RxSight Inc (RXST) Q1 2025 Earnings Call Highlights: Revenue Surge and Strategic Advances Amid ...

GuruFocus News

Thu, May 8, 2025, 1:31 AM 5 min read

RxSight Inc (NASDAQ:RXST) reported a 28% increase in revenue for Q1 2025 compared to the same quarter in 2024, reaching $37.9 million.
The company achieved a gross margin of 74.8% in Q1 2025, up from 70.1% in Q1 2024, primarily due to lower LAL costs and product mix.
RxSight Inc (NASDAQ:RXST) is ahead of schedule in launching a software update that includes new features for LDD procedures, enhancing clinical education and marketing efforts.
The company received full regulatory approval for its LAL Plus and LDD products in South Korea, with expectations for UK approval in Q2 2025.
RxSight Inc (NASDAQ:RXST) maintains a strong cash position with $229.3 million in cash equivalents and short-term investments, supporting its progress toward cash flow break-even.

Negative Points

The company experienced its first year-over-year drop in the LAL's per LDD metric due to macroeconomic headwinds and competitive disruptions.
There was a 6% decline in revenue compared to Q4 2024, indicating a sequential slowdown.
SG&A expenses increased by 23% year-over-year, driven by higher personnel costs and stock-based compensation.
R&D expenses rose by 29% compared to Q1 2024, primarily due to increased salaries and stock-based compensation.
The company reported a GAAP net loss of $8.2 million for Q1 2025, although this was an improvement from the $9.1 million loss in Q1 2024.

Q & A Highlights

Warning! GuruFocus has detected 3 Warning Sign with RXST.

Q: Hi Ron and Shelly, this is Izzy on for Ryan. Thanks for taking the questions. I was hoping to start out discussing the pace and scale of your redoubled commercial efforts. I was curious when we might start to see contributions from these start to pay off. A: I think as we discussed, taking into account the macro environment and the competitive trialings, we expect those to be in the back half of the year that we would start to see impact from those. - Dr. Ron Kurtz, CEO

Q: Understood, thank you. And as we think about the broader macro environment, I understand that the focus is still on the US, but I was curious how you're thinking about the pacing or the timing with which you want to expand internationally. A: I don't think that the macro environment impacts our pacing internationally, which obviously is initially focused on continued regulatory approvals and then initial market experience. We're starting from such a low base that we wouldn't expect to see significant impact from the macro environment, except for, there may be special cases in certain markets that we'll stay attuned to. - Dr. Ron Kurtz, CEO

Q: April. It sounded like early April, trends were still pretty choppy and rough, but it got better, later on. Can you maybe talk a little bit more about what you're seeing, sort of, in more recent periods? A: Yeah, I don't think I would go too far beyond what we've already commented. I think that, obviously April was there were a lot of things going on at the macro level in April, but overall those, by the end had, roughly stabilized, and that was something that we also saw in our numbers. - Dr. Ron Kurtz, CEO

Q: The guidance, there's a lot of moving parts here with, competitive trialing and dynamics versus second half. Is there any incremental color you can provide just on the quarterly payments for the rest of the year? A: Yeah, we don't give quarterly guidance just annual and we don't break it out by LAL and LDD, but I think what we have said is we would expect the number of LDDs that we sell during the year continues to be higher than 2024 and typically the second quarter is a very strong quarter for us seasonally, but with everything going on with macroeconomics trialing and whatnot, what we are cautioning investors to keep in mind is the environment is so much different than it's been in past years. - Shelley Tunan, CFO

Q: Beautiful, thanks guys. Two quick ones. I first, I'd love to dig in a little bit more on the workload challenges that you mentioned. It is because I would have thought like the premium IOL side dropping a little bit might have freed up a little bit of consultation time. So like what is it that's eating up the time for the customers so much, that you're speaking to what's kind of blowing up that time that's making things hard at the moment? A: I just want to clarify, Patrick, you said the workload challenges, right? So I think that this is not necessarily something that's brand new. It's something that's been going on for a while, just staffing challenges in practices that we certainly picked up in our survey and that you know that's going to be a little bit practice to practice dependent, but that was definitely one of the items that we saw in the responses to our survey and so that's really what we were referring to. - Dr. Ron Kurtz, CEO

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

This article first appeared on GuruFocus.

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