, Tom mentioned, the 40 plus systems, And then it's a race to get them to their and then it's a race to get them to their 90 days and then all of a sudden they're producing procedure numbers.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

This is rolling. So those 40 systems are being installed at different times and then they start their training and then they and by the way, we do all the training at no charge and all the procedures and whatnot to them. And so that whole part of my discussion where I talked about the path to recognizing revenue and procedure revenue, it takes 2 to 3 months from the time it's installed to really see it get it a normalized run rate and that's rolling. So as we get to the end of the year here and I start to see what's happening, I would hope to be able to provide some better guidance as we get into 2025 given this large number of systems that we've grown this year.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. That's helpful. Then maybe just for my last one, I was hoping, I think you commented on a little bit in your prepared remarks, Nick, but just think about the femto naive market a little bit. How should we think about your strategy there? Do you feel like it's time to go after that a little bit more aggressively?

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Or is it still 1st and foremost take share and then start to look at Cento and IE from there?

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

It is 1st and foremost to take share and I sort of gave in my remarks the sort of order of battle, if you will, which number 1 are the competitive sites. And part of this has to do with just we have a smaller sales force. We're highly specialized. Our product is very, very specialized. And quite honestly, given where we're moving with robotic cataract laser surgery here, taking someone that heretofore has done nothing and then implementing this in the practice is a far heavier lift for both the customer as well as for LENSAR there.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

And so the strategy of gaining more momentum and market share through people that have already have some familiarity with also our high volume surgeons with high conversion rates are the is our primary focus because that still is very that's very fertile ground because with 1200 lasers in the U. S. Alone and 2,000 lasers on a global basis, you have a bolus of lasers there where people have accepted this concept of laser cataract surgery. We're bringing in this robotic and now you're putting a Ferrari in there and they can really robotic and now you're putting a Ferrari in there and they can really grow the they grow their business. And that's why we've seen 13% of LLS to that and why people that have heretofore never use LENSAR are moving to LENSAR.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

And so that that femto naive market that hasn't done it requires a lot more resource and we want to make sure that we've got this critical mass around us as well because that's very helpful in moving that market. And so that's still a little it's still a little early for us in that regard.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. That's helpful. Thanks for taking the questions.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Congrats again.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

I do want to clarify one thing though. Not to say that we don't have those because we do. We have several accounts that are Femto naive, but it's usually where the customer has expressed interest and they've come for and are expressing interest rather than are like sort of mining for those right now, if that makes any sense.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Yes, perfect.

Thomas Staab
Thomas Staab
CFO at LENSAR

Hey, Frank, one other thing to understand sort of Nick's comments about the holiday. Remember for us to recognize system placement in the United States, we have to have a contract, ship it, have it installed and have the physicians trained. And with

Thomas Staab
Thomas Staab
CFO at LENSAR

the

Thomas Staab
Thomas Staab
CFO at LENSAR

normal Q4, if you don't have all that stuff done by about December 15 or 18, it's not you effectively lose 2, 2.5 weeks of the quarter because of holidays. So that's why I said, it's important to appreciate that when you're looking at system placements for the Q4.

Frank Takkinen
Senior Research Analyst at Lake Street Capital Markets, LLC

Got it. Thank you.

Operator

This concludes our Q and A session. I will now turn the call back over to Nick Curtis for the closing remarks.

Nicholas Curtis
Nicholas Curtis
CEO at LENSAR

All right. I'd like to thank everybody for joining our call today and certainly for your continued interest in LENSAR. We continue to look forward to good things here and I look forward to continuing to update you as we make further progress in the exciting remainder of 2024 and as we move into 2025. Thank you for your support.

Operator

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

Executives
    • Nicholas Curtis
      Nicholas Curtis
      CEO
    • Thomas Staab
      Thomas Staab
      CFO
Analysts
    • Cameron Radinovic
      Vice President, Investor Relations at Burns McClellan Inc
    • Frank Takkinen
      Senior Research Analyst at Lake Street Capital Markets, LLC
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Key Takeaways

  • LENSAR achieved a record 24 new Ally system placements in Q3 2024, up 118% year-over-year and 41% quarter-over-quarter, including 11 systems sold outside the U.S. following regulatory clearances in the EU and Taiwan.
  • Q3 revenue reached $13.5 million, a 38% increase from Q3 2023, while procedure volumes grew 29% year-over-year and U.S. cataract procedure market share expanded to approximately 20%.
  • Recurring revenue in Q3 was $9.9 million, driving $38 million on a trailing 12-month basis (up 22% year-over-year), with further material growth expected as newly placed systems ramp up utilization.
  • Gross margin was 46% versus 50% in Q3 2023, and LENSAR expects a full-year margin near 50%; operating expenses rose, resulting in a $1.6 million net loss but a positive adjusted EBITDA of $0.4 million compared to –$1.4 million last year.
  • As of September 30, LENSAR held $18.6 million in cash, had a backlog of 24 systems to install over the next six months, and anticipates similar international placements and strong seasonal procedure growth in Q4.
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Earnings Conference Call
LENSAR Q3 2024
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