LENSAR Reports First Quarter 2024 Results and Provides Business Update
LENSAR, Inc. (Nasdaq: LNSR) reported a 28% increase in total revenue and a 25% increase in procedure volume for the first quarter of 2024 compared to the same period in 2023. The ALLY® Adaptive Cataract Treatment System installed base grew to 65 systems. The company achieved 20%+ revenue growth, with total revenue reaching $10.6 million, up 28% year-over-year. U.S. procedure volume increased by 23% and worldwide volume by 25% in Q1 2024. LENSAR's U.S. procedure share grew by 1.5% in Q1 2024 and has seen a 4.3% growth since the launch of ALLY.
Total revenue increased by 28% to $10.6 million in the first quarter of 2024 compared to the same period in 2023.
Procedure volume grew by 23% in the U.S. and 25% worldwide in the first quarter of 2024 compared to 2023.
Installation base of ALLY® Adaptive Cataract Treatment System expanded to 65 systems.
Net loss for the quarter ended March 31, 2024, was $2.2 million, or ($0.19) per common share, compared to a net loss of $4.3 million for the same period in 2023.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was ($1.4) million in Q1 2024 compared to ($3.5) million in Q1 2023.
The company's cash, cash equivalents, and investments decreased to $19.1 million as of March 31, 2024, compared to $24.6 million at the end of December 31, 2023.
Insights
LENSAR's recent financial results highlight a strong uptrend with a 28% increase in total revenue and a concurrent 25% rise in procedure volume compared to the same quarter in the previous year. The revenue growth is significant as it outpaces the industry average for medical device companies, which has hovered around the mid to high single digits. The installed base expansion of the ALLY System, now at 65 systems, indicates a solidifying market presence which can create recurring revenue streams through procedure volume and supplies associated with the installed base.
Nonetheless, the company is still operating at a loss, albeit a reduced one from the previous year, with the net loss narrowing to $2.2 million, from a prior $4.3 million. The reduced net loss suggests improved operational efficiency and cost management, reflected in the reduction of research and development expenses by 12%. However, the cash burn remains a point of concern, with a decrease in cash and cash equivalents from $24.6 million to $19.1 million in one quarter. This burn rate will be important for investors to monitor, as it indicates how long the company can sustain operations without additional financing.
The procedural volume increase, particularly the 23% hike in the U.S. market, demonstrates a robust adoption rate and could be indicative of a competitive edge in technology or customer satisfaction. An increase in U.S. procedure share by 1.5% is promising for market penetration and brand strength, especially when the figure represents the company's highest single-quarter procedure share gain. This momentum may position LENSAR favorably for international expansion pending the anticipated regulatory approvals.
Moreover, the 90% of revenue attributed to recurring sources exemplifies a dependable revenue stream, essential for sustainable growth and investor confidence. Market Scope's report on LENSAR's U.S. procedure share growth reinforces the company's narrative of market penetration and the efficacy of their technology, potentially influencing investor sentiment positively. Investors should note, however, that such growth metrics need to be weighed against the broader market conditions and competitive landscape.
Total Revenue increased
Increased ALLY® Adaptive Cataract Treatment System installed base to 65 systems
“Recognition of ALLY’s advantages, its ability to achieve higher efficiencies for surgeons and staff as well as better surgical outcomes for patients, allowed us to deliver continued
First Quarter 2024 Financial Results
Total revenue for the quarter ended March 31, 2024 was
For the quarters ended March 31, 2024 and 2023, approximately
The following table provides information about procedure volume:
|
Procedure Volume |
||
|
2024 |
2023 |
|
Q1 |
39,486 |
31,600 |
|
Selling, general and administrative expenses were
Research and development expenses were
Net loss for the quarter ended March 31, 2024 was
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended March 31, 2024 was
As of March 31, 2024, the Company had cash, cash equivalents, and investments of
Conference Call:
LENSAR management will host a conference call and live webcast to discuss the first quarter results and provide a business update today, May 9, 2024, at 8:30 a.m. ET.
To participate by telephone, please dial (800) 267-6316 (Domestic) or 203-518-9783 (International). The conference ID is LENSAR. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the company’s website at https://ir.lensar.com. Please log in approximately 5 to 10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until May 23, 2024.
About LENSAR
LENSAR is a commercial-stage medical device company focused on designing, developing, and marketing advanced systems for the treatment of cataracts and the management of visually significant astigmatism as an integral aspect of the cataract procedure. LENSAR has developed its next-generation ALLY® Adaptive Cataract Treatment System, the first platform to integrate proprietary imaging and software, with an extremely fast dual-pulse femtosecond laser in a compact, highly ergonomic system. ALLY is designed to transform cataract surgery by utilizing LENSAR’s advanced technologies with the ability to perform the entire procedure in an operating room or in-office surgical suite, delivering operational efficiencies and reduced overhead. ALLY includes LENSAR’s proprietary Streamline® software technology, designed to guide surgeons to achieve better outcomes.
Forward-looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s business strategies, expected growth, commercialization and production of the ALLY® Adaptive Cataract Treatment System, the Company’s ability to obtain additional regulatory approvals for the ALLY System, and the ALLY System’s performance and market adoptions and usage. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: our history of operating losses and ability to achieve or sustain profitability; our ability to develop, receive and maintain regulatory clearance or certification of and successfully commercialize the ALLY System and to maintain our LENSAR Laser System; the impact to our business, financial condition, results of operations and our suppliers and distributors as a result of global macroeconomic conditions; the willingness of patients to pay the price difference for our products compared to a standard cataract procedure covered by Medicare or other insurance; our ability to grow our
All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing LENSAR’s views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA. EBITDA is defined as net income (loss) before interest expense, interest income, income tax expense, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. EBITDA is included in this filing because we believe that EBITDA provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. We believe Adjusted EBITDA, which is defined as EBITDA and further excluding stock-based compensation expense and change in fair value of warrant liabilities, provides meaningful supplemental information for investors when evaluating our results and comparing us to peer companies as stock-based compensation expense and change in fair value of warrant liabilities are significant non-cash charges. We use these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures we use may not be directly comparable to similarly titled measures of other companies. Investors should not consider our non-GAAP financial measures in isolation or as a substitute for an analysis of our results as reported under GAAP.
A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure is set forth below.
Three Months Ended
|
||||||||
(Dollars in thousands) |
|
2024 |
|
|
2023 |
|
||
Net loss |
$ |
(2,157 |
) |
$ |
(4,272 |
) |
||
Less: Interest income |
|
(198 |
) |
|
(89 |
) |
||
Add: Depreciation expense |
|
647 |
|
|
578 |
|
||
Add: Amortization expense |
|
274 |
|
|
276 |
|
||
EBITDA |
|
(1,434 |
) |
|
(3,507 |
) |
||
Add: Stock-based compensation expense |
|
652 |
|
|
1,726 |
|
||
Add: Change in fair value of warrant liabilities |
|
(495 |
) |
|
— |
|
||
Adjusted EBITDA |
$ |
(1,277 |
) |
$ |
(1,781 |
) |
||
LENSAR, Inc. |
|||||||
STATEMENTS OF OPERATIONS |
|||||||
(In thousands, except per share amounts) |
|||||||
Three Months Ended
|
|||||||
2024 |
2023 |
||||||
Revenue |
|||||||
Product |
$ |
7,433 |
|
$ |
5,658 |
|
|
Lease |
|
1,947 |
|
|
1,629 |
|
|
Service |
|
1,208 |
|
|
965 |
|
|
Total revenue |
|
10,588 |
|
|
8,252 |
|
|
Cost of revenue (exclusive of amortization) |
|||||||
Product |
|
2,590 |
|
|
2,299 |
|
|
Lease |
|
603 |
|
|
494 |
|
|
Service |
|
1,731 |
|
|
1,139 |
|
|
Total cost of revenue |
|
4,924 |
|
|
3,932 |
|
|
Operating expenses |
|||||||
Selling, general and administrative expenses |
|
6,796 |
|
|
6,755 |
|
|
Research and development expenses |
|
1,444 |
|
|
1,650 |
|
|
Amortization of intangible assets |
|
274 |
|
|
276 |
|
|
Operating loss |
|
(2,850 |
) |
|
(4,361 |
) |
|
Other income |
|||||||
Change in fair value of warrant liabilities |
|
495 |
|
|
— |
|
|
Other income, net |
|
198 |
|
|
89 |
|
|
Net loss |
|
(2,157 |
) |
|
(4,272 |
) |
|
Other comprehensive loss |
|||||||
Change in unrealized loss on investments |
|
(5 |
) |
|
— |
|
|
Net loss and comprehensive loss |
$ |
(2,162 |
) |
$ |
(4,272 |
) |
|
Net loss per common share: |
|||||||
Basic and diluted |
$ |
(0.19 |
) |
$ |
(0.40 |
) |
|
Weighted-average number of common shares used in calculation of net loss per share: |
|||||||
Basic and diluted |
|
11,387 |
|
|
10,716 |
|
|
LENSAR, Inc. |
|||||||
BALANCE SHEETS |
|||||||
(In thousands, except per share amounts) |
|||||||
March 31, 2024 |
December 31, 2023 |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
13,958 |
|
$ |
20,621 |
|
|
Short-term investments |
|
3,952 |
|
|
3,443 |
|
|
Accounts receivable, net of allowance of |
|
4,023 |
|
|
4,001 |
|
|
Notes receivable, net of allowance of |
|
329 |
|
|
323 |
|
|
Inventories |
|
17,816 |
|
|
15,689 |
|
|
Prepaid and other current assets |
|
2,357 |
|
|
2,367 |
|
|
Total current assets |
|
42,435 |
|
|
46,444 |
|
|
Property and equipment, net |
|
747 |
|
|
679 |
|
|
Equipment under lease, net |
|
7,727 |
|
|
7,459 |
|
|
Long-term investments |
|
1,236 |
|
|
492 |
|
|
Notes and other receivables, long-term, net of allowance of |
|
1,174 |
|
|
1,279 |
|
|
Intangible assets, net |
|
10,751 |
|
|
11,025 |
|
|
Other assets |
|
2,064 |
|
|
2,207 |
|
|
Total assets |
$ |
66,134 |
|
$ |
69,585 |
|
|
Liabilities and stockholders’ equity |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
4,120 |
|
$ |
4,007 |
|
|
Accrued liabilities |
|
4,180 |
|
|
5,717 |
|
|
Deferred revenue |
|
1,582 |
|
|
1,349 |
|
|
Operating lease liabilities |
|
564 |
|
|
559 |
|
|
Total current liabilities |
|
10,446 |
|
|
11,632 |
|
|
Long-term operating lease liabilities |
|
1,607 |
|
|
1,750 |
|
|
Warrant liabilities |
|
7,962 |
|
|
8,457 |
|
|
Other long-term liabilities |
|
537 |
|
|
570 |
|
|
Total liabilities |
|
20,552 |
|
|
22,409 |
|
|
Series A Redeemable Convertible Preferred Stock, par value |
|
13,747 |
|
|
13,747 |
|
|
Stockholders’ equity: |
|||||||
Preferred stock, par value |
|
— |
|
|
— |
|
|
Common stock, par value |
|
114 |
|
|
113 |
|
|
Additional paid-in capital |
|
145,770 |
|
|
145,203 |
|
|
Accumulated other comprehensive (loss) income |
|
(1 |
) |
|
4 |
|
|
Accumulated deficit |
|
(114,048 |
) |
|
(111,891 |
) |
|
Total stockholders’ equity |
|
31,835 |
|
|
33,429 |
|
|
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity |
$ |
66,134 |
|
$ |
69,585 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509832277/en/
Thomas R. Staab, II, CFO
ir.contact@lensar.com
Lee Roth / Cameron Radinovic
Burns McClellan for LENSAR
lroth@burnsmc.com / cradinovic@burnsmc.com
Source: LENSAR, Inc.
FAQ
What was LENSAR's total revenue for the first quarter of 2024?
How much did the procedure volume increase in the U.S. in the first quarter of 2024?
How many ALLY Systems were installed as of March 31, 2024?
What was the net loss for the quarter ended March 31, 2024?
When will LENSAR host a conference call to discuss the first quarter results?
