LENSAR Reports Fourth Quarter and Full Year 2023 Results and Provides Business Update
- Exceeded 2023 target with 44 ALLY placements
- Revenue increased by 18% in Q4 and 19% for full year 2022
- Strong growth in new customers switching to LENSAR systems
- Plans to secure regulatory approvals for international expansion in 2024
- Focus on expanding ALLY installed base in the U.S.
- Net loss increased to $3.9 million in Q4
- Decrease in EBITDA to ($3.2) million in Q4
- Adjusted EBITDA was ($1.2) million in Q4
Insights
The reported increase in total revenue by 18% in Q4 and 19% over the full year for LENSAR, Inc. reflects a strong financial performance, which is particularly notable given the competitive nature of the medical technology sector. The successful placement of 44 ALLY® Adaptive Cataract Treatment Systems, surpassing the target by a significant margin, indicates robust product demand and effective market penetration strategies. This performance could be attributed to the product's technological advancements and efficiency in cataract surgery, potentially leading to increased market share and customer loyalty.
From a financial perspective, the reduction in selling, general and administrative expenses, particularly stock compensation and professional expenses, suggests effective cost management. However, it is important to consider that the increased net loss and lower EBITDA figures may raise concerns among investors about profitability in the short term. The reliance on recurring revenue streams, which accounted for approximately 73% of Q4 revenue, is a positive indicator of sustainable sales, although the slight decrease in percentage from the previous year could suggest a shift towards more system sales.
The emphasis on the adoption of ALLY systems by new customers, many of whom switched from competitive systems, suggests a competitive advantage for LENSAR in the market. This could be due to the perceived superiority of the ALLY system over other cataract surgery technologies. The strategic move to secure regulatory approvals outside the U.S. indicates a focus on global expansion, which could open up new revenue streams and diversify market risk.
The medical technology industry is heavily influenced by innovation and regulatory clearances. LENSAR's proactive approach to international market entry, with the anticipation of regulatory clearances in 2024, positions the company for potential growth in untapped markets. The backlog of 9 additional systems also indicates a strong order book, which could translate into future revenue stability and growth.
The advanced femtosecond laser solutions provided by LENSAR for cataract treatment represent a segment of the medical technology industry that is rapidly evolving. The success of the ALLY system is indicative of the increasing demand for precision and efficiency in surgical procedures. The company's focus on innovation and the high number of installations suggest that LENSAR is at the forefront of this technological shift in ophthalmic surgery.
ALLY's adoption by half of the new customers from competitors highlights its competitive edge in the market. LENSAR's investment in R&D, although slightly decreased from the previous year, underscores the importance of continuous innovation to maintain leadership in the industry. The company's future plans, including international expansion, reflect a strategic approach to leveraging technological advancements to capture market share globally.
44 ALLY® Adaptive Cataract Treatment Systems were placed in 2023, significantly exceeding the target of 30, increasing the ALLY installed base to 54 and a backlog of 9 additional systems as of December 31, 2023
Total revenue increased
“Our strong performance throughout 2023 continued in the fourth quarter, resulting in total revenue up
Fourth Quarter 2023 Financial Results
Total revenue for the quarter ended December 31, 2023 was
Selling, general and administrative expenses for the quarter ended December 31, 2023 were
Research and development expenses were
Net loss for the quarter ended December 31, 2023, was
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended December 31, 2023 was
Full Year 2023 Financial Results
Total revenue for the year ended December 31, 2023 was
For the years ended December 31, 2023 and 2022, approximately
The following table provides information about procedure volume:
2023 |
|
2022 |
|
2021 |
||
Q1 |
31,600 |
|
38,901 |
|
28,122 |
|
Q2 |
35,349 |
|
33,359 |
|
30,966 |
|
Q3 |
32,649 |
|
28,453 |
|
30,765 |
|
Q4 |
37,414 |
|
31,400 |
|
41,642 |
|
Total |
137,012 |
|
132,113 |
|
131,495 |
Worldwide procedure volume continues to be negatively impacted by third-party payor reimbursement issues in
Selling, general, and administrative expenses for the year ended December 31, 2023 were
Research and development expenses were
Net loss for the year ended December 31, 2023 was
EBITDA for the year ended December 31, 2023 was
As of December 31, 2023, the Company had cash, cash equivalents, and investments of
Conference Call:
LENSAR management will host a conference call and live webcast to discuss the fourth quarter results and provide a business update today, March 4, 2024, at 8:30 a.m. ET.
To participate by telephone, please dial (888) 259-6580 (Domestic) or (206) 962-3782 (International). The conference ID number is 48034263. 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 March 15, 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 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 premium 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, including new ALLY System installations and planned international launch, the Company’s ability to obtain additional regulatory approvals for the ALLY System, the ALLY System’s performance and market adoptions and usage, the Company’s position within applicable markets, and the Company’s expected financial performance. 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 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, change in fair value of warrant liabilities, and income from the Employee Retention Credit, 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 and the Employee Retention Credit is not recurring. 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 are set forth below.
Three Months Ended December 31, |
|
Twelve Months Ended December. 31, |
||||||||||||||
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
Net loss |
$ |
(3,926 |
) |
$ |
(2,490 |
) |
$ |
(14,383 |
) |
$ |
(19,914 |
) |
||||
Less: Interest income |
|
(233 |
) |
|
(123 |
) |
|
(698 |
) |
|
(263 |
) |
||||
Add: Depreciation expense |
|
651 |
|
|
577 |
|
|
2,418 |
|
|
2,258 |
|
||||
Add: Amortization expense |
|
273 |
|
|
276 |
|
|
1,097 |
|
|
1,148 |
|
||||
EBITDA |
|
(3,235 |
) |
|
(1,760 |
) |
|
(11,566 |
) |
|
(16,771 |
) |
||||
Add: Stock-based compensation expense |
|
816 |
|
|
1,695 |
|
|
5,539 |
|
|
6,611 |
|
||||
Add: Change in fair value of warrant liabilities |
|
1,198 |
|
|
— |
|
|
2,852 |
|
|
— |
|
||||
Less: Employee retention credit |
|
— |
|
|
— |
|
|
(1,368 |
) |
|
— |
|
||||
Adjusted EBITDA |
$ |
(1,221 |
) |
$ |
(65 |
) |
$ |
(4,543 |
) |
$ |
(10,160 |
) |
||||
LENSAR, Inc. STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share amounts) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
||||||||||||||||
Product |
$ |
9,452 |
|
$ |
7,771 |
|
$ |
31,643 |
|
$ |
25,959 |
|
||||
Lease |
|
1,604 |
|
|
1,629 |
|
|
6,448 |
|
|
5,915 |
|
||||
Service |
|
1,049 |
|
|
832 |
|
|
4,073 |
|
|
3,484 |
|
||||
Total revenue |
|
12,105 |
|
|
10,232 |
|
|
42,164 |
|
|
35,358 |
|
||||
Cost of revenue (exclusive of amortization) |
||||||||||||||||
Product |
|
5,005 |
|
|
2,262 |
|
|
13,902 |
|
|
8,910 |
|
||||
Lease |
|
577 |
|
|
495 |
|
|
2,091 |
|
|
1,941 |
|
||||
Service |
|
1,374 |
|
|
993 |
|
|
5,064 |
|
|
4,552 |
|
||||
Total cost of revenue |
|
6,956 |
|
|
3,750 |
|
|
21,057 |
|
|
15,403 |
|
||||
Operating expenses |
||||||||||||||||
Selling, general and administrative expenses |
|
6,374 |
|
|
7,204 |
|
|
26,100 |
|
|
27,170 |
|
||||
Research and development expenses |
|
1,463 |
|
|
1,615 |
|
|
6,139 |
|
|
11,814 |
|
||||
Amortization of intangible assets |
|
273 |
|
|
276 |
|
|
1,097 |
|
|
1,148 |
|
||||
Operating loss |
|
(2,961 |
) |
|
(2,613 |
) |
|
(12,229 |
) |
|
(20,177 |
) |
||||
Other (expense) income |
||||||||||||||||
Change in fair value of warrant liabilities |
|
(1,198 |
) |
|
— |
|
|
(2,852 |
) |
|
— |
|
||||
Other income, net |
|
233 |
|
|
123 |
|
|
698 |
|
|
263 |
|
||||
Net loss |
|
(3,926 |
) |
|
(2,490 |
) |
|
(14,383 |
) |
|
(19,914 |
) |
||||
Other comprehensive gain |
|
|
|
|
|
|
|
|||||||||
Change in unrealized gain on investments |
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
|
Net loss and comprehensive loss |
$ |
(3,922 |
) |
|
$ |
(2,490 |
) |
|
$ |
(14,379 |
) |
|
$ |
(19,914 |
) |
|
Net loss per common share: |
||||||||||||||||
Basic and diluted |
$ |
(0.35 |
) |
$ |
(0.24 |
) |
$ |
(1.31 |
) |
$ |
(1.96 |
) |
||||
Weighted-average number of common shares used in calculation of net loss per common share: |
||||||||||||||||
Basic and diluted |
|
11,237 |
|
|
10,364 |
|
|
10,971 |
|
|
10,159 |
|
||||
LENSAR, Inc. BALANCE SHEETS (In thousands, except per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
20,621 |
|
$ |
14,674 |
|
||
Short-term investments |
|
|
3,443 |
|
|
|
— |
|
Accounts receivable, net of allowance of |
|
4,001 |
|
|
6,040 |
|
||
Notes receivable, net of allowance of |
|
323 |
|
|
200 |
|
||
Inventories |
|
15,689 |
|
|
11,740 |
|
||
Prepaid and other current assets |
|
2,367 |
|
|
1,062 |
|
||
Total current assets |
|
46,444 |
|
|
33,716 |
|
||
Property and equipment, net |
|
679 |
|
|
563 |
|
||
Equipment under lease, net |
|
7,459 |
|
|
6,316 |
|
||
Long-term investments |
|
|
492 |
|
|
|
— |
|
Notes and other receivables, long-term, net of allowance of |
|
1,279 |
|
|
442 |
|
||
Intangible assets, net |
|
11,025 |
|
|
12,122 |
|
||
Other assets |
|
2,207 |
|
|
2,685 |
|
||
Total assets |
$ |
69,585 |
|
$ |
55,844 |
|
||
Liabilities, redeemable convertible preferred stock, and stockholders’ equity |
|
|||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
4,007 |
|
$ |
5,422 |
|
||
Accrued liabilities |
|
5,717 |
|
|
4,700 |
|
||
Deferred revenue |
|
1,349 |
|
|
768 |
|
||
Operating lease liabilities |
|
559 |
|
|
531 |
|
||
Total current liabilities |
|
11,632 |
|
|
11,421 |
|
||
Long-term operating lease liabilities |
|
1,750 |
|
|
2,272 |
|
||
Warrant liabilities |
|
8,457 |
|
|
— |
|
||
Other long-term liabilities |
|
570 |
|
|
167 |
|
||
Total liabilities |
|
22,409 |
|
|
13,860 |
|
||
Series A Redeemable Convertible Preferred Stock, par value |
|
13,747 |
|
|
— |
|
||
Stockholders’ equity: |
||||||||
Preferred stock, par value |
|
— |
|
|
— |
|
||
Common stock, par value |
|
113 |
|
|
111 |
|
||
Additional paid-in capital |
|
145,203 |
|
|
139,381 |
|
||
Accumulated other comprehensive income |
|
|
4 |
|
|
|
— |
|
Accumulated deficit |
|
(111,891 |
) |
|
(97,508 |
) |
||
Total stockholders’ equity |
|
33,429 |
|
|
41,984 |
|
||
Total liabilities, redeemable convertible preferred stock, and stockholders’ equity |
$ |
69,585 |
|
$ |
55,844 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240301726317/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
How many ALLY placements did LENSAR exceed in 2023?
What was the revenue increase in the fourth quarter of 2022?
What percentage of revenue was from recurring sources in Q4 2023?
What were the selling, general, and administrative expenses in Q4 2023?
What was the net loss in Q4 2023?
