LENSAR Reports Third Quarter 2024 Results and Provides Business Update
Rhea-AI Summary
LENSAR reported its Q3 2024 results, showing significant growth and operational updates. The company placed 24 ALLY Robotic Laser Cataract Systems™, including 11 sales in the EU and Southeast Asia, with a backlog of 24 systems pending installation. Revenue grew by 38% year-over-year to $13.5 million, driven by regulatory certifications in the EU and Taiwan. Recurring revenue grew 22% over the past twelve months. Worldwide procedure volumes increased by 29%, and the installed system base grew by 20%. The company's market share in the U.S. increased by 3.5% to 19.9%. Operating expenses rose to $7.5 million, but operating loss improved to $1.3 million. Net loss was $1.5 million, or ($0.13) per share, compared to net income of $2.6 million in Q3 2023. EBITDA was ($0.6) million, with adjusted EBITDA achieving break-even. Cash balance was $18.6 million as of September 30, 2024.
Positive
- 38% revenue growth year-over-year to $13.5 million.
- 22% increase in recurring revenue over the past twelve months.
- 29% growth in worldwide procedure volumes.
- 3.5% increase in U.S. market share to 19.9%.
- 20% increase in installed system base.
- Operating loss improved by 39% to $1.3 million.
- Cash balance increased to $18.6 million.
Negative
- Net loss of $1.5 million, or ($0.13) per share.
- EBITDA decreased to ($0.6) million.
News Market Reaction 1 Alert
On the day this news was published, LNSR gained 17.24%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
24 ALLY Robotic Laser Cataract Systems™ placed in 3Q 2024 including 11 sales in EU and Southeast Asia; Robust backlog with 24 systems pending installation as of September 30, 2024
Worldwide procedure volumes increased
Installed system base grew
ORLANDO, Fla., Nov. 07, 2024 (GLOBE NEWSWIRE) -- LENSAR®, Inc. (Nasdaq: LNSR) (“LENSAR” or “the Company”), a global medical technology company focused on advanced robotic laser solutions for the treatment of cataracts, today announced financial results for the quarter ended September 30, 2024 and provided an update on key operational initiatives.
“Our third quarter results further show the continued momentum behind ALLY in each of our key metrics. We are reporting solid growth in system placements, system backlog and procedures purchased, in addition to robust demand following the pivotal, mid-quarter regulatory certification and clearance in the European Union and Taiwan. We sold 11 ALLY systems in the first two months of commercial availability outside the U.S., which contributed to robust total revenue growth of
Third Quarter 2024 Financial Results
Total revenue for the quarter ended September 30, 2024 was
The following table provides information about revenue and revenue attributable to recurring sources, which we consider to be all components of our revenue except for sales of our systems:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| System | $ | 3,660 | $ | 1,953 | $ | 7,404 | $ | 6,251 | ||||||||
| Recurring source revenue: | ||||||||||||||||
| Procedure | 6,918 | 5,203 | 20,141 | 15,940 | ||||||||||||
| Lease | 1,724 | 1,524 | 5,623 | 4,844 | ||||||||||||
| Service | 1,237 | 1,115 | 3,595 | 3,024 | ||||||||||||
| Total recurring source revenue | 9,879 | 7,842 | 29,359 | 23,808 | ||||||||||||
| Total revenue | $ | 13,539 | $ | 9,795 | $ | 36,763 | $ | 30,059 | ||||||||
| Recurring source revenue % | 73 | % | 80 | % | 80 | % | 79 | % | ||||||||
As of September 30, 2024, the Company’s recurring revenue totaled
The following table provides information about procedure volume:
| Procedure Volume | |||
| 2024 | 2023 | ||
| Q1 | 39,486 | 31,600 | |
| Q2 | 42,203 | 35,349 | |
| Q3 | 42,231 | 32,649 | |
| Total | 123,920 | 99,598 | |
Selling, general and administrative expenses were
Research and development expenses were
Total operating expenses for the quarter September 30, 2024 were
Net loss for the quarter ended September 30, 2024 was
Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) for the quarter ended September 30, 2024 was (
As of September 30, 2024, the Company had cash, cash equivalents, and investments of
Conference Call:
LENSAR management will host a conference call and live webcast to discuss the third quarter results and provide a business update today, November 7, 2024, at 8:30 a.m. ET.
To participate by telephone, please dial (800) 715-9871 (Domestic) or (646) 307 1963 (International). The conference ID is 8444582. The live webcast can be accessed under “Events & Presentations” in the Investor Relations section of the company’s website at https://ir.lensar.com. Please log in approximately 5 to 10 minutes prior to the call to register and to download and install any necessary software. The call and webcast replay will be available until November 21, 2024.
About LENSAR
LENSAR is a commercial-stage medical device company focused on designing, developing, and marketing advanced systems for the treatment of cataracts and the management of astigmatism as an integral aspect of the procedure. LENSAR has developed its ALLY Robotic Cataract Laser System™ as a compact, highly ergonomic system utilizing an extremely fast dual-modality laser and integrating AI into proprietary imaging and software. ALLY is designed to transform premium cataract surgery by utilizing LENSAR’s advanced robotic technologies with the ability to perform the entire procedure in a sterile operating room or in-office surgical suite, delivering operational efficiencies and reducing overhead. ALLY includes LENSAR’s proprietary Streamline ® software technology, which is designed to guide surgeons to achieve better outcomes.
Forward-looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the Company’s business strategies, expected growth, expected product advancement, the ALLY System’s performance, market adoption and usage, including in non-U.S. jurisdictions, and seasonality trends. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.
Forward-looking statements are based on management’s current expectations, beliefs and assumptions and on information currently available to us. Such statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to: our history of operating losses and ability to achieve or sustain profitability; our ability to develop, receive and maintain regulatory clearance or certification of and successfully commercialize the ALLY System and to maintain our LENSAR Laser System; the impact to our business, financial condition, results of operations and our suppliers and distributors as a result of global macroeconomic conditions; the willingness of patients to pay the price difference for our products compared to a standard cataract procedure covered by Medicare or other insurance; our ability to grow our U.S. sales and marketing organization or maintain or grow an effective network of international distributors; our future capital needs and our ability to raise additional funds on acceptable terms, or at all; the impact to our business, financial condition and results of operations as a result of a material disruption to the supply or manufacture of our systems or necessary component parts for such system or material inflationary pressures affecting pricing of component parts; our ability to compete against competitors that have longer operating histories, more established products and greater resources than we do; our ability to address the numerous risks associated with marketing, selling and leasing our products in markets outside the United States; the impact to our business, financial condition and results of operations as a result of exposure to the credit risk of our customers; our ability to accurately forecast customer demand and our inventory levels; the impact to our business, financial condition and results of operations if we are unable to secure adequate coverage or reimbursement by government or other third-party payors for procedures using our ALLY System or our other products, or changes in such coverage or reimbursement; the impact to our business, financial condition and results of operations of product liability suits brought against us; risks related to government regulation applicable to our products and operations; risks related to our intellectual property and other intellectual property matters; and the other important factors that are disclosed under the heading “Risk Factors” contained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in the Company’s other filings with the SEC, including the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, to be filed with the SEC, each accessible on the SEC’s website at www.sec.gov and the Investor Relations section of the Company’s website at https://ir.lensar.com. All forward-looking statements are expressly qualified in their entirety by such factors. Except as required by law, the Company undertakes no obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release.
| Contacts: | Lee Roth / Cameron Radinovic | |
| Thomas R. Staab, II, CFO | Burns McClellan for LENSAR | |
| ir.contact@lensar.com | lroth@burnsmc.com/cradinovic@burnsmc.com |
Non-GAAP Financial Measures
The Company prepares and analyzes operating and financial data and non-GAAP measures to assess the performance of its business, make strategic and offering decisions and build its financial projections. The key non-GAAP measures it uses are EBITDA and Adjusted EBITDA. EBITDA is defined as net loss before interest expense, interest income, income tax expense, depreciation and amortization expenses. EBITDA is a non-GAAP financial measure. EBITDA is included in this filing because we believe that EBITDA provides meaningful supplemental information for investors regarding the performance of our business and facilitates a meaningful evaluation of actual results on a comparable basis with historical results. Adjusted EBITDA is also a non-GAAP financial measure. We believe Adjusted EBITDA, which is defined as EBITDA and further excluding stock-based compensation expense, change in fair value of warrant liabilities, impairment of intangible assets and the Employee Retention Credit provides meaningful supplemental information for investors when evaluating our results and comparing us to peer companies as stock-based compensation expense and change in fair value of warrant liabilities are significant non-cash charges and impairment of intangible assets is a non-cash charge that is not indicative of our core operating results and the Employee Retention Credit is not recurring. We use these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance and, therefore, any non-GAAP measures we use may not be directly comparable to similarly titled measures of other companies. Investors should not consider our non-GAAP financial measures in isolation or as a substitute for an analysis of our results as reported under GAAP.
A reconciliation of EBITDA and Adjusted EBITDA to their most comparable GAAP financial measure is set forth below.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| (Dollars in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (1,502 | ) | $ | 2,568 | $ | (12,702 | ) | $ | (10,457 | ) | |||||
| Less: Interest income | (153 | ) | (265 | ) | (511 | ) | (465 | ) | ||||||||
| Add: Depreciation expense | 774 | 609 | 2,087 | 1,767 | ||||||||||||
| Add: Amortization expense | 232 | 273 | 738 | 824 | ||||||||||||
| EBITDA | (649 | ) | 3,185 | (10,388 | ) | (8,331 | ) | |||||||||
| Add: Stock-based compensation expense | 668 | 1,173 | 2,003 | 4,723 | ||||||||||||
| Add: Change in fair value of warrant liabilities | 410 | (4,343 | ) | 3,838 | 1,654 | |||||||||||
| Add: Impairment of intangible assets | — | — | 3,729 | — | ||||||||||||
| Less: Employee retention credit | — | (1,368 | ) | — | (1,368 | ) | ||||||||||
| Adjusted EBITDA | $ | 429 | $ | (1,353 | ) | $ | (818 | ) | $ | (3,322 | ) | |||||
| LENSAR, Inc. STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | ||||||||||||||||
| Product | $ | 10,578 | $ | 7,156 | $ | 27,545 | $ | 22,191 | ||||||||
| Lease | 1,724 | 1,524 | 5,623 | 4,844 | ||||||||||||
| Service | 1,237 | 1,115 | 3,595 | 3,024 | ||||||||||||
| Total revenue | 13,539 | 9,795 | 36,763 | 30,059 | ||||||||||||
| Cost of revenue (exclusive of amortization) | ||||||||||||||||
| Product | 4,473 | 2,933 | 10,914 | 8,897 | ||||||||||||
| Lease | 790 | 524 | 2,056 | 1,514 | ||||||||||||
| Service | 2,010 | 1,461 | 5,050 | 3,690 | ||||||||||||
| Total cost of revenue | 7,273 | 4,918 | 18,020 | 14,101 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative expenses | 6,077 | 5,117 | 19,657 | 19,726 | ||||||||||||
| Research and development expenses | 1,202 | 1,527 | 3,994 | 4,676 | ||||||||||||
| Amortization of intangible assets | 232 | 273 | 738 | 824 | ||||||||||||
| Impairment of intangible assets | — | — | 3,729 | — | ||||||||||||
| Operating loss | (1,245 | ) | (2,040 | ) | (9,375 | ) | (9,268 | ) | ||||||||
| Other (expense) income | ||||||||||||||||
| Change in fair value of warrant liabilities | (410 | ) | 4,343 | (3,838 | ) | (1,654 | ) | |||||||||
| Other income, net | 153 | 265 | 511 | 465 | ||||||||||||
| Net (loss) income | (1,502 | ) | 2,568 | (12,702 | ) | (10,457 | ) | |||||||||
| Other comprehensive (loss) income | ||||||||||||||||
| Change in unrealized gain on investments | 21 | — | 11 | — | ||||||||||||
| Net (loss) income and comprehensive (loss) income | $ | (1,481 | ) | $ | 2,568 | $ | (12,691 | ) | $ | (10,457 | ) | |||||
| Net (loss) earnings per common share: | ||||||||||||||||
| Basic | $ | (0.13 | ) | $ | 0.13 | $ | (1.11 | ) | $ | (0.96 | ) | |||||
| Diluted | $ | (0.13 | ) | $ | (0.23 | ) | $ | (1.11 | ) | $ | (0.96 | ) | ||||
| Weighted-average number of common shares used in calculation of net (loss) earnings per share: | ||||||||||||||||
| Basic | 11,604 | 11,102 | 11,481 | 10,881 | ||||||||||||
| Diluted | 11,604 | 11,956 | 11,481 | 10,881 | ||||||||||||
| LENSAR, Inc. BALANCE SHEETS (In thousands, except per share amounts) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,442 | $ | 20,621 | ||||
| Short-term investments | 7,638 | 3,443 | ||||||
| Accounts receivable, net of allowance of | 4,373 | 4,001 | ||||||
| Notes receivable, net of allowance of | 352 | 323 | ||||||
| Inventories | 14,892 | 15,689 | ||||||
| Prepaid and other current assets | 1,705 | 2,367 | ||||||
| Total current assets | 39,402 | 46,444 | ||||||
| Property and equipment, net | 677 | 679 | ||||||
| Equipment under lease, net | 12,303 | 7,459 | ||||||
| Long-term investments | 494 | 492 | ||||||
| Notes and other receivables, long-term, net of allowance of | 952 | 1,279 | ||||||
| Intangible assets, net | 6,344 | 11,025 | ||||||
| Other assets | 1,847 | 2,207 | ||||||
| Total assets | $ | 62,019 | $ | 69,585 | ||||
| Liabilities, redeemable convertible preferred stock, and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,867 | $ | 4,007 | ||||
| Accrued liabilities | 5,800 | 5,717 | ||||||
| Deferred revenue | 1,437 | 1,349 | ||||||
| Operating lease liabilities | 574 | 559 | ||||||
| Total current liabilities | 11,678 | 11,632 | ||||||
| Long-term operating lease liabilities | 1,319 | 1,750 | ||||||
| Warrant liabilities | 12,295 | 8,457 | ||||||
| Other long-term liabilities | 205 | 570 | ||||||
| Total liabilities | 25,497 | 22,409 | ||||||
| Series A Redeemable Convertible Preferred Stock, par value | 13,784 | 13,747 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, par value | — | — | ||||||
| Common stock, par value | 116 | 113 | ||||||
| Additional paid-in capital | 147,200 | 145,203 | ||||||
| Accumulated other comprehensive income | 15 | 4 | ||||||
| Accumulated deficit | (124,593 | ) | (111,891 | ) | ||||
| Total stockholders’ equity | 22,738 | 33,429 | ||||||
| Total liabilities, redeemable convertible preferred stock, and stockholders’ equity | $ | 62,019 | $ | 69,585 | ||||
FAQ
What were LENSAR's Q3 2024 revenue results?
How much did LENSAR's recurring revenue grow in the past twelve months?
What was LENSAR's net loss for Q3 2024?
How many ALLY systems did LENSAR place in Q3 2024?
What is LENSAR's current U.S. market share?
How did LENSAR's EBITDA change in Q3 2024?
What is LENSAR's cash balance as of September 30, 2024?
