LENSAR Inc (LNSR) Q4 2024 Earnings Call Highlights: Record Revenue Growth and Strategic Market ...

In This Article:

  • Fourth Quarter Revenue: $16.7 million, a 38% increase over Q4 2023.

  • Full Year Revenue Growth: 27% over 2023.

  • ALLY System Placements: 31 systems in Q4, with 20 in the US.

  • Installed Base of ALLY Systems: Surpassed 135 globally.

  • Total Installed Base: 385 systems worldwide, a 26% increase over December 31, 2023.

  • Market Share in Procedures: Increased by 7.5% in the US, reaching almost 21%.

  • Procedure Volume Growth: 24% year over year in both the US and worldwide.

  • Recurring Revenue: $10.8 million in Q4; over $40 million for the year.

  • Gross Margin: $7.1 million, representing 42% for Q4.

  • Operating Expenses: $8.4 million in Q4 2024.

  • GAAP Net Loss: $18.7 million or $1.61 loss per share in Q4 2024.

  • Adjusted EBITDA: Positive $478,000 in Q4 2024.

  • Cash and Investments: $22.5 million as of December 31, 2024.

  • 2025 Revenue Growth Guidance: Expected to exceed 27% growth achieved in 2024.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • LENSAR Inc (NASDAQ:LNSR) achieved significant revenue growth in 2024, with a 38% increase in Q4 revenue compared to Q4 2023.

  • The company set a new quarterly high by placing 31 ALLY systems in Q4, with 20 of these installations occurring in the US.

  • LENSAR Inc (NASDAQ:LNSR) expanded its market presence in Europe and Southeast Asia, placing 24 systems since the mid-August 2024 launch.

  • 75% of new system placements in the US were with customers new to LENSAR, indicating strong adoption of their technology.

  • The company achieved a positive adjusted EBITDA of $478,000 in Q4 2024, marking the second consecutive quarter of positive results.

Negative Points

  • The GAAP net loss for Q4 2024 was $18.7 million, largely due to a $17.6 million non-cash charge related to warrant liabilities.

  • Recurring revenue as a percentage of total revenue decreased from 73% in Q4 2023 to 64% in Q4 2024.

  • Gross margin for Q4 2024 was 42%, slightly lower than the 43% realized in Q4 2023.

  • Operating expenses increased to $8.4 million in Q4 2024, up from $8.1 million in Q4 2023.

  • The company faces strong competition from larger players in the market, which could impact its growth and market share.

Q & A Highlights

Q: Can you provide more details on the mix of placements in the fourth quarter, specifically regarding Femto naive, competitive change-outs, and replacing LLS systems? A: Nicholas Curtis, CEO: In the fourth quarter, 75% of placements were new to LENSAR customers. We displaced only a few LLS systems, with most being moved to other locations rather than decommissioned. About 30% of the systems replaced competitive devices, and approximately 22% were Femto naive, indicating growth in both market share and new market segments.