RxSight, Inc. Reports First Quarter 2024 Financial Results

Rhea-AI Summary

RxSight, Inc. reported strong first quarter 2024 financial results, with a revenue of $29.5 million, a 69% increase compared to the first quarter of 2023. The company sold 20,218 Light Adjustable Lenses (LAL) and 66 Light Delivery Devices (LDD), showing significant growth in procedure volume and unit sales. Gross profit increased to $20.7 million, operating expenses rose to $31.4 million, and the company reported a net loss of $(9.1) million. However, adjusted net loss improved to $(4.4) million. Cash, cash equivalents, and short-term investments were $125.4 million as of March 31, 2024. RxSight raised its 2024 revenue guidance to $132.0 million to $137.0 million, gross margin guidance to 68% to 70%, and operating expense guidance to $126.0 million to $130.0 million.

Positive

• RxSight reported a strong revenue growth of 69% in the first quarter of 2024, driven by increased sales of Light Adjustable Lenses and Light Delivery Devices, setting a new standard for premium IOL offerings in the U.S.

• Gross profit increased to $20.7 million, representing 70% of revenue, showing a positive shift in product mix towards higher-margin sales.

• RxSight raised its 2024 revenue guidance to $132.0 million to $137.0 million, gross margin guidance to 68% to 70%, and operating expense guidance to $126.0 million to $130.0 million, indicating strong growth prospects.

Negative

• Operating expenses rose to $31.4 million in the first quarter of 2024, reflecting the company's ongoing investments to support increased sales volume, leading to a net loss of $(9.1) million.

• Adjusted net loss improved to $(4.4) million in the first quarter of 2024, but the company reported a decrease in cash, cash equivalents, and short-term investments compared to the previous quarter.

Insights

Medical Device Market Analyst

The significant 69% increase in revenue for RxSight in the first quarter of 2024 is indicative of a robust demand for its Light Adjustable Lenses (LAL). This is particularly noteworthy given the 92% surge in procedure volume. The company's growth trajectory is further underscored by the expansion of its Light Delivery Devices (LDD) installed base, which at a 61% increase year-over-year, suggests a strategic positioning in the marketplace. Looking at the operational side, the gross profit margin improvement from 59% to 70% highlights effectiveness in cost controls and efficiency gains, possibly reflecting economies of scale as production volumes rise. While the company is still posting a net loss, the reduction from the prior year suggests that RxSight is moving in the right direction towards profitability. The upward revision in full-year revenue and gross margin guidance mirrors a confident outlook by management, yet this has to be balanced with the planned 21%-25% increase in operating expenses, which seems to be an investment in further expansion. For investors, these results may represent a favorable trend, but it is also important to consider the competitive landscape of the ophthalmic medical device sector and the company's ability to sustain and manage growth.

Financial Analyst

RxSight's strong performance, as reflected in its Q1 2024 earnings, is a positive indication of the company's financial health and market acceptance. The impressive top-line growth is commendable and the full-year revenue guidance boost, from $128 million to a range of $132 million to $137 million, sets an optimistic tone for investors. Equally promising is the projected gross margin increase—up to an impressive 70%—which is indicative of a high-value product mix and successful cost reduction strategies. However, there’s a need for careful monitoring of the operating expense trajectory; while aggressive investment in growth is essential, it could also weigh on the company's path to profitability. As it stands, with a healthy balance sheet reflected by the $125.4 million in cash and equivalents, the company appears to have significant runway to execute its strategies. Although the reduction in net loss represents an improving bottom line, investors should remain cognizant of the path to profitability and the time horizon they are comfortable with in seeing these losses turn into gains.

Ophthalmic Industry Expert

RxSight's current trajectory is indicative of a significant shift in consumer and practitioner preferences towards customized vision correction solutions post-cataract surgery. The substantial increase in LAL and LDD sales points to a broader industry trend: the growing demand for personalized medical devices offering superior outcomes. By focusing on enhancing its technological offering and expanding its installed base, RxSight is likely catering to a niche yet rapidly growing segment. For end-users, the value proposition of improved vision quality could justify the premium pricing, aiding the company's impressive gross margins. The increased full-year guidance could signal a continued upward trend in adoption rates, which is paramount in an industry where technological innovation and patient satisfaction are key drivers. Stakeholders should, however, pay attention to market penetration strategies and the possibility of new entrants that could disrupt RxSight's current growth pattern.

ALISO VIEJO, Calif., May 06, 2024 (GLOBE NEWSWIRE) -- (NASDAQ: RXST) – RxSight, Inc., an ophthalmic medical device company dedicated to providing high-quality customized vision to patients following cataract surgery, today reported financial results for the three months ended March 31, 2024.

Key Quarterly Highlights

• Reported first quarter 2024 revenue of $29.5 million, an increase of 69% compared to the first quarter of 2023, reflecting:
  • The sale of 20,218 Light Adjustable Lenses (LAL®/LAL+™), representing a 92% increase in procedure volume compared to the first quarter of 2023;
  • The sale of 66 Light Delivery Devices (LDD™s), representing an 18% increase in unit sales compared to the first quarter of 2023 and expanding the installed base to 732 LDDs at the end of the quarter, representing a 61% increase compared to the end of the first quarter of 2023; and
• The company increased its 2024 full-year revenue, gross margin and operating expense guidance.
  
  

"We are pleased with a strong start to the year, fueled by the continued adoption of our Light Adjustable Lens technology,” said Ron Kurtz, Chief Executive Officer and President of RxSight. “With the growing number of doctors and practices offering the LAL as well as increasing interest among patients, we believe we are establishing a new standard for premium IOL offerings in the U.S.”

First Quarter Financial Results

In the first quarter of 2024, total revenue was $29.5 million, an increase of 69% compared to $17.5 million in the first quarter of 2023. Revenue growth was driven by a 92% increase in LAL revenue and a 35% increase in LDD revenue, compared to the first quarter of 2023.

Gross profit for the first quarter of 2024 was $20.7 million or 70% of revenue, an increase of $10.3 million or 100% compared to gross profit of $10.4 million or 59% of revenue for the first quarter of 2023. The favorable shift in product mix toward LAL sales drove the increase in gross profit in the quarter, along with reduced costs to produce LALs, primarily due to higher production volumes and increased margin on the LDD due to lower material costs.

Total operating expenses for the first quarter of 2024 were $31.4 million, a 34% increase from $23.5 million in the first quarter of 2023, reflecting the company’s ongoing investments to grow its LDD installed base and support increased LAL sales volume.

In the first quarter of 2024, the company reported a net loss of $(9.1) million, or $(0.25) per basic and diluted share, compared to a net loss of $(13.2) million, or $(0.42) per basic and diluted share in the first quarter of 2023. Adjusted net loss in the first quarter of 2024 was $(4.4) million, or $(0.12) per basic and diluted share, compared to an adjusted net loss of $(9.9) million, or $(0.31) per basic and diluted share in the first quarter of 2023.

Cash, cash equivalents and short-term investments as of March 31, 2024, were $125.4 million compared to $127.2 million at December 31, 2023.

2024 Guidance

The company increased its 2024 full-year revenue, gross margin and operating expense guidance as follows:

• Revenue of $132.0 million to $137.0 million, representing implied growth of 48% to 54% compared to 2023, up from prior guidance of $128.0 million to $135.0 million;
• Gross margin in the range of 68% to 70%, representing an implied increase of 800 basis points to 1,000 basis points compared to 2023, up from prior guidance of 65% to 67%;
• Operating expenses in the range of $126.0 million to $130.0 million, representing an implied increase of 21% to 25% compared to 2023, up from prior guidance of $125.0 million to $128.0 million and including non-cash expense guidance in the range of $22.0 million to $25.0 million.
  
  

Conference Call

On Monday, May 6, 2024, at 1:30 p.m. Pacific Time, the company will host a conference call to discuss its first quarter 2024 financial results. Participants may register for the call and listen through a live and archived webcast of the event available for one year at https://investors.rxsight.com/. 

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®/LAL+™, collectively the “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 with respect to the increasing adoption and utilization of Light Adjustable Lens system; the growing number of doctors and practices offering the LAL and increasing interest among patients; RxSight’s belief that it is establishing a new standard for premium IOL offerings in the U.S.; and RxSight’s projected revenue, gross margin, and operating expenses for 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, and among other things, our ability to maintain cash balances and successfully commercialize or partner our product candidates currently under development. 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, including the risk factors that may be found in the section entitled Part II, Item 1A (Risk Factors) in the Quarterly Report on Form 10-Q for the three months ended March 31, 2024, filed with the Securities and Exchange Commission (SEC) on or about the date hereof, and the other documents that RxSight may file from time to time with the SEC. 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.

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

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

RxSIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS (UNAUDITED)
(In thousands, except share and per share amounts)
	Three Months Ended March 31,
	2024				2023
Sales	$	29,512			$	17,489
Cost of sales		8,827				7,123
Gross profit		20,685				10,366
Operating expenses:
Selling, general and administrative		23,324				16,255
Research and development		8,031				7,208
Total operating expenses		31,355				23,463
Loss from operations		(10,670	)			(13,097	)
Other income (expense), net:
Interest expense		(6	)			(1,507	)
Interest and other income		1,585				1,392
Loss before income taxes		(9,091	)			(13,212	)
Income tax expense		9				—
Net loss	$	(9,100	)		$	(13,212	)
Other comprehensive (loss) income
Unrealized (loss) gain on short-term investments		(45	)			84
Foreign currency translation (loss) gain		(3	)			2
Total other comprehensive (loss) income		(48	)			86
Comprehensive loss	$	(9,148	)		$	(13,126	)
Net loss per share:
Basic & diluted	$	(0.25	)		$	(0.42	)
Weighted-average shares used in computing net loss per share:
Attributable to common stock, basic & diluted		36,843,087				31,637,097

RxSIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except share and per share amounts)
	March 31,				December 31,
	2024				2023
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	32,645			$	9,692
Short-term investments		92,709				117,490
Accounts receivable		21,550				20,281
Inventories		18,700				17,421
Prepaid and other current assets		2,955				3,523
Total current assets		168,559				168,407
Property and equipment, net		11,617				10,841
Operating leases right-of-use assets		2,052				2,444
Restricted cash		711				711
Other assets		226				147
Total assets	$	183,165			$	182,550
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	5,057			$	3,863
Accrued expenses and other current liabilities		11,657				15,239
Lease liabilities		1,614				1,801
Total current liabilities		18,328				20,903
Long-term lease liabilities		908				1,211
Other long-term liabilities		—				74
Total liabilities		19,236				22,188
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value, 900,000,000 shares authorized, 37,161,753 shares issued and outstanding as of March 31, 2024 and 36,139,513 shares issued and outstanding as of December 31, 2023		37				36
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding		—				—
Additional paid-in capital		767,685				754,971
Accumulated other comprehensive loss		(53	)			(5	)
Accumulated deficit		(603,740	)			(594,640	)
Total stockholders' equity		163,929				160,362
Total liabilities and stockholders' equity	$	183,165			$	182,550

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP”), we believe certain non-GAAP measures, including adjusted net loss, and adjusted net loss per share, basic and diluted, provide useful information to investors and are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense because this expense is non-cash in nature and we believe excluding this item provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies.

We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Adjusted Net Loss and Adjusted Net Loss Per Share

Adjusted net loss is a non-GAAP financial measure that we define as net loss adjusted for stock-based compensation. We believe adjusted net loss provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

Reconciliations of net loss to adjusted net loss and the presentation of adjusted net loss per share, basic and diluted, are as follows:

RxSIGHT, INC.
GAAP To NON-GAAP RECONCILIATIONS (UNAUDITED)
(In thousands, except share and per share amounts)
		Three months ended March 31,
		2024				2023
Common Stock
Numerator:
Net loss available to stockholders, basic and diluted		$	(9,100	)		$	(13,212	)
Add:
Stock-based compensation			4,696				3,295
Adjusted net loss available to common stockholders, basic and diluted:		$	(4,404	)		$	(9,917	)
Denominator:
Weighted-average shares outstanding, basic and diluted			36,843,087				31,637,097
Adjusted net loss per share, basic and diluted		$	(0.12	)		$	(0.31	)

FAQ

What was RxSight's revenue in the first quarter of 2024?

RxSight reported revenue of $29.5 million in the first quarter of 2024, a 69% increase compared to the same period in 2023.

What products drove the revenue growth for RxSight in the first quarter of 2024?

The sale of 20,218 Light Adjustable Lenses (LAL) and 66 Light Delivery Devices (LDD) drove the revenue growth for RxSight in the first quarter of 2024.

What was RxSight's gross profit in the first quarter of 2024?

RxSight's gross profit was $20.7 million in the first quarter of 2024, representing 70% of revenue.

What was RxSight's net loss in the first quarter of 2024?

RxSight reported a net loss of $(9.1) million in the first quarter of 2024.

What were RxSight's cash, cash equivalents, and short-term investments as of March 31, 2024?

RxSight's cash, cash equivalents, and short-term investments were $125.4 million as of March 31, 2024.

What guidance did RxSight provide for 2024?

RxSight raised its 2024 revenue guidance to $132.0 million to $137.0 million, gross margin guidance to 68% to 70%, and operating expense guidance to $126.0 million to $130.0 million for 2024.