Rxsight, Inc. ((RXST)) has held its Q1 earnings call. Read on for the main highlights of the call.
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In the latest earnings call, RxSight, Inc. presented a mixed sentiment, with strong revenue growth and high customer satisfaction being overshadowed by revised revenue guidance due to macroeconomic challenges and increased market competition. While the company celebrated European regulatory approval as a long-term opportunity, short-term challenges continue to impact its performance and outlook.
Revenue Growth
RxSight reported a preliminary first-quarter 2025 revenue of $37.9 million, marking a significant 28% increase compared to the same quarter last year. This growth underscores the company’s ability to expand its market presence despite challenging conditions.
European Regulatory Approval
A major highlight of the call was the announcement of European regulatory approval for RxSight’s Light Delivery Device (LDD) and Light Adjustable Lens (LAL). This approval is a critical step towards the company’s expansion into the European Union market, offering promising long-term growth prospects.
Customer Satisfaction
Customer satisfaction reached an unprecedented high of 97%, reflecting strong approval and positive reception of RxSight’s products and services. This metric is a testament to the company’s commitment to quality and customer care.
LDD Installed Base Growth
The installed base of Light Delivery Devices grew to 1,044 units, representing a 43% increase from the end of the first quarter of 2024. This growth indicates robust demand and successful market penetration for RxSight’s innovative technology.
Revenue Guidance Revision
The company revised its full-year revenue guidance downward, from an initial range of $185 million-$197 million to $160 million-$175 million. This adjustment reflects a decrease in expected growth, now projected at 14%-25%, down from the previous 32%-41% forecast.
Sequential Revenue Decline
Despite year-over-year growth, the first quarter of 2025 saw a 6% sequential decline in revenue from the fourth quarter of 2024. This decline highlights some of the short-term challenges the company faces amid economic headwinds.
Premium IOL Market Softening
The premium Intraocular Lens (IOL) market has softened, influenced by macroeconomic factors and competitive product launches. This has led to a year-over-year drop in same-store LAL sales, presenting a challenge for RxSight’s market strategy.
LAL Sales Decline
While LAL sales increased by 36% year-over-year to 27,579 units, they experienced a 5% sequential decline from the fourth quarter of 2024. This indicates a need for strategic adjustments to sustain growth momentum.
Operating Expense Guidance Increase
Operating expenses are projected to rise to $150 million-$160 million, reflecting increased costs associated with customer interactions. This adjustment underscores the company’s focus on maintaining customer satisfaction amid revenue growth challenges.
Forward-Looking Guidance
RxSight’s revised guidance for fiscal year 2025 anticipates revenue between $160 million and $175 million, reflecting a tempered growth outlook of 14% to 25%. Despite potential economic headwinds affecting LAL procedures, the company expects to sell more LDDs in 2025 than in 2024. The gross margin guidance remains steady at 71% to 73%, while operating expenses have been adjusted to align with revenue growth expectations.
In summary, RxSight’s earnings call presented a complex picture of strong growth and customer satisfaction tempered by revised revenue expectations and market challenges. The company’s strategic focus on expanding into the European market and maintaining high customer satisfaction levels will be crucial as it navigates the current economic landscape.