RxSight, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results
- Strong revenue growth of 78% in Q4 2023 and 82% in FY 2023 compared to the previous year.
- Increased unit sales of Light Delivery Devices and Light Adjustable Lenses drove revenue growth.
- Gross profit margin improved significantly in both Q4 and FY 2023.
- Adjusted net loss showed significant improvement in Q4 2023.
- Guidance for 2024 indicates expected revenue growth of 44% to 52% compared to 2023.
- High total operating expenses in Q4 and FY 2023 due to ongoing investments and higher headcount.
- Significant net losses reported for both Q4 and FY 2023.
- Non-cash stock-based compensation expenses increased in FY 2023.
- Cash, cash equivalents, and short-term investments decreased compared to the previous year.
Insights
The reported financial results by RxSight, Inc. show a substantial increase in revenue for both the fourth quarter and the full year of 2023, with significant growth in the sales of Light Delivery Devices (LDDs) and Light Adjustable Lenses (LALs). This growth suggests a strong market demand for their ophthalmic medical devices, which is a positive indicator for the company's financial health and operational performance.
However, it is important to note that despite the revenue growth, the company is still operating at a net loss. The reported net loss has decreased compared to the previous year, indicating some level of improvement in cost management or operational efficiency. Investors should consider the company's trajectory of narrowing losses in the context of their overall investment strategy, keeping in mind that sustained losses may impact the long-term viability of the company.
The guidance for 2024, with expected revenue growth and improved gross margin, signals management's confidence in the company's strategic direction and operational scalability. Yet, the forecasted increase in operating expenses could dilute the impact of revenue growth on the bottom line, which is a factor investors should closely monitor.
RxSight's performance in the ophthalmic medical device sector reflects a strong uptake of their LDDs and LALs, which are innovative products providing customized vision solutions post-cataract surgery. The reported increase in unit sales and procedure volumes indicates a successful market penetration and adoption by partner doctors and practices.
From a market perspective, the expansion of the installed base for LDDs and the dramatic increase in LAL procedure volumes are indicative of a growing acceptance of adjustable lens technology. This could be attributed to a rising global prevalence of cataracts and an aging population, coupled with a shift towards personalized medical treatments.
Understanding the competitive landscape and how RxSight's offerings compare with alternative solutions is crucial. Investors would benefit from insights into the company's market share, the competitive advantages of their technology and how these factors might influence future revenue streams and market positioning.
The financial results from RxSight indicate not only an impressive year-over-year growth but also a strategic focus on expanding their product offerings in the medical device sector. The increase in gross profit margin, particularly due to a favorable product mix and higher margins on newer LDDs, suggests that the company is effectively managing production costs and pricing strategies.
It is also notable that the company's investment in sales and marketing is growing, which is essential for the adoption of new medical technologies. However, the impact of these investments on the company's financials must be balanced against the need to achieve profitability.
Investors should consider the regulatory environment for medical devices, as changes in policy or shifts in FDA approval processes can significantly affect the industry. For RxSight, maintaining compliance and navigating these regulations efficiently will be key to sustaining their growth and ensuring long-term success.
ALISO VIEJO, Calif., Feb. 28, 2024 (GLOBE NEWSWIRE) -- 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 and full year ended December 31, 2023.
Key Quarterly and Full Year Highlights
- Recognized fourth quarter 2023 revenue of
$28.6 million , an increase of78% compared to the fourth quarter of 2022, reflecting:- The sale of 77 Light Delivery Devices (LDD™s), representing a
35% unit increase from the fourth quarter of 2022, expanding the installed base to 666 LDDs at the end of the quarter, a67% increase compared to the 400-unit LDD installed base at the end of the fourth quarter of 2022; and - The sale of 18,071 Light Adjustable Lenses (LAL®s), representing a
98% increase in procedure volumes compared to the fourth quarter of 2022.
- The sale of 77 Light Delivery Devices (LDD™s), representing a
- Recognized full-year 2023 revenue of
$89.1 million , representing growth of82% compared to 2022, driven by unit sales of 266 LDDs and 54,873 LALs, representing increases of36% and117% , respectively, compared to 2022.
“We are very thankful to all our partner doctors and practices for joining with the RxSight team to consistently deliver high-quality vision across a range of distances,” said Ron Kurtz, CEO and President of RxSight. “As we step into 2024, we aim to expand our ability to optimize premium cataract surgery by unlocking the full potential of adjustable technology for patients.”
Fourth Quarter Financial Results
In the fourth quarter of 2023, total revenue was
Gross profit for the fourth quarter of 2023 was
Total operating expenses for the fourth quarter of 2023 were
In the fourth quarter of 2023, the company reported a net loss of
Cash, cash equivalents and short-term investments as of December 31, 2023, were
Fiscal Year 2023 Financial Results
Full-year 2023 total revenue was
Gross profit for the full year of 2023 was
Total operating expenses for the full year of 2023 were
In 2023, net loss was
2024 Guidance
The company is reiterating guidance for full-year 2024 revenue, gross profit margin, and operating expenses:
- Revenue guidance range of
$128.0 million to$135.0 million , representing implied growth of44% to52% compared to 2023. - Gross margin guidance range of
65% to67% , representing an implied increase of 500 bps to 700 bps compared to 2023. - Operating expense guidance range of
$125.0 million to$128.0 million , representing an implied growth of20% to23% compared to 2023, and including non-cash expense guidance in the range of$22.0 million to$25.0 million .
Conference Call
On Wednesday, February 28, 2024, at 1:30 p.m. Pacific Time, the company will host a conference call to discuss its fourth quarter 2023 and full year 2023 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/. While not required, it is recommended participants join ten minutes prior to the event start time to ensure the necessary audio applications are downloaded and installed. Instructions are provided (including a dial-in option).
2024 Annual Meeting of Stockholders
RxSight, Inc. today announced that the Company's Annual Meeting of Stockholders will be held on June 6, 2024, virtually. The Company’s Board of Directors set April 8, 2024, as the record date for the Annual Meeting.
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: the Company’s ability to deliver high-quality vision across a range of distances; the Company’s ability to optimize premium cataract surgery; and the Company’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. 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 December 31, | Year Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Sales | $ | 28,580 | $ | 16,088 | $ | 89,077 | $ | 49,005 | ||||||||
| Cost of sales | 10,925 | 8,666 | 35,312 | 27,677 | ||||||||||||
| Gross profit | 17,655 | 7,422 | 53,765 | 21,328 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 21,165 | 15,731 | 74,799 | 58,665 | ||||||||||||
| Research and development | 7,341 | 6,681 | 29,051 | 25,981 | ||||||||||||
| Total operating expenses | 28,506 | 22,412 | 103,850 | 84,646 | ||||||||||||
| Loss from operations | (10,851 | ) | (14,990 | ) | (50,085 | ) | (63,318 | ) | ||||||||
| Other income (expense), net: | ||||||||||||||||
| Interest expense | (4 | ) | (1,451 | ) | (3,308 | ) | (4,946 | ) | ||||||||
| Interest and other income, net | 1,661 | 836 | 6,574 | 1,517 | ||||||||||||
| Loss on extinguishment of term loan | — | — | (1,769 | ) | — | |||||||||||
| Loss before income taxes | (9,194 | ) | (15,605 | ) | (48,588 | ) | (66,747 | ) | ||||||||
| Income tax (benefit) expense | (18 | ) | 5 | 20 | 9 | |||||||||||
| Net loss | $ | (9,176 | ) | $ | (15,610 | ) | $ | (48,608 | ) | $ | (66,756 | ) | ||||
| Other comprehensive income (loss) | ||||||||||||||||
| Unrealized gain (loss) on short-term investments | 46 | 28 | 83 | (66 | ) | |||||||||||
| Foreign currency translation gain (loss) | 4 | 14 | 7 | (9 | ) | |||||||||||
| Total other comprehensive income (loss) | 50 | 42 | 90 | (75 | ) | |||||||||||
| Comprehensive loss | $ | (9,126 | ) | $ | (15,568 | ) | $ | (48,518 | ) | $ | (66,831 | ) | ||||
| Net loss per share: | ||||||||||||||||
| Basic & diluted | $ | (0.26 | ) | $ | (0.56 | ) | $ | (1.41 | ) | $ | (2.41 | ) | ||||
| Weighted-average shares used in computing net loss per share: | ||||||||||||||||
| Attributable to common stock, basic & diluted | 35,961,894 | 27,990,322 | 34,455,111 | 27,661,982 | ||||||||||||
| RxSIGHT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except share and per share amounts) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 9,692 | $ | 11,834 | ||||
| Short-term investments | 117,490 | 93,968 | ||||||
| Accounts receivable | 20,281 | 10,956 | ||||||
| Inventories, net | 17,421 | 14,835 | ||||||
| Prepaid and other current assets | 3,523 | 2,962 | ||||||
| Total current assets | 168,407 | 134,555 | ||||||
| Property and equipment, net | 10,841 | 10,138 | ||||||
| Operating leases right-of-use assets | 2,444 | 3,943 | ||||||
| Restricted cash | 711 | 761 | ||||||
| Other assets | 147 | 767 | ||||||
| Total assets | $ | 182,550 | $ | 150,164 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,863 | $ | 2,595 | ||||
| Accrued expenses and other current liabilities | 15,239 | 12,672 | ||||||
| Lease liabilities | 1,801 | 1,970 | ||||||
| Total current liabilities | 20,903 | 17,237 | ||||||
| Long-term lease liabilities | 1,211 | 2,856 | ||||||
| Term loan, net | — | 40,169 | ||||||
| Other long-term liabilities | 74 | — | ||||||
| Total liabilities | 22,188 | 60,262 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Common stock, issued and outstanding as of December 31, 2023 and 28,268,389 shares issued and outstanding as of December 31, 2022 | 36 | 28 | ||||||
| Preferred stock, and outstanding | — | — | ||||||
| Additional paid-in capital | 754,971 | 636,001 | ||||||
| Accumulated other comprehensive loss | (5 | ) | (95 | ) | ||||
| Accumulated deficit | (594,640 | ) | (546,032 | ) | ||||
| Total stockholders' equity | 160,362 | 89,902 | ||||||
| Total liabilities and stockholders' equity | $ | 182,550 | $ | 150,164 | ||||
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 and loss on extinguishment of debt because these expenses are non-cash in nature and we believe excluding these items 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 (i) stock-based compensation and (ii) loss on extinguishment of term loan. 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 December 31, | Year ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Common Stock | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net loss available to stockholders, basic and diluted | $ | (9,176 | ) | $ | (15,610 | ) | $ | (48,608 | ) | $ | (66,756 | ) | ||||
| Add: | ||||||||||||||||
| Stock-based compensation | 4,425 | 2,962 | 15,746 | 11,397 | ||||||||||||
| Loss on extinguishment of term loan | — | — | 1,769 | — | ||||||||||||
| Adjusted net loss available to common stockholders, basic and diluted: | $ | (4,751 | ) | $ | (12,648 | ) | $ | (31,093 | ) | $ | (55,359 | ) | ||||
| Denominator: | ||||||||||||||||
| Weighted-average shares outstanding, basic and diluted | 35,961,894 | 27,990,322 | 34,455,111 | 27,661,982 | ||||||||||||
| Adjusted net loss per share, basic and diluted | $ | (0.13 | ) | $ | (0.45 | ) | $ | (0.90 | ) | $ | (2.00 | ) | ||||
FAQ
What was RxSight's revenue in Q4 2023?
How did RxSight's unit sales perform in Q4 2023?
What was RxSight's net loss in Q4 2023?
What is RxSight's revenue guidance for 2024?
When is RxSight's Annual Meeting of Stockholders scheduled for 2024?
