Q1 2022 Sight Sciences Inc Earnings Call

May 10, 2022

Oh.

Okay.

Ladies and gentlemen, please stand by. Your conference call will begin momentarily. Once again, ladies and gentlemen, please stay on the line. Your conference call will begin momentarily.

Ladies and gentlemen, please standby your conference call will begin momentarily once again, ladies and gentlemen, please stay on the line you conference call will begin momentarily.

Okay.

[music].

The.

["Pomp and Circumstance"] ["Pomp and Circumstance"]

The.

Ladies and gentlemen, thank you for standing by and walked through the site Sciences' first quarter 2022 earnings results call. At this time all participants are in a listen only mode. Following the speaker's presentation there'll be a question and answer session to ask a question during the session. When you do press star one on your telephone if you require any further assistance. Please press star zero I would now like to turn the call over.

Ladies and gentlemen, thank you for standing by and welcome to the site sciences first quarter 2022 earnings results call at the time all participants are on a listen only mode. Following the speaker's presentation, there'll be a question and answer session to ask a question during the session you depressed star one on your telephone. If you require any further assistance, please press star zero. I would not like to turn the call over to your host Phillip Taylor investor relations.

To your host Philip Taylor Investor Relations you may begin.

Thank you for participating in today's call presenting today are tight sciences, co founder and Chief Executive Officer, Paul, But Alley, Chief Financial Officer, Jackie sell neck, and Chief Commercial Officer, Shaun O'neil earlier today <unk> Sciences released financial results for the three months ended March 31, 2022, a copy of the press release is available on.

Thank you for participating in today's call. Presenting today are Sight Sciences Co-Founder and Chief Executive Officer Alba Dalli, Chief Financial Officer Jesse Selnick, and Chief Commercial Officer Sean O'Neill. Earlier today, Sight Sciences released financial results for the three months ended March 31, 2022. A copy of the press release is available on the company's website at Investors.SightSciences.com.

The company's website at investors <unk> Sciences Dot com I would like to remind everyone that comments made by management today and answers to questions will include forward looking statements within the meaning of the federal Securities laws.

I'd like to remind everyone that comments made by management today and answers to questions will include forward-looking statements within the meaning of the federal securities law.

Those include statements related to <unk> Sciences anticipated financial performance and operating results market opportunity the future impact of COVID-19 on operations business strategy and plans for developing and marketing new products.

Those include statements related to Site Science's anticipated financial performance and operating results, market opportunity, the future impact of COVID-19 on operations, business strategy, and plans for developing and marketing new products.

Board-looking statements are based on estimates and assumptions as of today and are neither promises nor guarantees and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by these statements.

Forward looking statements are based on estimates and assumptions as of today and are neither promises nor guarantees and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by these statements.

A description of some of the risks and uncertainties that could cause the actual results to differ materially from those indicated by the forward-looking statements on this call can be found in the risk factors section of the annual report on Form 10-K filed March 21, 2021.

Description of some of the risks and uncertainties that could cause the actual results to differ materially from those indicated by the forward looking statements on this call can be found in the risk factors section of the annual report on Form 10-K filed March 21.

24th, 2022, and other filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements except as required by law. For more information, please refer to the forward-looking statements, notices, and risk factors in the recent SEC filings. I will now turn the call over to Paul.

24, 2022, and other filings with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward looking statements, except as required by law for more information. Please refer to the forward looking statements notices and risk factors in the recent SEC filings I will now turn the call over.

Paul.

Thank you trip and thank you all for joining us.

Our first quarter 2022 revenue increased to $14.9 million.

Our first quarter 2022 revenue increased to $14 9 million.

representing 72% growth compared to the prior year period, and 1% sequential growth compared to the fourth quarter of 2021.

Representing 72% growth compared to the prior year period, and 1% sequential growth compared to the fourth quarter of 2021.

A strong continued pace of new customer wins and extremely high customer retention resulted in surgical glaucoma revenue of $13.9 million.

Our strong continued pace of new customer wins and extremely high customer retention resulted in surgical glaucoma revenue of $13 9 million.

in line with the prior quarter's revenue and exceeding our internal expectations given Omicron, seasonality, and competitive trial.

In line with the prior quarter's revenue and exceeding our internal expectations, given omicron seasonality and competitive trial.

Surgical glaucoma year over year revenue growth accelerated to 70% in the quarter compared to 60% in the fourth quarter of 2021.

Surgical glaucoma year-over-year revenue growth accelerated to 70 percent in the quarter compared to 60 percent in the fourth quarter of 2021.

As a point of comparison, our surgical glaucoma revenue sequentially declined 7% from the fourth quarter of 2020 to the first quarter of 2021, yet we still grew surgical glaucoma revenue 79% for the year.

Point of comparison, our surgical glaucoma revenues sequentially declined 7% from the fourth quarter of 2020 for the first quarter of 2021, yet we still grew surgical glaucoma revenue, 79% for the year.

Our dry eye revenues for the first quarter were $1 million, up over 100 percent year over year, and 33 percent sequentially from the fourth quarter of 2021.

Our dry eye revenues for the first quarter were $1 million up over 100% year over year, and 33% sequentially from the fourth quarter of 2021.

We are very pleased with the fundamental progress and the leading indicators we use to monitor each business.

We are very pleased with the fundamental progress and the leading indicators, we use to monitor each business.

Before delving into details on our quarterly performance I want to take a step back and comment on the broader market environment there.

Before delving into details on our quarterly performance, I want to take a step back and comment on the broader market environment.

There are a handful of new instruments that are being marketed to perform clinically unproven procedures.

There are a handful of new instrument that are being marketed to perform clinically improve and procedures.

Launches of any new products from companies with established commercial relationships will naturally generate initial surge in interest and stimulate trial.

Launches of any new products from companies with established commercial relationships will naturally generate initial surge in interest and stimulate trialing.

This results in transient shifts in case mix and operating room schedule allocation as these products are evaluated.

This results in transient shifts in case mix and operating room schedule allocations as these products are evaluated.

We experience this in the first quarter and expect these dynamics to continue through the second quarter as well.

Spirit. This in the first quarter and expect these dynamics to continue through the second quarter as well.

with the impact to our business manifesting in an extension in the adoption ramp for newer Omni facilities and pockets of reduced ordering and certain accounts that we believe will be short term in nature.

With the impact to our business manifesting in an extension in the adoption ramp or newer omni facilities.

Pockets of reduced ordering in certain accounts that we believe will be short term in nature.

In our experience. These trialing periods can take anywhere from two to six months.

In our experience, these trialing periods can take anywhere from two to six months.

Over this time, surgeons and facilities typically gain a more complete understanding of the clinical outcomes and reimbursement characteristics of the new procedure.

Over this time surgeons and facilities typically gain a more complete understanding of the clinical outcomes and reimbursement characteristics of the new procedures.

Said differently. They learned firsthand what these procedures are and are not from a clinical usability and payer perspective.

Said differently, they learn firsthand what these procedures are and are not from a clinical usability and payer perspective.

What we have seen in Q1 and into the current quarter is that despite ongoing trialing, we are achieving extremely strong customer attention and new customer wins, both of which are as solid as ever. Simply put, Omni is extraordinarily sticky and its growth funnel remains robust.

While we have seen in Q1 and into the current quarter is that despite ongoing trials, we are achieving extremely strong customer retention and new customer wins, both of which are as solid as Tim.

Simply put omni is extraordinarily sticky and it's growth funnel remains robust.

As the year progresses, we are confident that Omni's clear and differentiated benefits will become even more apparent to surgeons.

As the year progresses, we are confident that omni is clear and differentiated benefits will become even more apparent to surgeons.

As early evidence of this we are starting to experience. This full cycle play out in some accounts. We're trialing impacts are proven to be short term in nature.

As early evidence of this, we are starting to experience this full cycle play out in some accounts where trialing impacts have proven to be short term in nature.

For simple concepts can explain why omni will continue to win.

Four simple concepts can explain why Omni will continue to win. Efficacy.

Efficacy.

Indication.

Reimbursement.

And usability.

We designed Omni to safely and effectively treat the conventional outflow pathway with a minimally invasive procedure. Our growing body of clinical and real world evidence supports Omni's superior performance, as does Omni's best in class indication to reduce IOP in all adults with POAG.

We designed omni to safely and effectively treat the conventional outflow pathway with a minimally invasive procedure.

A growing body of clinical and real world evidence supports omni superior performance as does omni as best in class indications to reduce IOP and all adults with <unk>.

Our customers Bill using a well established category one CPT code that reimburses at competitive rates and was revalued just last year.

Our customers bill Omni using a well-established Category 1 CPT code that reimburses at competitive rates and was revalued just last year.

These re-evaluations for Category 1 CPT codes typically last for five years or more, so we expect payment rates to be stable for several years, though the facility payment could increase if the CANALPASI code is granted device-intensive status.

These revaluations for category, one CPT code typically last for five years or more so we expect payment rates to be stable for several years, though the facility payment could increase if the can allopathic code is granted device intensive status.

We've spent many years innovating and improving omnis functionality and usability, resulting in a product surgeons love to use our.

We've spent many years innovating and improving Omni's functionality and usability, resulting in a product surgeons love to use.

Our continuing and highly proprietary innovation and enhancements to Omni keep us ahead of the competition.

Continuing in highly proprietary innovation and enhancements to omni keep us ahead of the competition.

Omnis mastery of these four simple concept drives our confidence in <unk> ability to win in the Migs market.

Omni's mastery of these four simple concepts drives our confidence in Omni's ability to win in the Mixed Market.

Moreover, with $238 million of cash on our balance sheet.

Moreover, with $238 million of cash on our balance.

We have more than enough capital to execute our financial plan, and we are fortunate to have the financial flexibility to make smart, long-term value-maximizing decisions and be resolute in our long-term approach.

We have more than enough capital to execute our financial plan and we are fortunate to have the financial flexibility to make smart.

Long term value maximizing decisions and the resolute and our long term approach.

Let's move on now to an update on our three primary strategic growth initiatives, which, as a reminder, are, number one, increasing adoption and utilization of OMNI and the established combination cataract MIG segment, number two, pioneering the $5 billion U.S. market for standalone MIGs interventions, and number three, developing the market for reimbursed dry eye treatment procedures.

Let's move on now to an update on our three primary strategic strategic growth initiatives, which as a reminder, our number one increasing adoption and utilization of omni in the established combination cataract mix segment.

Number two pioneering the $5 billion U S market for Standalone Migs interventions.

And number three developing the market for reimbursed dry eye treatment procedures.

We continue to deepen our penetration into the established combination cataract segment by training more surgeons, winning new accounts and retaining existing ones.

We continue to deepen our penetration into the established combination cataract segment by training more surgeons, winning new accounts, and retaining existing.

Jesse will provide more color on these kpis in his remarks, but I'll summarize just by saying we are extremely pleased with the trends.

Jesse will provide more color on these KPIs in his remarks, but I'll summarize just by saying we are extremely pleased with the trend.

To provide additional context on our business performance. We recently began a proprietary analysis of historical billing claims projections from a well respected advanced analytics provider.

To provide additional context on our business performance, we recently began a proprietary analysis of historical billing claims projections from a well-respected advanced analytics provider.

While the results we have seen thus far appear to track with what we have observed historically, the analysis relies on a projection of overall US claims based on the subset of claims accessible to our analytics provider, and availability of the data lags our reporting periods by about a quarter. We urge caution in citing or relying on the data to guide business or investment decisions due to the inherent limitations of the analysis, and would like to point out that the underlying data tracks procedure codes and not usage of any particular device, including Omni.

While the results we have seen thus far appear to track with what we have observed historically the analysis relies on a projection of overall U S claims based on the subset of claims accessible to our analytics provider and availability of the data lagged our reporting periods by about a quarter.

We urge caution inciting are relying on the data to guide business or investment decisions due to the inherent limitations of the analysis I would like to point out that the underlying data track procedure codes and not usage or any particular device, including omni.

All that being said, we have gained insights into Omni's impact on the mixed market, and we intend to share our analysis with you.

All that being said we have gained insight into omni has impact on the migs market and we intend to share our analysis with you.

Importantly, the analysis validate migs is a large and growing market U S. Combination cataract claims grew at a healthy 17% CAGR from 2018 to 2021.

Importantly, the analysis validates MIGS as a large and growing market. U.S. combination cataract claims grew at a healthy 17 percent kager from 2018 to 2021.

CPT code 6174 is the canal a busty code used to bill omni procedures, the increasing prevalence of six 674 usage and claims that also include the CPT code for routine cataract surgery 66984 demonstrates omnis expanding presence in the combination cataract segment.

CPT code 66174 is the canaloplasty code used to bill omniprecious.

The increasing prevalence of 66174 usage in claims that also include the CPT code for routine cataract surgery, 66984, demonstrates Omni's expanding presence in the combination cataract.

Flames that included cataract surgery and canaloplasty grew at an 81% CAGR from 2018 to 2021, compared to the 17% CAGR for all combination cataracts.

That included cataract surgery, and can Alloplasty grew at an 81% CAGR from 2018 to 2021 compared to the 17% CAGR for all combination cataract claims.

In the fourth quarter of 2021, there were over 18,000 projected claims using both 66174 and 66984, which represented over 19 percent of projected claims using the 66984 cataract code and all MIGS procedures combined.

In the fourth quarter of 2021, there were over 18000 projected claims using both $6, 174% and $6 94, which represented over 19% of projected claims using the $6 98 for cataract code and all mixed procedures combined.

While true share is complex to calculate given all the permutations and combinations of devices and codes using combination cataract procedures.

While true share is complex to calculate, given all the permutations and combinations of devices and codes using combination cataract procedures, when taken together, we believe these figures show significant penetration of Omni's Code 66174.

When taken together, we believe these figures show significant penetration of Omnis code 674.

We can further parse out omni share of the Canal Party code by comparing claims to omni shipments total can help Aussie claims had a very healthy 71% CAGR from 2018 to 2021, while omni shipments grew 122% it.

We can further parse out Omni's share of the Canalifasci code by comparing claims to Omni shipments. Total Canalifasci claims had a very healthy 71% CAGR from 2018 to 2021, while Omni shipments grew 122%.

It is clear to us that the launch of omni in 2018 has propelled the growth of canola philosophy claims.

It is clear to us that the launch of Omni in 2018 has propelled the growth of canaloplasty claims.

This leads us to our second strategic initiative, expanding adoption of omni as a standalone intervention to treat.

expanding adoption of omni as a standalone intervention to treat POAG early.

Earlier.

Currently, if a POAG patient does not require cataract surgery, the treatment algorithm relies on increasing use of topical eyedrop medications to slow the progression of the disease with the goal of staving off conventional surgical procedures for as long as possible.

Currently if a patient does not require cataract surgery. The treatment algorithm relies on increasing use of topical eye drop eyedrop medications to slow the progression of the disease with the goal of staving off conventional surgical procedures for as long as possible.

We believe OmniAlone, due to its indication for use, safety and consistent efficacy, has the ideal product market fit for earlier standalone interventions in mild to moderate POAG patients.

We believe omni alone due to its indication for use safety and consistent efficacy has the ideal product market fit for earlier standalone intervention and mild to moderate patients.

Our clinical studies have demonstrated that omni can safely and reliably reduce IOP and medication burden with or without concomitant cataract surgery.

Our clinical studies have demonstrated that omni can safely and reliably reduced IOP in medication burden with or without concomitant cataract surgery.

Okay.

Our market research on Standalone Migs indicate that there is strong interest in omni 85% of glaucoma patients would likely choose a standalone intervention using omni if it was recommended by their doctor 85%.

Our market research on stand-alone migs indicates that there is strong interest in omni. 85 percent of glaucoma patients would likely choose a stand-alone intervention using omni if it was recommended by their doctor.

We also analyzed claims data for the Standalone segment, which we define as claims with common glaucoma surgery CPT codes that did not include cataract surgery CPT codes.

We also analyzed claims data for the standalone segment, which we define as claims with common glaucoma surgery CPT codes that did not include cataract surgery CPT codes.

This category includes both mild to moderate surgical glaucoma options, like canaloplasty, CPT-66174, and goniotomy, CPT-65820, as well as advanced surgical glaucoma options like AB-interno or AB-externo trabeculae.

This category includes both mild to moderate surgical glaucoma options like can alloplasty CPT, six 674, and Goniotomy CPT 658 to zero as well as advanced surgical glaucoma options like AB internal or external to trabeculectomy.

Due to the smaller current size of the Standalone segment compared to the combination cataract segment. The limitations of the analytics data I mentioned previously could be even more pronounced.

Due to the smaller current size of the standalone segment compared to the combination cataract segment, the limitations of the analytics data I mentioned previously could be even more pronounced, but we believe they serve as a very interesting and exciting leading indicator of what we are building right now in the $5 billion standalone segment.

But we believe they serve as a very interesting and exciting leading indicator of what we're building right now in the $5 billion stand alone segment.

Of the four common standalone glaucoma surgery CPT codes.

Of the four common standalone glaucoma surgery CPT codes, canaloplasty is the only one that is growing.

Alloplasty is the only one that is growing.

The number of claims using the three other codes shrank 12% in 2021, while standalone canaloplastic claims grew 29%, more than doubling since the introduction of Omni in 2018.

The number of claims using the three other code shrank, 12% in 2021, while Standalone can alloplasty claims grew 29% more than doubling since the introduction of omni in 2018.

This point is worth emphasizing.

Based on our claims analysis, canaloposte is the only standalone glaucoma surgery that is growing.

Based on our claims analysis can alloplasty is the only standalone glaucoma surgery that is growing.

This insight highlights the compelling product market fit between Omni and standalone surgical glaucoma.

Insight highlights the compelling product market fit between omni and Standalone surgical glaucoma.

Canadalplasty also appears to have propelled the overall level of planes in the stand-alone mixed sector.

<unk> also appears to have propelled the overall level of claims in the Standalone <unk> segment and.

In the second half of 2021 projected Standalone Canal epoxy claims were included in almost half of all projected Standalone makes claims.

In the second half of 2021, projected stand-alone canaloplasty claims were included in almost half of all projected stand-alone mix claims.

We expect these organically generated standalone omni growth trends, which prove to us that the omni standalone market is very real.

We expect these organically generated standalone omni growth trends, which proved to us that the omni standalone market is very real.

To accelerate as the impact of our 2022 Standalone investments are realized and the significant and lightly penetrated $5 billion market segment.

to accelerate as the impacts of our 2022 standalone investments are realized in the significant and lightly penetrated $5 billion markets.

Overall use of six 674 grew 66% last year by far the fastest growing segment in all of surgical glaucoma.

Overall use of 66174 grew 66% last year. By far the fastest growing segment in all of surgical glaucoma.

The current estimated mix of combo cataract 66174 versus standalone 66174 is approximately 90-10.

The current estimated mix of combo cataract fix $6 74 versus Standalone 661 hundred 74 is approximately 90 10 that.

that we believe the mix for Omni is more heavily weighted towards standalone.

We believe the mix for omni is more heavily weighted towards standalone.

We have the unique perspective of viewing combination cataract and standalone as a single market and are very pleased with the overall growth of six six to 174, driven by omni and we will measure our success based on our ability to increase overall adoption of omni and grow the exciting standalone opportunity.

We have the unique perspective of viewing combination cataract and standalone as a single market and are very pleased with the overall growth of 66174 driven by Omni and will measure our success based on our ability to increase overall adoption of Omni and grow the exciting standalone opportunity.

To propel Standalone usage, we are focused on educating the glaucoma community that an earlier intervention performed by a local omni trained surgeon could be an effective alternative to prescribing a second or third hydro.

To propel standalone usage, we are focused on educating the glaucoma community that an earlier intervention performed by a local Omnitrain surgeon could be an effective alternative to prescribing a second or third eyebrow.

We are approaching this strategy through both manpower and non-manpower initiatives.

We are approaching this strategy through both manpower and non manpower initiatives from a non non manpower perspective, we're continuing to drive education and awareness of the mild to moderate standalone opportunity through Standalone clinical studies, such as trade in and trade events, such as the omni symposium at <unk> <unk>.

From a non-manpower perspective, we are continuing to drive education and awareness of the mild-to-moderate stand-alone opportunity through stand-alone clinical studies such as Trident and TRE, events such as the Omnisymposium at Aspirus, and our Don't Wait for Too Late Marketing Campaign.

And our don't wait for too late marketing campaign.

We recently submitted a paper for publication in a peer-reviewed journal based on data from TREI, which studied omni standalone procedures in patients who had previously had a combination cataract stent procedure. We're very excited about TREI.

We recently submitted a paper for publication in a peer reviewed journal based on data from Trey.

Studied omni standalone procedures in patients who had previously had a combination cataract stent procedure.

We're very excited about try and plan to expand on its findings.

From a manpower perspective, our newly-trained team of 20 glaucoma clinical consultants will articulate this alternative treatment path to the tens of thousands of office-based primary eye care providers who first diagnose and treat POAG patients.

From a manpower perspective, our newly trained team of 20 glaucoma clinical consultants.

We will articulate this alternative treatment path to the tens of thousands of office based primary care providers.

First diagnose and treat <unk> patients.

We are strategically placed our gcc's and territories that have multiple qualified omni train surgeons with strong comprehensive practices are established practitioner networks and seek to improve communications and ultimately referral patterns within this network.

We have strategically placed our GCCs in territories that have multiple qualified Omnitrain surgeons with strong comprehensive practices or established practitioner networks and seek to improve communications and ultimately referral patterns within this network.

If successful we hope to create a <unk> analog to the efficient cataract ecosystem, we expect to see the benefits from our GCC team begin to materialize in the second half of the year.

If successful, we hope to create a POAG analog to the efficient cataract ecosystem. We expect to see the benefits from our GCC team begin to materialize in the second half of the year.

Our third strategic growth initiative is to improve patient access to effective dry eye treatment procedures supported by results from our Olympia RCT late last year, our care care system received FDA clearance for the application of localized heat therapy and <unk>.

Our third strategic growth initiative is to improve patient access to effective dry eye treatment.

Supported by results from our Olympia RCT late last year, our care care system received FDA clearance for the application of localized heat therapy and adult patients with evaporative dry eye disease due to mybomian gland dysfunction, when used in conjunction with manual expression of the mybomian gland.

Patients with evaporative dry eye disease due to my my Boeing being gland dysfunction when used in conjunction with manual expression of the <unk> glands. This.

This expanded label allows our commercial team to communicate the benefits of tier care more effectively.

This expanded label allows our commercial team to communicate the benefits of tier care more effective.

Our reps have already reported increased customer receptivity in the field and are achieving increasingly strong results.

Yeah.

Compelling clinical evidence is a pillar for all of our commercial efforts are dry eye market access initiative is underpinned by our Sahara RCT, which we expect to complete enrolling later this year.

Compelling clinical evidence is a pillar for all of our commercial efforts. Our dry eye market access initiative is underpinned by our Sahara RCT, which we expect to complete enrolling later this year. As a reminder, Sahara aims to demonstrate the superiority of tear care treatments compared to the market leading prescription eye dropper stasis at six months.

As a reminder, <unk>.

<unk> aims to demonstrate the superiority of tier care treatments compared to the market, leading prescription eye drop restasis at six months.

We hope to be able to report back on the key superiority endpoint by the second half of next year.

Our other clinical trials are progressing nicely and we look forward to sharing more news with you in the coming quarters.

The deep relationships, we have formed with the eye care community have never been more evident than the engagement and positive feedback we received at the <unk> annual meeting at the end of April we.

The deep relationships we have formed with the eye care community have never been more evident than the engagement and positive feedback we received at the Ashegris annual meeting at the end of April .

We are proud to report that the abstract presented by Dr. Mark Piper on reduced fluctuation of IOP and POAG patients who had canaloplasti followed by trabeculotomy using omni won best paper at its session.

We are proud to report that the abstract presented by Dr. Mark Piper on reduce fluctuation of IOP in patients who had <unk> followed by Trabeculectomy using omni.

<unk> best paper added session.

We're also very pleased with our efforts to commercialize omni internationally, our UK market in particular has performed quite well since we established a direct presence last year. We look forward to updating you as we make progress entering additional markets.

We are also very pleased with our efforts to commercialize Omni internationally. Our UK market in particular has performed quite well since we established a direct presence last year. We look forward to updating you as we make progress entering additional markets.

Our mission to improve the lives of patients with glaucoma and dry eye disease drives our continued pursuit of innovation as we discussed on our last call. We are developing a broad product portfolio that aims to offer market leading treatment options along every step of the patient journey for living with these incurable lifelong diseases.

Our mission to improve the lives of patients with glaucoma and dry eye disease drives our continued pursuit of innovation. As we discussed in our last call, we are developing a broad product portfolio that aims to offer market-leading treatment options along every step of a patient's journey for living with these incurable, lifelong diseases.

I will now turn the call over to Jesse to discuss our first quarter financial results in more detail on our outlook for 2022.

I will now turn the call over to Jesse to discuss our first quarter financial results and more detail on our outlook for 2022.

Jesse.

Thanks, Paul I'll start with a discussion of the first quarter results and then I'll move on to our 2022 guidance.

Thanks, Paul. I'll start with a discussion of the first quarter results, and then I'll move on to our 2022

Our total revenue for the three months ended March 31, 2022 was $14 9 million or 72% increase from $8 6 million in the same period of 2021 and up 1% versus the fourth quarter of 2021, Despite Q1 seasonality typically representing the lowest quarterly portion.

Our total revenue for the three months ended March 31, 2022 was $14.9 million, a 72% increase from $8.6 million in the same period of 2021, and up 1% versus the fourth quarter of 2021, despite Q1 seasonality typically representing the lowest quarterly portion of our annual revenue. Illustrating this point, our total revenue sequentially declined 4% in the first quarter of 2021.

<unk> of our annual revenue illustrating this point, our total revenues sequentially declined 4% in the first quarter of 2021.

Our surgical glaucoma segment revenues for the fourth quarter were $13 9 million up 70% from $8 1 million in the first quarter of 2021 and sequentially flat compared to the fourth quarter of 2021.

Our surgical glaucoma segment revenues for the fourth quarter were $13.9 million, up 70 percent from $8.1 million in the first quarter of 2021, and sequentially flat compared to the fourth quarter of 2021.

Underlying fundamental business trends including utilization and ordering facilities improved in the second half of the quarter as business disruptions due to the surge in the Omicron variant.

Underlying fundamental business trends, including utilization ordering facilities improved in the second half of the quarter.

Business disruption due to the surge in the army Krom Varian subsided.

Our surgical glaucoma growth drivers remain very

Our surgical glaucoma growth drivers remain very strong two key leading indicators for our growth funnel are trained surgeons in new ordering facilities.

Two key leading indicators for our growth funnel are trained surgeons and new watering facilities.

In the first quarter of 2022, we trained 118 new students.

In the first quarter of 2022, we trained 118, new surgeons. This compares to an average of 90 surgeons trained per quarter in 2021, and 96 trained in the first quarter of 2021 illustrates continuing robust surgeon interest.

This compares to an average of 90 surgeons trained per quarter in 2021 and 96 trained in the first quarter of 2021, illustrating continuing robust surgeon

We believe growth in trained surgeons will continue to increase as product awareness of omni and our library of differentiated clinical data in both combo cataract and standalone grows. While we are making great progress.

Growth in trained surgeons will continue to increase as product awareness of omni and our library of differentiated clinical data in both combo cataract and Standalone grows.

While we are making great progress, we still have a long runway.

At the end of the first quarter, we had trained nearly 1,600 surgeons on Omni. Marketscope estimates that over 5,600 surgeons currently perform MIGS procedures in the U.S.

At the end of the first quarter, we have trained nearly <unk> hundred surgeons on omni market scope estimates that over 5600 surgeons currently perform <unk> procedures in the U S.

We have made a significant investment in our internal training team and overall technical field capabilities to achieve our twin goals, providing an outstanding initial user experience and creating long-term customers. Our investment continues to grow.

as 105 new facilities ordered Omni in the first quarter of 2022. This compares to a quarterly average of 99 new facilities in 2021, which included 98 new ordering facilities in the fourth quarter and 67 in the comparable first

'twenty two.

This compares to a quarterly average of 99, new facilities in 2021, which included 98, new ordering facilities in the fourth quarter and 67 in the comparable first quarter.

Our commercial success can also be measured by our consistently growing an extraordinarily sticky embedded ordering base.

Our commercial success can also be measured by our consistently growing and extraordinarily sticky embedded ordering.

<unk> ordering patterns can vary widely among facilities, we believe the appropriate period to measure order activity is over a trailing three month period. When we consider any customer that has ordered in the past three months to be active in.

Because ordering patterns can vary widely among facilities, we believe the appropriate period to measure order activity is over a trailing three-month period, and we consider any customer that has ordered in the past three months to be active.

In the first quarter of 2022, 811 facilities ordered Omni. It increased to 51 from the fourth quarter of 2021. By comparison, our ordering facility base grew by only 18 to 548 in the first quarter of 2021. We feel great about how the base continues to grow. Customer attention is obviously another important

In the first quarter of 2020 to 811 facilities ordered army an increase of 51 from the fourth quarter of 2021.

By comparison, our ordering facility base grew by only 18 to 548 in the first quarter of 2021, we.

We feel great about how the base continues to grow.

Customer retention is obviously another important metric we calculate developed customer retention is in the ratio of net inactive accounts to ordering accounts relative to the number of active customers that placed their first order at least nine months. Prior we use nine months as a proxy for customers that on average will have completed training and.

using the ratio of net and active accounts to ordering accounts relative to the number of active customers that placed their first order at least nine months prior. We use nine months as a proxy for customers that on average will have completed training and progress into our developed account.

Progressing towards developed account base throughout.

Throughout 2021 and thus far in 2022, approximately two-thirds of our active customer base has this level of experience with Omni. Over the history of Omni, our developed customer attention rate has been 99.8%.

Throughout 2021, and thus far in 2022, approximately two thirds of our active customer base has this level of experience to them.

The history of omni or develop customer retention rate has been 99, 8%, which means that we have had as many customers return as go inactive each quarter, which we believe is remarkable in the first quarter of 2022 are based customer retention rate was 99, 7% exactly in line with.

which means that we have had as many customers return as go and active each quarter, which we believe is remarkable. In the first quarter of 2022, our base customer retention rate was 99.7%, exactly in line with what we've enjoyed since launch and what it helps us to achieve tremendous growth throughout Omni.

With what we've enjoyed since launch and what has helped us to achieve tremendous growth throughout omnis ramp.

Our dry ice segment revenues for the first quarter were $1 million up 104% from <unk> 5 million in the first quarter of 2021, and a sequential increase of 33% from <unk> 8 million in the fourth quarter of 2021.

Our dry ice segment revenues for the first quarter were 1 million up 104% from 0.5 million in the first quarter of 2021 and a sequential increase of 33% from 0.8 million in the fourth quarter of 2020.

We are pleased with the great receptivity and result from our small focused sales effort in dry that has now resulted in well over 600 ordering accounts and sequential.

We are pleased with the great receptivity and results from a small focused sales effort in dry eye that has now resulted in well over 600 ordering accounts.

Sequential growth acceleration in recent periods.

Our combined gross margin for the first quarter was 80% compared to 73% in the corresponding prior year period and 87% in the fourth quarter of 2020.

Our combined gross margin for the first quarter was 80% compared to 73% in the corresponding prior year period and 87% in the fourth quarter of 2021.

Gross margin in surgical glaucoma was 89% in the first quarter compared to 77% in the prior year period. Our operations group continues to execute at a very high level, even in the face of supply chain challenges throughout the global economy.

Gross margin and surgical glaucoma was 89% in the first quarter compared to 77% in the prior year period. Our operations group continues to execute at a very high level, even in the face of supply chain challenges throughout the global economy.

Gross margin in dry eye was negative 53% in the quarter versus 11% in the first quarter of 2020.

Gross margin in dry eye was negative 53% in the quarter versus 11% in the first quarter of 2021, our dry eye cost of goods sold in the quarter included <unk>.

Our dry eye cost of goods sold in the quarter included 0.9 million of charges related to a voluntary program we put in place to swap out first generation tear care smart hubs for upgrading.

9 million of charges related to a voluntary program, we put in place to swap out first generation tier care smart hubs for upgraded smart hubs to ensure regulatory compliance with product classification codes. Following <unk> five 10-K clearance with the FDA in December 2021.

to ensure regulatory compliance with product classification codes following Tier Care's 510K clearance with the FDA in December 2020.

Often the charges associated with this one-time program, dry eye gross margins for the quarter would have been positive 32% and our overall gross margin would have been 85%.

I assume the charges associated with this one time program drive gross margins for the quarter would have been positive, 32% and our overall gross margin would have been 85%.

Operating expenses for the first quarter of 2022 were $34 million and 89% increase from $18 million in the first quarter of 2021.

Operating expenses for the first quarter of 2022 were $34 million, an 89% increase from $18 million in the first quarter of 2020.

Operating expenses included non-cash stock-based comp of $3 million compared to $0.3 million in the prior year period.

Operating expenses included noncash stock based comp of $3 million compared to $3 million in the prior year period.

FGNA expenses for the quarter were $28.4 million compared to $14.6 million in the first quarter of 2020.

SG&A expenses for the quarter were $28 4 million compared to $14 6 million in the first quarter of 2021.

The increase in SGA was primarily due to our continued investment in the scaling of our operations and corporate headcount to support our growth.

The increase in SG&A was primarily due to our continued investment in the scaling of our operations and corporate head count to support our growth as.

As of March 31, 2022, we had 264 full-time employees versus 212 at the end of 2021. The sequential increase in Q1 was larger than we anticipate our rate of quarterly incremental investment will be for the remainder of the year.

As of March 31, 2022, we had 264 full time employees versus 212 at the end of 2021. The sequential increase in Q1 was larger than we anticipate our rate of quarterly incremental investment will be for the remainder of the year.

R&D expenses for the quarter were $5 6 million compared to $3 4 million in the first quarter of 2021, we expect our R&D expense to continue to modestly increase over the near term as we execute our clinical roadmap and develop our pipeline.

compared to 3.4 million in the first quarter of 2020.

We expect our R&D expense to continue to modestly increase over the near term as we execute our clinical roadmap and develop our pipe.

As a result of the aforementioned expense increases, our loss from operations for the three months ended March 31st, 2022 was 22.2 million compared to a loss of 11.7 million for the same period in 2020.

As a result of the aforementioned expense increases our loss from operations for the three months ended March 31 2022.

Does $2022 2 million compared to a loss of $11 7 million for the same period in 2021.

We had a net loss of $23.3 million or $0.49 per share for the first quarter based on a weighted average post-IPO share account of 47.6 million shares. This compares to a net loss of $12.2 million or $1.29 per share for the first quarter of 2021 based on a weighted average pre-IPO share account of $9.5 million.

<unk> had a net loss of 20 to $23 3 million or <unk> 49 per share for the first quarter based on a weighted average post IPO share count of 47 6 million shares. This compares to a net loss of $12 2 million for $1 29 per share for the first quarter of 2021 based on a weighted average pre IPO share count.

One 5 million shares.

We ended the quarter with $238.6 million of cash in equivalence and $32.8 million of long-term debt, which includes $2.2 million of debt discount.

We ended the quarter with $238 6 million of cash and equivalents and $32 8 million of long term debt, which includes $2 2 million of debt discount.

To restate, what Paul said earlier, we have more than enough capital to execute our plan and retain the flexibility to make decisions based on maximizing long term value.

To restate what Paul said earlier, we have more than enough capital to execute our plan and retain the flexibility to make decisions based on maximizing long-term value.

Turning to our outlook for 2022, we are affirming our full year revenue guidance range of $67 million to $75 million representing growth of approximately 37% to 53% over 2021 revenues.

Turning to our outlook for 2022, we are affirming our full-year revenue guidance range of $67 million to $75 million, representing growth of approximately 37% to 53% over 2021 revenue.

We expect that our sequential growth in the second quarter will be more modest than in previous

We expect that our sequential growth in the second quarter will be more modest than in previous years, but given the strength of the leading growth drivers that I discussed and what we are observing a better informed of commercial environment. We remain confident in our guidance for the full year and there are significant growth potential beyond.

But given the strength of the leading growth drivers that I discussed and what we are observing to be a better informed commercial environment, we remain confident in our guidance for the full year and in our significant growth potential beyond.

This concludes the prepared comments for the call. Paul and I will now be joined by Sean O'Neill, our Chief Commercial Officer, to answer your questions.

This concludes the prepared comments for the call Paul and I will now be joined by Shaun O'neil, Our chief commercial officer to answer your questions. Operator, Please open up the call for questions.

Ladies and gentlemen, if you have a question or a comment at this time. Please press. The Star then the one key on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please press the pound key.

Ladies and gentlemen, if you have a question or a comment at this time, please press the star then the one key on your touchtone telephone.

Next question has been answered. If you wish to move yourself from the queue, please press the pound key. Our first question

Our first question comes from Cecilia furlong with Morgan Stanley .

Hey, good afternoon, and thank you for taking my questions I wanted to continue with Jackie's comments recently on on guidance and you dig a little further into the cadence that you're expecting.

Great, good afternoon and thank you for taking the questions. I wanted to continue with Jesse's comments recently on guidance and dig a little further into the cadence that you're expecting, but just if you could talk about expectations for QQ specifically associated with trialing and then a trialing of competitive products that you talked about. And then as you look at the back half of the year too, any contributions that you're contemplating either from your goniatomy device or else your third gen omni in terms of your outlook for the balance of the year.

If you could talk about expectations for TQ, specifically associated with Trialing, and then Trialing a competitive products that you talked about and then as you look at the back half of the IQ any contributions that youre contemplating either.

Goniotomy device, our LCR third Gen omni in terms of just your outlook for the balance of the year.

Thanks to say I'll take it out of order just.

Thanks. I'll take it out of order just because the latter question is simpler. Very limited contribution, none in terms of like the next generation omni. We just kind of look at omni sort of holistically and very limited. We have a very conservative review of koneotomy contribution.

Because the latter.

<unk> question is simpler.

Very limited contribution.

None in terms of like the.

The next generation omni.

Just kind of look at omni sort of Holistically.

And very limited.

A very conservative view of Goniotomy contribution.

In terms of.

Cadence of guidance.

cadence of guidance, you know, I think the reality is that we've had some very exceptional growth in second quarters previously, some of that is seasonality, some of that is sort of fact in circumstance, you know, we got our expanded label in March of 2021, which was an accelerator in the second quarter.

I think the reality is is that.

We've had some.

Very exceptional growth in the second quarter as previously some of that is seasonality. Some of that is sort of fact and circumstance.

Got our expanded label in March of 2021, which was in lithium and accelerating in the second quarter.

Paul talked about some of the dynamics specifically, our view is very confident. We think that the growth drivers we outlined in the metric.

Paul talked about.

Some of the dynamics specifically, our view is very confident and we think that the.

Growth drivers, we outlined in the metrics.

um are fantastic and have really helped firm with recent periods that were strong. But we just think that the growth won't resemble sort of the trajectory in the second quarter in that the acceleration to the hit guidance will occur in the back half of the year.

Our fantastic really held firm with recent periods that were strong.

But we just think that the growth long resemble sort of the trajectory in the say in the second quarter in that.

The acceleration to hit.

His guidance will occur in the back half of the year.

Okay, great and if I could follow up just on you talked about 105 facilities.

Okay, great. And if I could follow up to just on you talked about 105 new facilities ordered on me in the quarter. Can you talk about just the headwind from a covert standpoint in in terms of accessing new accounts that you saw in the quarter? Or else competitive dynamics from the trialing standpoint. And as you think through the balance of the year, just expectations, either for this level or the potential to accelerate, given those headwinds potentially, thank you.

In the quarter can you talk about just the headwinds from a COVID-19 standpoint in terms of accessing new accounts that you saw in the quarter.

Or else competitive dynamics on the trailing standpoint, and as you think through the balance of the year.

Just expectations either for this level or the potential to accelerate.

Given those headwinds potentially.

Thank you.

You know, Cecilia, the 105 is a very strong result. It's actually stronger than what we averaged last year, right?

No.

The 105 is a very strong result, it's actually stronger than what we averaged last year right.

You know, and I think that that number for us has been pretty consistent, right? It's a high touch model and given that and our, and our desire to be there and hands on for the, for the initial user experience throughout initial cases and trialing that that would expect to be a consistent number. Where COVID impacted us was in.

And.

I think that that number for us has been pretty consistent right. It's a high touch model.

And given that in our and our desire to be there and hands on for the for the initial user experience throughout initial cases and trialing.

But that we would expect to be a consistent number where COVID-19 impacted us was in.

Sure.

Opening up sort of that time for.

Opening up sort of that time for for multiple trialing sessions and then the overall case load right like just in terms of overall utilization. And so, you know, really the 1st, 4 to 6 weeks, 4 weeks, more pronounced, but 6 weeks of the quarter were impacted by us. So, you know, when I, when I, when I think about that, that level of new facility at that, that's good execution holistically even sort of taking COVID disruption out of the equation.

For multiple Trialing sessions, and then the overall case load right just in terms of overall utilization and so really the first four to six weeks four weeks more pronounced with six weeks of the quarter were impacted by us. So.

When I think about that that level of new facility.

That's good execution holistically, even sort of taking.

Covid disruption out of the equation.

Thank you for taking the question.

Our next question comes from Andrew Brackman with...

Our next question comes from Andrew Brachman with somewhat similar.

Hey, guys. Good afternoon, thanks for taking the questions and really appreciate some of the disclosure shirts that maybe.

Thank you guys. Afternoon. Thanks for taking the questions, and I really appreciate some of the exposures here today. Maybe just to sort of piggyback off of Cecilia's line of questioning, sort of around the competitive environment and what you're seeing out there. You know, Paul, maybe just from a commercial or strategic standpoint, are there any sort of actions that you as an organization can sort of do or sort of enact, maybe shorten that trialing period that you're seeing, maybe closer to that two months rather than that six months that you sort of referenced? Thanks. Thank you.

Maybe just to sort of piggyback off of <unk> line of questioning sort of around the competitive environment and what youre seeing out there.

Paul maybe just from a commercial or <unk> standpoint are there any sort of actions that you as an organization can sort of do or sort of an act maybe.

Shorten that trailing period that youre seeing maybe closer to that two months six months that you sort of referenced.

Yeah, Hi, Andrew.

Yeah.

I think I think as it relates to.

You know, I think as it relates to competitive trialing, I think, you know, we

Competitive Trialing I think we.

We inform the field with the.

We inform the field with the most current and complete information that we have. We remind the field and the field remind surgeons about.

The most current and complete information that we have.

We remind.

The field and the field remind surgeons.

<unk>.

Um, why, why Omni wins? Um, and I think this is

Why why omni wins and I think this is.

You know, it's a really simple way to think about things, but just go through those four criteria that I walk through in the prepared remark.

It's a really simple way to think about things, but just go through those four criteria that I walked through in the prepared remarks.

It's all about efficacy.

It's all about efficacy, indication, reimbursement, and usability.

Indication.

Reimbursement and usability.

Omni, we've been iterating on Omni for many years now.

Alright, omni omnis, we've been iterating on omni for many years now.

It's very proven. So if you look at it from an efficacy perspective, there aren't any new entrants that

Very proven so if you look at it from an efficacy perspective.

There arent any new entrance that can do what omni does there arent any new entrants that can address all three points of resistance in the outflow system.

There aren't any new entrants that can address all three points of resistance in the outflow system.

and the clinical data speaks for itself from an indication.

And the clinical data speaks for itself from an indication.

If you look at Omni's indication, it's the holy grail indication that allows us to train the market effectively, to promote effectively, and to win surgeons and generate that sticky base of business. It's indicated to treat all adult patients with POAG, and I think if you look at the indications for existing products.

If you look at all of these indications, it's the Holy Grail indication that allows us to train the market effectively to promote effectively and to win surgeons.

And generate that sticky base of business.

It's indicated to treat all adult patients with <unk>.

And I think if you look at the indications for existing products.

or the new entrance, there's a lot to be desired from a reimbursement perspective.

Or the new entrants there is a lot to be desired.

From a reimbursement perspective.

Again, we remind everyone of the benefits of Omni. Omni enjoys a very stable, dependable, well-understood Category 1 CPT code, and that CAT-1 code was revalued last year, so there's no billing confusion. I think for a lot of the other products or new entrants, I think there's a ton of confusion around what they are, what they are not, what code should be billed, what code should not be billed.

Again, we remind everyone of the benefits of omni omni enjoys a very stable dependable well understood. The category one CPT code that cat one code was revalued last year. So there is no billing confusion I think for.

A lot of the other products or new entrants I think there's a ton of confusion around what they are what they are not.

What code should be build what code should not be built and.

And lastly, from a usability perspective, and we're on

And lastly from a usability perspective and we're on.

You know, depending on whether you count our predicates or not, we're on our fourth generation, fifth generation of omni, offering the surgeon that perfect user experience. So, for all those things, and we tend to stick to our fundamentals, reminding our team and the team reminding our surgeons and facility customers of the benefits of omni. And we've been doing that since day one. You can see the robust predictable business that we've generated and we expect that to continue to serve as well.

Depending on whether you count our predicates or not we're on our fourth generation to generation of omni.

Offering the surge in that perfect user experience so for all those things and we tend to stick to our fundamentals.

Reminding our team and the team reminding our surgeons and facility customers.

The benefits of omni and we've been doing that since day, one you can see the robust.

<unk> business that we generate and we expect that to continue to serve us well.

Okay. That's helpful. Thanks for that and then maybe just one on that don't wait till to late campaign.

Okay, that's helpful. Thanks for that. And then maybe just one on the don't wait till too late campaign. Obviously, that was just reason and nonce. What can you sort of tell us as it relates to how that's fairing? I guess specifically within the optometrist community. How are you thinking about that as the man-driver for the back half of the year? And then if I could just speak one more in anything that you can tell us as it relates to sort of the device intensive offset that we should be expecting here as we enter sort of the middle part of 2022. Thank you.

I was just recently launched what can you sort of tell us as it relates to how Thats Ferring I guess, specifically within the optometrist community. How are you thinking about that as a demand driver for the back half of the year and then if I could just sneak one more in anything that you can tell us as it relates to sort of the device intensive offset that we.

We should be expecting here as we enter sort of the middle part of 2022.

Sean you want to take the campaign and I'll do device intensive and it sounds great. Yeah, I was thinking the same thing so hey.

Sean, you want to take the campaign and I'll do device intensive? That sounds great. Yeah, I was thinking the same thing. So hey Andrew, it's Sean.

Sean Yes, as far as the don't wait till they were really proud of that campaign. We are proud of the leadership position that <unk> Sciences is taking in terms of educating the referral source educating both the doctor who is managing the glaucoma patient as well as then also allowing us to really communicate.

Yeah, as far as the don't wait too late, we're really proud of that campaign. We're proud of the leadership position that site sciences is taking in terms of educating the referral source, educating both the doctor who is managing the glaucoma this patient as well as then also allowing us to really communicate with the patient to the patient within office patient materials.

With the patient to the patient within an office patient materials that are ancillary to that campaign.

that are ancillary to that campaign.

So, we're seeing a lot of really positive response from it. We've been heavy in the advertisement of it in optometric journals. We've been heavy with it at optometry meetings as well.

So we're seeing a lot of really positive response from it we've been heavy in the advertisement of it and ops metric journals, we've been heavy with the optometry meetings as well and just really creating a lot of buzz around it but really.

and just really creating a lot of buzz around it, but really, you know, again, reinforcing our investment in the education of the primary eye care provider who's seeing a lot of those glaucoma patients.

Again, reinforcing our investment in the education of the primary care provider, who is seeing logos glaucoma patients. So that they can share that there is an intervention for mild moderate likelihood it will take a patient where migs procedure like omni that addresses all three points of resistance.

so that they can share that there is an intervention for mild to moderate, likely pseudo-phakic patient where a mixed procedure like omni that addresses all three points of resistance could possibly be the right opportunity for them and then get that patient over to a surgeon that is confident in performing the procedure. So overall, we're really excited about it and looking forward to continuing to see how that activates the standalone market in the second half of the year.

Could possibly be the right opportunity for them and then get that patient over to a surgeon that is confident in performing the procedure. So overall really excited about it and looking forward to continuing to see how that activates the standalone market in the second half of the year.

Andrew, on device intensive, I wish I had an answer for you today, and I wish that was a positive answer, but we're just going to have to wait and see in the proposed rule, usually at the end of June . That said, we've been very engaged over the past several quarters with CMS, MDMA, patient advocacy group.

Andrew on device intensive.

I wish I had an answer for you today and I wish that was a positive answer, but we're just going to have to wait and see in the proposed rule.

At the end of June .

That said, we've been very engaged over the past several quarters.

CMS MDMA patient advocacy groups.

And obviously the ophthalmic societies, very productive dialogues, and we feel very good about the broad support we're receiving in those discussions. In particular, we're gratified that our leading society, AAO,

And obviously, the ophthalmic societies very productive dialogues and we feel very good about the broad support we're receiving in those discussions.

In particular, we are gratified that our leading society.

As strongly supported our request for device intensive. So overall, we feel good about the support and its impact on the outcome, but ultimately as you know.

has strongly supported our request for device intensive. So, just overall, we feel good about the support and its impact on the outcome. But ultimately, as you know, we'll just have to wait and see until we can review the proposed rule sometime this summer. Great. Thank you.

We'll just have to wait and see.

Until we can review the proposal sometime this summer.

Great. Thank you.

Thanks, Andrew.

Our next question comes from Matt O'brien with Piper Sandler.

Hi, Good afternoon, it's Adam on for Matt. Thank you for taking the questions. Two from me first would love just to get a little bit more color.

Hi, good afternoon. It's Adam on for math. Thank you for taking the questions to from me first would love just to get a little bit more color on us surgical glaucoma. You know, nice start to the year, but was hoping you could kind of flesh out the mix of growth between utilization versus the impact from adding new docs and then also talk a little bit about just kind of the the usage of omni between combo cataract and standalone and then I had to follow up.

U S surgical glaucoma.

Nice start to the year, but was hoping you could kind of flesh out the mix of growth between utilization versus the impact from adding new docs and then also talk a little bit about just kind of the the usage of omni between combo cataract and Standalone and then I had a follow up thanks.

Hey out of the quarter is a little funky right because.

Hey, Adam, you know that the quarter is a little funky, right? Because, um...

You know, the number of ordering facilities increased nicely, right, but the sort of, you know, the flat quarters sequentially, so the implication, right, is average ordering down. Remember that January was a highly disrupted month in terms of our activity. So, at the highest level.

We the number of ordering facilities increased nicely right, but the sort of the.

Flat quarter sequentially, so the implication rate as average ordering down.

Remember that January was a highly disrupted.

Month in terms of award activity, so at the highest level.

Um, you know, you look at it and you're like, well, um, how do you get flat? Um, ordering facilities up new ads up nicely utilization down. But as we dig in and look at it, uh, well, you know, a big impact was, was January . So, um, hence.

You look at it and you're like well.

How do you get flat.

Ordering facilities up new adds up nicely utilization down, but as we dig in and look at it.

The Big impact was was January so.

Hence our optimism.

you know, our optimism about how that turns around for the rest of the year, and then

About how that turns around for the rest of the year.

And then sorry, the other part of your question was.

Just any color on combo, cataract versus standalone volumes.

Just any color on combo cataract versus Standalone volumes.

Yes, hi.

Hi, Adam.

I think we believe we're low to mid-teens in stand-alone versus combo cataract.

Sorry, Jeff go ahead.

You can go ahead, and just going to say I think we are we believe were low to mid teens and stand alone.

Versus combo cataract.

That being said, that's that's kind of organic historical I think just based on strong product market fit between omni and stand alone given all of the initiatives.

That being said, that's kind of organic, historical, I think, just based on strong product market fit between Omni and standalone, given all of the initiatives we have underway and the investments we're making, we expect to accelerate the growth in standalone beyond the organic growth that we're already seeing. So we're super excited. One thing I want to point out.

We have underway.

And the investments we're making.

We expect to accelerate the growth in standalone beyond the organic growth that we're already seeing.

So we're super excited one thing I want to point out.

Is.

For the near term, we really shouldn't assess site sciences success as a percentage of mix. And the reason why I say that.

For the near term, we really shouldn't assess site scientists success.

As a percentage of mix and the reason why I say that.

The two business segments are are very related as we as we bring on.

You know, the two business segments are very related as we bring on.

Happy Omni Surgeons and Combo Cataract. It's those same surgeons that serve as standalone surgeons, right? So it's the same surgeons, same device, same procedure, just a different pool of patients. And so we're going to continue.

Happy Omni serv Jamesian combo cataract, it's those same surgeon that serve as standalone charge and tried to at the same surgeons same device same procedure, just a different pool of patients and so we're going to continue to add.

surgeons who are using omni in combination with cataract for the foreseeable future. Obviously, we've demonstrated very significant growth over the past few years in combo cataract that makes our standalone growth or our mix what it is.

Surgeons, who are using omni in combination with cataract for the foreseeable future. Obviously, we've demonstrated a very significant growth over the past few years and combo cataract that makes our standalone growth.

Mix.

What it is.

No.

For off site sizes, we measure ourselves as long as we are.

For us, site sciences, we measure ourselves as long as we are...

Attractively growing both segments combo cataract as well as standalone. I say that we will be pleased with our performance

Attractively growing both segments combo cataract as well as Standalone I would say that we will be pleased with our performance.

That's really helpful color and if I can sneak in just one more.

that's really helpful color. And if I can sneak in just one more, I'll ask about the guidance and not trying to push too much here. But you'd be in Q1 by over a million. You know, so why not take up the low end of the guidance range given the momentum that you're seeing in the business?

I'll ask about the guidance and not trying to push too much here, but.

In Q1 by over a $1 million.

So why not take up the low end of the guidance range given the momentum that youre seeing in the business.

is that just some conservatism at this stage in the year? And then maybe just talk about kind of what gets you to the midpoint versus the high end of the range. Just any puts and takes there would be much appreciated. Thanks so much for taking the question.

Is that just some conservatism at this stage in the year and then maybe just talk about kind of what gets you to the midpoint versus the high end of the range just any puts and takes there would be much appreciate it. Thanks, so much for taking the questions.

Yeah, well, you know, first of all, not a ton of time has elapsed, right, just a little over a month, right, since, um...

Yes.

First of all not a ton of time as a lap right just a little over a month right since.

since we did our year-end call, right, just we were reported late as a first-time 10K filer. You know, the reality is, you know, Paul walked through, there are...

Since we did our.

Year end call. We reported late is the first time.

10-K filer.

The reality is you have a pump Paul walk through there are.

You know, judgment calls in sort of as the operating environment, you know, information is more sort of uniformly absorbed into the end user market. That's part of it. And so we do think it's kind of prudent to kind of maintain the range where it is. As you kind of hear from our comments, and I think as you take the time to absorb our metrics, the growth funnel is tremendous, right? So, you know, as we think about it with.

Judgment calls and sort of as the operating environment.

Information is.

More sort of uniformly absorbed into the end user market.

That's part of it and so we do think it's prudent to kind of maintain the range where it is.

Kind of hear from our comments and I think as you take the time to absorb our metrics the growth funnel is tremendous right. So.

As we think about it with.

with proper execution, you know, that we're putting on a number that we believe with high degree confidence is very achievable. You know, it requires

With proper execution.

We are putting on the number that we believe.

Great confidence is very achievable.

It requires.

A normalized operating environment for us to function in really is the requirement, so we know we feel good about it.

Normalized operating environment for us to function and really is the requirement. So we feel good about it.

You know, holistically, it's hard to point to like a metric that would like turn us from to the midpoint or the high end. We kind of think the growth drivers when it's sort of confidently, you know, to be able to provide that range while there's still some, you know, uncertain elements out there in the macro market. Okay, thank you for taking the questions. Appreciate it.

Holistically, it's hard to point to like a metric that would like to turn us from to the midpoint or the high end.

I think the growth drivers on a sort of confidently.

To be able to provide that range, while there is still some.

No.

Uncertain elements out there in the macro market.

Okay. Thank you for taking the questions I appreciate it.

Our next question comes from Joanne Wuensch with Citi.

Good evening and thank you for taking the questions.

Um, there's been some, uh, I think the right word is noise regarding reimbursement for canola plastic, um, and other types of procedures, uh, and I'm, and I'm talking specifically on the competitive front and I'm curious if you can comment to that and or maybe, uh, give some feedback on the most recent reimbursement report from Corcoran.

There has been some.

I think right, where it is noise regarding reimbursement for <unk>.

And other types of procedures and I'm talking specifically on the competitive front and I'm curious if you can comment to that and maybe give some feedback on the most recent reimbursement apart from coker and.

Yes, Hi, Joanne.

Yeah, hi, Joanne, since Paul, you know, I'll just speak to.

Paul.

I'll just speak to.

What we know very well, which is reimbursement for omni and the CPT code that's used when omni procedures are performed, omni is indicated for canaloplasty followed by trabeculotomy. I think the definition of canaloplasty is pretty clear, and it's naturally what omni physically performs, which is.

What we know very well which is.

Reimbursement for omni and.

That <unk>.

CPT code that omni that's used when all of these procedures are performed.

On these indicated for canal biopsy, followed by Trabecular <unk> and I think the definition of <unk> is pretty clear and it's naturally what omni physically performs which is.

The micro catheter origination and trans luminal disco dilation of up to 360 degrees of <unk> Canal. So I think the code. The code is clear their requirements are clear.

the micro-catheterization and transluminal viscode dilation of up to 360 degrees of Schlem's canal. So I think the code is clear, the requirements are clear, the procedure is clear, and Omni was designed specifically to offer a consistent and reliable canaloplasty procedure followed by Trubectilotomy as it's defined.

Seizure is clear.

And omni was designed specifically.

To offer a.

A consistent and reliable.

<unk> procedure, followed by trabecular <unk> as it's defined.

I'm not sure other products we've seen to date do just that.

I'm not sure.

Other products, we've seen to date.

Do just that.

And then as my second question, I want to talk a little bit about sales force build out. Can you remind us where we are today versus a year ago and goals for the rest of the year? Thank you.

And then as my second question I want to talk a little bit about sales force build out.

Can you remind us where we are today versus a year ago and goals for the rest of the year. Thank you.

Yeah, Hey, Seth.

Yeah, hey, showing us Jesse. We last year had 53 hunter reps in surgical about 10 hunter reps in peer care.

We last year had 53 Hunter.

Hunter reps in surgical.

About 10 Hunter reps in tier care.

And then we had each teaching account manager that focused on the teaching institutions and the VA's.

Then we had each strategic account managers that focus on the teaching institutions and the VA.

And then we had like a beta, three to four beta glaucoma clinical consultants, the group that we thought that Paul talked about in terms of standalone.

And then we have like a beta three to four beta.

Coma clinical consultants the group that we talked that Paul talked about in terms of Standalone.

We, we added a handful of territories where there was great opportunity to the hunters on surgical.

We.

<unk> added.

A handful of territories, where there is great opportunity to the hunters on surgical.

We added a handful of strategic account managers for the teaching institutions and the VA.

We added a handful of strategic account managers for the teaching institutions in the VA.

The big investment for us was we went to 20 glaucoma clinical consultants, right? And those are the standalone focus, you know, field support team for the reps. And I, you know, as Paul talked a lot about sort of their, our expectations and optimism about their contributions and comments.

The big investment for US was we.

We went to 20 glaucoma clinical consultants right and those are.

<unk> Standalone the Standalone focus.

Sure.

Field support team.

<unk>.

And.

Paul talked a lot about sort of there.

Our expectations and optimism.

About their contribution to those comments tier care we.

we added five. They're super highly productive. They're productive off the bat.

We added five.

They're super highly productive.

They're they're productive off the bat.

So we actually made the decision, we're going to edge that out by another five. So we're going to be by the end of Q2 at least at about 20 care care reps and they're.

So we actually made the decision we're going to hedge that out by another five so.

We're going to be by the end of Q2 at least at about 20 tier care reps in there.

The label there in terms of the expanded.

you know, the label there in terms of expanded.

label that we got in December has really helped the ability for them to market that product properly. So, in terms of overall field resources, that's where we stand today and that will likely be the case throughout the year.

<unk>, we got into December has really helped.

The ability for them to market that product properly so.

Terms of overall field resources, that's where we stand today and that will likely be the case throughout the year.

Okay. Thank you.

Sure.

I'm not showing any further questions at this time I'd like to turn the call back to Paul for any closing remarks.

And I'm not showing any further questions at this time. I'd like to turn the call back to Paul for any closing.

Well. Thank you all for your participation and thank you all for your interest in <unk> Sciences.

Well, thank you all for your participation, and thank you all for your interest in clay sciences. Have a good day.

Good day.

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

Ladies and gentlemen, this concludes today's presentation. You may now disconnect and have a word with me.

Okay.

[music].

Right.

[music].

No.

Okay.

Sure.

Okay.

Yes.

Okay.

[music].

you

Ladies and gentlemen, thank you for standing by and welcome to the site sciences first quarter 2022 earnings results call at the time all participants are on a listen only mode. Following the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you need to press star one on your telephone. If you require any further assistance, please press star zero. I would not like to turn the call over to your host Phillip Taylor, Investor Relations.

Investor Relations you may begin.

Thank you for participating in today's call presenting today are <unk> Sciences, co founder and Chief Executive Officer, Paul, But Ali Chief Financial Officer, Jackie sell neck, and Chief Commercial Officer, Shaun O'neil earlier today <unk> Sciences released financial results for the three months ended March 31, 2022, a copy of the press release is available.

Thank you for participating in today's call. Presenting today are Sight Sciences Co-Founder and Chief Executive Officer Al Badali, Chief Financial Officer Jesse Selnick, and Chief Commercial Officer Sean O'Neill. Earlier today, Sight Sciences released financial results for the three months ended March 31, 2022. A copy of the press release is available on the company's website at Investors.SightSciences.com.

On the Companys website at investors <unk> Sciences dotcom.

I'd like to remind everyone that comments made by management today and answers to questions will include forward-looking statements within the meaning of the federal securities law.

To remind everyone that comments made by management today and answers to questions will include forward looking statements within the meaning of the federal Securities laws. These include statements related to <unk> Sciences anticipated financial performance and operating results market opportunity.

Those include statements related to site science's anticipated financial performance and operating results, market opportunity, the future impact of COVID-19 on operations, business strategy and plans for developing and marketing new product.

The impact of COVID-19 on operations business strategy and plans for developing and marketing new products.

We're looking statements are based on estimates and assumptions as of today and are neither promises nor guarantees and are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by these statements.

description of some of the risks and uncertainties that could cause the actual results to differ materially from those indicated by the forward-looking statements on this call can be found in the risk factors section of the annual report on Form 10K, filed March 21, 2018.

A description of some of the risks and uncertainties that could cause the actual results to differ materially from those indicated by the forward looking statements on this call can be found in the risk factors section of the annual report on Form 10-K filed March 'twenty one.

Paul.

Thank you trip and thank you all for joining us.

Our first quarter 2022 revenue increased to $14 9 million.

Our first quarter, 2022 revenue, increased to $14.9 million.

representing 72% growth compared to the prior year period and 1% sequential growth compared to the fourth quarter of 2021.

Representing 72% growth compared to the prior year period, and 1% sequential growth compared to the fourth quarter of 2021.

A strong continued pace of new customer wins and extremely high customer retention resulted in surgical glaucoma revenue of $13.9 million.

Our strong continued pace of new customer wins and extremely high customer retention resulted in surgical glaucoma revenue of $13 9 million.

in line with the prior quarter's revenue and exceeding our internal expectations given Omicron, seasonality, and competitive trial.

In line with the prior quarter's revenue and exceeding our internal expectations, given omicron seasonality and competitive trial.

Surgical glaucoma year over year revenue growth accelerated to 70% in the quarter compared to 60% in the fourth quarter of 2021.

Surgical glaucoma year-over-year revenue growth accelerated to 70% in the quarter compared to 60% in the fourth quarter of 2021.

Point of comparison, our surgical glaucoma revenues sequentially declined 7% from the fourth quarter of 2020 to the first quarter of 2021, yet we still grew surgical glaucoma revenue, 79% for the year.