LENSAR Q2 2024 Earnings Call Transcript

Quartr
Provided by Quartr
August 8, 2024

There are 6 speakers on the call.

Operator

Good morning and thank you for your 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 Radenewich of Burns McKellen.

Operator

Mr. Radenewich, please go ahead.

Speaker 1

Thank you, operator. Good morning, and welcome to the LENSAR's Q2 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 June 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 of Len Zar, who will review the company's recent business and operational progress.

Speaker 1

Following his comments, Tom Staub, Chief Financial Officer of Lenzar, 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 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.

Speaker 1

In addition, this conference call contains time sensitive information that is accurate only as of the date of this live broadcast, August 8, 2024. LENSAR undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances after the date of this live conference call. With that, it is my pleasure to turn the call over to Nick Curtis. Nick?

Speaker 2

Thank you, Cam, and good morning to everyone. I appreciate you joining us and I'm excited to update you on an unprecedented Q2 for LENSAR. Starting from an Allied system placement standpoint, the Q2 was a record period for LENSAR. We placed 17 new Allied systems, a remarkable 30% increase over strong Q2 of 2023. From a historical perspective, the second and fourth quarters are typically our strongest in terms of revenue.

Speaker 2

In each of these quarters in 2023, we achieved $12,000,000 in revenue, which we exceeded with a $12,600,000 in Q2 2024, an increase of 5%. Remember, however, this is without clearance to sell allies outside the U. S. With this past performance in mind and given the newly received EU and Taiwan clearances, we're excited about the system as well as procedure market share growth possibilities for the remainder of the year. In addition to the 17 placed Ally systems, we converted 6 previously installed systems on usage agreements to sold systems, as well as ended the quarter with a backlog of an additional 17 Ally systems.

Speaker 2

We expect these to be placed in the second half of twenty twenty four. The conversion of placed rental systems to sold systems demonstrates significant customer satisfaction with Ally and provides further validation of Ally's capabilities versus competitive systems in the marketplace. Demand for LENSAR's Allied systems is strong and growing, despite some weakness and uncertainty in the overall economy with interest rates remaining high. In the face of these macroeconomic headwinds, Lentar has proven resilient in our ability to meaningfully expand our footprint in refractive laser cataract surgery. In addition to our record number of placements, procedure volume also had impressive growth with a 19% increase over Q2 twenty twenty three and first half twenty twenty four procedure volumes up 22% over the 1st 6 months of 2023.

Speaker 2

Furthermore, we saw a 16% increase in our installed base with 80 allies in the field and 330 LENSAR systems installed worldwide. I'm really proud of this impressive progress. Another important performance metric is our penetration into new practices. In the Q2, 88% of our Allied placements were with new customers and more than 80% of the U. S.

Speaker 2

Systems placed in the first half of the year were with first time LENSAR users. This is another clear example of surgeons growing choice to use Ally over competitive systems and directly impacts the growth trajectory of our recurring revenue and procedures going forward. Given Allied clearance in the EU and Taiwan, we can begin to replace older competitive devices and attract new practices to LENSAR from those regions where there is already significant interest in Ally and begin executing our OUS commercial strategy to further increase our worldwide installed base. I have a great deal of confidence that these efforts will prove successful as they have thus far in the U. S.

Speaker 2

With the majority of our U. S. Conversions thus far have been surgeons new to LENSAR upgrading to Ally is a better option than an aging suboptimal, however still usable laser. We're approaching a significant industry wide replacement cycle as competitive systems currently in use are nearing end of life. These systems are based on decade plus old technology and while still functional, they're clearly inefficient and lack features capable of delivering improved outcomes for patients.

Speaker 2

Given the slow pace of innovation from the largest eye care companies competing in our space, rapid servicing and system reliability are beginning to create challenges. As we have shared on previous calls, this reality is creating a perfect commercial opportunity for LENSAR. Adoption and placement of an Allied system into a surgeon's practice or an ASC can result in meaningful revenue and EBITDA growth, thanks to its ability to significantly increase efficiency and patient throughput as well as enhance outcomes. Because of these factors, we believe it is a matter of when, not if they adopt our technology. And we're beginning to see a substantive acceleration in the rate of Allied conversions.

Speaker 2

The current economic conditions I mentioned earlier make it more challenging for surgeons and facilities to invest in upgrading their capital equipment. However, the speed and efficiency of Ally, which is being discussed in an increasing number of peer to peer communications, surgeon initiated studies and case studies discussed during this quarter's medical meetings demonstrate the financial benefit of adopting our system, helping to overcome the economic challenges surgeons face. Additionally, penetration into important channels such as the private equity groups combined with the overall age of competitive systems in the market will continue to provide significant catalysts for Ally adoption. Accordingly, we expect to see new customers and overall market share growth continue quarter over quarter as this perfect storm plays out. As we continue placing new systems with new users and these surgeons become more familiar with the Ally experience and the associated advantages of working with LENSAR, we're confident that procedure volumes and recurring revenues will increase in parallel.

Speaker 2

We had an exceptional quarter as evidenced by the continued revenue and placement growth the U. S. And receiving CE Mark approval for Ally, a major strategic milestone which we announced yesterday that sets the stage for commercial expansion into the European market. This important regulatory approval for Ally further reinforces our belief LENSAR is paving the way to revolutionize advanced laser cataract surgery. The EU clearance is a critical step toward our objective of expanding Ally's reach on a global scale.

Speaker 2

There are a number of European surgeons eager to take their capabilities to the next level with Ally. We have a solid network of distributors ready to deploy and LENSAR is poised to replicate its U. S. Success story in key markets elsewhere in the world. To that end, we have been training our EU field service and clinical application support partners, and we have already initiated shipments to Europe.

Speaker 2

And the first ally was installed in a surgeon's facility this week. I look forward to updating you on all the progress of the European launch next quarter. I'd also like to report, we recently received TFDA approval to make Ally commercially available in Taiwan and Hong Kong. And like Europe, we've been working closely with our Southeastern Asian distributor to support an efficient launch. I'm pleased to share that we have also shipped our first systems to Taiwan with users having already performed the first Allied cases and have additional OUS regulatory approvals on the horizon.

Speaker 2

We continued to actively evangelize Ally within the medical community With a strong lens, our presence at both the ACOS Europe Symposium in Prague and the DOC meeting in Nuremberg. We conducted a number of Ally demos and interacted with European thought leaders, highlighting Allied's key differentiators and unique ability to address the shortcomings of 1st generation systems. This actively dovetailed perfectly into the EU commercial launch on the heels of our fortuitous regulatory clearance. With our growing installed base, encouraging utilization trends and an expanding international footprint, we're well positioned to further increase our market share both in the U. S.

Speaker 2

And the rest of the world as we move forward. I'm proud of what the LENSAR team has accomplished to date. And it's incredibly gratifying to share some of the details on how far we've come since receiving FDA clearance of Ally just 2 years ago. Gaining over 4 procedural market share points in the U. S.

Speaker 2

Since launching Ally is an incredibly positive milestone, but it's just the start. We continue to believe that Ally is a transformative technology with the potential to positively impact the future of the laser cataract market. We're starting to see this play out, but view this as a marathon, not a sprint. Now that we can market and sell Ally outside the U. S.

Speaker 2

With additional markets potentially available to us in the coming months, I expect that the positive momentum for LENSAR will begin building at a quicker pace. Now let me turn the call over to Tom to cover our financial highlights for the quarter. Tom?

Speaker 3

Thank you, Nick. Just a few brief remarks for me on our strong second quarter performance. Revenue was $12,600,000 in the Q2 of 2024 compared to $12,000,000 in the Q2 of 2023, reflecting a 5% increase. This growth was generated from an increase in procedure volume. To echo Nick's earlier comments, U.

Speaker 3

S. Procedure volume increased 16% over the Q2 of 2023, and on a worldwide basis, we saw an increase of 19%. Given the timing of placements in the 2nd quarter and ramp up time for sites and surgeons to reach an optimal utilization rate, we expect to see more robust procedure volume culminating in recurring revenue in the 3rd and 4th quarters of 2024 when these recently installed systems begin to achieve a typical monthly run rate. In addition, we are extremely excited to have recently received EU and Taiwan regulatory clearances that allow us to sell Ally outside the United States. We are now able to increase Ally's global footprint.

Speaker 3

Selling Ally systems in these operating regions is extremely important and enables us to increase our market share, total and recurring revenue as well as positively impact our cash flow. We have been anxiously awaiting these clearances as they are significant catalysts for our future success. Gross margin for the quarter was $6,800,000 representing a gross margin of 54% compared to $6,800,000 56% gross margin realized in the Q2 of 2023. Our gross margin was strong this quarter, although we anticipate a slight decrease in our future gross margin percentage as we see a higher concentration of Allied sales and anticipate a higher concentration of revenue outside the United States in future quarters. For the year, we continue to expect a gross margin percentage of approximately 50%.

Speaker 3

Total operating expenses for the Q2 of 2024 were $12,100,000 and compared to 9 point $6,000,000 in the Q2 of 2023. The increase in operating expenses was primarily attributable to a one time impairment charge on intangible assets of $3,700,000 If you exclude this impairment charge, our total operating expenses were $8,400,000 which is largely a function of decreased general and administrative expenses, somewhat offset by increased selling and marketing expenses as we focus on growing our commercial organization and market share in the United States. The $3,700,000 charge relates to a strategic decision to terminate our collaboration with Urkli associated with the integration of their phacoemulsification system into Ally. Although we remain committed to combining Ally and phaco capabilities and will continue to maintain a robust portfolio of IP related to this integration, we have decided to discontinue activities with Urkli. The discontinuation of the collaboration eliminates any contractual and any other potential limitations on LENSAR collaborating with other FEKO manufacturers in the future.

Speaker 3

Net loss for the quarter was $9,000,000 or a $0.79 loss per common share compared to an $8,800,000 loss and a $0.81 loss per common share in the Q2 of 2023. However, as discussed previously, included in the net loss was the one time impairment charge of $3,700,000 and a charge associated with our outstanding warrants, which occurred in both 2nd quarters relating to an increase in our stock price. To evaluate our results and operations more intuitively, let us look at our adjusted EBITDA results. The Q2 is generally a strong quarter for us and you see we achieved breakeven having a positive adjusted EBITDA of $30,000 after narrowly missing breakeven in the Q2 of last year with a negative $188,000 Looking forward, we expect to see operating breakeven quarters with some consistency starting as soon as the Q4 of this year. If you exclude the warrant and impairment items from our net loss for the Q2, our loss was $1,400,000 in 20.24 as compared to $2,800,000 in 2023 or 1 half of what it was for the Q2 a year ago.

Speaker 3

As of June 30, 2024, we had cash and cash equivalents of $15,400,000 as compared to $24,600,000 at December 31, 2023. Cash used in the 2nd quarter was 3 point $7,000,000 and was largely dedicated to increases in inventory in our leased fleet of U. S. Systems. These uses of cash are a function of building inventory to supply Allied systems to the EU and Taiwan for which shipments have begun as well as expanding our fleet of Allied systems in the United States.

Speaker 3

Now I'd like to turn the call over to the operator, and we look forward to your questions. Marjorie?

Operator

Thank And while we wait for those questions to come in, we will next go to Frank Pinkyun from Lake Street Capital Markets. Please go ahead. Great.

Speaker 4

Thanks for taking questions. Congrats on all of the progress. I was hoping to start with 1 on the mix of sales versus placements in the quarter. Obviously, a really impressive placement quarter. Nick, can you maybe talk a little bit more about the mix of how much of those were actual upfront sales versus placements?

Speaker 4

And then how the prospects look to shift those into a full purchase or do they stay as placements and just develop a big recurring revenue stream?

Speaker 2

Yes. Hi, Frank. I appreciate the questions. Thank you. So of the 17 on the installs, 10 of those were sold and 7 of those were leases, if you will.

Speaker 2

So about 59% of the systems were actually sold systems of the 17. And then, of course, we converted the additional 6 systems that had been placed previously.

Speaker 4

Got it. That makes sense. And then maybe shifting over to manufacturing capacity, clearly you're scaling well and I think I asked about this last quarter too, but do you still feel confident you're able to produce the amount of Allied systems required to keep up with demand now that you're entering a couple of new geographies?

Speaker 2

I do actually. We had anticipated these approvals. And so as Tom had made some remark in his comments here, we had been buying inventory and building inventory. There's laser aspect and certain other components computer wise and whatnot and chips. So we've been placing orders and we had been receiving items in anticipation of this.

Speaker 2

So manufacturing is actively building systems now as we speak and we feel good that we're going to be able to deal with our backlog. By the way, that was U. S. Backlog that I was talking about going into the quarter. And we'll see as we move forward in this quarter, as we start to get more orders from outside U.

Speaker 2

S. But we feel comfortable that we've ordered enough parts and we're actively building and people are pretty fired up around here.

Speaker 4

Nice. And maybe just the last one, help us with back half expectations. I heard the comment Q2, Q4 typically the strongest, but maybe if you can help us think about how we should be thinking about our models for Q2 and Q4 and bridging to the expectation for 20% growth for this year?

Speaker 2

Yes. So typically, as we said, Q2, Q4 would be the best quarters. I certainly expect based on the continued interest in getting approvals outside U. S. And sort of early indication of demand for systems to be shipping OUS that will have a reasonable quarter this quarter in Q3, which typically just globally cataract surgery volumes are the lowest overall cataract surgery volumes are the lowest in Q3 as compared to all 4 the other three quarters over the course of the year because of extensive European vacation schedules, people generally traveling more, doing less.

Speaker 2

And then the Q4 typically is the strongest from a procedure number perspective, overall cataract procedures. So I expect that to follow suit with LENSAR, but even more so for us because we've got a large number of systems that installed at the end of the first quarter and certainly into Q2 with a big backlog moving into Q3, we'll have a reasonable Q3 and then I expect Q4 that between the meetings that we've got, the shipments that are going OUS in this quarter and in Q4 that we're really going to finish the year really strong going into the Q1. So I would expect that both on the procedure level as well as on an overall capital level and numbers of systems, you're going to see some really strong performance here as we get into the Q4. And Frank,

Speaker 3

maybe just a little bit of color. So in my remarks, I had mentioned that we expect the procedure volume to increase in the 3rd Q4. If you look at the Q3 and the 17 placements and you split the quarter right in the middle, the vast majority of those placements were actually installed in the latter half of the quarter. And so what that means is you got to ramp up those systems and they should kick in, in significance in the Q3, but really all of them will be hopefully operating at an optimal level in the Q4. The other thing to consider is with the 2 clearances, we just started shipping systems and obviously it's at least 1 third of the quarter is done.

Speaker 3

So it will take us a while to get that. But those procedures from an ex U. S. Perspective should kick in, in the Q4. So we really do expect the Q4 to be very, very strong for us, just because of those catalysts.

Speaker 4

Got it. That's helpful. Thanks. Congrats on our progress.

Operator

Thank you. And next, we're going to go to Ryan Zimmerman with

Speaker 5

Hey guys, good morning and congrats on all the approvals. It's exciting to see. I want to ask about your OUS strategy a little bit, Nick. So just talk to us kind of how you're thinking about approaching the market. I mean, obviously, you have distributors there, but is there something beyond just attendance at clinical meetings?

Speaker 5

Are you putting any resources in these markets? Just help us understand kind of how you're thinking about approaching that.

Speaker 2

Yes. Thanks, Ryan. Appreciate the question. So it's interesting, we didn't have the luxury 12 years ago when we were introducing the 1st gen of being able to sort of control the launch, if you will. We kind of had to go global and introduce the product everywhere 12 years ago because we were sort of the last company and we were the smallest independent moving into the marketplace.

Speaker 2

Things are a lot different right now. We're the leader in the technology moving into the marketplace now with a significantly enhanced new product. And Europe has been pretty polarized in terms of people's belief or lack thereof in the femtosecond laser market space for cataract surgery. And so it's been polarized there because when these technologies launched, there was a high expectation for efficiencies, outcome and performance. And quite frankly, the 1st generation systems went into the marketplace, and they didn't necessarily perform like that to start.

Speaker 2

And now that we've had the benefit of a ramp up in the U. S, there's been a significant amount of cross pollination between European physicians and physicians outside hearing about Ally, we've certainly got a much better handle on Ally now and understand very well how it works And we've already put very substantive kind of continuous improvement and upgrades into the system. And so we expect that when we get these first systems installed, there's a couple of different areas. I talked about channels in the U. S.

Speaker 2

From a private equity perspective. Well, those same channels exist outside U. S. And we've begun in the EU at least, and we've begun to penetrate into 1 of the larger 2 of the larger private equity groups actually in with 1st gen lasers of LENSAR and we'll be evolving into the Ally lasers there. We've also reached out to a group of KOLs that heretofore we haven't necessarily had a relationship with and done business before.

Speaker 2

And as you know, peer to peer is really strong in for these types of technologies and products. And we're really focused on how we address the shortcomings of the 1st gen lasers as in practice in the EU. And so we are putting some resources into those areas. We're doing we're going to be present there. EFCRS is coming up.

Speaker 2

And I'll talk more about some of the activities that we're going to be doing at the EFCRS in next quarter's call because I'll be able to give you an update as to actually how we did. And we're also going to likely be sending some of our people over to Europe and into Taiwan, Hong Kong to work with the distributors there in getting a quick a quicker uptake with installs, right, because they don't have the numbers of employees dedicated to it. Sorry to take up so much time there, but it's important. It's a multi pronged approach here.

Speaker 5

Great color and appreciate that. Now I want to ask, I mean, you last quarter, if I recall, you weren't building in a contribution from international revenue. I think I heard you correctly say that the backlog of 2017 is all U. S. So just want to understand, are you expecting some revenue in the back half of this year internationally?

Speaker 2

100%. And in fact, it's interesting because rev rec, Tom touched on it in his remarks, rev rec in the U. S. Takes longer than it does OUS because in the U. S.

Speaker 2

To give rev rec, we have to ship we have to take the order, we have to site visit, we have to ship, we install, we have to train and then when we have certified users on the product, we get to rev rec, whether it's a sold system or whether it's a place system in the U. S. And so there's a time lag there. Rev rec outside the U. S.

Speaker 2

With distributors works that when it leaves our dock, it becomes the property, if you will, sold system to the distributor. So rev rec occurs faster outside U. S. Than it does in U. S, number 1.

Speaker 2

However, lower margins, right, because distributors

Speaker 4

are

Speaker 2

in essence reselling contracting with the customer. And the pathway to procedure revenue once it leaves our dock is then is very similar to the U. S. Because they still have to install it, they have to train, they have to get people certified before there's revenue on procedures, which is why there's always a lag between the installs and when you start to see productive, TomSett gets to their normal rate, if you will, of procedures. And so that's sort of the process.

Speaker 2

So I'm excited because we'll actually see revenue in the 3rd quarter when typically we might not see as much revenue in the Q3 OUS because we just with just getting the approvals, regardless of vacations, we're shipping some systems, which is good. Okay.

Speaker 3

So does that make sense? Ryan, we'll be getting sales outside the United States in the Q3, but I wouldn't expect a whole lot of procedural revenue until the Q4, which is why when I answered Frank's question, not only do you have the timing in the United States of placements in the second quarter that were late in the second quarter, But then you also have the contribution from Europe on procedure volume going into the Q4. So I think the Q4 should be a nice quarter for us.

Speaker 5

Very helpful. And then maybe 2 more questions for me and then I'll hop back in the queue. But just you guys accelerated your growth 16% against a 13% comp in the U. S, really great to see. What's your read, Nick, on the health of the procedure environment, particularly for cataracts right now, both U.

Speaker 5

S. And globally? And then the second question I'll just ask upfront. Tom, as we think about margins, I appreciate the guidance this year. Conceivably with all the consumable revenue and recurring revenue next year, margins could step up a little more materially.

Speaker 5

Just help us think about maybe the longer term margin opportunity for you guys. Thanks for taking the questions, guys.

Speaker 2

No problem.

Speaker 4

Go ahead.

Speaker 2

So, Brian, I'm sorry, because I was tracking on your gross margin. Can you go back

Speaker 5

to the Yes. First question, Nick, was just U. S. Accelerated 16% on a How do

Speaker 1

I look at the cataract market overall?

Speaker 5

Yes, just your read on cataract health procedures health procedures.

Speaker 2

So it's interesting because there is still some pent up demand from a cataract surgery perspective. The people this is kind of still a little bit of a hangover from COVID, right? There's patients that didn't have surgery that now have surgery. On the other hand, there's some uncertainty with interest rates and talk about the economy and inflation and whatnot. And so I think patients, I think there's some pressure on physicians from a premium surgery perspective.

Speaker 2

On the other hand, you also have the generation of patients that are becoming cataract age patients that have had and made investments, significant investments in their eyes in refractive procedures leading up to this. And so, in ACOS, there was an interesting session. Doctors are under pressure in their offices to maintain profitability, which is very difficult to do with present patients and time necessary in the office. On the other hand, with reimbursements under pressure and they certainly in incidence of astigmatism 70% to 90% of patients who have visually significant astigmatism, it's imperative that doctors begin offering alternatives to patients from a surgical perspective that aligns patient need and patient want with really surgeons needs to be able to offer those services and make a profit. So I think I feel pretty comfortable that with the on the astigmatism side that you'll see a higher management of astigmatism is more routine to cataract surgery.

Speaker 2

Cataract surgery is refractive surgery. And doctors are relating to that. Private Equity Groups also have been pretty static, right? They haven't been able to continue to do deals. They made some pretty rich deals in paid premiums for these practices.

Speaker 2

So we're seeing the private equity groups who are on the business side, they were not that interested in looking at these types of things as replacement technologies to the older technologies that are when they're hearing the efficiencies, they have to improve efficiencies, They have to be able to have better patient throughput. We deliver on that. So while the macroeconomic climate is difficult, this is not an if, it's a win with this. They're having to look at this and they are giving serious consideration. So I feel like our volume and just by the nature of the percentage of new customers that are coming to LENSAR, this is going to on the macro market, doctors need to do and offer these types of procedures, patients want them and need them.

Speaker 2

And regardless, there's enough patients to be able to do this.

Speaker 1

Thank you.

Speaker 3

So, Ryan, in regards to gross margins, obviously, we're predicting that we're around 50% for this year. And that's we're seeing a few more sales than what we had originally anticipated. And it goes to Nick's comments about the difficult macroeconomic market and just being a little harder for capital equipment sales. That we've been pleasantly surprised that it's ticked up a little more than what we had anticipated. So you take that forward.

Speaker 3

And the short answer to your question is if we're at 50% right now, we could easily go to 53% to 55%. And there's a number of factors that we are evaluating there. One is the floodgates have opened outside the United States. Right now, we've been captive to growing in the United States and we've done really well. We will continue to do that next year.

Speaker 3

But what you're going to see is now we have the ability to place outside the United States and that's very important for two reasons. One is all those placements will be sales, unlike in the United States. But our margins generally carry an 80% or our procedures carry an 80% margin or so. Obviously, our systems carry a much lower percentage. And then outside the United States, even lower than the United States simply because we have to make sure that our distributors are motivated and compensated appropriately.

Speaker 3

And so I think that you have benefit in margin associated with more throughput of systems and utilization of overhead, more sales of systems is going to pull on that margin down a little bit. But as we play systems, the procedures and the recurring revenue associated with that obviously gets a much higher margin. Chisholm bop it all out and I would say 53% to 55%.

Speaker 5

Thank you, Tom. Thank you.

Operator

I'd like to turn the call back to our speakers for any closing remarks.

Speaker 2

I appreciate everybody for joining the call today. Thank you and for your continued interest in LENSAR. We really look forward to updating you as we make further progress in the exciting remainder of 2024 and beyond. Thank you for your attention today and questions appreciated.

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Key Takeaways

  • Record 17 new Ally system placements in Q2, a 30% increase y/y, plus 6 rental‐to‐sold conversions and a backlog of 17 more units, demonstrating robust demand.
  • Q2 revenue reached $12.6M, up 5% y/y, supported by U.S. procedure volume up 16% and global volume up 19%, with installed base growing 16%.
  • Successfully obtained CE Mark in the EU and TFDA approval in Taiwan/Hong Kong, with initial shipments and installations underway to expand OUS commercial footprint.
  • Achieved a 54% gross margin and positive adjusted EBITDA of $30K in Q2, and the company expects to reach consistent operating breakeven by Q4 2024.
  • Recorded a $3.7M one‐time impairment charge related to terminating the Urkli collaboration, increasing operating expenses but removing future contractual limitations.
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Earnings Conference Call
LENSAR Q2 2024
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