Q1 2024 RxSight Inc Earnings Call
Okay.
Operator: Good day, and thank you for standing by. Welcome to the Rxsight First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 11 on your telephone. You will then hear an automated message advising you that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Oliver Moravcevic, VP of Investor Relations. Please go ahead.
Oliver Moravcevic: Presenting today are Rxsight President and Chief Executive Officer, Dr. Ron Kurtz, and Chief Financial Officer, Shelley Thunen. Earlier today, Rxsight released financial results for the three months ended March 31, 2024.
Speaker Change: Good day and thank you for standing by welcome to the first quarter 2024 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone.
Speaker Change: And here an automated message.
You just raised to withdraw your question. Please press star one again, please be advised today's conference is being recorded I would now like to hand, the conference over to your speaker today Oliver more.
Oliver Moravcevic: V P of Investor Relations. Please go ahead.
Oliver Moravcevic: Thank you operator.
Oliver Moravcevic: Renting today are our president and Chief Executive Officer, Dr. Ron Kurt and Chief Financial Officer, Shelley Thunen earlier to date are excited released financial results for the three months ended March 31, 2020 for a copy of the press release is available on the Companys website.
Oliver Moravcevic: Before we begin, I would like to inform you that comments and responses to questions during today's call reflect management's views as of today, May 6, 2024, and will include forward-looking and opinion statements, including predictions, estimates, plans, expectations, and other information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today and in our filings with the Securities and Exchange Commission, or SEC.
Oliver Moravcevic: Before we begin I would like to inform you that comments and responses to questions. During today's call reflect management's views as of today may six 2024 and will include forward looking an opinion statements.
<unk> predictions estimates plans expectations and other information actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties.
Oliver Moravcevic: These risks and uncertainties are more fully described in our press release issued today and in our filings with the Securities and Exchange Commission or SEC.
Oliver Moravcevic: Our SEC filings can be found on our website or the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements, and we disclaim any obligation to update or revise these forward-looking statements. We will also discuss certain non-GAAP financial measures. Disclosures regarding non-GAAP financial measures, including reconciliations with the most comparable GAAP measures, can be found in the press release. Please note that this conference will be available for audio replay on our investor website. With that said, I will turn the call over to our President and Chief Executive Officer, Dr. Ron Kurtz.
Oliver Moravcevic: Our SEC filings can be found on our website or the Sec's website investors are cautioned not to place undue reliance on forward looking statements and we disclaim any obligation to update it.
Oliver Moravcevic: Or revise these forward looking statements. We will also discuss certain non-GAAP financial measures disclosures regarding non-GAAP financial measures, including reconciliations with the most comparable GAAP measures can be found in the press release.
Speaker Change: Please note that this conference will be available for audio replay on our investor website with that I will turn the call over to our President and Chief Executive Officer, Dr. Ron Curt's right.
Ronald M. Kurtz: Good afternoon, and thank you for joining us. In a moment, Shelley will review our first quarter financial results and provide an update to our 2024 guidance, which we believe once again demonstrates the sustained clinical and commercial performance of our light adjustable lens technology. After Shelley's financial review, I will return with some updates from the recent American Society of Cataract and Refractive Surgery meeting, which included the full launch of LAL+, the newest member of our light-adjustable lens platform. Please take it away, Shelley.
Speaker Change: Good afternoon, and thank you for joining us in a moment Shelly will review, our first quarter financial results and provide an update to our 2024 guidance, which we believe once again demonstrates the sustained clinical and commercial performance of our light adjustable lens technology.
Speaker Change: After Shelley's financial review I will return with some updates from the recent American Society of cataract and refractive surgery meeting, which included the full launch of L. A L plus the newest member of our light adjustable lens platform. Please.
Shelley B. Thunen: Shelley. Thank you, Ron, and good afternoon, everyone. Rxsight generated first quarter 2024 revenue of $29.5 million, up 69% compared to the $17.5 million in the year-ago quarter and up 3% compared to $28.6 million in the fourth quarter of 2023. During the quarter, we sold 20,218 LALs and generated $19.9 million in revenue, up 92% and 12% compared to the first and fourth quarters of 2023, respectively. In Q1 of this year, LAL revenue represented 67% of total revenue, an increase from 59% and 62% in the first and fourth quarters of 2023, respectively. During the first quarter of 2024, we sold 66 LDDs, up 18% to 56 units in the year-ago period.
Speaker Change: Please take it away Shelly, Thank you Ron and good afternoon, everyone.
Speaker Change: Alright.
Shelly: <unk> first quarter 2020 for revenue of $29 5 million up 69% compared to $17 5 million in the year ago quarter, and up 3% compared to $28 6 million in the fourth quarter of 2023.
Shelly: During the quarter, we sold 22.
Shelly: 219, LLS and generated $19 $9 million in revenue up 92% and 12% compared to the first and fourth quarters of 2023, respectively.
Shelly: Q1 of this year L. L revenue represented 67% of total revenue an increase from 59% and 62% in the first and fourth quarters of 2023, respectively.
Shelly: During the first quarter of 2024, we sold 66 L. D D up 18% to 56 units in the year ago period.
Shelley B. Thunen: As expected, capital equipment sales reflected the typical first quarter seasonality; therefore, on a sequential basis, our LDD units sold for the quarter were down 14% compared to the 77 units in the fourth quarter of 2023. During the quarter, LDD sales generated revenue of $8.7 million, up 35% and down 13% versus the first and fourth quarters of 2023, respectively. As of March 31st, 2024, our installed base stood at 732 units, up 61% and 10% versus the first and fourth quarters of 2023, respectively.
As expected capital equipment sales reflected the typical first quarter seasonality. Therefore on a sequential basis. Our L. D. D units sold for the quarter were down 14% compared to the 77 units in the fourth quarter of 2023.
Shelly: During the quarter Ldds sales generated revenue of $8 $7 million up 35% and down 13% versus the first and fourth quarters of 2023, respectively.
Shelly: As of March 31, 2020 for our installed base stood at 732 units up 61% and 10% versus the first and fourth quarters of 2023, respectively.
Shelley B. Thunen: Growth margin in the first quarter of 2024 was 70%, compared to 59% and 62% in the first and fourth quarters of 2023, respectively. The increase primarily reflects the shift in product mix with the higher-margin LAL revenue advancing to 67% of revenue. Lower costs to manufacture both our LAL and LDD also contributed to the gross margin expansion in the quarter.
Shelly: Gross margin in the first quarter of 2024 was 70%.
Shelly: <unk> to 59% and 62% in the first and fourth quarters of 2023, respectively.
Shelly: It's primarily reflects the shift in product mix, the higher margin LEL revenue advancing to 67% of revenue.
Shelly: Lower cost to manufacture both our Ll and LD D. Also contributed to the gross margin expansion in the quarter.
Shelley B. Thunen: SG&A expenses in the first quarter of 2024 were $23.3 million, representing an increase of $7 million, or 44%, versus $16.3 million in the year-ago quarter. This year-over-year change was primarily due to an increase in personnel costs, higher stock-based compensation expenses, and additional marketing study spending. On a sequential basis, SG&A expenses increased 10%, due primarily to a higher number of personnel and Phase IV commercial study costs. During the first quarter of this year, R&D expenses rose 11% to $8 million, compared to $7.2 million in the first quarter of 2020.
Shelly: SG&A expenses in the first quarter of 2024 were $23 3 million, representing an increase of $7 million or 44% versus $16 $3 million in the year ago quarter. This.
Shelly: This year over year change was primarily due to an increase in personnel costs higher stock based compensation expense and additional marketing steady spending on a sequential basis SG&A expenses increased 10% due primarily to higher number of personnel and thanks for coming.
Yes.
Shelly: During the first quarter of this year R&D expenses rose, 11% to $8 million compared to $7 2 million in the first quarter of 2023.
Year over year change, primarily reflects an increase in salaries and stock based compensation.
Shelley B. Thunen: This year-over-year change primarily reflects an increase in salaries and stock-based compensation. Compared to the fourth quarter of 2023, R&D expenses in the first quarter rose by 9%, primarily driven by a one-time change in allocation of certain R&D-related costs.
Shelly: Compared to the fourth quarter of 2023 R&D expenses in the first quarter rose by 9%, primarily driven by a onetime change in allocation of certain R&D related costs.
Shelley B. Thunen: We reported a gap net loss in the first quarter of $9.1 million for a loss of $0.25 per basic and diluted share, using weighted average shares outstanding of 36.8 million shares. This compares to a gap net loss of $13.2 million or $0.42 per share on a basic and diluted basis in the first quarter of 2020. Note also that stock-based compensation in the first quarter of 2024 was $4.7 million, resulting in a non-GAAP loss of $4.4 million, or a loss of 12 cents per basic and diluted share.
Shelly: We reported a GAAP net loss in the first quarter of $9 $1 million or a loss of 25 cents per basic and diluted shares using weighted average shares outstanding of $36 8 million shares.
Shelly: This compares to a GAAP net loss of $13 2 million or <unk> 42 cents per share on a basic and diluted basis.
Shelly: 2020.
Shelly: Note also that stock based compensation in the first quarter of 2024 was $4 $7 million, resulting in a non-GAAP loss of $4 4 million or a loss of 12 cents per basic and diluted shares. Please.
Shelley B. Thunen: Please refer to the unaudited, non-GAAP reconciliation and disclosure included in today's press release for more comparative information. We ended the first quarter of 2024 with cash equivalents and short-term investment of $125.4 million compared to $127.2 million on December 31, 2023. Cash used in the quarter for operations was offset by $8 million of net cash received from stock option exercises. While we always have some cash generated from stock option exercises, more stock options were exercised than usual given the longer than usual open window and increased stock price.
Shelly: Please refer to the unaudited non-GAAP reconciliation and disclosure included in today's press release for more.
Shelly: Information.
Shelly: We ended the first quarter of 2024 with cash cash equivalents and short term investments of $125 $4 million compared to $127 2 million on December 31 2023.
Shelly: Cash used in the quarter for operations was offset by $8 million of net cash received from stock option exercises.
Shelly: While we always have some cash generated from stock option exercises more stock options were exercised than normal given the longer than usual open window and increased stock price.
Shelley B. Thunen: Approximately 16% of the stock option shares were exercised related to 10b-5-1 transactions. We are pleased to announce that in April of this year, we entered into a new lease and amended two existing leases at our campus in Aliso Viejo, CA, to extend the rental terms and options to ensure continued long-term access to our facilities, acquire additional square footage to expand manufacturing, and align the lease end dates for each of our four facilities.
Shelly: Slide 16% at the stock option shares were exercised related can be five one transactions.
Shelly: We are pleased to announce that in April of this year, we entered into a new lease and amendments to existing leases at our campus in Aliso Viejo, California to extend the rental terms and options to ensure continued long term access to our field facilities acquire additional square footage to expand manufacturer.
Shelly: And align the lease and dates for each of our four facilities.
Shelley B. Thunen: Moving on to our 2024 outlook, we are increasing our 2024 revenue, growth margin, and operating expense guidance as follows. Revenue of $132 million to $137 million, up from previous guidance of $128 million to $135 million, implying year-over-year growth of 48% to 54% and assuming continuing sequential quarterly growth with normal seasonality in the third quarter due to summer vacations by both patients and doctors. Gross margin of 68% to 70%, up from our previous guidance of 65% to 67%.
Moving on to our 2020 for outlook.
Shelley B. Thunen: The new guidance is primarily driven by slightly higher than expected revenue contributions from the LAL and continued cost reductions to produce both our LAL and LDD along with continued pricing discipline for our LDD. Gross margin is likely to vary modestly during the year depending on the mix between LAL and LDD revenue in any one quarter. Operating expenses of $126 to $130 million dollars, up from our previous guidance of $125 to $128 million dollars, and representing an implied increase of 21 to 25% over 2023, are sending us focus on continuing efforts to leverage our commercial momentum, grow our educational efforts, develop our pipeline, and expand internationally as regulatory approvals are obtained. Note that the operating expense estimate includes non-cash, stock-based, and compensation expenses between $22 and $25 million.
We are increasing our 2020 for revenue gross margin and operating expense guidance as follows.
Shelley B. Thunen: With that, I'll turn the call back to Ron.
Shelly: Revenue of 132 million $237 million up from previous guidance of 128.
Shelly: 8 million to $135 million.
Applying year over year growth of 48% to 54% and assuming continued sequential quarterly growth with normal seasonality in the third quarter due to summer vacations by both patients and doctors.
Shelly: <unk> margin of 68% to 70% up from our previous guidance of 65% to 67%.
Shelly: The new guidance is primarily driven by slightly higher than expected revenue contributions from the L. L and continued cost reductions to produce both our Ll and LD along with continued pricing discipline our LDP.
Shelly: Gross margin is likely to vary modestly during the year, depending on the mix between LDL and L. D D revenue in any one quarter.
Shelly: Operating expenses of $126 million to $130 million up from our previous guidance of $125 million to $128 million and representing an implied increase of 21% to 25% of the 2023.
Shelly: Our spending is focused on continuing efforts to leverage our commercial momentum grow our educational efforts.
Shelly: All of our pipeline and expand internationally as regulatory approvals are obtained.
Shelly: Note that the operating expense estimate includes noncash stock based compensation expenses between $20 million to $25 million.
Shelly: With that I'll turn the call back to Ron.
Ronald M. Kurtz: Rxsight's strong first quarter performance was followed by continued keen interest in our light adjustable lens technology at the recent annual meeting of the American Society of Cataract and Refractive Surgery, the second largest U.S. ophthalmic conference with over 5,000 attendees. The LAL was prominently featured in over 20 formal session presentations, and its use in various clinical settings was a common topic in discussion forums. In one of these presentations, Dr. Hunter Newsom reported on data collected from approximately 1,000 bilaterally implanted LAL subjects at nearly 100 practices.
Ron: Thank you Shelly Rx straights strong first quarter performance was followed by continued keen interest in our light adjustable lens technology at the recent annual meeting of the American Society of cataract and refractive surgery. The second largest U S Ophthalmic conference with over 5000 attendees.
Ron: <unk> was prominently featured in over 20 formal session presentations and its use in various clinical settings was a common topic in discussion forums in one of these presentations Dr. Hunter Newsome reported on data collected from approximately 1000 bilaterally implanted subjects at nearly 100 practices approximately 90.
Ronald M. Kurtz: Approximately 90% of LAL patients attained binocular and corrective vision of 20-20 or better, while over 90% were able to read J-2 or 5-point font with both eyes. Dr. Newsom also discussed the newest member of the Rxsight platform, the LAL+, presenting initial clinical data from 10 practices that compared monocular distance-corrected vision in over 200 LAL+ patients and 100 LALI patients. With both groups, while both groups attained excellent distance vision, LAL Plus Eyes demonstrated more than a line improvement at near. Additionally, both groups demonstrated excellent binocular vision with comparatively high rates of patients achieving 20-20 or better.
Ron: Percent of LDL patients detained attained by non ocular I corrected vision of 2020 or better while over 90%, we're able to reach a two or five five with both ties.
Hunter Newsome: Dr. <unk> also discussed the newest member of the Rx side platform. The L. L plus presenting initial clinical data from 10 practices that compared monocular distance corrected vision and over 200, plus and 100 allies with both groups, while both groups attained excellent distance vision.
Hunter Newsome: L plus size exhibited more than align improvement at NEER.
Hunter Newsome: Both groups demonstrated excellent by an ocular vision with comparatively higher rates of patients achieving 2020 or better.
Operator: Doctors now have two LALs to choose from to achieve the most customized visual outcomes possible after cataract surgery. With the growing number of doctors and practices offering the LAL and LAL+, as well as increasing uptake by patients, we believe we are establishing a new standard for premium IOL offerings in the U.S. Based on this momentum, we are even more committed to reaching the full potential of Rxsight's unique adjustable technology and premium market opportunity.
Hunter Newsome: Doctors now have to LLS to choose from to achieve the most customized visual outcomes possible after cataract surgery.
Hunter Newsome: With the growing number of doctors and practices offering the layout and L. L plus as well as increasing uptake by patients. We believe we are establishing a new standard for premium <unk> offerings in the U S.
Hunter Newsome: Based on this momentum we are even more committed to reaching the full potential of Rx sites unique adjustable technology and premium market opportunity.
Operator: This includes expanding programs that enhance the clinical knowledge base of ophthalmologists, optometrists, and other eye care professionals, thereby leading to a better informed and served public. We believe that when patients understand the full benefits of adjustability, they are more likely to choose an LAL over a fixed lens alternative and thereby optimize their vision in ways that are meaningful to them. Reaching our full potential also includes maintaining our commitment to rapid innovation, exemplified not only by the recently commercialized LAL+ but also by ongoing advancements in the LDD and LAL insertion technologies.
Hunter Newsome: This includes expanding programs that enhance the clinical knowledge base of ophthalmologists optometrists and other eyecare professionals, thereby leading to a better informed and serve public we believe that when patients understand the full benefits of adjustability. They are more likely to choose and lay out over a fixed lens alternative and.
Hunter Newsome: Thereby optimize their vision in ways that are meaningful to them.
Hunter Newsome: Reaching our full potential also includes maintaining our commitment to rapid innovation exemplified not only by the recently commercialized L. L plus but also by ongoing advancements to the LTE and <unk> insertion technology.
Operator: In addition, we continue to believe that the success of the LAL in both the U.S. and Canada can be replicated in most major markets and look forward to building successful international programs, particularly in Asia and Europe, following regulatory approval. Overall, we feel our strong first quarter results, along with the very positive reception at this year's ASCRS, further support our vision to make adjustability the standard for premium cataract and lens replacement surgery. With that, I'll ask the operator to open the call for questions. Thank you.
Hunter Newsome: In addition, we continue to believe that the success of <unk> in both the U S and Canada can be replicated in most major markets and look forward to building successful international programs, particularly in Asia and Europe following regulatory approvals.
Hunter Newsome: Overall, we feel our strong first quarter results along with the very positive reception at this year's <unk> further support our vision to make adjustability the standard for premium cataract and lens replacement surgery.
Speaker Change: With that I'll ask the operator open the call for questions.
Operator: Thank you. As a reminder, to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
As a reminder to ask a question at this time. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment, while we come by all our Q&A roster.
Robert Justin Marcus: One moment while we compile our Q&A roster. Our first question is going to come from the line of Robbie Marcus with J.P. Morgan. Your line is open. Please go ahead.
Speaker Change: Our first question is going to come from the line of Robbie Marcus with Jpmorgan. Your line is open. Please go ahead.
Shelley B. Thunen: Oh, great. Thanks for taking the question and congrats on a very nice quarter. Two for me, maybe first to start, volumes both in LAL and LDD were really strong in the quarter, but so was pricing, if I'm doing my math right here. So maybe speak to what you're seeing in the field in terms of both adoption trends as you continue to place more than expected LDDs and good utilization, but also on the pricing side because it continues to be robust for both of them. Thanks.
Robert Justin Marcus: Oh, great. Thanks for taking my question and congrats on a very nice quarter.
Robert Justin Marcus: Two from me, maybe first to start.
Robert Justin Marcus: Volumes, both in L. A al and the LTV were really strong in the quarter, but also so is pricing if I do my.
Robert Justin Marcus: The math correct here, so maybe speak to what Youre seeing in the field in terms of.
Both the adoption trends as you continue to place more than expected LTE teas, and good utilization, but also on the pricing side because it continues to be robust for both of them. Okay.
Ronald M. Kurtz: Okay, why don't we start with Ron on the adoption trends, and I'll follow up on the ASPs.
Robert Justin Marcus: Okay, why don't we start with Ron on the adoption trends and I'll follow up on the Asp's.
Ronald M. Kurtz: Yeah, I think that, you know, as you noted, Robbie, the adoption trends continue to be very positive. We think that's a combination of the clinical outcomes with the LAL and now the LAL Plus, as well as the continued focus of our customer base on the premium IOL market and the potential to offset, you know, the revenue losses that they're seeing in their reimbursed areas. So overall, you know, we anticipate continued strong adoption, and with that, we've been able to maintain good prices. Thank you, Ron.
Ron: Yes, I think that.
Ron: As you noted Ravi the adoption trends continued to be very positive.
We think thats a combination.
Ron: The clinical outcomes with the El Al and now the L. A L plus.
Ron: As well as the continued focus.
Ron: Of.
Ron: Our customer base on the premium <unk> market and the potential to offset.
The revenue losses that they're seeing in their reimbursed areas. So overall.
Ron: We anticipate continued.
Ron: Strong adoption and with that.
Ron: We've been able to maintain good pricing discipline. Thank you, Brian and as you recall and no Ravi in the <unk>.
Shelley B. Thunen: Thank you, Ron. And as you recall and know, Robbie, in the third quarter when we introduced the newer LED, we increased our price by about 10%. And at that time, and again at year-end, we felt like the ASP would continue to hold through going into 2024. We certainly saw that in the first quarter.
Third quarter, when we introduced the.
Speaker Change: Newer LTE, we increased our price by about 10%.
Speaker Change: And at that time and again at year end, we felt like the.
Speaker Change: Asps will continue to hold through going into the into 2024, we certainly saw that in the first quarter. The ASP was up about $3000 as compared to the fourth quarter.
Shelley B. Thunen: The ASP was up about $3,000 as compared to the fourth quarter. I don't think it's any particular item that increased that as much as the mix of customers, how large they are, whether it was the second or third LED. And again, I think really good pricing discipline from our sales force, bolstered by the fact that the results are excellent clinically and that we have more and more references for new doctors to go to.
Speaker Change: I don't think it's any particular.
Speaker Change: Item that increase that is much as mix of customers. How large they are whether it was the second or third LGD.
Speaker Change: And you know.
Again, I think really good pricing discipline from our sales force bolstered by the fact that the results are.
Speaker Change: Excellent clinically.
Speaker Change: We have more and more references for new doctors to kick out yet.
Ronald M. Kurtz: And great, maybe as a follow-up, I wanted to talk about the competitive environment. By my math, they're closing in on 10% or so of the premium IOL market. You know, I imagine that's a pretty disruptive mark as you look at your competitors. You're starting to take larger shares and, you know, not just some early adopters but hitting more of the mass market appeal. What, if anything, are you seeing in terms of a response from your competitors? And how do you feel about your ability to continue to grow and take share as you're moving up the adoption curve? Thanks a lot.
Speaker Change: And maybe as a follow up I wanted to talk on the competitive environment by my math, you're closing in on 10% or so of the premium market.
Speaker Change: I imagine that's a pretty disruptive markets you look at your competitors Youre starting to take larger share than me and I'm not just some early adopters, but hitting more of the mass market appeal. What if anything are you seeing in terms of the response from your competitors and how do you feel about your ability to continue to grow.
Speaker Change: It would take share as you're moving up the adoption curve. Thanks a lot.
Ronald M. Kurtz: Well, you know, I would say that, as we've noted before, a significant percentage of LAL cases are coming from patients who otherwise would not have selected a premium IOL. And because of that, you know, while some of our numbers are coming from other competitors in the premium space, a very large percentage are coming from either standard monofocal IOLs or TORIC IOLs, which tend to have less focus than the Presbyopia Correcting IOLs. And so, you know, I think that, you know, that may not generate as much interest as, you know, as the 10% number that you quoted might otherwise. Shelley, do you have anything you want to add?
Speaker Change: Well I would say that.
Speaker Change: As we've noted before a significant percentage of L. A L cases.
Speaker Change: Coming from patients, who otherwise would not have selected our premium I O L.
And because of that.
Speaker Change: While some of our.
Speaker Change: Some of our.
Speaker Change: Our numbers are coming from other competitors in the premium space, a very large percentage are coming from either.
Speaker Change: Standard mono focal LLS or <unk>, or toric, IOL wells, which tends to have less focus.
Speaker Change: The presbyopia correcting ILS.
Speaker Change: So I think that.
That may not generate as much interest.
Speaker Change: As as.
Speaker Change: Is that is the 10% number that you quoted might otherwise Shelly do you have anything you want to add no I don't think so I think that people are taking notice certainly Crs. We had you should talk about just kind of the booth traffic, we had as well as the number of presentations, we have no clue and.
Shelley B. Thunen: No, I don't think so. I think that people are taking notice of us, certainly at ASCRS. You should talk about just kind of the booth traffic we had as well as the number of presentations we had in the booth and the number of papers presented at ASCRS. I think that certainly, you know, has led to higher visibility for us. Absolutely.
Speaker Change: Number of papers presented at Ash, Crs I think Thats certainly.
Speaker Change: Has led to higher visibility for it.
Ronald M. Kurtz: Absolutely, you know, I think that we're, you know, there are more and more practices that are using the technology and getting excellent results, and word travels. But in terms of, you know, competitors, I think that they've been aware of Rxsight for some time and will continue to follow it.
Speaker Change: Absolutely.
Speaker Change: Think that.
Where there are more and more practices that are using the technology and getting excellent results in that that word travels.
Speaker Change: But in terms of.
Competitors.
Speaker Change: I think that they've been aware of.
Speaker Change: Our excite for some time and we'll continue to follow it.
Speaker Change: Thanks, a lot.
Ryan Benjamin Zimmerman: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of Ryan Zimmerman with BTIG. Your line is open. Please go ahead.
Thank you and one moment as we move on to our next question.
Speaker Change: And our next question is going to come from the line of Ryan Zimmerman with <unk>. Your line is open. Please go ahead.
Ryan Benjamin Zimmerman: Good morning or afternoon, excuse me, I have too many earnings calls. I just want to ask about a couple of things.
Good morning, and.
Afternoon, excuse me too many earnings calls.
Ryan Benjamin Zimmerman: I just wanted to ask about a couple of things.
Shelley B. Thunen: So, you know, the installed base now is past 700. You've had a number of units in the field now for numerous years. As that installed base grows, I'm just wondering if there are any service revenue considerations we should be thinking about. I would imagine that can start to grow and maybe, you know, step up a little bit over the course of this year and into 2025.
Ryan Benjamin Zimmerman: The installed base now has passed 700 <unk> had a number of.
Ryan Benjamin Zimmerman: Units in the field now for numerous years.
Ryan Benjamin Zimmerman: That install base grows I'm just wondering if theres any service revenue considerations, we should be thinking about I would imagine that can start to grow in.
Ryan Benjamin Zimmerman: Maybe step up a little bit over the course of this year and then to 2025.
Shelley B. Thunen: Yeah, I think that's a good question, Ryan. We do have a line on our P&L for service and accessories, and it's exactly what you talk about, primarily service revenue. When we sell the LDD, in accordance with GAAP, we carve out about $7,000 out of the LDD revenue and ASP, and that is amortized over a year period into the service line. And in addition, we find that about 80% of our customers, when their one-year warranty expires, take a service contract with us, and the other 20% tend to use time and material. And so we should continue to see that line grow as our installed base grows.
Speaker Change: Yes, I think Thats a good question Ryan we do have a line on our P&L for service and accessories and exactly what you're talking about primarily service revenue.
Speaker Change: When we sell the LGD in accordance with GAAP, we carve out about $7000 out of the LGD revenue and ASP.
Speaker Change: And that is amortized over a year period.
Speaker Change: Q This service.
Speaker Change: Fine.
Speaker Change: And in addition, we signed about 80%.
Our customers when there.
Speaker Change: One year warranty expires take a service contract with us.
Speaker Change: And the other 20% <unk> time and material.
Speaker Change: And so we should continue to see that line grow as our installed base.
Ryan Benjamin Zimmerman: And then, you know, Shelley, margins were fantastic this quarter. Probably the most, I think, encouraging thing, you know, for long-term investors.
Speaker Change: Okay, and then Shelly margins were fantastic.
Speaker Change: Quarter, probably the most.
Speaker Change: I think encouraging thing for long term investors.
Shelley B. Thunen: You're guiding a little below 70 percent. You did over 70 this quarter, just by a hair. You know, why does that regress the rest of the year below 70? Because, I mean, you're just on this fantastic trajectory with more LAL sold to drive margins higher. Yeah, I think that the prime...
Speaker Change: Youre guiding a little below 70% you did over 70 this quarter just a hair.
Speaker Change: Does that request and the rest of the year.
Speaker Change: Below 70, because youre just on this fantastic trajectory with more early also to drive margins higher.
Shelley B. Thunen: Yeah, I think that the primary driver for margin in any given quarter is the percent of LAL as a percent of revenue. In the first quarter, it was quite high because, typically, you see lower LDD sales, you know, capital sales, which we did. So I think that as you go through the next three quarters, we can see some different next shifts as well. And, of course, the LDD has a much lower gross margin in the first quarter as well.
Speaker Change: Yes, I think that's the primary driver for margin in any given quarter is the percent of LDL as a percent of revenue in the first quarter. It was quite high because typically we see lower LDC sales capital sales, which we did.
Speaker Change: So I think that as you go through the next three quarters, we can see some different mix shifts as well and of course, the LGD has a much lower gross margin.
Speaker Change: Then the LVL and of course as I mentioned.
Speaker Change: We did have a nice ASP bump.
Speaker Change: In the first quarter.
Shelley B. Thunen: That might be usual or unusual as well. And, you know, we've been able to roll in lower material cost components more quickly than we had planned. But I think really the difference in any given quarter is going to be the percent of LAL and the percent of OE. Thanks.
Speaker Change: As well that might be usual or unusual as well and.
Speaker Change: We've been able to roll in and lower material costs components more quickly than we had planned but I think really the difference in any given quarter is going to be percent of LDL and percent of LTV.
Speaker Change: Thanks, Sean.
Patrick Andrew Robert Wood: Thank you, and one moment as we move on to our next question. Our next question is going to come from the line of Patrick Wood with Morgan Stanley. Your line is open, please go ahead.
Sean: Thank you and one moment as we move on to our next question.
Sean: Our next question is going to come from the line of Patrick Wood with Morgan Stanley. Your line is open. Please go ahead.
Shelley B. Thunen: Fantastic, thank you for taking the questions. I guess the first one, you know, I know you guys don't split the guide down, but just qualitatively for LBD placements... Would you expect that kind of similar growth that we saw year on year in LDD placements in Q1? Would you expect that to be a similar kind of growth trajectory through the year or a bit of an uptick in that and a drop in the LALs? I'm just trying to work out roughly the passing of those two things out, even just qualitatively.
Patrick Andrew Robert Wood: Fantastic. Thank you for taking the questions I guess the first one I know you guys don't split the guide down, but just qualitatively for LTV placements would you expect that kind of similar growth that we saw year on year and LTE. The placements in Q1 would you expect that to be a similar kind of growth trajectory through the year or.
Patrick Andrew Robert Wood: Eight of an uptick in that and a drop in the LLS I'm just trying to work out roughly get the pulsing of those few things out even just qualitatively.
Shelley B. Thunen: Qualitatively, of course, you know the LAL grows much faster than the LDD, and that's to be expected because our primary focus is not only just getting new customers, but getting new customers up faster, as well as continuing to penetrate our existing customers and get them to continue to grow. So, we have seen this shift between the LAL and the LDD. You know, the more installed base you get, you continue to get that, but in terms of breaking it out, I think kind of the general trends that we've been in for the last three or four years with LALs increasing much faster than LDD are indicative of what we want to do.
Speaker Change: Yes qualitatively of course.
Speaker Change: LEL grows much faster.
Speaker Change: And that's to be expected because our primary focus is not only just getting new customers, we're getting new customers faster as well as continuing to penetrate our existing customers and get them to continue to grow.
Speaker Change: So we have seen the shift between the Ll and LD.
Speaker Change: The more installed base you get.
Speaker Change: I continue to get that.
Speaker Change: In terms of breaking it out I think kind of the general trends that we've been for the last three or four years with LLS, increasing much faster than LCD.
Speaker Change: Is indicative of what we wanted.
Shelley B. Thunen: Thank you. And then, again, qualitatively, of the LDD placements that you've seen, you know, in the last three, four, five months, outside of... Can you give us some sort of flavor, how much of that is new accounts, existing accounts, buying a second system, just the, you know, how that's trended over time?
Speaker Change: Makes sense. Thank you and then again qualitatively of LTV placements that you've seen in the last 345 months that side of things.
Speaker Change: Could you give us some sort of flavor on how much of that is new accounts existing accounts buying a second system just how that's trended over time by recently would be would be helpful.
Shelley B. Thunen: Yeah, it's predominantly new accounts. And, you know, what you see now a little bit is I wouldn't call them repeat accounts in the following sense, because each sale is to an individual office, although the doctor or the underlying owners may be the same. Right?
Speaker Change: Yes, it's predominantly new accounts.
Shelley B. Thunen: Because you're still selling to the primary doctors in the practice who want to pick up the LAL. Some doctors have, you know, two or three separate offices. They start in one, but then they might have different partners in their second and third. You see other people that are part of a larger network or a buying group, but each of those are individual sales. But I would say the vast majority are brand new customers to us that we haven't had in our installed base. There are always some that buy that we know, and they're really just expanding their footprint in their practices or in their networks.
Speaker Change: And what you see now a little bit is I wouldn't call them repeat accounts in the following.
Speaker Change: Because each sale is to an individual office, although the doctor or the underlying owners, maybe this thing right because youre still selling to the primary doctors in the practice that want to pick up the.
Speaker Change: Some doctors have two or three separate offices at certain one but then they might have different partners in the second and third offices you see other people that are part of a larger network or buying group and each of those are individual sales, but I would say the vast majority are brand new customers to us that we haven't had.
Speaker Change: In our installed base.
There are always RSM by that we know and it really just expanding their footprint in their practices.
Patrick Andrew Robert Wood: Brilliant. Thank you so much.
Speaker Change: At work.
Speaker Change: Brian Thank you so much.
Operator: Thank you, and one moment as we move on to our next question. And our next question is going to come from the line of David Saxon with Needham & Company. Your line is open, please go ahead.
Speaker Change: Thank you and one moment as we move onto our next question.
Speaker Change: And our next question is going to come from the line of David Saxon with.
David Joshua Saxon: Needham <unk> company. Your line is open. Please go ahead.
Joseph Scott Conway: Hi, this is Joseph on behalf of David. Um, just wanting to know how you guys are thinking about the competitive landscape, uh, you know, with Odyssey and kind of an early launch and Panoptix Pro coming in the future.
David Joshua Saxon: Hi, This is Joseph on for David.
Joseph: Just wanted to know how you guys are thinking about the competitive landscape.
Joseph: With the Odyssey and cutting of an early launch and.
Joseph: In optics pro come in and in the future.
Ronald M. Kurtz: Well, thank you. I would categorize those competitive offerings as being part of the, you know, the fixed lenses that are very similar to other fixed lenses in the marketplace. And so, you know, while they may gain some attention at the end of the day, they're going to be compared against more similar products than, say, the light adjustable lens. So, you know, we expect that the market will continue to see new offerings but that the LAO will continue to have a unique set of benefits for patients.
Joseph: Okay.
Speaker Change: Alright, well thank you.
I would categorize those competitive offerings as being part of the.
Speaker Change: The fixed lenses that very similar to other fixed lenses in the marketplace.
Speaker Change: And so.
Speaker Change: Wow.
Speaker Change: They may gain.
Speaker Change: Some attention at the end of the day, they're going to be compared against those more similar products than say the light adjustable lens.
Speaker Change: So we expect that.
Speaker Change: That the market will continue to see new offerings, but that the <unk> will continue to have a unique.
Speaker Change: Set of benefits for patients.
Joseph Scott Conway: Okay, gotcha. And then, maybe just a quick one.
Okay Gotcha, and then maybe just a quick one can you give some color around the balance sheet and how you guys are thinking about runway to free cash flow profitability.
Shelley B. Thunen: Can you give some color around the balance sheet and how you guys are thinking about the runway to pre-cash flow profitability?
Speaker Change: Yes, I think that what you have seen is reduced cash use in each quarter as we have increased.
Shelley B. Thunen: Yeah, I think that what you have seen is reduced cash use in each quarter as we've increased both revenue and gross margin. What you did see in this guidance is that we, you know, had a pretty big increase in our guidance for gross margin, but we also did increase OPEX a bit. And I think the increase in gross margin gives us an opportunity. We let most of those dollars fall to the bottom line, but we will continue to maintain this balance between growth and gross margin in percent and absolute dollars with continued investment in OPEX, but I think we've been very careful in this guidance balance between both.
Speaker Change: Both revenue and gross margin what you did see in this guidance is that we.
Speaker Change: Had a pretty big increase in our guidance for gross margin, but we also did increase opex a bit and I think the increase in gross margin business and opportunity with most of those dollars fall to the bottom line, but we will continue to continue this balance between growth and gross margin in <unk>.
Speaker Change: <unk> in absolute dollars with continued investment in Opex, but I think we've been very careful in this guidance balanced though.
Joseph Scott Conway: Okay, sure. Thank you very much for taking our questions.
Speaker Change: Okay sure. Thank.
Speaker Change: Thank you very much for taking our questions.
Speaker Change: Thank you.
Operator: Thank you, and one moment for our next question. And our next question is going to come from the line of Tom Stephan with Stiefel. Your line is open. Please go ahead.
Speaker Change: Thank you and one moment for our next question.
Speaker Change: And our next question is going to come from the line of Tom Stephan with Stifel. Your line is open. Please go ahead.
Thomas M. Stephan: Great. Hi everyone.
Thomas M. Stephan: Great Hi, everyone. Thanks for taking the questions, maybe I'll start with <unk> plus.
Thomas M. Stephan: Thanks for taking the questions. Maybe I'll start with LAL+. Could you maybe, I guess, qualitatively explain a bit how LAL++ was contemplated in 2024 guidance, maybe in terms of the cadence of the rollout? In other words, does guidance assume kind of a methodical ramp up of LAL++? Is it a fast ramp up, maybe somewhere in between? Any color there would be helpful.
Thomas M. Stephan: Could you, maybe I guess qualitatively explain a bit how L. A L plus was contemplated in 2024 guidance maybe in terms of the cadence of the rollout I guess in other words does guidance assume kind of a methodical ramp of L. A L. Plus is it fast ramp up maybe somewhere in between.
Thomas M. Stephan: Any color there would be would be helpful.
Shelley B. Thunen: Okay, you know, in terms of mixing between the LAL and the LAL Plus, they're priced at the same amount, at $1,000 per unit, right? And I think that for us, and Ron can comment on this a little bit more, part of the pricing strategy, of course, is that we want the doctor and patient to pick the ideal lens for them, knowing that both are adjustable. And we think that, you know, the results that we had in the first quarter are part of just our original guidance or strategy for the year, with this concept of having two LALs in our product family overall. I don't know if you would comment on anything additional on that, Ron? No, I mean,
Thomas M. Stephan: Okay.
Thomas M. Stephan: Terms of mix.
Thomas M. Stephan: L. L. L. L plus they are priced at the same amount <unk> thousand dollars per unit right and I think that for us and Ron can comment on this a little bit more part of the pricing strategy of course is that we want the doctor and patient to pick the ideal length to them.
Thomas M. Stephan: That both are adjustable.
Thomas M. Stephan: And.
We think that the.
Thomas M. Stephan: Yes.
Speaker Change: Results that we had in the first quarter.
Speaker Change: Our part of just our original guidance our strategy for the year with this.
Speaker Change: The concept of having to LLS and our product family overall.
I don't know if you would comment anything additional in that room, no I mean recall that the <unk> plus was approved.
Ronald M. Kurtz: No, I mean, recall that LAL-Plus was approved in 2023, and we had, you know, initiated some initial Phase IV clinical studies in the fall, so, you know, we certainly had that in our minds when developing 2024 guidance.
Speaker Change: In 2023 and it was.
Thomas M. Stephan: Got it. That's helpful.
Speaker Change: We had some initiated some initial.
Speaker Change: Phase four clinical studies in the fall so we certainly had that.
Speaker Change: In our minds developing 2020 for guidance.
Shelley B. Thunen: And then just my follow-up question, I guess on gross margin, Shelley, can you maybe level set us on where gross margins stand between your different products? Because when I run a low 30% gross margin on the LDD sales, I'm arriving at maybe 85% plus gross margin on the rest of the business. Are those fair places to be on both sides? And I guess I'm mainly curious about, you know, where LAL's gross margin is tracking toward. Thanks.
Speaker Change: Got it that's helpful. And then just my follow up.
I guess on gross margin Shelley can you maybe level set us on where gross margin stand between your different products, because when I run a low 30% gross margin on the <unk> sales.
Speaker Change: Maybe 85% plus gross margin on the rest of the business are those fair places to be on both sides.
Speaker Change: I guess im curious about where LEL gross margin is tracking towards thanks.
Shelley B. Thunen: Yeah, well, we don't break out both of them, certainly, but we've provided some, you know, information overall. As I've always stated, you know, our gross margin on the LDE, this piece of capital equipment, we try and get between 20 and 30 percent. As you go back into early 23, we were below the 20 percent or right at. Today we are above the 30 percent and what I would call well above overall and, you know, just this little $3,000 higher ASP in the first quarter contributed to about a two percentage point increase in gross margin for the LDE.
Shelley B. Thunen: Yes, well, we don't break out both of them certainly we've provided.
Shelley B. Thunen: Information.
Shelley B. Thunen: And overall as I've always stated our gross margin on the LTE.
Capital equipment, we try and get between 20 and 30% as you go back into early 'twenty, three lever below the 20% or right at.
Today, we are above the 30% and what I would call well above.
Shelley B. Thunen: Overall.
And just.
Just this.
Little 3000 dollar higher ASP.
Shelley B. Thunen: The first quarter.
Contributed to about a two percentage point increase in gross margin for the LCD. So we're trending a bit higher.
Shelley B. Thunen: So we're trending a bit higher than we would otherwise, and I contribute that to, one, good pricing ASP discipline on the, with our sales force, the value of the product, as well as the fact that we were able to roll in some lower material costs a little bit earlier. On the LAL side, we don't, you know, comment, but we believe that that product is, you know,
Shelley B. Thunen: Then we would otherwise and I contribute that to one.
Shelley B. Thunen: Good pricing.
Shelley B. Thunen: ASP discipline on the.
Shelley B. Thunen: With our sales force the value of the product.
Shelley B. Thunen: As well as the fact that we were able to roll in from lower material cost a little bit earlier on the Ll side, we don't comment, but we believe that that product is.
Shelley B. Thunen: In this kind of range in the 80% something range.
Probably likely over a very long time to become a 90%, but thats it.
Shelley B. Thunen: In a way out there you've got greater volumes up to that Catherine.
Thomas M. Stephan: That's great. Thanks, Shelley. Thanks, Ron.
Speaker Change: That's great. Thanks, Shelly Thanks, Rob.
Speaker Change: Q.
Operator: Thank you, and one moment for our next question. And our next question is going to come from the line of Larry Biegelsen with Wells Fargo. Your line is open. Please go ahead.
Speaker Change: Thank you and one moment for our next question.
Speaker Change: And our next question is going to come from the line of Larry Nicholson with Wells Fargo. Your line is open. Please go ahead.
Lawrence H. Biegelsen: Good afternoon. Thanks for taking the time to answer the question. So, on the Q4 call, you said you'd be talking more about international markets later this year, and today I heard spending is going towards OUS clearances. And Ron, you spoke more about Europe and Asia in your prepared remarks today than I heard on the Q4 call. So my question is, does this imply you're closer to other major market launches, and what are you including in the guidance for OUS markets in 2024? And I had one follow-up appointment.
Lawrence H. Biegelsen: Good afternoon. Thanks for taking the question. So on the Q4 call you said you'd be talking more about international markets. Later this year and today I heard spending is going towards U S clearances, and Ron you spoke more about Europe and Asia and.
In your prepared remarks today that I've heard on the Q4 call.
So my question is does this imply youre closer to other major market launches and what are you including in the guidance.
Lawrence H. Biegelsen: For O U S markets in 2024, and I had one follow up.
Ronald M. Kurtz: Yeah, you know, I don't think anything's changed, Larry. We continue to focus, you know, primarily on the US market. But we pursue our regulatory filings outside the US in attractive markets, and we certainly will be updating as we make progress in those.
Lawrence H. Biegelsen: Yeah.
Speaker Change: I don't think anything has changed Larry we continue to focus.
Speaker Change: Primarily on the U S market.
Speaker Change: We pursue our regulatory filings outs.
Outside the U S in attractive markets and we certainly will be updating.
Speaker Change: As we make progress in those.
Shelley B. Thunen: And I think as far as revenue goes in 2024, obviously, we're in Canada where that has grown nicely for us and been a good market for us. I think in terms of the other markets, you know, these regulatory cycles are getting pretty long. For instance, in Europe, we've seen it for longer than we originally anticipated and it continues to get pushed out. And if we have anything, you know, outside of Canada internationally, I would expect
Speaker Change: And I think as far as revenue goes through 2024, obviously, one in Canada that is growing nicely for us considering good market for us I think in terms of the other markets.
Speaker Change: These regulatory cycles are getting pretty long for instance in Europe, we've seen it longer than we originally anticipated and continues to get pushed out and.
Speaker Change: If we have anything outside of Canada internationally I would expect in 2024, it was pretty minor.
Lawrence H. Biegelsen: Got it. And, you know, I have one follow-up question for you.
Speaker Change: Got it and.
Speaker Change: One follow up question from me utilization it looks like it was about $9 two per <unk> per month in the first quarter and it grew about 5% a year it looks like it's a little slower than what we've seen in the last few quarters.
Shelley B. Thunen: Utilization, it looks like it was about 9.2 LALs per LDD per month in the first quarter, and it grew about 5% a year. It looks like it's a little slower than what we've seen in the last few quarters. You know, why is that, and how are you guys thinking about utilization for the rest of this year? Thank you.
Speaker Change: Why is that and how are you guys thinking about utilization for.
Speaker Change: For the rest of this year. Thank you.
Shelley B. Thunen: So I think the difference between my numbers and your numbers is that we Calculate the number of LALs per LDD by taking as the number of LALs over the number of LDDs installed at the beginning of the quarter, right, so you don't get a lot of normal LAL revenue out of new installs, but in fact, kind of if I look back, we were at 10.2 in the fourth quarter and we were at 10.1 in the first quarter, which I think is terrific, overall and kind of if you go back to let's say in Q4 of 2022 we were about 8.9 so I think that we've gotten you know good sequential growth, although a little dip in the third quarter of 2023 for Stephen Ellis.
Speaker Change: So I think the difference between my numbers in your numbers is that we.
Calculate the number of LLS per LGD by taking as the number of LLS over the number of Ldds installed at the beginning of quarter right. So you don't get a lot of normal.
Speaker Change: L L revenue out of new installed, but that kind of if I look back.
Speaker Change: We were at $10 two in the fourth quarter and we were at $10. One in the first quarter, which I think is terrific.
Speaker Change: Overall and kind of if you go back to let's say in Q4 of 2022 were about eight nine so I think that we've got good sequential growth.
Although a little dip in the third quarter of 2003 for students.
Speaker Change: Alright, Thanks Shelly.
Operator: Thank you, and one moment for our next question. Our next question comes from the line of Steve Lichtman with Oppenheimer & Co. Your line is open, please go ahead.
Speaker Change: Thank you and one moment our next question.
Steven Michael Lichtman: Thank you. Hi Ron and Shelley, and congratulations.
Speaker Change: The next question.
Speaker Change: Comes from the line of Steve Lichtman with Oppenheimer <unk> Co. Your line is open. Please go ahead.
Steven Michael Lichtman: I wanted to ask Ron, you mentioned targeting optometrists in terms of driving awareness. I think you talked about that at ASCRS as well. Can you talk a little bit about what that looks like in the field in terms of how you approach that and, you know, some of the potential benefits in terms of referrals and things like that from targeting that?
Steven Michael Lichtman: Thank you hi, Ron in Chile, and congratulation.
Wanted to ask Ron I think you mentioned.
Steven Michael Lichtman: Targeting optometrists in terms of driving awareness and then can you talk to that.
Steven Michael Lichtman: S as well.
Steven Michael Lichtman: Can you talk a little bit about what that looks like in this field in terms of how you approach that in some of the potential benefits in terms of referrals and things like that from a from a targeting net.
Steven Michael Lichtman: Thanks.
Ronald M. Kurtz: So, you know, optometry is obviously a very significant part of eye care, particularly in the U.S., and it is integrally involved with cataract surgery, both in terms of counseling patients preoperatively, as well as helping to manage patients through the course of their post-op periods. And that can be either independent or separate optometric practices that work in conjunction with ophthalmic offices, or it can be optometrists within And obviously, for those practices that have our technology, many of them have optometrists, and we work very closely with them.
Speaker Change: Yes, so Tom.
Commentary is obviously, a very significant part of eye care, particularly in the U S.
Speaker Change: And our involve integrally involved with cataract surgery, both in terms of.
Speaker Change: Counseling of patients preoperatively, as well as helping to manage patients through that through the course of their.
Speaker Change: Post op periods and that can be either.
Speaker Change: Independent or separate opt metric practices that work in conjunction with ophthalmic offices, where it can be optometrists within ophthalmic practices.
Speaker Change: And we.
Speaker Change: Obviously for those practices that have our technology many of them have optometrists and we work very closely with them.
Ronald M. Kurtz: Many of them have become very experienced and knowledgeable about our technology. They are just as academically minded as the ophthalmologists and like to present at their respective meetings, and we see more of that, and we certainly want to support that. And then, you know, through our ophthalmic practices, we certainly want to support their educational events with optometrists in their community as well. And, you know, that's something that's important in driving awareness of the technology, and is very attractive just fundamentally to optometrists generally because it fits with their overall ethos of quality of vision.
Speaker Change: Many of them have become very experienced and knowledgeable about our technology. They are.
Speaker Change: After just as.
Speaker Change: Academically minded as as say, the ophthalmologists and like to present at their respective meetings and we see more of that and we certainly want to support that.
Speaker Change: Then.
Speaker Change: Through our ophthalmic practices.
Speaker Change: <unk>.
Certainly want to support their educational events with optometry.
Speaker Change: Tom interests and their community as well and.
Speaker Change: That's that's something that's important in driving awareness of the technology, which.
Speaker Change: Is very attractive just fundamentally too.
Speaker Change: Optometrists generally because it fits with their overall ethos of quality of vision.
Steven Michael Lichtman: Great. And then, just as a quick follow-up, are you adding to the salesforce on the LDD side this year? And if so, how much are you increasing?
Speaker Change: Great and then just as a quick follow up are you, adding to the sales force on the <unk> side this year and if so.
Speaker Change: How much are you increasing that.
Ronald M. Kurtz: Yeah, I think that if we look at our planned headcount ads, you know, they're primarily in our clinical applications and LA Alpha to work closely with the LDD. We may add a few on LDD, but certainly not at the rate that we add to those two other groups.
Steven Michael Lichtman: Got it. Great.
Speaker Change: Yes, I think that if we look at our planned head count primarily in our clinical applications.
<unk> also worked closely with the LCD, we may add a few on LTV, but certainly not at the rate that we are.
Speaker Change: Q2 other groups.
Speaker Change: Got it great. Thank you.
Speaker Change: Thank you Steve Thank you Steve.
Ronald M. Kurtz: Thank you, and I would now like to hand the conference back to CEO Ron Kurtz for closing remarks.
Speaker Change: Thank you and I would now like to hand, the conference back to CEO, Ron Kirk for closing remarks.
Operator: Well, thank you all for your time and attention today. We appreciate your interest in Rxsight and look forward to updating you on our progress in future quarters.
Ron Kirk: Well. Thank you all for your time and attention today. We appreciate your interest in our excite and look forward to updating you on our progress in future quarters.
Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.
Ron Kirk: Goodbye.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
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