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Sight Sciences (SGHT)
NASDAQ:SGHT
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Sight Sciences
(NASDAQ:SGHT)
45Neutral
Positive Factors
Financial Flexibility
Sight maintains a solid $120 million cash position, which enables flexibility for ongoing product launches, market access efforts, and further R&D investments.
Product Growth Potential
TearCare was discussed as a significant product with potential for growth and market impact.
Surgical Glaucoma Growth
The number of surgical glaucoma ordering accounts increased 3% sequentially and 7% year-over-year, with intra-account utilization also rising.
Negative Factors
Coverage Restrictions
Five Medicare administrative contractors finalized LCDs restricting coverage for glaucoma procedures using multiple MIGS, causing an industry-wide headwind.
Revenue Guidance and LCD Impact
2025 revenue guidance is below consensus due to the impact of LCDs on OMNI's volume outlook.
Tariffs Challenge
Tariffs were mentioned as a potential challenge for the company, implying possible cost implications.
Sight Sciences (SGHT) vs. S&P 500 (SPY)
Market Cap
$116.01M
Dividend YieldN/A
Average Volume (3M)275.92K
Price to Earnings (P/E)―
Beta (1Y)1.70
Revenue Growth-1.47%
EPS Growth9.99%
CountryUS
Employees216
SectorHealthcare
Sector Strength70
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.03
Shares Outstanding51,332,695
10 Day Avg. Volume227,216
30 Day Avg. Volume275,917
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.87
Price to Cash Flow (P/CF)102.50
P/FCF Ratio25.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside47.06% Upside
Rating ConsensusHold
Number of Analyst Covering8
Sight Sciences Business Overview & Revenue Model
Company DescriptionSight Sciences, Inc. (SGHT) is a medical device company focused on developing and commercializing innovative solutions to transform care in ophthalmology and optometry. The company's core products aim to address prevalent eye diseases, including glaucoma and dry eye disease. Sight Sciences leverages its proprietary platform technology to offer minimally invasive surgical and non-surgical treatment options that enhance patient outcomes and improve healthcare efficiency.
How the Company Makes MoneySight Sciences generates revenue primarily through the sale of its medical devices and related consumables to healthcare providers and distributors. The company's key revenue streams include the sales of its OMNI Surgical System, used for minimally invasive glaucoma surgery, and the TearCare System, designed for the treatment of dry eye disease. Sight Sciences may also engage in partnerships and collaborations with healthcare institutions and other entities to expand the reach of its products. Additional revenue may come from ongoing service and support contracts associated with its devices.
Sight Sciences Financial Statement Overview
Summary
Sight Sciences demonstrates a strong gross margin and liquidity position with no debt, which are positive indicators. However, the company faces challenges with declining revenues, consistent net losses, and negative free cash flow. The reduction in equity suggests potential sustainability concerns if these trends continue. The financial position is stable but requires strategic actions to improve profitability and cash flow generation.Income Statement
Sight Sciences shows a declining revenue trend with a revenue decrease from $81.1M in 2023 to $79.9M in 2024, marking a negative revenue growth rate of -1.47%. The company is also operating at a loss, with a net profit margin of -64.5% in 2024, which is a slight improvement from -68.5% in 2023. The gross profit margin is relatively high at 85.5% in 2024, indicating efficient cost management concerning direct costs, but there is a consistent negative EBIT and EBITDA margin due to high operating expenses.40
Negative
Balance Sheet
The balance sheet reflects a strong liquidity position with a significant amount of cash and cash equivalents ($120.4M) and no debt as of 2024, resulting in a net negative debt position. The equity ratio stands at 61.3%, indicating a solid equity foundation. However, the company has been experiencing a decrease in stockholders' equity from $120.2M in 2023 to $87.5M in 2024. The absence of debt reduces financial risk, but declining equity could be a concern.55
Neutral
Cash Flow
Free cash flow remains negative at -$22.7M in 2024, though there is an improvement from -$47.9M in 2023. The operating cash flow to net income ratio is close to 0.43, reflecting some alignment between operational cash generation and reported losses. Despite improvement, persistent negative cash flows highlight ongoing challenges in generating sufficient cash from operations.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 79.87M | 81.06M | 71.33M | 48.96M | 27.64M | Gross Profit |
| 68.28M | 69.17M | 58.97M | 40.35M | 18.43M | EBIT |
| -50.53M | -57.27M | -83.95M | -51.48M | -32.19M | EBITDA |
| -45.90M | -49.41M | -80.48M | -57.20M | -31.68M | Net Income Common Stockholders |
| -51.51M | -55.55M | -86.24M | -62.96M | -34.69M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 120.36M | 138.13M | 185.00M | 260.69M | 61.51M | Total Assets |
| 142.84M | 166.65M | 213.07M | 280.19M | 72.81M | Total Debt |
| 40.36M | 35.41M | 34.35M | 32.66M | 32.48M | Net Debt |
| -80.00M | -102.72M | -150.65M | -228.03M | -29.03M | Total Liabilities |
| 55.32M | 46.44M | 53.00M | 48.08M | 161.66M | Stockholders Equity |
| 87.52M | 120.22M | 160.08M | 232.11M | -88.85M |
| Cash Flow | Free Cash Flow | |||
| -22.74M | -47.98M | -76.94M | -53.35M | -33.13M | Operating Cash Flow |
| -22.35M | -47.18M | -75.97M | -52.54M | -32.17M | Investing Cash Flow |
| -385.00K | -791.00K | -970.00K | -813.00K | -953.00K | Financing Cash Flow |
| 4.96M | 1.10M | 1.25M | 252.53M | 73.40M |
Sight Sciences Technical Analysis
Negative
2.38
Price Trends
2.60
Negative
3.05
Negative
4.66
Negative
Market Momentum
-0.05
Positive
38.45
Neutral
3.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGHT, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.55, below the 50-day MA of 2.60, and below the 200-day MA of 4.66, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.45 is Neutral, neither overbought nor oversold. The STOCH value of 3.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGHT.
Sight Sciences Risk Analysis
Sight Sciences disclosed 53 risk factors in its most recent earnings report. Sight Sciences reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sight Sciences Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $193.30M | 29.84 | 16.11% | ― | 15.35% | 71.35% | |
71 Outperform | $1.62B | 12.30 | 14.74% | 1.53% | 4.98% | 104.60% | |
60 Neutral | $3.10B | ― | -75.27% | ― | 20.13% | 10.05% | |
53 Neutral | $3.41B | ― | -5.76% | ― | 5.28% | -292.14% | |
51 Neutral | $782.79M | 55.81 | -5.16% | ― | -2.64% | -193.31% | |
48 Neutral | $6.25B | 1.14 | -46.26% | 2.69% | 19.24% | 1.75% | |
45 Neutral | $116.01M | ― | -49.59% | ― | -1.47% | 9.99% |
* Healthcare Sector Average
Performance Comparison
SGHT
Sight Sciences
2.38
-3.15
-56.96%
CNMD
Conmed
51.73
-22.63
-30.43%
ELMD
Electromed
22.53
7.88
53.79%
ICUI
ICU Medical
142.65
45.55
46.91%
STAA
Staar Surgical
16.79
-29.43
-63.67%
IRTC
Irhythm Technologies
102.09
-7.39
-6.75%
Sight Sciences Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -1.65% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call depicted a mixed outlook. While Sight Sciences achieved revenue growth and significant reductions in cash usage, challenges related to Medicare LCDs, a decline in TearCare revenue, and tariff impacts were notable. Clinical advancements and pipeline developments offer positive future potential. Overall, the sentiment reflects cautious optimism amid current challenges.Highlights
Revenue Growth
Sight Sciences reported total revenue of $19.1 million for Q4 2024, marking a 2% increase compared to the same period in the prior year.
Surgical Glaucoma Revenue Increase
Surgical glaucoma revenue grew by 9% in Q4 2024 compared to Q4 2023, driven by a 7% increase in ordering accounts and a 6% increase in account utilization.
Reduction in Net Cash Usage
The company achieved a 62% reduction in net cash used for FY 2024 compared to 2023, reflecting disciplined expense management.
Clinical Data and Advancements
Publication of three-year standalone clinical data for Omni and TearCare budget impact analysis, demonstrating effectiveness and potential cost savings.
Pipeline Development
Introduction of OMNI Edge planned for the first half of 2025, with enhancements in viscoelastic delivery designed to improve safety and efficacy.
Lowlights
Impact of Medicare LCDs
The implementation of new Medicare LCDs led to a more pronounced impact on surgical glaucoma revenue in Q4 2024 than expected, with an industry-wide anticipated decline in MIGS device utilization.
Decline in TearCare Revenue
Dry eye revenue decreased significantly to $0.3 million in Q4 2024 from $1.6 million in Q4 2023, attributed to fewer SmartLid sales and a shift towards establishing reimbursement coverage.
Tariff Impact on Gross Margins
Newly implemented 20% tariffs on goods from China are expected to impact gross margins and results of operations in 2025.
Net Loss Increase
Net loss for Q4 2024 was $11.8 million, up from a net loss of $10.7 million in Q4 2023.
Company Guidance
In the Sight Sciences Fourth Quarter 2024 Earnings Conference Call, the company reported a total revenue of $19.1 million for Q4 2024, reflecting a 2% year-over-year increase. The surgical glaucoma segment experienced a 9% revenue growth compared to the same quarter in the prior year, while the dry eye segment saw a decline in revenue to $0.3 million due to fewer SmartLid sales. Gross margin for the quarter was 87%, an improvement from 85% in Q4 2023. The company also achieved a 62% reduction in net cash used for the year. For 2025, Sight Sciences projects a revenue range of $70 million to $75 million and adjusted operating expenses between $105 million and $107 million. The guidance considers the effects of the new Medicare LCD, which prohibits multiple MIGS procedures during cataract surgery, leading to an anticipated industry-wide decline in MIGS device utilization. The company is also preparing for potential tariff impacts on its gross margins due to a 20% tariff on goods from China, although efforts are underway to mitigate these costs. Looking ahead, Sight Sciences aims to secure positive reimbursement coverage for its TearCare product and will continue to invest in its Pseudophakic standalone surgical glaucoma market development and TearCare market access efforts.Sight Sciences Corporate Events
Business Operations and StrategyFinancial Disclosures
Sight Sciences Reports 2024 Financial Results and 2025 Outlook
Negative
Mar 5, 2025
On March 5, 2025, Sight Sciences reported its financial results for the fourth quarter and full year 2024, revealing a slight revenue decline for the year but a significant reduction in cash usage and operating expenses. The company also announced a new financial guidance for 2025, anticipating a revenue decline due to changes in Medicare coverage for certain procedures, while continuing to focus on strategic initiatives and market access opportunities for its products.
Executive/Board ChangesBusiness Operations and Strategy
Sight Sciences Enhances Executive Compensation for 2025
Neutral
Jan 28, 2025
On January 24, 2025, Sight Sciences’ Compensation Committee approved increases in annual base salaries and target cash incentive bonuses for key executive officers for Fiscal 2025. The company’s cash incentive program for 2025 will be based on achieving specific milestones related to revenue, operating expenses, and market and product development goals, impacting the company’s strategic focus and operational benchmarks.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.