LENSAR (LNSR) Q3 2024 earnings summary

Executive summary

• Achieved 38% year-over-year revenue growth in Q3 2024 to $13.5 million, driven by strong ALLY system placements and international expansion into the EU and Taiwan.

• Total installed base of ALLY systems surpassed 100 globally, a 170% increase from last year; overall installed base reached 355 systems as of September 30, 2024.

• Worldwide procedure volumes increased 29% over Q3 2023, with U.S. procedure volume up 22% and U.S. market share reaching 19.9%-20%.

• Net loss for Q3 2024 was $1.5 million ($0.13 per share), compared to net income of $2.6 million ($0.13 per share) in Q3 2023, which included a $4.7 million favorable warrant valuation swing.

• The ALLY System is now available in the US, EU, India, Taiwan, and select other countries, with further certifications pending in South Korea and China.

Financial highlights

• Q3 2024 revenue was $13.5 million, up 38% from $9.8 million in Q3 2023, driven by 11 international system sales.

• Gross margin for Q3 was 46% ($6.3 million), compared to 50% in Q3 2023; year-to-date gross margin at 51%.

• Operating expenses were $7.5 million in Q3 2024, up from $6.9 million in Q3 2023, mainly due to higher SG&A.

• Adjusted EBITDA for Q3 2024 was $0.4 million, a $1.8 million improvement year-over-year.

• Cash, cash equivalents, and investments totaled $18.6 million as of September 30, 2024.

Outlook and guidance

• Q4 international ALLY demand expected to match Q3 levels (10-11 systems); procedure volumes anticipated to rise despite some disruptions from hurricanes and holidays.

• Recurring revenue growth expected to accelerate as newly installed systems reach optimal run rates in Q4 and into 2025.

• Management expects continued operating losses and cash outflows in the near term as commercialization and regulatory efforts expand.

• Current cash and equivalents are expected to fund operations for at least 12 months.

• More granular 2025 guidance to be provided after year-end, with focus on continued market share and procedure growth.