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 38% over the third quarter of 2023.
We believe LENSAR is positioned well for continued procedure and
recurring revenue growth as we enter the fourth quarter, which is
typically our strongest quarter of the year,” said Nick Curtis,
President and CEO of LENSAR. “Our installed base has expanded to
over 100 ALLYs worldwide as of quarter end, reflecting a 170%
increase from the same period last year, and a total installed base
of approximately 355 systems. Procedure volumes were up 29% over
the third quarter of 2023 and translated to recurring revenue of
$38 million on a trailing twelve-month basis, representing an
increase of 22% over the comparable September 2023 twelve-month
period. Market Scope estimates that LENSAR gained an additional
3.5% market share in the past year in the largest premium market,
the U.S., and now has a total U.S. market share of 19.9% as of
September 30, 2024.
Third Quarter 2024 Financial Results
Total revenue for the quarter ended September 30, 2024 was $13.5
million, an increase of $3.7 million, or 38%, compared to total
revenue of $9.8 million for the quarter ended September 30,
2023. The increase in the third quarter of 2024 occurred in all
revenue line items and was primarily due to the 11 systems sold
outside the United States following regulatory certification and
clearance in the European Union and Taiwan in August of 2024.
Procedure volume in the United States increased approximately 22%,
when comparing the third quarter of 2024 to 2023, with worldwide
procedure volume increasing approximately 29% in the third quarter
of 2024 as compared to 2023. During the three months ended
September 30, 2024, the Company placed 24 ALLY Systems, increasing
the installed base to over 100 ALLY Systems and the total installed
base of LENSAR Laser Systems and ALLY Systems to approximately 355
at September 30, 2024, reflecting a 20% increase over the installed
base of 295 systems at September 30, 2023.
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
EndedSeptember 30, |
|
Nine Months
EndedSeptember 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 $38 million, on a trailing twelve-month basis, representing
an increase of 22% over the comparable twelve-month period in
2023.
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 $6.1 million
and $5.1 million for the quarters ended September 30, 2024 and
2023, respectively, an increase of $1.0 million or 19%. General and
administrative expenses increased in the quarter due to recording
an Employee Retention Credit (“ERC”) of $1.4 million in the three
months ended September 30, 2023, which significantly reduced
expenses in the third quarter of 2023. Excluding the $1.4 million
attributable to the ERC, selling, general and administrative
expenses decreased $0.4 million due to lower stock-based
compensation expense and lower cash-based general and
administrative expenses, partially offset by a 16% increase in
selling and marketing expenses in the third quarter of 2024
supporting the continued ALLY growth in placements and
procedures.
Research and development expenses were $1.2 million and $1.5
million for the quarters ended September 30, 2024 and 2023,
respectively, a decrease of $0.3 million or 21%.
Total operating expenses for the quarter September 30, 2024 were
$7.5 million as compared to $6.9 million in the third quarter of
2023, which included a reduction for the ERC of $1.4 million.
Operating loss for the third quarter of 2024 was $1.3 million and
improved $0.8 million, or 39%, from the $2.0 million in the third
quarter of 2023.
Net loss for the quarter ended September 30, 2024 was $1.5
million, or ($0.13) per common share, compared to net income of
$2.6 million, or $0.13 per common share, for the quarter ended
September 30, 2023. The most significant change in results between
the third quarter comparison relates to a $4.3 million decrease in
warrant liability, which occurred in the third quarter of 2023, and
generated net income from an operating loss in that quarter.
Included within operating expenses are stock-based compensation
expenses recorded for the quarters ended September 30, 2024 and
2023 of $0.7 million and $1.2 million, respectively, and change in
fair value of warrant liabilities of $0.4 million and ($4.3)
million, respectively.
Earnings Before Interest, Taxes, Depreciation and Amortization
(“EBITDA”) for the quarter ended September 30, 2024 was ($0.6)
million, compared with $3.2 million for the quarter ended September
30, 2023. Adjusted EBITDA, which we calculate by adding back
stock-based compensation expense, (income)/expense related to the
change in the fair value of warrant liabilities, impairment of
intangible assets and the ERC to EBITDA, was $0.4 million for the
quarter ended September 30, 2024 and ($1.4) million for the quarter
ended September 30, 2023. EBITDA and Adjusted EBITDA are non-GAAP
financial measures, and a reconciliation of these measures to net
loss is set forth below in this press release.
As of September 30, 2024, the Company had cash, cash
equivalents, and investments of $18.6 million, as compared to $24.6
million at December 31, 2023, and $15.4 million at June 30, 2024.
The Company’s cash balance increased approximately $3.1 million in
the quarter ended September 30, 2024, which was primarily related
to the 11 ALLY systems sold outside the U.S. in the third quarter
of 2024 as well as periodic changes in working capital balances.
The Company achieved break-even for the quarter on an Adjusted
EBITDA basis.
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
EndedSeptember 30, |
|
Nine Months
EndedSeptember 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
EndedSeptember 30, |
|
Nine Months
EndedSeptember 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 $39 and $62,
respectively |
|
|
4,373 |
|
|
|
4,001 |
|
|
Notes receivable, net of allowance of $7 and $7, respectively |
|
|
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 $20 and $26,
respectively |
|
|
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 $0.01 per share,
20 shares authorized at September 30, 2024 and December 31, 2023;
20 shares issued and outstanding at September 30, 2024 and December
31, 2023; aggregate liquidation preference of $20,000 at September
30, 2024 and December 31, 2023 |
|
|
13,784 |
|
|
|
13,747 |
|
|
Stockholders’ equity: |
|
|
|
|
|
Preferred stock, par value $0.01 per share, 9,980 shares authorized
at September 30, 2024 and December 31, 2023; no shares issued and
outstanding at September 30, 2024 and December 31, 2023 |
|
|
— |
|
|
|
— |
|
|
Common stock, par value $0.01 per share, 150,000 shares authorized
at September 30, 2024 and December 31, 2023; 11,612 and 11,327
shares issued and outstanding at September 30, 2024 and December
31, 2023, respectively |
|
|
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 |
|
LENSAR (NASDAQ:LNSR)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
LENSAR (NASDAQ:LNSR)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024
