RxSight, Inc. (NASDAQ:RXST) Q2 2023 Earnings Call Transcript

Ryan Zimmerman : Okay. I appreciate that incremental color Shelly. And then the second question, one of the large peers in the ophthalmic market reported earlier this earnings season said the health of the premium market has been weak. Since the second quarter in a row, they’ve said that, yet you continue to put up kind of, I think, really good results. And I’m curious if what your view is of the health of cataract market, given some of the commentary we’ve seen from some of your larger competitors?

Ron Kurtz : Well, overall, the cataract market continues to grow driven by demographics. And then within the overall cataract market, the premium market is still the main opportunity for practices to grow their revenue — relative to continued reductions in reimbursement that they receive. — for cataract surgery and other reimbursed services. So, we see the premium market as being a primary engine for growth in ophthalmology. And as you noted, we have seen our numbers continue to grow.

Operator: [Operator Instructions]. Our next question comes from Larry Biegelsen of Wells Fargo. Please proceed with your question.

Unidentified Analyst: This is Charles on for Larry. Can you hear me okay?

Shelley Thunen : Yes.

Unidentified Analyst: First, congrats on the nice quarter. I wanted to follow up a little bit — so on your newer lower-cost LDD, that was approved at the start of the year. Can you just refresh us give an update where you guys are at preparing for the launch and building inventory? Last year, it sounded like second half Second half launch. Is that going to be a phased approach? And is there going to be any kind of limit by inventory availability there to talk about? Thanks.

Ron Kurtz : Thank you, Charles. So, as you noted, the reconfigured LDD was approved earlier in the year. It has the same functionality as our current LDD primarily has — will have its impact on the margin. And as Shelly noted, we’re anticipating that to be primarily towards the end of the year. So that has really been our plan for the year, and I don’t see many changes there.

Shelley Thunen : To your question is supply chain. Supply chain is still tough, but it’s continuing to improve. And one of our strategy is not to introduce the reconfigured LDD until we’re certain that we have the finished goods and stock as well as the supply chain has stabilized. And so that is part of our strategy and ensuring that we have full availability for our customers.

Unidentified Analyst: Okay, great. Thank you.

Operator: [Operator Instructions]. Our next question comes from Craig Bijou of BofA Securities. Please proceed with your question.

Craig Bijou: Good afternoon. Sorry about earlier. I guess I missed my initial slot. But thank to guess — I had two questions on the competition. And I wanted to kind of see what you’re seeing on the field level or the ground level and what you’re hearing from docs anecdotally, I believe — and it’s a bit of a follow-up on the question that was asked before, but — is it truly patient awareness? Is it the patient satisfaction, the results that the doctor has seen? Is it the ability to potentially price at a premium to other competitive premium IOLs? And then the second competition question is just anything that you guys know of or have heard or kind of worries you about some of the bigger players and the development of new lenses there.

Ron Kurtz : So, I think all the things that you mentioned, Craig, are in play. Certainly, the awareness of the quality of the results that patients and doctors can obtain with the light-adjustable lens is an important factor. Once the system becomes available to doctors, then that allows them to offer it to more patients, more doctors in the practice. So, I think all of these things are in play. — and the ability to have a really strong ROI is obviously a factor as well. And doctors are pricing the technology at a level commensurate with its — the quality of the results that it produces. So, all of those are important to growth. With respect to competition, again, the only — we have the same visibility of the competition that everybody else does as far as we can tell, we don’t see anything on the horizon even in the near midterm.