NASDAQ: STAA 1Q 2024
Earnings Call Supplement MAY 7, 2024 Exhibit 99.2
02 Conference Call and Webcast Speakers Investor Contact TOM FRINZI PATRICK WILLIAMS Chair of the Board, President and CEO Chief Financial Officer WEBCAST ARCHIVE: Audio webcast archive will be available at http://investors.staar.com +1 626.303.7902 x3023 Brian Moore VP, Investor Relations and Corporate Development bmoore@staar.com http://investors.staar.com
All statements that are not statements of historical fact are forward-looking statements, including statements about any of the following: any financial projections, anticipated financial results, estimates and outlook (including as to net sales, Adjusted EBITDA, and Adjusted EBITDA per diluted share), plans, strategies, and objectives of management for 2024 and beyond or prospects for achieving such plans, expectations for sales, revenue, margin, expenses or earnings, and any statements of assumptions underlying any of the foregoing, including those relating to financial performance in the upcoming quarter, fiscal year 2024 and beyond. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties related to global economic conditions, as well as the factors set forth in the Company’s Annual Report on Form 10-K for the year ended December 29, 2023 under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investor Information” section of the Company’s website, www.staar.com, under the heading “SEC Filings.” We disclaim any intention or obligation to update or revise any financial projections or forward-looking statement due to new information or events. These statements are based on expectations and assumptions as of the date of this presentation and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include the following: global economic conditions; the impact of COVID-19; the discretion of regulatory agencies to approve or reject existing, new or improved products, or to require additional actions before or after approval, or to take enforcement action; international conflicts, trade disputes and substantial dependence on demand from Asia; and the willingness of surgeons and patients to adopt a new or improved product and procedure. We intend to use our website as a means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website in the ‘Investor Relations’ sections. Accordingly, investors should monitor such portions of our website, in addition to following our presentations, SEC filings and public conference calls and webcasts. Forward Looking Statements 03
To supplement the Company’s financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), this presentation and the accompanying tables include certain non-GAAP financial measures, including Adjusted EBITDA. Management uses these non-GAAP financial measures in its evaluation of Company operating performance and believes investors will find them useful in evaluating the Company’s operating performance, including cash flow generation, and in analyzing period-to-period financial performance of core business operations and underlying business trends. Non-GAAP financial measures are in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. EBITDA is a non-GAAP financial measure, which is calculated by adding interest income and expense, net; provision for income taxes; and depreciation and amortization to net income. In calculating Adjusted EBITDA and Adjusted EBITDA per diluted share, the Company further adjusts for stock-based compensation expense. As stock-based compensation is a non-cash expense that can vary significantly based on the timing, size and nature of awards granted, the Company believes that the exclusion of stock-based compensation expense can assist investors in comparisons of Company operating results with other peer companies because (i) the amount of such expense in any specific period may not directly correlate to the underlying performance of our business operations and (ii) such expense can vary significantly between periods as a result of the timing of grants of new stock-based awards, including inducement grants in connection with hiring. Additionally, the Company believes that excluding stock-based compensation from Adjusted EBITDA and Adjusted EBITDA per diluted share assists management and investors in making meaningful comparisons between the Company’s operating performance and the operating performance of other companies that may use different forms of employee compensation or different valuation methodologies for their stock-based compensation. Investors should note that stock-based compensation is a key incentive offered to employees whose efforts contributed to the operating results in the periods presented and are expected to contribute to operating results in future periods. Investors should also note that such expenses will recur in the future. In the appendix to this presentation, the Company has included a reconciliation of Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share, the most directly comparable GAAP financial measure. The Company has also provided a reconciliation of forward-looking Adjusted EBITDA and Adjusted EBITDA per diluted share to net income and net income per diluted share. This represents forward-looking information, and actual results may vary. Please see the risks and assumptions referred to in the Forward Looking Statements section of this presentation. Non-GAAP Financial Information 04
First Quarter 2024 Results 1Q24 EARNINGS REPORT ON MAY 7, 2024 OUTLOOK $77.4 M 9% Global ICL Sales Growth $252.1 M Cash, cash equivalents and investments available for sale at Mar 29, 2024 78.9% Gross Margin (2.9%) Operating Margin Net Sales ($3.3 M) GAAP Loss $335 M to $340 M $5.3 M $0.11 Adjusted EBITDA Adjusted EBITDA per diluted share Net Sales Fiscal 2024 Outlook ~$39 M* ~$0.75* Adjusted EBITDA Adjusted EBITDA per diluted share * Compares to prior outlook of Adjusted EBITDA of approximately $36 million and Adjusted EBITDA per diluted share of ~ $0.70. Our first quarter results illustrate the impact of our commercial focus, which is driving continued market adoption and share gains of our EVO ICL. Our strategic investments in people and processes in recent quarters are now bearing fruit. We are very pleased by the quickening pace of our momentum to start 2024, marked by several significant business milestones, including today’s announcement of the largest-ever practice commitment to EVO ICL in the U.S. 11% 9% EMEA 12% APAC Americas 05
Achieved three million total implantable collamer® lenses (ICLs) sold in March 2024. >1.5M lCLs have been sold in just the last three years, i.e. fiscal years 2021-2023. First Quarter 2024 & Recent Business Highlights Enhanced commercial focus is yielding positive results Our APAC, EMEA, Americas regions generated ICL sales growth of 9%, 11% and 12%, respectively in the first quarter vs. fiscal year outlook of 7%, flat and 10%, respectively Generated 21% sequential sales growth in the U.S., achieving record quarterly U.S. ICL sales of $5 million On May 7, 2024, STAAR announced the largest commitment ever to EVO ICL in the U.S. – a strategic agreement with Dr. Robert Lin and IQ Laser Vision as part of our U.S. Highway 93 go-to-market program. The agreement follows the Sharpe Vision agreement announced on January 23, 2024 Two new markets, Belgium and Netherlands, joined China and Japan with a 20%+ share of refractive procedures. Spain, at approximately 18% share, should be the next large market to reach 20% share. ENGAGED HUNDREDS OF U.S. AND APAC SURGEONS AT INDUSTRY MEETINGS IN MARCH & APRIL ASCRS Annual Meeting, Boston and STAAR APAC Experts Summit, Okinawa 44 posters and presentations featuring ICL, including at least two that should meaningfully increase surgeon confidence in the measurement of the eye and ICL lens size selection
Launched STAAR University, our medical science website, at ASCRS for surgeons and other healthcare professionals, featuring clinical data and research, and the ability to apply for grants
Introduced Stella® ordering and planning system 93% of those surveyed “Agreed” or “Strongly Agreed” that, based on the data presented, they were more comfortable recommending EVO ICL for patients -6 and above 06
ICL Sales by Geography ICL Sales by Region(5) ICL Sales by Country(4,5) 2021 2021 2022 2022 2023 2023 March 31, 2023 March 31, 2023 June 30, 2023 June 30, 2023 September 29, 2023 September 29, 2023 December 29, 2023 December 29, 2023 March 29, 2023 March 29, 2023 Americas(1)
EMEA(2)
APAC (3)
Global ICL Sales
Global ICL Sales Growth
Americas ICL Sales Growth
EMEA ICL Sales Growth
APAC ICL Sales Growth
Global ICL Unit Growth China
Growth $14,054
$37,343
$161,508
$212,905
51%
48% $107,130
50%
$28,688
56%
$15,173
36%
$9,478
58% $20,114
$36,715
$212,883
$269,712
27%
33% $147,967
38%
$32,623
14%
$17,940
18%
$15,070
59% $22,233
$39,318
$257,876
$319,427
18%
19% $185,404
25%
$36,352
11%
$19,853
11%
$17,168
14% $5,566
$10,180
$54,879
$70,625
20%
20% $35,042
25%
$9,203
6%
$6,656
19%
$4,396
71% $5,954
$9,782
$77,376
$93,112
19%
21% $61,288
33%
$8,563
13%
$3,316
(15)%
$4,446
10% $5,449
$9,253
$66,367
$81,069
13%
14% $48,262
14%
$9,091
12%
$4,886
1%
$4,162
6% $5,264
$10,103
$59,254
$74,621
22%
19% $40,813
30%
$9,495
16%
$4,996
39%
$4,164
(8)% $6,260
$11,299
$59,592
$77,151
9%
12%
11%
9%
2% $38,460
10%
$10,227
11%
$6,725
1%
$5,039
15% FISCAL YEAR FISCAL YEAR THREE MONTHS ENDED THREE MONTHS ENDED FIRST QUARTER 2024 FIRST QUARTER 2024 Japan
Growth South Korea
Growth United States
Growth ($ 000’S) UNAUDITED Notes: (1) Americas includes the United States, Canada and Latin American countries (2) EMEA includes Spain, Germany, United Kingdom, European, Middle East and Africa Distributors (3) APAC includes China, Japan, South Korea, India and the rest of Asia Pacific distributors (4) ICL Sales by country includes countries representing more than 5% of total ICL sales in the most recently completed fiscal year (5) ICL sales do not include IOL, injector or other sales. 07
Significant Market Opportunity for EVO ICL™ MYOPIA Today: Every third person in the world STAAR EVO ICL’s near and long-term market opportunity remains exciting and vast, despite any transient noise (previously COVID and now macroeconomic headwinds associated with a normal business cycle). Myopia is a global pandemic with no known cure. 2050: Every other person in the world * Normal Myopia Key Factors with Myopia Environmental Factors Genetic Predisposition *BHVI, adapted from Holden et al. 2016 Ophthalmology. 36% of studies defined high myopia as -6.0D or more. Billions of People The Bigger Picture 08
EVO ICL™ Procedure and Collamer® Material Advantage 200+ Peer-Reviewed ICL Clinical Papers Quick procedure and recovery Additive / Preserves the Cornea 3 Million+ Lenses Sold Does not cause dry eye syndrome 3,4 UV Protection 30+ Year History of Safety and Effectiveness Reversible Lens Implant Sharp, clear vision Day & Night 1,2 99.4% of EVO patients surveyed would choose EVO again5 COLLAMER COLLAGEN + POLYMER 1) Martínez-Plaza E, López-Miguel A, López-de la Rosa A, et al. Effect of the EVO+ Visian Phakic Implantable Collamer Lens on Visual Performance and Quality of Vision and Life, Am J Ophthalmol 2021;226:117-125. 2) Packer M. Evaluation of the EVO/EVO+ Sphere and Toric Visian ICL: Six month results from the United States Food and Drug Administration clinical trial. Clinical Ophthalmology. 2022;16:1541-53. 3) Ganesh S, Brar S, Pawar A. Matched population comparison of visual outcomes and patient satisfaction between 3 modalities for the correction of low to moderate myopic astigmatism. Clin Ophthalmol. 2017;11:1253-1263. 4) Naves J.S, Carracedo G, Cacho-Babillo I, Diadenosine nucleotid measurements as dry-eye score in patients after LASIK and ICL surgery. Presented at American Society of Cataract and Refractive Surgery (ASCRS) 2012. 5) STAAR Survey. 09 The Bigger Picture
IT’S OUR TIME… IT’S EVO’S TIME!
