RxSight, Inc. Reports Strong Revenue Growth Amid Challenges

Rxsight, Inc. ((RXST)) has held its Q4 earnings call. Read on for the main highlights of the call.

RxSight, Inc. recently held its earnings call, showcasing a robust financial performance marked by substantial revenue growth and gross margin expansion. The company reported positive adjusted net income, although it continues to grapple with net losses and rising operating expenses. The introduction of new product features and recent FDA approvals positions RxSight favorably for future growth.

Record Growth in Revenue and Sales

RxSight, Inc. reported impressive revenue figures for the fourth quarter of 2024, with revenue reaching $40.2 million, marking a 41% increase year-over-year. For the full year, revenue grew by 57% to $139.9 million. The company achieved a record sale of 29,069 Light Adjustable Lenses (LALs) in Q4 2024, up 61% from the same period in the previous year.

Strong Gross Margin Expansion

The company experienced significant gross margin expansion, with Q4 2024 margins increasing to 71.6% from 61.8% in Q4 2023. For the entire year, the gross profit margin rose to 70.7%, compared to 60.4% in 2023, reflecting improved operational efficiency and a favorable product mix.

Significant Increase in Installed Base

RxSight ended 2024 with a notable increase in its installed base, reaching 971 units, a 46% rise from 666 units at the end of 2023. This expansion underscores the growing adoption of the company’s innovative LDD technology.

Successful Stock Raise

The company successfully raised $107.5 million net of fees and expenses through a confidentially marketed public offering, concluding 2024 with a strong cash position of $237.2 million in cash, cash equivalents, and short-term investments.

Positive Adjusted Net Income

For Q4 2024, RxSight reported an adjusted net income of $1.3 million, or $0.03 per basic and diluted share, indicating a positive turnaround in its financial performance.

FDA Approvals and New Product Features

RxSight received FDA approval for an additional functionality of its LDD, allowing customization of asphericity of LALs. This new feature is scheduled for release in the second half of 2025, enhancing the company’s product offerings and market competitiveness.

Net Loss Reported

Despite positive developments, the company reported a net loss of $5.9 million, or $0.15 per share, for Q4 2024. The full-year net loss was $27.5 million, an improvement from the $48.6 million loss in 2023.

Increased Operating Expenses

Operating expenses for 2024 increased by 31% to $135.8 million, driven by higher selling, general, and administrative (SG&A) and research and development (R&D) expenses. This rise reflects the company’s strategic investments in growth and innovation.

Forward-Looking Guidance

Looking ahead to 2025, RxSight projects full-year revenue to range between $185 million and $197 million, representing a growth of 32% to 41%. The company anticipates gross margins between 71% and 73%, driven by a higher revenue mix from LAL procedures. Operating expenses are expected to rise by 22% to 25%, with significant investments in sales, marketing, and R&D. RxSight aims to expand its presence in the premium cataract market, leveraging its adjustable intraocular lens technology and new product advancements.

In summary, RxSight, Inc.’s earnings call reflected a positive sentiment with strong financial performance, despite ongoing challenges with net losses and increased expenses. The company’s strategic initiatives, including new product features and FDA approvals, position it well for future growth. Investors and market watchers will be keenly observing how RxSight navigates its projected growth and expansion in the coming year.