LENSAR, Inc. (NASDAQ:LNSR) Q1 2024 Earnings Call Transcript

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They’re essentially the same as they were when they came into very few upgrades, if you will. They weren’t software-based and upgrading systems and adding capability like LENSAR has over the years with our first-generation LLS and now moving into ALLY. So we feel like we’re in a great position here. There isn’t a lot that doctors use that generates revenue for them in their practices that is 12, 13, 14 years old, and changing the paradigm by getting into the operating rooms and doing fully sterile procedures with a device that’s highly ergonomic and much smaller and much faster and allows the doctor to be much more efficient. Again, this is kind of like a — it’s not an if, it’s a when.

Ryan Zimmerman: Yes. No, that’s great color, Nick. And certainly, a good perspective of kind of the opportunity before you. I’m curious, the 18 units that are coming in the second quarter, those are all in the U.S. I might have missed this.

Nicholas Curtis: That’s correct.

Ryan Zimmerman: Yes. Okay. All right. So this is not accounting for anything that could potentially come in with CE Mark later this year. Okay. That’s ready. That’s there. And then as you think about the procedure environment, I mean you’re taking share in the FLACS market. You put up 25% growth on a fairly negative comp just because of the Korean headwinds. How do you think about kind of the health of the procedure market as we look out for the remainder of the year?

Nicholas Curtis: So we’re optimistic about the procedure market for us because we view the market opportunity as really looking at this 70% to 90% of patients that have visually significant astigmatism. And for example, in LASIK, PRK or SMILE procedures, doctors would never allow the patient to leave with three-fourth of a diopter of cylinder, God forbid, a diopter of cylinder or even at a quarter to half diopter of cylinder remaining as part of the procedure, the patient just simply wouldn’t be happy. So we’re really — our higher utilization in most cases, can be traced to higher utilization in the astigmatism management, and it presents a great opportunity for the doctor because they can provide much better vision to the patient no matter what lens the patient is choosing if they’re managing the astigmatism.

So we view that as potential expansion. The other thing is that when we designed ALLY, we took into consideration all of these reasons why the 45% of doctors heretofore that don’t identify with femto laser or had started doing it and stopped doing it or are still trying to evaluate whether they should do it or not. We looked at all the reasons why they chose at this point not to do it. And so we try to build those features into ALLY that would not only appeal to doctors that we’re currently offering of femtosecond lasers and have found value and utility in it. But at the same time, those doctors that were not doing it. And so we feel like not only can we replace the market that’s out there today with these older devices, but that ultimately, we start penetrating and providing opportunity to surgeons that heretofore had not done it or had stopped doing it.

Ryan Zimmerman: Got it. And then just we’ve talked in the past. I know you’re still not putting guidance out, but any commentary about kind of where to think about your ability to sustain 20% plus growth on the top line and if you’re still comfortable kind of with that expectation?

Nicholas Curtis: We’re comfortable with that expectation.

Ryan Zimmerman: Okay. That’s it for me. Thanks guys.

Nicholas Curtis: Thank you, Ryan.

Operator: Thank you. We have no further questions at this time. I will now turn the floor back over to Nick Curtis for any closing remarks.

Nicholas Curtis: So I appreciate everybody joining our call today, and thank you for your continued interest in LENSAR. We look forward to updating you as we continue to make further progress. We’re really looking forward to an exciting remainder of 2024. Please stay tuned.

Operator: Thank you, everyone. This concludes today’s teleconference. We appreciate your participation. You may disconnect.

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