Sight Sciences, Inc. (NASDAQ:SGHT) Q3 2022 Earnings Call Transcript

Paul Badawi: Hi, David, great questions. On the first question around SION, reality where we’re seeing adoption across all 3 of those subjects, we knew before we develop SION, we knew these market subsets existed. We’ve got obviously a significant and highly talented commercial team, sales and marketing team. And these subsets of the market are known to us, these were not accounts that we could win regardless of how efficacious OMNI is. They weren’t accounts that were available to us. They are today. So the answer is all 3 of those subsets, we’re having progress with SION to the high volume cataract surgeon, we brought on a number of those, I think, within the first few weeks, I mean, think of like some of the very highest volume cataract surgeons in the country, I know, we have some of those who came on early.

The academic institutions, those institutions take time, right, to get products through the system. But we’re having very healthy discussions there today. And then lastly, on the PO €“ profitability oriented facilities, we’re selling SION into those types of accounts today. Your second question, David, OMNI users

Jesse Selnick: Yeah, Paul, I can take that we €“ the OMNI utilization of the initial SION orders looks very similar to the OMNI utilization overall, David, if that makes sense, right? Like meaning there’s not a discernible difference that we can observe yet like in their utilization trends versus the non-SION, but OMNI using base. And we’re really encouraged, right? It’s been a very targeted initial rollout. And, we knew that the use case really might have some overlap, but honestly, the reason that users were using OMNI was such that like it mitigated the theoretical risk of sort of the utilization cannibalization, right? So we are quite encouraged with that comparison of utilization.

Paul Badawi: Another way to think of that, David

David Saxon: Okay. Got it.

Paul Badawi: Another way to think of that is our OMNI customers, who are proficient with OMNI, and they’re now, there is a bar, the efficacy bar and expectation has been set that they’re not going to move off of that. That’s why they’re using OMNI, whereas so OMNI customers don’t necessarily become SION customers. However, the opposite SION customers, we do have the opportunity to introduce them to OMNI once they’re using SION, we’ve got that established regular sales rep to surgeon relationship, and they’re in the OR with the surgeons. And then, they’re seeing patients that are a little more advanced that’s the ideal opportunity now that we’re in there to sell them on OMNI, so we don’t see it the other way around OMNI. Very, very happy OMNI users, who depend on the efficacy that OMNI delivers switching off of OMNI really to anything else.

David Saxon: Okay, great. And then, Jesse, maybe just one on the cash burn looks like it was around $21 million for the quarter, $61 million year-to-date. How should we think about the burn in the fourth quarter? And it sounds like should improve in 2023. So maybe just give us a framework with €“ how to think about the magnitude of that improvement as we progress to positive free cash flow in 2025? Thanks so much.

Jesse Selnick: Yeah, I mean, the €“ I think we’ve given a lot of good piece parts to be able to kind of give our view, right? We gave a directional, I’d say, a true directional sort of view of what the operating expense envelope should look like next year, our perspective on medium-term revenue growth, right? And then, we are seeing margins like the gross margins, right? I think the three periods. It was 84% for all three periods, right? That I had discussed in sort of my prepared comments. So you sort of factor all those three things in without sort of giving specific cash burn guidance, but you can get to like what our perspective is like on what the burn envelope will be like next year, right? And what’s important to like in those comments was, we’ve made a lot of the investment, we think to grow the business to next $50 million, $100 million in terms of infrastructure investment, support investment.