RxSight, Inc. Announces Preliminary Unaudited Fourth Quarter and Full-Year 2023 Financial and Operational Results and 2024 Guidance

Rhea-AI Summary

RxSight, an ophthalmic medical device company (Ticker: RXST), announced preliminary unaudited financial results for Q4 2023 and full-year 2023, with expected revenue of $28.6 million for Q4, up 78% from the prior year, and $89.1 million for the full year, up 82% from the prior year. The company also provided full-year 2024 guidance, anticipating revenue of $128.0 million to $135.0 million, representing 44% to 52% growth over 2023. The gross profit margin is expected to be in the 65% - 67% range, with operating expenses in the range of $125.0 million to $128.0 million, and non-cash expenses in the range of $22.0 million to $25.0 million.

Insights

Market Research Analyst

The reported preliminary financial results for RxSight, Inc. are indicative of a robust growth trajectory for the company, with revenues for the fourth quarter of 2023 showing a significant increase of approximately 78% from the previous year. This performance can be attributed to the company's expansion in their installed base of Light Delivery Devices (LDDs) and sales of Light Adjustable Lenses (LALs), which are key products in the ophthalmic medical device market. The reported growth figures exceed the average industry growth rate for medical devices, which is typically in the mid-single digits. This suggests that RxSight is gaining market share and its products are well-received in the market.

Looking ahead to the full-year 2024 guidance, the company's projected revenue growth of 44% to 52% implies confidence in the continued adoption of their technology. However, the projected operating expenses of $125.0 million to $128.0 million, alongside non-cash expenses, indicate significant ongoing investments, likely in marketing, research and development and infrastructure to support further growth. Stakeholders should consider the balance between these expenses and the gross profit margin, which is estimated to be in the 65% - 67% range, to evaluate the company's potential for profitability.

Financial Analyst

The financial health of RxSight can be partially gauged by its cash reserves, which stand at an impressive $127.2 million in preliminary unaudited results. This strong liquidity position provides the company with a buffer to fund operations and invest in strategic initiatives without the immediate need for external financing. The cash reserves also offer a layer of protection against market volatility and potential downturns in the economy.

Investors should note the full-year 2024 gross profit margin projection of 65% to 67%, which is fairly robust for the medical device industry and indicates efficient cost management. However, the anticipated non-cash expenses, which are likely related to depreciation, amortization, or stock-based compensation, could impact net income. These figures will be crucial for evaluating the company's earnings quality and for forecasting future cash flows.

Medical Device Industry Expert

The ophthalmic medical device sector is experiencing innovation-driven growth, particularly in areas that offer customizable solutions for patients. RxSight's LDD and LAL products cater to this demand by providing personalized vision correction post-cataract surgery. The company's strong sales growth in these products suggests a successful penetration in a niche but expanding market segment. The increase in the installed base of LDDs is particularly noteworthy as it represents not only immediate revenue from the sale of the devices but also a recurring revenue stream from the associated LALs.

The company's focus on sustaining momentum through long-term strategies could involve further innovation, clinical studies to support the efficacy of their products and expansion into new markets. The impact of these strategies on market competition and the overall industry landscape will be significant. Additionally, the adoption rate by cataract surgeons and patient satisfaction with the adjustability feature of the LALs will be critical factors in maintaining the company's growth trajectory.

ALISO VIEJO, Calif., Jan. 07, 2024 (GLOBE NEWSWIRE) -- RxSight, Inc., an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery, today announced certain preliminary unaudited financial and operational results for the fourth quarter and full-year 2023 and provided full-year 2024 guidance.

Preliminary Unaudited Fourth Quarter and Full-year 2023 Results

• Preliminary unaudited fourth quarter 2023 revenue is expected to be approximately $28.6 million, representing growth of approximately 78% compared to the prior year period, driven by:
  • The sale of 77 Light Delivery Devices (LDD™s), expanding the installed base to 666 LDDs as of December 31, 2023; and
  • The sale of 18,071 Light Adjustable Lenses (LAL^®s).
• Preliminary unaudited ²⁰²³ fiscal year revenue is expected to be approximately $89.1 million, representing growth of approximately 82% compared to the prior year, driven by:
  • The sale of 266 LDDs; and
  • The sale of 54,873 LALs.
• Preliminary unaudited cash, cash equivalents and short-term investments as of December 31, 2023, is expected to be $127.2 million.
  

2024 Guidance

RxSight anticipates full-year 2024 revenue of $128.0 million to $135.0 million, reflecting growth of approximately 44% to 52% over 2023. The company currently estimates the full-year 2024 gross profit margin to be in the 65% - 67% range. In addition, the company expects 2024 operating expenses in the range of $125.0 million to $128.0 million. The company is also anticipating full-year 2024 non-cash expenses in the range of $22.0 million to $25.0 million.

“We continued to achieve solid growth in both LAL procedures and LDD placements in the fourth quarter, underscoring the fact that an increasing number of cataract surgeons and patients are choosing our system for its unique ability to provide high-quality, customizable vision enabled by adjustability,” said Dr. Ron Kurtz, Chief Executive Officer and President of RxSight. “As we enter 2024, we expect to maintain this momentum by focusing on our long-term strategies to deliver the full potential of our technology and opportunity.”

The Company’s fourth quarter and full-year 2023 financial and operational results are preliminary and are subject to the completion of the Company’s 2023 audit. Audited full-year 2023 and unaudited fourth quarter 2023 financial results are anticipated to be announced in February 2024.

About RxSight, Inc.

RxSight, Inc. is an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery. The RxSight^® Light Adjustable Lens system, comprised of the RxSight Light Adjustable Lens^® (LAL^®), RxSight Light Delivery Device (LDD™) and accessories, is the first and only commercially available intraocular lens (IOL) technology that can be adjusted after surgery enabling doctors to customize and deliver high-quality vision to patients after cataract surgery. Additional information about RxSight can be found at www.rxsight.com.

Forward-Looking Statements

This press release contains forward-looking statements, including, without limitation, with respect to: statements concerning our preliminary unaudited fourth quarter and fiscal 2023 financial and operational results and the anticipated timing of announcing audited full-year 2023 and unaudited fourth quarter 2023 financial results, LDD and LAL sales growth trends; the increasing popularity of the LAL; the potential of the Company’s technology and management’s plans related thereto; and the Company’s projected revenue, gross profit margin, operating expenses and non-cash expenses in 2024. Such statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, including those risks described in the Company’s prior press releases and the Company’s filings with the Securities and Exchange Commission (SEC), including in Part II, Item 1A (Risk Factors) of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, filed with the SEC on November 9, 2023, and any subsequent filings with the SEC. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” or “continue” or the negative of such terms and other same terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.

The foregoing financial and operational results are preliminary estimates. We are in the process of finalizing our financial statements for the year ended December 31, 2023, and our actual results remain subject to completion of those financial statements and their audit by our independent registered public accounting firm. These preliminary estimates are based on information available to management as of the date of this press release and certain related assumptions, which could prove incorrect. Our actual, reported results of operations could differ based on completion of our year end closing procedures, final adjustments and developments that may arise prior to completion of our annual financial statements, and adjustments arising from the audit by our independent registered public accounting firm. You should carefully review our audited, consolidated financial statements for the year ended December 31, 2023 when they become available.

Company contact:
Shelley B. Thunen
Chief Financial Officer
sthunen@rxsight.com

Investor Relations Contact:
Oliver Moravcevic
VP, Investor Relations
omoravcevic@rxsight.com

FAQ

What are RxSight's preliminary unaudited financial results for Q4 2023 and full-year 2023?

RxSight's preliminary unaudited financial results for Q4 2023 include expected revenue of $28.6 million, up 78% from the prior year, and for the full year 2023, expected revenue is $89.1 million, up 82% from the prior year.

What is RxSight's full-year 2024 revenue guidance?

RxSight anticipates full-year 2024 revenue of $128.0 million to $135.0 million, reflecting growth of approximately 44% to 52% over 2023.

What is the expected gross profit margin for RxSight in 2024?

RxSight estimates the full-year 2024 gross profit margin to be in the 65% - 67% range.

Who is the CEO of RxSight?

Dr. Ron Kurtz is the Chief Executive Officer and President of RxSight.

When will RxSight announce audited full-year 2023 and unaudited Q4 2023 financial results?

Audited full-year 2023 and unaudited Q4 2023 financial results are anticipated to be announced in February 2024.