STAAR Surgical Company (NASDAQ:STAA) Q3 2023 Earnings Call Transcript

George Sellers : Okay. Great. That’s really helpful. Thank you all, I’ll leave it there.

Operator: Thank you. Your next question comes from Margaret Kaczor Andrew of William Blair. Your line is already open.

Margaret Kaczor Andrew: Hey. Good afternoon guys. Thanks for taking the question. I just wanted to follow-up first on market trends and some of the comments that you just made. It sounded like maybe you’re not seeing enough of a weak macro environment correlating with your trends to take down guidance or rethink that. So I guess twofold questions within that. One, our market trends at this point stable, so they’re down but maybe not getting much worse. And then two, how should we think about correlation of you all to market trends? I know you’re a smaller piece of the market, but if you look at the past how correlate are you? Thanks.

Patrick Williams: Yeah. Look it’s a fair question. And as we said we’re coming down on the low end of the guidance range that we said. So that would be about $74 million in Q4. We still believe though based on everything we’re listening to and everything we’re seeing out there, it’s a bit early for us to start contemplating and talking about 2024. Clearly, we’re taking market share. And I think what Tom outlined on his prepared comments is showing that even in light of a declining refractive market in many parts of the world, we are taking share or even making a growing share. So I don’t want to be overly optimistic. At the same time, we want to make sure we see another 90 days here before we start talking about 2024. But it is pretty clear that there are some slowdowns that are happening out there and we’re being very mindful in trying to track those ice will have ultimately any sort of impact on our business.

Margaret Kaczor Andrew: Okay. And then I guess moving to US Highway 93. I’ll maybe take a different crack at set the question here. I guess, I’m trying to take and get an idea of what the peak potential sales of these practices can be as they move down that diopter. So can you double sales here, if you really succeed within these practices and what does it mean for the practices? I don’t know if you want to take it down a penetration route or capacity out with you bring new patients into the practice. But again, how are you able to think of ROI and potential revenue within these? Thanks.

Tom Frinzi: Again, Margaret this is Tom. And as we stated at our Investor Day in the three-year CAGR we saw the US business going from high-teens to roughly a $50 million franchise over that three-year period of time. Certainly, Highway 93 is a step in that right direction as we have always said we needed to go deeper not wider. And as we do that and we come down to diopter curve the opportunity to grow the business at those rates is very real.

Patrick Williams: Yeah. We talked about the US and Margaret we addressed the question we got earlier because you guys asked the question. So as I said we expect that we’ll continue to see flattish growth in the US sequentially here now until we move into the second half of 2024. At the same, time that doesn’t take away from our conviction of that 30% to 50% CAGR that we specifically outlined for the US and our Vision 2026. And as I said at the beginning, we do expect to see higher growth rates when we go throughout that three-year CAGR, right? So as these initiatives take place getting back to your question Margaret about adoption within those practices, as they begin to see a minus three walk in the door and think in their head the first choice for them is EVO that’s where we start garnering a larger piece of the market share that they have within those individual practices and that’s it’s really going to grow the business overall over the next three years.