Q3 2024 LENSAR Inc Earnings Call
A question and answer session. As a reminder, this conference call will be recorded.
Speaker Change: I'd now like to turn the call over to Cameroon, but I didn't know vehicle French Mcclellan Mr. I didn't know if it does go ahead.
Speaker Change: Thank you operator, good morning, and welcome to the lens, our third quarter 2024 financial results Conference call.
Speaker Change: Earlier this morning, the company issued a press release, providing an overview of its financial results for the quarter ended September 32024.
Speaker Change: This press release is available on the Investor Relations section of the company's website at Www Dot lens, our dot com.
Speaker Change: Joining me on the call today is Nick Curtis Chief Executive Officer, who will review the company's recent business and operational progress.
Speaker Change: Following his comments, Tom Staab, Chief Financial Officer will provide an overview of the company's financial highlights before turning the call back over to the operator to facilitate answering any questions you may have.
Speaker Change: Today's conference call will contain forward certain forward looking statements, including those statements regarding future results unaudited and forward looking financial information as well as the Companys future performance <unk> achievements.
Speaker Change: These statements are subject to known and unknown risks and uncertainties, which may cause the company's actual results performance or achievements to be materially different.
Speaker Change: From any future results or performance expressed or implied in this presentation.
You should not place undue reliance on these forward looking statements.
Speaker Change: For additional information, including a detailed discussion of the Companys risk factors. Please refer to the company's documents filed with the Securities and Exchange Commission, which can be accessed on the website.
In addition, this conference call contains time sensitive information that is accurate only as of the date of this live broadcast November seven 2024.
Speaker Change: <unk> undertakes no obligation to revise or update any forward looking statements to reflect events or circumstances. After the date of this live call.
With that it's my pleasure to turn the call over to Nick Curtis Nick.
Nick Curtis: Thank you Cam and good morning to everyone. I appreciate you joining us and I am excited to report that lens are hit another record breaking third quarter.
Nick Curtis: Starting from an alloy system placement standpoint, the third quarter was fueled by the recent market expansion to the EU in Taiwan as we placed a total of 24 new alloy systems.
Nick Curtis: Standing 118% increase over what had been a strong third quarter of 2023, and a 41% increase over the second quarter of 2024.
Nick Curtis: This was driven in part by very solid performance outside of the United States, where we sold 11 alloy systems.
Nick Curtis: Following mid third quarter regulatory clearances in Europe, Switzerland, and Taiwan.
The rapid trajectory and success of the ally International launch speaks to several key factors.
Nick Curtis: First.
Nick Curtis: The advanced planning and collaboration between our commercial team and distributor partners in training.
Nick Curtis: <unk> service and clinical applications as well as our onsite assistance with first installs allowed for a rapid response after clearance to ship alloy systems.
Nick Curtis: We properly prepared the market building interest by supporting our partners and attending multiple conferences meeting with surgeons and performing demos shared learnings from U S launch in clinic experience.
Nick Curtis: <unk> worked with our distributor partners two of the larger p/e groups and securing ally system commitments.
Nick Curtis: For facilitated U S kols surgeons using ally to network and perform presentations and several other conference venues.
Nick Curtis: And last I was fortunate enough to have participated in several panel discussions just prior to receiving clearance and shortly thereafter, the iqos European meeting in Prague, and recently the Crs in Barcelona.
Nick Curtis: To recognize and thank our distributor partners for their close collaboration and commitment in making the initial ally launch so successful.
Nick Curtis: The strong global interest in ally is creating a healthy expansion of new to lend to our customer sites, which will result in the continued growth of our recurring revenues.
Nick Curtis: Our total installed base of ally systems grew to over 100 on a global basis, reflecting a 170% increase from September 30 of last year.
Nick Curtis: <unk> overall installed base, including the legacy lends our laser systems has grown to 355 systems, representing a 20% increase over Q3, 2023, and an 8% increase quarter over quarter.
Nick Curtis: In addition to our strong placement activity, we continued to build our pipeline of executed contracts and pending installations.
Nick Curtis: We finished the quarter with a backlog of 24 systems, which we expect to install over the next six months.
Nick Curtis: I think it would be beneficial at this juncture to provide you with a little bit of color around backlog the time from contract to installation training and revenue recognition in the U S and internationally.
Nick Curtis: In the U S. On average it takes approximately 50 days from the time of reaching a signed agreement to installation and first surgeon trained.
Nick Curtis: We schedule and perform a site in surgical visit in advance of shipping the ally in order to determine the right placement and specifications to install ally edgy.
Nick Curtis: Educate us on their current process in flow.
Nick Curtis: There are surgeons and site preferences in performing their cataract surgery as well as what a typical surgical day entails.
Nick Curtis: Then we schedule convenient ship date provide additional online training as well as an outline of what to expect after installation.
Nick Curtis: On site training of staff as well as the surgeon has followed by <unk> surgery.
Nick Curtis: We allocated three surgical days with each surgeon performing a minimum of five cases, each day utilizing all the features of ally to certify the staff and surgeon.
Nick Curtis: At this time, we recognize revenue on the system.
Only then.
Nick Curtis: All personnel that work with the device needs to be certified for use all surgeons must perform a minimum of 15 cases.
If the system is fully executed contract, but it is not installed in the quarter. The agreement is signed it becomes a backlog system.
Nick Curtis: This backlog is dependent on the steps I just described as well as any unique installation requirements such as an electrical modification, where the room is under construction or they have a competitive system to be removed or waiting for a contract exploration et cetera.
The backlog could take some time and despite the customer commitment remains in a state of flow.
Nick Curtis: Outside the U S revenue recognition for <unk> is very different.
Nick Curtis: Outside the U S. Our distributor partners are responsible for the installation and training however, when when the ally leaves <unk> Doc the system becomes the property of the distributor.
Nick Curtis: And we recognize the system revenue.
Nick Curtis: However, it still takes approximately 60 to 90 days after installation for the site and surgeon to begin to get to a normalized run rate.
Nick Curtis: And the bigger picture it is important to understand the process and thus why there was a rolling or staggered effect on procedure growth and revenue recognition over time.
Nick Curtis: This is the primary drivers to why our quarterly placements can be lumpy and uneven.
Nick Curtis: Timing with a number of activities can be dependent on many factors.
Nick Curtis: Again.
Nick Curtis: Excuse me previously we discussed a large P group deal that had been executed just after the close of the quarter.
Nick Curtis: It is a game of inches and we're gaining each quarter in the important areas of increasing recurring revenues through procedures and market share gains in footprint.
We achieved $13 $5 million of revenue in the third quarter, an increase of over 38% from the third quarter of last year, which as I. Just described was attributable to attributable to robust growth in system placements, including 11 O U S system sales.
Nick Curtis: Turning to procedures, we had another quarter of strong growth with procedure volumes, increasing 29% over the third quarter of 2023, and U S procedures, increasing 22% year over year.
Nick Curtis: We expect this trend to continue moving forward as utilization of newly placed systems ramps up, particularly with users who are new to lens are having converted to ally from older competing lasers.
Nick Curtis: On average, we see approximately a 13% increase on a lens our LLS moving to ally.
Nick Curtis: And the new to lens, our allies are net 100% new recurring revenue procedures from the start.
The more systems, we install the more procedure revenue will begin to grow.
Nick Curtis: We're really focused on expanding our footprint in placements by first compete converting competitive systems.
Nick Curtis: Followed by transitioning current lens, our LLS users to ally.
Nick Curtis: Third is adding second or multiple systems with high volume high conversion rates sites and surgeons as.
Nick Curtis: As well as additional site expansions.
Nick Curtis: And finally, what we referred to as cataract laser naive accounts, which continue to grow the overall entire market.
Nick Curtis: According to a recent market scope estimate our share of the U S procedure market increased to approximately 20% as of September 30.
Nick Curtis: This is a really healthy increase of one 5% over the second quarter.
Nick Curtis: But more impressively, we have gained three 5% market share in the past year and nearly 6% since launching ally in the summer of 2022.
The U S is the largest premium cataract market in the world and even though we're competing directly against the largest ophthalmology companies in the world. We have succeeded in achieving significant market share growth and securing 20% of the U S procedure market.
Nick Curtis: At <unk>, we're incredibly proud of this achievement and most importantly, it demonstrates U S. Surgeons recognition of the technology advancement and providing better patient outcomes increased efficiencies and throughput inflow and financial efficiencies to ally system provides over the aging competitive lasers from our much larger competitors.
Nick Curtis: With recent approvals, we can strive to add market share outside the United States as we continue to receive ally clearance in additional countries.
Nick Curtis: Procedure volumes directly correlate to our recurring revenue rate, which we believe is a highly effective very important measure of our growth and longer term success.
Nick Curtis: In the third quarter, our recurring revenue totaled approximately $9 9 million with $38 million in recurring revenue on a trailing 12 month basis through the third quarter of 2020 for.
Nick Curtis: This is an increase of 22% over the 12 months ended September 32023, and with more than 40 systems placed in the last two quarters alone. We expect recurring revenue to grow in a material way on a rolling forward basis as each of these systems passes 90 days from install date and activity continues to ramp.
Nick Curtis: These newly installed lasers.
As I mentioned, we attended several U S and O U S congresses, including the Es Crs and where.
Nick Curtis: Where we performed over 100 ally demonstrations and booth meetings that have resulted in a significant number of new prospects for our U S sales team as well as our partner distributors in the EU in Southeast Asia.
Differentiating ally by demonstrating the robotic intelligence precision and reproducibility as well as the significantly enhanced efficiencies and workflow are driving the interest and as they say a picture says a thousand words.
Nick Curtis: When they see it.
Nick Curtis: The potential benefits become obvious.
Nick Curtis: To that end I'm incredibly proud of our team has accomplished this quarter and through the first nine months of 2024, we successfully launched ally in the EU in Taiwan with an overwhelmingly positive response. This is a testament to the transformative power of ally and its potential to positively impact the future of robotic cat.
Nick Curtis: Direct surgery.
Nick Curtis: We're starting to benefit from the Universal appeal on a broader scale with allied now available in multiple geographies outside the United States.
Speaker Change: As we look ahead landstar is incredibly well positioned heading into the fourth quarter, which is traditionally our strongest period of the year and we're setting the stage effectively for continued success in 2025 and beyond.
Speaker Change: We're very excited about the potential of our pipeline and the ability to further innovate and revolutionize the field of robotic cataract laser surgery.
Now, let me turn the call over to Tom to cover our financial highlights for the quarter Tom.
Tom.
Tom Staab: Thank you Nick just a few remarks from me on our extremely strong third quarter performance.
Tom Staab: Revenue was $13 5 million in the third quarter of 2024 compared to $9 8 million in the third quarter of 2023, representing an exceptional 38% increase.
Tom Staab: While we experienced growth across all revenue line items, the strong quarter can be largely attributed to the <unk> 11 systems sold outside the United States following regulatory approvals in the European Union in Taiwan.
Tom Staab: These clearances represented a huge milestone for us opening operating regions outside the United States, and allowing us to fill a backlog that had accumulated over the last two years.
Tom Staab: We expected pent up demand for ally in these regions, but we were a little surprised with the shear system sales volume given the mid quarter clearances.
Tom Staab: Distributor and underlying surgeon demand exceeded our internal expectations.
Tom Staab: Looking forward, we expect the fourth quarter ally demand outside the United States to approximate 10 to 11 lasers, we sold in the third quarter.
Tom Staab: Another interesting aspect of our results was our trailing 12 month recurring revenue of $38 million as Nick mentioned in his remarks. This represented a 22% increase over the trailing 12 months of activity in 2023.
Tom Staab: Thus, we are growing our recurring revenue at a 20% plus clip rate with this growth to date entirely associated with the U S marketplace. As it is too early to see any influence from the recent EU in Taiwan installations.
A few other noteworthy aspects of the quarter.
Tom Staab: We have installed 38 ally system since June <unk>, representing an approximate 75% of our total 2020 for ally placements.
Tom Staab: Many of these systems have yet to reach optimal steady state procedure volume due to.
Tom Staab: Surgeons summer vacation schedules, the extended timing associated with training multiple surgeons practice in ASC integration and just normal transition time for surgeons to achieve their optimal procedure run rate.
Tom Staab: Accordingly, we expect procedure volume and growth to be even stronger in the fourth quarter.
Tom Staab: Lastly, 79% of our 2024 U S placements have been with new two lens of our customers.
Tom Staab: We consider this metric very important as one it supports that continue and substantial growth we see in our U S procedure market share, especially when these customers reach a steady procedure run rate and two it further validates the benefits of ally as seen in the surgeon's eyes.
Tom Staab: In summary, we expect these recent allied placements to begin to contribute significantly throughout the fourth quarter and our recurring revenue growth to steepen when the recently installed U S EU and Taiwan lasers reached their optimal run rate.
Tom Staab: The benefits of these placements are expected to begin in the fourth quarter and continue into 2025.
Tom Staab: Gross margin for the quarter was $6 3 million, representing a gross margin percentage of 46% compared to $4 9 million and 50% gross margin realized in the third quarter of 2023.
Tom Staab: We continue to expect the gross margin percentage of approximately 50% for this fiscal year our.
Tom Staab: Our year to date gross margin percentage currently sits at 51%, but we expect a higher mix of system sales to pull this percentage down slightly in the fourth quarter.
Tom Staab: The fourth quarter is generally the strongest quarter from a seasonal perspective and due to the timing of system placements I would expect a healthy year over year procedure volume increase in the fourth quarter.
Tom Staab: Total operating expenses for the third quarter of 2024 were $7 5 million compared.
Tom Staab: Compared to $6 9 million in the third quarter of 2023.
Tom Staab: The increase in operating expenses was primarily attributable to higher SG&A spend partially offset offset by lower R&D expenses.
Tom Staab: Net loss for the quarter was $1 5 million or <unk> 13 loss per common share compared to $2 $6 million net income or a <unk> 13 gain per common share in the net in the third quarter of 2023.
Tom Staab: The income in Q3, 2023 was due to a $4 $7 million favorable swing in our warrant valuation, which took us from an operating loss to net income in that quarter.
Tom Staab: To evaluate our results and operations more naturally let us look at our adjusted EBITDA results.
Tom Staab: We were pleased that we achieved a positive adjusted EBITDA of $429000 as compared to a negative $1 $4 million adjusted EBITDA in the third quarter of last year, representing a favorable $1 8 million swing.
Tom Staab: As of September 32024, we had cash and cash equivalents of $18 6 million as compared to $24 6 million at December 31, 2023, and $15 4 million at June 32024.
Tom Staab: As all non U S ally placements or sales, our cash increased $3 $1 million in the third quarter largely due to filling the EU in Taiwan backlog.
Tom Staab: Going forward, we will continue to maintain an appropriate inventory level to respond to global ally demand and we will also strategically expand our ally fleet of lease systems in the United States to further increase U S procedure market share and a recurring revenue foundation.
Now I'd like to turn the call over to the operator, and we look forward to answering your questions.
Operator.
Speaker Change: At this time I would like to remind everyone in order to ask a question. That's alright, then the number one on your telephone keypad.
Speaker Change: Your first question comes from the line of Brian Frank.
Then we'd like Street capital. Please go ahead.
Speaker Change: Great. Thanks for taking my questions. Congrats on the really strong results, maybe I'll start with a little bit more commentary around Q4. It sounds like you provided a lot of anecdotal comments. There about you expect it to continue to be strong, but I think if I.
Speaker Change: Picked out two things importantly, it was O U S shouldn't be at least as good as Q3.
Speaker Change: The procedure volumes it should be up also solidly in Q4, so maybe can we talk a little bit more about system placement expectations.
Speaker Change: On capital sales side, and then what do you.
Speaker Change: I think we should be thinking about for a healthy.
Speaker Change: Procedural volume growth rate for 2000, <unk> Q4. Thanks.
Speaker Change: Hey, Thanks, Hi, Frank I appreciate the question.
Speaker Change: And thank you for the call.
Speaker Change: Comment on the quarter.
Speaker Change: Sure.
Speaker Change: So I would expect a very similar.
Speaker Change: Per your comment.
Speaker Change: Similar activity from outside the U S in terms of system shipped in the quarter.
Speaker Change: As compared to Q3.
It's likely not going to be more and.
Speaker Change: And it's going to be should be right in that right in that same.
Speaker Change: Same area, if you will.
Speaker Change: Given our system, either way, one way or one way or another.
Speaker Change: In terms of procedures.
Speaker Change: It's interesting because fourth quarter globally is the highest.
multiple surgeons, practice and ASC integration, and just normal transition time for surgeons to achieve their optimal procedure run rate. Accordingly, we expect procedure volume and growth to be even stronger in the fourth quarter. Lastly, 79% of our 2024 U.S. placements have been with new-to-Lenzar customers. We consider this metric very important as, one, it supports the continual and substantial growth we see in our U.S. procedure market share, especially when these customers reach a steady procedure run rate, and, two, it further validates the benefits of ALAE as seen in the surgeons' eyes. In summary, we expect these resources to be extremely valuable to our U.S. customers.
Speaker Change: Sort of.
Speaker Change: Number of cataract procedures that will be performed globally and I think the other.
Speaker Change: There had to have been a couple of events given that the number of hurricanes and things that have gone on here in the U S out of everyone's control that have certainly affected Dr.
Speaker Change: Doctors.
Anecdotally and even more specifically certain high volume practices.
Speaker Change: They basically weren't doing surgery for somewhere between one and three weeks in some cases and it's a couple of cases, one or two people are just getting back that said because the fourth quarter is the highest volume.
recent ally placements to begin to contribute significantly throughout the fourth quarter and our recurring revenue growth to steepen when the recently installed U.S., E.U. and Taiwan lasers reach their optimal run rate. The benefits of these placements are expected to begin in the fourth quarter and continue into 2025. Gross margin for the quarter was $6.3 million, representing a gross margin percentage of 46% compared to $4.9 million and 50% gross margin realized in the third quarter of 2023. We continue to expect a gross margin percentage of approximately 50% for this fiscal year. Our year-to-date gross margin percentage currently sits at 51%.
Speaker Change: Normal procedure quarter.
Speaker Change: On a global basis. These doctors or are committed to trying to get all of their backlog done and on track.
Speaker Change: Really important at the end of the year for a lot of these patients that have deductibles that are been fill fulfilled and whatnot to get their surgeries done. So I think we're going to see.
Speaker Change: Like a strong flurry and finish despite the hurricane activity in the U S as well as the fact that we obviously have several substantive holidays. It towards the end of the year. So I think it's going to be a little lumpy, but I think we're going to go flying into the end of the year with.
Speaker Change: Really strong procedure growth, we're also working to install.
Speaker Change: Quite a number of systems as well.
With our goals this quarter given the backlog.
Speaker Change: New system activity that that we're seeing as well. So I think we'll have good momentum going into the into the new year.
And Frank just to add further color on that in my comments I said, we expect 10 or 11 systems coming outside of the United States.
Speaker Change: It's going to be one or the other but because we fulfilled the backlog over a two year period, even though it was a short quarter and we're going to have a full quarter outside the United States.
Speaker Change: You're right in assuming that the level outside the United States is probably.
loss per common share compared to $2.6 million net income or a $0.13 gain per common share in the net in the third quarter of 2023. The income in Q3 2023 was due to a $4.7 million favorable swing in our warrant valuation, which took us from an operating loss to net income in that quarter. To evaluate our results and operations more naturally, let us look at our adjusted EBITDA results. We were pleased that we achieved a positive adjusted EBITDA of $429,000 as compared to a negative $1.4 million adjusted EBITDA in the third quarter of last year, representing a favorable $1.8 million swing.
Speaker Change: Right at maybe system shy of.
Speaker Change: The third quarter.
Speaker Change: The activity I said in my remarks, our placement activity in the third quarter was exceptional I mean, it was just a fabulous quarter for us from a placement perspective, and it would be it would be very difficult for us to increase off of that in the fourth quarter from a placement perspective.
Speaker Change:
Speaker Change: Just because it was such a phenomenal quarter based on the ex U S activity, we've got the activity, but the thing is as the days days left to really yeah, with the holidays and that type of stuff to bigger exactly and it's really hard on our procedure volume, we expect it to be strong, but with the hurricane.
As of September 30, 2024, we had cash and cash equivalents of $18.6 million as compared to $24.6 million at December 31, 2023 and $15.4 million at June 30, 2024. As all non-U.S. ally placements are sales, our cash increased $3.1 million in the third quarter largely due to filling the EU and Taiwan backlog. Going forward, we will continue to maintain an appropriate inventory level to respond to global ally demand, and we will also strategically expand our ally fleet of lease systems in
With the unknown ramp up time of the lion's share of these sites, including with such a strong <unk>.
Speaker Change: <unk> activity in the third quarter, you just don't know when theyre going to receive a run rate, but certainly we've we think the procedure volume is going to increase so.
Speaker Change: It's hard having such an exceptional third quarter and then.
Speaker Change: Using that as a foundation for the fourth.
Speaker Change: Got it that's helpful. Maybe if I could ask pretty much. The same exact question for 2025 I know, it's maybe a little early to start looking out that far but hoping you guys can start to dial in and how we should be thinking about 2025, both from our placements as well as procedure volume growth perspective.
in the United States to further increase U.S. procedure market share in our recurring revenue foundation.
Speaker Change: Yes, I think the way I would think about that Frank is we will give some decent guidance going forward when we wrap up the full year, but as Nick mentioned in his previous comments. This is a game of inches right and so we really have to.
Speaker Change: Now I'd like to turn the call over to the operator, and we look forward to answering your questions.
Operator
Speaker Change: At this time, I would like to remind everyone in order to ask questions, press card in the number 1 on your telephone keypad.
Speaker Change: Make sure that we have a good idea of when things are going to hit before we really project further than a quarter out.
Speaker Change: And I don't know if you want to have a general comments, Nick to that I would like to be able to provide you. Some as we get to the end of the year and into 2025, it would be I would like to provide you some sub.
Speaker Change: Great. Thanks for taking the questions. Congrats on the really strong results. Maybe I'll start with a little bit more commentary around Q4. It sounds like you provide a lot of anecdotal comments there about how you expect it to continue to be strong, but I think if I
Speaker Change: A little more granular.
Speaker Change: picked out two things importantly it was OUS should be at least as good as Q3
Speaker Change: Guidance as it relates to the procedure what.
Speaker Change: What we expect from a procedure growth because that's going to be a really important measure. We certainly have goals here to continue to gain gain market share and that means that we've got to continue to grow the procedures and given the number of systems. Tom mentioned, the 40% 40 plus systems, having installed since June.
and the procedure volumes should be up.
Speaker Change: also solidly in Q4. So maybe can we talk a little bit more about system placement expectations on capital sales side and then what do you think we should be thinking about for a healthy procedural volume growth rate for Q4? Thanks.
Speaker Change: You've got to think about that on a rolling basis right because it's not like they all get it installed on the same day.
Speaker Change: And then it's a race to get them to their 90 days in and then all of a sudden they're producing procedure numbers. This is rolling so those 40 systems are being installed at different times and then they start their training and then they buy.
Speaker Change: And by the way, we do all the training at no charge and all the procedures and whatnot to them and so that whole part of my discussion, where I talked about the path to recognizing revenue.
Speaker Change: And and procedure revenue.
Speaker Change: It takes two to three months from the time, it's installed to really see it get at a normalized run rate and Thats rolling So as we get to the end of the year here and.
Speaker Change: And I start to see what's happening I would hope to be able to provide.
Speaker Change: Some better guidance as we get into 2025, given this large number of systems that we've grown this year.
Speaker Change: There had been a couple of events given that the number of hurricanes and things that have gone on here in the U S out of everyone's control that has certainly affected Dr.
Speaker Change: Got it that's helpful. And then maybe just for my last one I was hoping I think you commented on a little bit in your prepared remarks, Nick but just thinking about the <unk> market a little bit how should we think about your strategy. There do you feel like it's time to go after that a little bit more aggressively or is it still first and foremost take share and then start to look at it from that.
Doctors.
Speaker Change: Anecdotally and even more specifically certain high volume practices, where they where they basically weren't doing surgery for somewhere between one and three weeks in some cases and it's a couple of cases, one or two people are just getting back that said because the fourth quarter.
Nick Curtis: It is first and foremost to take to take share and I sort of gave that.
Nick Curtis: In my remarks that the sort of order of Battle, if you will which which number one are the competitive sites and part of this has to do with just we have a smaller sales force. We're highly specialized our product is very very specialized and quite honestly, given where we're moving with with.
Speaker Change: There is the highest volume.
Speaker Change: Normal procedure quarter.
Speaker Change: Under quarter on a global basis, these doctors are committed to trying to get all of their backlog done and on track, you know, it's really important at the end of the year for a lot of these patients that have deductibles that have been fulfilled and whatnot to get their surgeries done. So I think we're going to see, you know, like a strong flurry and finish despite the hurricane activity in the U.S. as well as the fact that we obviously have several substantive holidays towards the end of the year. So I think it's going to be a little lumpy, but I think we're going to go flying into the end of the year with a really strong procedure.
Speaker Change: On a global basis. These doctors are committed to trying to get all of their backlog done and on track.
Speaker Change: Important at the end of the year for a lot of these patients that have deductibles that had been fill fulfilled and whatnot to to get their surgeries done. So I think we're going to see.
Nick Curtis: Robotic cataract laser surgery here.
Nick Curtis: Taking someone that heretofore has done nothing and then implementing this in the practice is a far heavier lift for both the customer as well as for lens are there and so the strategy of gaining more momentum and market share through people that have already have some familiar.
Speaker Change: Like I was both strong flurry and finish despite the hurricane activity in the U S as well as the fact that we obviously have.
Speaker Change: Several substantive holidays it towards the end of the year. So I think it's going to be a little lumpy, but I think we're going to slide into the end of the year with.
Nick Curtis: Already with these technologies and also our high volume surgeons with high conversion rates are the.
Speaker Change: Really strong procedure growth, we're also working to install.
Nick Curtis: Our primary focus because that's still is very that's very fertile ground because with 200 lasers in the U S alone in 2000 lasers on a global basis, you have a bolus of lasers. There were people have accepted this.
Speaker Change: We're also working to install quite a number of systems as well with goals this quarter given the backlog and new system activity that we're seeing as well. So I think we'll have good momentum going into the new year. And Frank, just to add further color on that, in my comments I said we expect 10 or 11 systems coming outside of the United States. It's going to be one or the other, but because we fulfilled the backlog over a two-year period, even though it was a short quarter and we're going to have a full quarter outside the United States, you know, you're right in assuming that the level outside the United States is probably, you know, right at.
Speaker Change: Quite a number of systems as well.
Speaker Change: With our goals this quarter given the backlog.
Speaker Change: New system activity that that we're seeing as well. So I think we'll have good momentum going into the into the new year.
Nick Curtis: This concept laser cataract surgery were bringing in this robotic and now youre, putting a ferrari in there and they can really grow they grow their business and that's why we've seen 13% of LLS to that and why people that heretofore never use lens or are moving to lens are and so that naive.
Speaker Change: Frank just to add further color on that in my comments I said, we expect 10 or 11 systems coming outside of the United States.
Speaker Change: It's going to be one or the other but because we fulfilled that backlog over a two year period, even though it was a short quarter and we're going to have a full quarter outside the United States.
Nick Curtis: Dental ne market that Hasnt done it requires a lot more resource and we want to make sure that we've got this critical mass around this as well because that is very helpful in moving that market and so that's still.
Speaker Change: You're right in assuming that the level outside the United States is probably right at maybe system shy of.
Of.
Speaker Change: The third quarter and.
Nick Curtis: It's still a little early for us in that regard.
Speaker Change: The activity I said in my remarks, our placement activity in the third quarter was exceptional I mean, it was just a fabulous quarter for us from a placement perspective, and it would be it would be very difficult for us to increase off of that in the fourth quarter from a placement perspective.
Speaker Change: Got it that's helpful. Thanks, James question, we don't Congrats again I do want to clarify one thing, though not to say that we don't have those because we do we have several accounts that are our femto naive but.
<unk>.
Speaker Change: It's usually where the customer has expressed interest in Dave come forth and are expressing interest rather than or like sort of mining for those right now if that makes any sense.
<unk>.
Speaker Change: Just because it was such a phenomenal quarter based on the ex U S activity, we've got the activity but.
Speaker Change: Okay, Perfect Hey, Frank one other thing to understand sort of Nick's comments about the holiday remember for us to recognize the system placements in the United States. We have to have a contract ship. It have it installed and have the physicians trained and with the.
Speaker Change: With the normal fourth quarter. If you don't have all of that stuff done by about December 15th and 18th it's not you're effectively lose two two and a half weeks of the of the quarter because of holidays. So that's why I said.
Speaker Change: It is.
Speaker Change: It is important to appreciate that when you are looking at system placements for the fourth quarter.
Speaker Change: Got it thank you.
Speaker Change: This concludes our Q&A session I will now turn the call back over to Nick <unk> for any closing remarks.
Nick Curtis: Alright, I would like to thank everybody for joining our call today and certainly for your continued interest in <unk>.
Nick Curtis: We continue to look forward to good things here.
Nick Curtis: I look forward to continuing to update you as we make further progress and the exciting remainder of 2024 and as we move into 2025. Thank you for your support.
Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.