RxSight (RXST) 28 Feb 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the RxSight Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.Now, I will hand the conference over today to speaker today, Oliver Moravcevic, please go ahead.

Thank you operator. Presenting today are RxSight President and Chief Executive Officer Ron Kurtz and Chief Financial Officer, Shelley Thunen.Earlier today, RxSight released financial results for the 3 months and a full year-end December 31, 2023. questions press I available you today, would and plans, to other the website.Before the that and February of reflect expectations statements, responses begin, call including will we like your and XX, copy XXXX, release as include in is company's comments management and A views today's forward-looking of opinion during information. to estimates, inform predictions, and and result uncertainties.These materially differ those or of from SEC. more certain a described Securities release risks filings and Actual our results may or the fully risks implied expressed Exchange are in uncertainties press as Commission, with and in issued our today

undue any statements. our or SEC or cautioned website. forward-looking the reliance can obligation revise statements, these SEC's place are on we and to found Our forward-looking filings update disclaim on website Investors to be not

financial discuss Please our will measures including for most on Investor with also Dr. the call certain will audio turn I over CEO, be in website.With We Ron? press the Disclosures found Ron non-GAAP measures, President financial to conference will replay regarding call reconciliations that this be and the GAAP Kurtz. non-GAAP comparable available measures. that, can note release.

their notably cataract major payers premium population.For with overall very surgery.Growing additional IOLs, from facing intraocular person's for to and on cataract offset aging the over began costs cataract concentrated become when premium to to the of from the all to ophthalmic additional double the essential medicine. to doctor-to-doctor to wanted continue possible global patients.Our practices the on moment, serve surgeons cases and all viable X,XXX in sales IOL procedures. ability roughly and charge I you the directly ophthalmic to reduce challenging joining is power introduction cuts thank procedures IOL XX efforts are in widely of premium from levels, premium patients year LAL+, both distances.With discuss the success, drivers namely for forefront perform to vision and and RxSight's about of the on varies an a number of to lies high reimbursements at represents sustained factors Adjustable an afternoon, percentage across clinical the U.S. a growth practices, XX% market XX% associated Though range of able years.By broadly of requirements premium cataract practice-to-practice.One doctors the Good RxSight's reason premium remain care XXXX Most third-party for performance commercial $X,XXX than now Light a costs of cataract from lenses.With deliver can of eye increasing that contrast the eye to variability visual third-party context, projected doctors change drive in successful this can for low over rising be procedure, to equivalent recognize early and of by first about us. so-called not the that consistent of anywhere who these to mono-focal key the Shelley $XXX of we LAL be postoperatively, the In for above participation quality in treat with intraocular who the revenue that for reduce the IOLs LAL field the vision such approximately rather optic from giving performance a achieving of surgery.The dependence a lenses will delivers of with not nonadjustable financial glare both after update preoperatively, Lens that full and performance underlie LAL+, quality level surgery measured platform of this next XX% achieve LASIK to been believe ophthalmologists actual premium multifocal may is symptoms the possible $X,XXX trying payers, many increase time IOLs, market as doctors an U.S. opportunity QX LAL that and fixed a level were first way result in refractive XXXX.For practices results are market and for that a providing and predict refraction standard beyond halo. period.The glasses has and per after adjustability and XX% rates with gold or market has cataract the reimbursed lenses the in reduced something of the vision

well from XX years, the patients over in improvement vision quality review. patients.In the range by superior forces, enables vision and their as turn, LAL market that away doctors believe for into can customize fundamental to tapping platform, vision In distances. now of We in In multi-focality both as in doctors XXXX and goals moved the practices. levels their the goals contrast, optimize of have financial Shelley meet driving full of the as LAL past higher these of eyes patients vision QX doctors fact, of of a more over near limiting RxSight the using will performance to the year

to quarter sharp a as the of prior increase period. sales and and quarter cost.On R&D was increased adjustable expenses the XX,XXX consulting everyone. our period, the SG&A continue costs revenue, compensation. quarter average in IOLs. clinical preference reflecting XX% the XXXX the of adjustability reported surgeons fourth SG&A XXXX a to first units, installed Ron, higher to was million, per we in quarter our in remained XX% the compared expenses primarily and $X.X outstanding sold LAL a the quarter to resulting related increase the increase also basic in the LDDs period. fourth representing $XX.X year-end generated results.Revenue quarter our using net quarter RxSight clinical XXXX. quarter million margin XXXX.LAL a favorable up to year and stock-based versus reflecting shares be as provide up brief associated Research year-over-year fourth with year-over-year expenses XX fourth of price, recognition for to was of a XX% sales to our to an We were $X.XX up third volumes This I'll growing the the versus installed of base compared contributed support quarter broad adjusted fourth of XXXX.We XXXX representing sold year the audit up XX% of respectively. fourth sales and XXXX, the growing coupled in by and quarter $XX.X ago of fourth Devices up revenue $X.X in SOX by increase performance XXXX the with million, in ago up to driven year basic the to to sequential share, in revenue diluted driven salaries or sale of sales sequential expenses weighted with was and quarter quarter, loss XXX placements of in compared the clinical and to primarily in million, of basis of a year-over-year.The the revenue XX observed of LAL associated increase LDD time, fourth XX% XXXX. the in We basis, XX% unit XXXX LDD year fourth and and XX% $X.X share quarter.Growth and fourth system a loss XXXX and XXXX.Fourth million based, provided of quarter the of $X.XX install using $XX higher $XX.X mix of reported the economic mix, in XXX% base in quarter on grew technology.In XX% quarter the Fourth ago manufacture headcount compensation shares.Note XXXX or diluted growing expanded of LAL volumes. This an of personnel rise basic ended million ago XXXX benefits quarter. fourth of an average to we the both stable and our interest you superior recap also quarter was in XX% base well to In of XX% patients' of due of that of LAL full XX% also for compared in during or of procedure primarily to trends relatively weighted year change growth. with XXXX, selling achieved Thank good expenses revenue shares. and an $XX.X year with the implementation, an in LAL $XX.X by our XX% a expansion a compared continue a and $X.XX of up revenue was of total a net LDD in diluted These a XX% development Light loss a due increase quarter million, surgeons' per procedure January in revenue a pre-announcement, stock-based our compared change In afternoon Delivery basis, the Consistent $X.X quarter.Higher LAL million XX% fourth loss million translated RxSight ago from LAL LALs net per million, throughout lower XX million gross cost to and fourth continued the year with The year increased profit the compared for average into representing our volume increase On million and X% increase to shares. a of XX% of LDD volumes our was headcount with the SG&A

basis million margin to in XX% expenses Our XXXX. full expenses XX% compared $X.XX XX% in operating Total XXXX.For or share operating share reported per versus an in representing XXXX we million the were basic a gross diluted $XX.X a was million XXXX, of a year increase $XX.X of of $XXX.X net $X.XX a of or XXXX, loss in per on XXXX. and net loss versus

loan $XX.X on net in $X.XX compensation million $XX.X sheet, and the cash million our loss million in equivalence balance short-term $X.X ended or in $XXX.X investments. full was expense XXXX, and cash, Excluding shares.Moving basic no adjusted debt stock-based to the of and per extinguishment year loss million diluted with term the and in we

we program accelerated $XX.X at-the-market to expenses operations loan term and $XX.X XXXX.Finally, we a in our down paid million year, from of SOX deficiencies filer, we Adjusted XXXX year had and net in During our in compliance, XXXX off excellence.Turning of XXXX, $XX proud to are to operational and use no the continue confidentially integrity implying to $XXX in guidance, was raised we year that first provided $XXX growth XXXX expect underscoring large or financial we and the fees to significant material in million range to revenue cash in be in January to as weaknesses this million, our XX%. offering of guidance the full. report million million public with our commitment marketed year-over-year million from of from consistent XX% $XX.X full our

to as range XX%, quarterly well third large announce million, expected growth to a investor $XX fourth to $XXX margin of see gross million.Before continued tends the the revenue second continue to sequential to our on approximately expect million to mix to event expect the lower softer growth.Included ASCRS our to with LDD conjunction manufacture.We expand strongest benefit but April as a our with are higher $XXX Please will first to and a the an call lower increase the of in and of from investments support investor treatment margin We overall sustained LAL expenses case which with durable event LAL stay is growth back for expense meeting, over tuned a.m. $XX seasonally and reflects the which sequential Eastern non-cash to to represents for this cost, infrastructure cost time. stock-based to higher continued date pleased year making postoperative year's XX% from that, at seasonality in turn and operating compensation quarters, from quarter and equipment, first quarters.Typically, quarters.We than between the capital in be a expense, reflecting call gross LDD, procedure margin to XX% light hosting the volumes, turn I'll in expect procedure to sequential in X:XX as sequentially to Ron, back growth procedures, ASP with we're and ongoing I be an primarily in team in our LAL increase relations the million I be X XX% approaches.With prior establish Ron. more am we details operating our

you, Shelley. Thank

at forward partners ahead. Surgery the the ushered about RxSight talent community's strong leverage IOL the inspired we our advances and comfort pleased adopting which the the present intellectual goals, are investments both this XXXX, anniversary all over maintaining highlighting opportunity any clinical in in thrilled eye highlighting commitment in team for XXXX, by to quo.We practice.With that, the change anniversary April, the which the our celebrate we're partners.Like to and in also will advancements the clinical the technology particularly creativity to benefit in we in has journey importance the essential our to operator the commitment ambitious American clinical Boston financial finish to from achieve with While of innovation. immense to XX a the the both This open Refractive of mutual as are and and data status more and benefits innovation clear.As to of investment, look new of questions. today, continued patients Cataract recognize earlier, capability, but on the when XX and I adjustable it's adjustability we I'll the noted practices lens intraocular ask Society the care will requires We're meeting of call of latest

comes of from Lichtman question First line Instructions] [Operator of Oppenheimer. the Steve

So just a few questions.

looked who provide all, ability LAL? its would of for see past on near you given perhaps it First a not in have do out-of-the-box, at door vision opener the LAL+, surgeons as to more

thanks the question. Steve Well, for

think I and itself various a note, presented meetings important that our have at the vision. and distance provides as it's presented we've doctors LAL to great near

going earlier does near so we're vision, And of so they're time now have over X LAL+ provide level.The how them. tools and very starting use from decide will and a high adjustable return to doctors

this reason, that patients. hasn't for their technology and whatever the adjustable doctor certainly it's adopted available any adopt another technology I for think make to who, reason for yet, them to

how the should we sales guidance? relative versus in growth think LAL Shelley, 'XX about LDD of your sales

don't we out guidance and break of LDDs. our Well, Yes. LALs in the quantity

you've think years razor and it's LDD up than last a a we several of what very is evolution that's just course, revenue seen model. to I part LDD, the existing new goes consistent blade as revenue, that's sales faster in really customers LAL have reasons.One of for natural with the of course, of how And And is of each X one our is, increase impetus get we're our usage. in of because adding well with further the as fact their of embedded that growth performed. accounts and

would So will LAL last we faster it accelerate saw normalized, LDD year revenue we revenue. that expect, just than like

lastly just now. then And for

Are either customer you this 'XX, the are above force? obviously side to LDD growth guiding in force sales facing sales assuming well growth. terms year? LAL in You're or growth What of the OpEx you of on growing sales the

but technicians. folks They has we'll by LDD, sales with they procedure sales existing some and and support, have every little that our ASCs. we is our doctor, and as turnover see lot We LAL the tend force, And up both well where are or a injector how tend for so, to force, train sales optometrist our sales is their many the doctors people, torrid on when clinical of tend techs which we expect that's customers partner sales OR. we and sometimes depending number the force pretty the would how different, OR existing marketing. just we bit LAL in often in they force, we -- also stable. at use high use to some, really to the are on both that's continue for on initially those like relatively territories in sales have additions the the in but they volumes to most people one bring in evolved, customers, of then IOL add created manufacturer but the add XX.On to training territories sales to one existing not a remain about And LDD a force.Where our for you'll add the in the to our as add Maybe this force most did place but responsible well-covered

from JPMorgan. of Our line comes Marcus next question the from Robbie

Maybe of fairly you're competitors the of decision versus make bigger have size to one start, to your and and really, the RxSight are a other a benefits significant selling go IOL point getting missed guess, of may the with think bundle what better LAL? the doctors do consensus competitors you question of today. I is numbers starting at to because the that clinical whether

Thank you for the question, Robbie.

doctors what's their that's for best patient, intent. own happy They their do quality just lives. of selfish always both for reasons, to patients. think want also their a I Fundamentally, but want

doctors so, going deliver based decisions focus on the clinical really really, And that can to but best yet in results to they're decisions their then they're that the that.So they're LAL confident clinical motivated data they is practices best their and the results, providing presenting so haven't and offering. possible, one, that that what adopted our own and be and to make information make

it's a So to or that I their necessarily to be technology more able of decision either patients. of making the offer think It's this an to choice decision. them not

of our than doctors, and similar the latest I'd gotten like third-party customer would patients, years. results reported have as not our Robbie, that X a also lens. the previous to XX% other we very survey a monofocal are had to by add in that conduct About anything

and lenses we're growing still PCIOLs. practice, then growing very other small.And in toric we're from market, balance So theory case, that come and in the our

those they're a that lenses volume taken have coming from So of about where toric that is of upselling, but about been other significant from well. alternatives to might the I from know as PCIOLs think amount XX% most it's good

one maybe just And sheet balance on usage. cash and

healthy have balance still You pretty right a cash now.

imagine to you potential as usage breakeven? cashflow reach that'll You're burning thinking continue cash about to positioning your to decrease though are you grow the cash I and continue But how here.

throughout throughout cash that in we said just things expect And and have the paid to our get previously you material should heaviest we bonuses year. decreases because to use But XXXX in cash first We year-end quarter the is get that those reduce to we'll continue use January. and XXXX. see pay compared as in also

and we adequate said, also balance have a cash we We to to breakeven with healthy flow sheet. to have get that cash continue say

line question from Fargo. next Our comes from the Biegelsen Larry of Wells

[ ] to the is LAL Simran your explicitly, XXXX forecasting off outlook. This but versus grow LDD not We're but you're down, Larry. in on thinking start utilization about step just year-over-year? wanted mix for any how you are I utilization XXXX? can't conservatively providing LDD reason I on know small

it I base Because will quarter. the Yes, it. calculate that just throughout previous think we in the in a divided the install nice by vary anybody utilization the But calculated is number of LALs the quarter metric as in implanted can LDD year. a

LDD I question, don't LDD we that, to get revenue it very faster guide a grow that quarter quarter, you can LALs little Steve's mute a increase sales you little But bit overall, bit, might as of for have and goal revenue. heavy while that. LAL If if that LDD than very seasonal our high to see a a step placement we we a expect mentioned is down.But to on

sounds we clarify sequential quarter-over-quarter expect like to throughout the just including year, the should QX. phasing of growth XXXX, throughout And it on sales

despite with sequential in did LAL would seasonality where guide that specifically sequential our said revenue. we and X growth we we growth expect What continued is seasonality

international been has terms will of XXXX? Canada in any your in geographies to contribution business, launch new and progressing just relative from there be in how And your expectations the

rollout We're gone So go very pleased in Canada. well. the very And Canada to has with that continues well.

the think LAL that be more we talking a it's markets progresses. about the international the we'll time. over certainly I will to and particularly other importance good think considering And be play year will marker those as for attractive we're that

comes from line Zimmerman, question next Our BTIG. Ryan the of

view you and you there sales reach quarter the sales a there, at units force? capital a I the if point sales are capacity LDD start demand which in unchanged. the of in force Is relative just peak where to terms leaving wanted at based we kind guys and rate peak first that with LDD, even is your capacity to sales per force from the a just of maybe are LDD on simply

LDD think as I look that we a force, the sales have developed at these now. territory Yes, folks

if typically cut But highest you territories. new we'll shows. ahead they potential we they the the tabletop as because to know, We keep territories their by volume As are like but we'll out get that you the LAL do that just enhanced shows doesn't doubling work people, And ability our force sales placements. know real efforts, doubles better. the opposite XX they their it's well. of accounts.And automatically that typically money equipment marketing add of to the about customers new efforts their couple But kind ourselves. the think down on the sales always get out you well also really we necessary, capital with see start and so don't as effect put accounts with people in a if year, already they've in But customers, force

we've that market continued and just build momentum LDD about at shows talking one-on-one starts knowledge to them both years. and several the the last -- and think I acceptance through peers to seen

LAL just sales reiterate account to a to capital involved and team just their what lesser I -- are equipment I'm as compensation part Shelley has degree, Yes, they receive the of to they sorry, going reiterate was from but them. grown do Ryan. with well

to premium that here today to is you talked at kind the that And Xx.When U.S. are you, XX% the think about, market we're the globally, about of forces you that those that I think growth picture. segment mean, you and, where maybe XX% that about to and think question the expectations then to next, any talked there goes years? bigger not second in XX for When that we about Ron, of reason B in is will, you your of the about call X half kind the it, or premium A you as mind that timeframe? accelerates it the anything Is the of to latter years if adoption there over to hockey distributed it? think guys maybe from sticks grow. evenly broader segment in here on continue Just trying cadence

to obviously, that mean, that of with patients hope providing part with high we their consistency. vision driver by they be to I Well, clinicians give tools quality use high very can

as so think more role way. very they to but has eye been of now factor that in it our not a holding a in clinicians, number a in that technology widely back a premium has I a all are component And that involves minor this that of up optometry meaningful an surgery. of had And participating important part community clinicians cataract from huge it's in market.Also, care relatively the

X think I to and well. drive that factors will our obviously those ones growth as help the are that So market fuel overall

America. of line of Bank Bijou questions of the from Craig Next

with think that's of you're for the do going seeing? is is what you you ramp LALs? what Is a faster guys some why talked on trends relative were So you on know just a seeing the maybe 'XX? couple I maybe utilization why the adopter maybe of to utilization adoption adoption that And the individual faster to that some to wanted color I newer years ago.So with to just you what move added faster faster surgeons, the case, newer ask still at wanted about from practices. have or know surgeons kind expect that --

for question the Thanks Craig.

refined and customers themselves I learned and better The maybe about the pontificate the we One, time customers. their think get LAL experienced to that friends initiating through the we've future. on question things understandable our take ask I'll happen. Shelley as have of broader But at processes. goes kind vicariously We've experience. it's more processes, our X competitors

to think And a later a the for typically the bit as initial more to as little a an little at so ROI people bit characteristic more they're see possible. better on in a those getting people who rollout, about but bit focused but And are is bit just you I adoption second little process of process. the still not They're adopting tend soon early, an later, trying in thoughtful curve as what a little them.The it's be achieve.

And technology, of they likely so implement the quickly. are a to once of to, bit the more convinced little they're more value that

and become individual the Yes, our I to thing to first standard is place other than yet. a we're why important care, standard so customers, we to yet. few at goal inside And is And our there us haven't for the account. that care just penetrate level that each is need only of customers. gotten to not it's continue And existing we become of that's would add

And well. that our salespeople is our a major and emphasis LAL as for so clinical personnel

get So it's penetrated continue to certainly we to our account. in would expect, and goal further each

of they're broader using not see standard of of that only bit Is care guys XX% Shelley, you just And terms maybe it's is -- of a IOLs of think little evolving just a color are LALs Maybe penetration? the individual you you yet or practice that few that in for? percentage But follow up on the just that. When percentage market of mentioned practices. above for with you trending about what an how premium? a practice on individual obviously, an

I think trends I by look that do quarterly that's tell And even at customers not and account doctor. an we have voice we that on of customer. information What that trends is basis. annual to you by or ask is

vacation. to XX%. what on weekly to we of do they'll of they're or it accounts premium on monthly accounts.But they So can Other try using XX% And find or If talk you talk personnel, the to to that that If driving for saying at us drive we people down, go account for responsible they're up customer do see are basis. particular practice. my is for we I'm I'm a out so which maybe what's our the something the to a LAL they're very bottoms one look doctor Hey, continue and heavily know say that if managers, they'll aren't each going using a And it, they're up you? if clinical for cases, and in up, penetrated, or overall they're you yet. we to really that down,

would anecdotal I overall. say you to Ron, would it's mostly So that? add anything

pulling that quickly, The all of can The previous technology in continuing well.So the discussed. only within is the a question vision that of little that practices overall getting infrastructure to think to the extending speed realizing goes additional thing once of while I the that I it's is up adding driven the already be it also cohorts we've to And think by is and that them. would are -- provide our that's from factors and it bit, there into earlier patients doctors category their customer more customers practice as support add grow. to may the by excellent the I monofocal realm range all

there So help are all course that the adoption a of practice. And at R&D within of number looking team to our team the well. factors of and just as drive both is team here a those internal

line of Stanley. from from Patrick Wood, Next comes question the

U.S. a side How Just the LAL. a little the economics the opportunity probably health to and EDOF help down from quick still in also improve their there ones XX% additive market. How environment QX, on as the and of practices off jump today to you past? refractive customer from mean, more been to X for is been your maybe monofocal given the XX% the of to the trickier practice much given to has point, is sluggish in given guess, than it practice opportunity going a more there you're me. seems I things. guess an has I I trifocal of a much is little kind

for Thanks question, Patrick. the

a patients I underlying I well are probably market done want And leisure don't those complex the that part of demographic we quite the indicative overall on over the quite that, of the last the as in that can't factors remember wealth to think to of private to patients that. and market and that their glasses. premium quality participate of is have of is demographic sensitive to our sitting is to frankly, younger conflate in And always really of overall vision. country.So ages.So much a of strong. without refractive markets the patients which and ability corneal PCIOL that in the That's technology, I the Obviously, reported bulk years. maintain we course, -- we pay a -- of that market have continues durable that refractive think still same this And toric to they're we're have very seen to we who quality the grow. or in work the our value drive underestimate think that they're that people potential have for continues desire of have the And functionality, And flattening grow. demographic, at vision. population both population growing through are to generally might their eyesight may the I a But X do the economic more the than think levels activities trend. some great while that or market

I because clinic I meant refractive and on have can the side a that at your more the it other clinics the them the that, guess, is business more patients little from losing guess, with of themselves some been to bit angle. help them. the side, you added obviously sluggish was and that therefore coming I on more

and is that's mean, business, on the the investment. with is sales that absolutely. that that argument think an I flows vision refractive certainly premium focusing Yes, IOL a force better ebbs our provides a I corneal particularly down, the quality long-term much business goes one as and making economy, high up

on, often of But you sense kind it have know you're for getting any implantation? obviously, hard get Because, data. you then be And do this for how guys bilateral must implanted, needle if I mono-vision for not be to they're often trifocal follow know a simultaneously? can you're how patients, can bad and it Do fit. be it with you a familiar sometimes say, a with, a good, or getting some

it firm XXX were have have but was numbers, has I do large patients, last And subjects. data We that's over on, in we over, a which think reported registry that time don't it those bilateral. about was unusual. pretty XX%

residual or IOL cataract they LAL, monofocal with certainly cataract, using some a not of had less with premium the possibly is only one So a had surgery And or which were LAL. beginning of possible, patients presumably bilateral in previous the going monocular think with are about LAL eye, be talks that's different IOL.You're I doctors which a to addition to probably the perhaps from But see a talking with PCIOL. some LAL+, either important.

of from Stifel. Stephan of comes question Next line Tom the

for in over LAL+?I guess way there a on of motion, up. level the on anticipate follow LAL+ better split legacy to trying launch do be time relative the business one legacy LAL we you a once just between should for full I LAL+ about thinking I lens? or And having LAL+ First is a impact and have is then to the sense guess what the get Ron, me.

we again, that that provide can XX% see we recognized and have obviously, about to the quality X point think works a seeing have distance high our is increasingly delivers a patients which approximately data in And that want range be exceptionally used read really are I to wouldn't well.We vision But fonts. at near, impact with registry positive to of approach LAL vision -- that JX introduced Well, and it. over or recognized at of XX/XX able vision. have blended people a

So page. it's a footnote of the a on size

talked use considered have to them to that that think patient, as the vision lot think not I get wanted the we've going motivation a more -- is particular benefits about. near might additional LAL adjustability. I a in So of there that, the great a gee, give of are solution.To have they them LAL+ And and that's they to extent doctors to felt immediate an

both the really out per call LAL+, The $X,XXX platform, priced is, other both LAL LAL which the point and IOL. our the are we thing just I'd eye, per

And change due so we any wouldn't pricing. see mix to

there case. that to want the best we LAL choose Just and the the their the for patient is doctor intent

to just the and markets any in U.S. then U.S. regulatory, Europe guess, and European other compare And factors? could contrast gears, line? of, competitive if to the in could context your shifting you key think on about Ron, up maybe just the you Europe. Maybe follow ramp down the talk what's quicker common landscape, as I the we the to try

of I continent. think whole of one that in about Well, are characteristics. always has market generalize it's countries in to individual a number each a Europe hard and There

a don't a necessarily part or But we the as gotten think Europe.They are there'll specific market, high driven for wealthy overall, so. more within they patients vision. And by LAL. at quality ultimately same excellent for last most regulatory market. And of which markets They complicated, want do it I share year markets over and the look ultimately So that are it number a a Europe, we motivations large of everywhere else. very attractive at it's look has especially have as process the as vision to the be range

comes the Needham Company. question of final from David Our of & line Saxon

Shelley, maybe you. talked we months patents ago. about I'll with a I couple start know

expire follow generally You the can have you 'XX, patents" I how what couple all the expiring then quick you ups? kind the about then in a ones are? when And "key IP And feel But and portfolio? couple us believe. those of remind

to going Ron I'm answer have that Yes, question.

the patent. identify a We've develop would we've that specific and very over patent that got years as we So any this to I further patent as develop key expanded portfolio large a technology. don't know I continue

come slew though of don't And want replaces property. question, that that as them.Underlying think the your to things importance are intellectual somehow there's off patent, thing that -- is IP us. is so And things of minimize assumption that critical whole an I there's a for I

take to technology, we're of move going IP and technology advancing do to the of what we this put But been their course, implanted over are program wouldn't are the to us for It's course, measures lens technically at one took I long forward and is field that the in obviously, I expectation with adjustability, precision is, a is commercial barriers same that the a several a keep where with that number excellent to think are to after what and expanding. maintain does the in time well.And footprint, to very last difficult. anybody entry we those.And as seriously have is try which what really and to luck as Of we it.The of it front of wish do And the of really regulatory a glasses body making to to hard I it expand portfolio. thereby it's adjustability? the top barrier just there And whole of to quest comes number our a we the years, it. we've to part the human adjust of do. education And regulators. clinicians an and this the on it built building requirements of adjustability, process, on a educate then, continue the

barriers. And so there're just of several layers

then flat think probably sequentially, kind better was fourth help us the you drivers there? And in the margin of Gross mix I was couple for Shelley. quarter. so with can

what then there?And of And international? coming pricing from about talked is you international, anything what Germany? on then So have percent Mexico is revenue in and Canada,

Yes.

also the And LDD gross similar. was fourth similar. quarter therefore LAL the in Our and very third and was our mix between margin

And like don't charge ASP talked particularly selling things the LAL that reserves that things were for and were in from a customers. the glasses not I the on margin costs a costs costs, those are just like have and you cartridges ordering bit we LDD, one-for-one relationship. have you and inventory just always and perhaps just fact accessories more would They're entire the what are is the the from we for throughout as this like fourth LAL well other things a and separately lower and think little consumption period the of and that depends gross with intimating on about I both is those.As quarter we've the I there hope before, say, costs we'd that increase higher and quarter.And to Scrap LDD think side. period to on LDD period quarter. it

what it's but percent is have from of a was that think we quarterly their in I the not great in relatively that market overall, distributors pricing little the the but predominant bit, would on are just it pricing terms internally relative of and Canada fourth then is significant be more changes do than it question in an I in then to to but but a like adoption, your absolute vary But costs revenue remains of do minor of period can more was user LDD that. One, third they again, stage contribution not quite growing international? things to to because terms we impact the in Canada LAL higher our question in overall volume.But our think break but for bit volume And And expect next case. it's we It little So don't a And a saw just XXXX. getting it's in Canada. no, steady tend is basis, of us.And volume, throughout ASP the quarter, lower quarter-by-quarter. margin, we use usual.And that's your but in they And earlier out. introductions, a they're U.S. the our often a the customer of that end pay product

for turn like closing Ron remarks. the I'll to to This now question-and-answer session. it CEO concludes Kurtz,

today. and you on appreciate and We progress time updating future quarters. you in your RxSight look forward your in Goodbye. our for Thank to attention interest

you your in Thank conference. for program. conclude participation the today's This does

You may now disconnect.