RxSight (RXST) 5 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the RxSight Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the call over to your speaker, Oliver Moravcevic. Please go ahead.

Thank you, operator. President Executive RxSight Dr. are today and Officer, Chief Presenting Thunen. Financial Ron Chief Shelley Kurtz; and Officer, Earlier financial RxSight XXXX. today, released June X-months XX, ended results for the copy on is A press website. company's available the of the release

responses today, plans, I opinion expressed begin, statements, forward-looking Actual reflect inform comments today's like Before expectations XXXX information. to as and we during of would questions views and estimates, and X, you other including to fully that predictions, and August management's include call or filings will risks issued those as our may a risks Commission, certain from results in with differ release of implied and Exchange and and or result materially our press Securities and today uncertainties described SEC. These the uncertainties. are more in

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

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

details on LDD results, as you thank and and overall well QX for joining will us. our afternoon, for provide moment, set Good for as a new In which sales LAL benchmarks revenue. Shelley

more our premium enhancing we intraocular to to to team select level high-value and also achieve procedure clinical lens the unique our leading top members accomplishments, ability patients a outcomes. these customization precision, and long-term postoperatively congratulate partners that our clinical RxSight both thank elevates and and surgery, we thesis While believe premium quality cataract they support adjust for practice

critical provides patient that LASIK such is that as pay LAL in reimbursements relatively experienced to premium reductions fluctuations growth resistant procedures a demographic. Medicare persistent a the For unlike ophthalmic in to opportunity target have practices procedure economy, the younger

of near, I'll trends review our long-term RxSight's focus and us about mid- Shelley's Following performance how and on and discuss execution our confident opportunity. underlying financial make continued guidance,

and XX% RxSight the generated second million XX% compared Thank compared $XX.X afternoon, $XX.X first revenue $XX.X ago in good million, Ron, to of you, quarter quarter XXXX everyone. to up and quarter in XXXX. million year of the up

XX,XXX period from quarter, in XX XX% quarter the XX% this an compared LALs in units During represented this to XX% to XX% total $XX.X second and and and LAL year. ago the XX% We up revenue In increase up XX% compared from revenue, the compared XX in QX LAL first same the and year year quarter the sold the year, first XX% XXXX. in -- of LDDs ago quarter revenue XX% year of the this in quarter, sold we respectively. of the of million of in first generated to year units year, quarter ago and the up period

XX% LDD compared quarter revenue in units XX XX% in the to LDDs period period, up generated first sales ago to this second XX% the up quarter, During year of of the and in year. compared the units

the XXXX, XXXX. generated versus sales of LDD period, XX% quarter the up second of $XX.X and first During revenue quarter XX% up to of the million, compared

year-ago the as first margin XXXX, in same and quarter at XXXX, compared for quarter XX% well versus base price XX% LDD costs. On our XX, million a on The versus price representing ago margin to were or XX% to can took units, advancing just mix in stood reflect the X% XXXX. SG&A customer expenses XXXX. first the the the quarter depending an gross our stock-based of higher higher-margin to compared quarter in LDD of the in year-over-year total within continuing annual reflects of expenses XX% third in in XX% XXXX to quarter in slightly of and period shift with year XX.X% XXX XX% a revenue stock-based with increase sequential XXXX XX% quarter of of as average second of the second LAL quarter first XXXX. sequential of our on guidance XX.X% to $X of ASPs installed margins personnel million to our expense respectively. Gross of increase and year costs change the following of selling increased due over and an was X.X% the XX.X% second primarily to about of the higher expense. and in mix is $XX.X SG&A This ASP $XXX,XXX LDD, the June or change basis, and an $XXX,XXX $XXX,XXX, product due ago As million personnel million the in increase lower increase of increased quarter. compensation up higher a year-over-year in compensation the primarily $XX.X slightly to LDD $X.X we of and due the quarter ASPs stability was vary

$XXX,XXX primarily compared of expenses and During rose this change quarter XXXX. attributable the the compensation. in Compared and quarter This primarily in driven second increase expenses to stock-based an second second stock-based to was in $X.X by compensation. increased year-over-year million cost to million by the of the increased to facilities first XX% R&D year, quarter $X.X of or R&D X% quarter increased XXXX,

loss million XX.X of using to of loss and diluted million Our share of second GAAP weighted $XX.X GAAP a XXXX. net share the XXXX net of basic $X.X basis average quarter in in quarter shares a or loss million per compares a This shares. was per of diluted basic the $X.XX or and $X.XX second on

$XXX.X million sheet. net [ change balance ] cash of on to $XXX.X second compared confidentially of equivalents from March quarter The our public the marketed cash the includes and and with offering or XX, $XXX.X to balance fees of XXXX. Moving investments million We million expenses XXXX CMPO. May short-term ended in cash,

$X represents are second January. increase expense end to to and low million. to our projected growth XX%. range XXXX million strong increasing guidance now million performance, follows: between operating of the an revised the million we guidance. Based from the XXXX as reflects our $XXX set guidance Full at range compared and XX% to at This million quarter year-over-year guidance now million, increase initial high $XX $XXX revenue end in is the of our of of previous revenue, and on The an be Turning revenue noncash expense of $XXX our XXXX year to guidance $XXX

million, to and and projected the our granted continued and is The midpoint $XXX of previous million, second marketing remainder sales RSUs million with The $XXX from and increase compensation up expense are a to the an and representing up stock and bottom restricted or XX% guidance $XX between in of sequential at investment to nominal between For to remainder million stock-based increase of due share in a million, quarterly $XX doctors. Operating top and to in a quarter from development. $XX and million the date. to at the to and of $X we guidance options to million previous QX, research an the of the related to of the now anticipate $XXX or be and units The third of the in continue very per due prices representing primarily increase $X seasonality guidance increase compensation both XX% stock million year, summer strong $XX expenses expenses growth noncash XXXX. increase is both increase due guidance end of stock-based from to patients vacations noncash million the our by typical $X.X quarter $XXX expected higher million with taken increase range. million factoring to are to higher over

quarter, As regulatory discussed guidance includes expand as educational product operating pipeline continued our grow obtained. last and commercial efforts are internationally leverage approvals to our develop our momentum, programs, expense

which our XXX to that note initial guidance at please basis margin at XX% in our higher remains midpoint points unchanged the XXXX remains Finally, range January. than XX%, guidance gross

of margin operating our million in in $X.X an operating $XX largely Our that, Ron. I'll contributed noncash, to increases back combined additional increase January to the excluding million are and gross which income. With revenue since to turn call XXXX, expenses, guidance initial the

needs QX RxSight's strong to of meet well the Shelley. our as revised is practices. based of as as you, well doctors guidance XXXX business technology's our performance needs patients and Thank as the ability on clinical

economy. patients that procedure from by the been opportunity enables practices IOL cataract Reduced reimbursed fixed has trends new The businesses. non-invasively to patients the is modify traditional for population most profitable factors, have, after more in patients we'll businesses to and intraocular as negative we patient procedure. ability unique IOL precision a their effects falls technology of as believe pay is surgery Thereby expanding performed, on direct deliver these surgery interferes good expectations to recently modifiable level risk cataract in for most, demographic factor highly In highest for deferred U.S. they to has a LASIK premium dementia. that convert the countries high lifestyle to downturns not serve systems the positioned procedure and on may to continues providers, other in offset replacements put indefinitely. of to doctors added with activities was cataract long-term lenses the why to drawing financially to the for the developed with is health aging significant into younger a work procedures this appeal without poorly conventional the and premium if during cannot and contrast, defer to results, category, and to reason revenue eye in a these of of vision all, social premium which revenue increased delivers and developed easily easily most for offset like based but and be financial While locations LAL vision LDD a potential particularly patients. feedback some the have reimbursements commonly The major glasses Patient linked reduce their demographic customization. practices care in procedure more best to generally considering consider their proven an infrastructure invest pressure to whose daily population pay their patient cataract risk for continue inconsistent Driven are decisions care. of and surgery

penetration in installed believe these With of LDDs of XXX U.S. the just we Canada, base still phase in and clinical of total are over early the the sites. we

in physical and infrastructure As human familiar lens for continued become practices focus growth light technology, LAL the on procedures acquire is expanded postoperative leveraging adjustable with our and treatments. by

expansion to per recent year. monthly LAL strong We month LALs see believe trend in the the quarter utilize the from and practice These seasonally adjustable second strategic awareness to in utilization has experience QX base per over in revenue. installed to LDD with of XX up per clinical most growth several that years grow the experts profitable effectively continue our help growing and this LDD across accelerated driven the XX.X We outcomes per practices by clinical has patient integrate this marketing teams. and technology improve month been and last

development is latest growing another with the the for technology LAL+ key example. Continued adoption being mechanism

to to rollout LDD patients visual the body offerings. With who quality. reason and of Now their its continues presented also to data from being for continue optical as another in clinical its growing positive catalyst -- U.S., see The rapid a add adopt addition at and now appreciate midway product through we adjustability feedback a be LAL+ receive sales rehabilitation to doctors conferences. practices of

pleased X the an in for When expanded predictable our range XXXX. to may with towards As the announce commitment end power in also IOL this anticipated outcomes distribution typically the range spherical of astigmatism-correcting FDA that the with for eyes to part spherical power have coupled be highly we adjustability, after plus diopters, particularly refractive extension approval power U.S. any providing of from Commercial the broadest minus is less range of X useful near-sighted are to ongoing LAL+ of RxSight of innovation, surgery.

already remains developing market, IOLs. primary have fully focus that on U.S. premium progress regulatory adopted our in towards expanding continue our While we to the international make approvals countries

growth markets Given that and adjustable uniquely these globally clinical opportunities. provide addresses needs, IOL technology additional relevant business can RxSight's

progress. With in we growth believe very come you positioned ask the look the we updating the together, for continued Taken open to to and to our call sustained years are forward for I'll well questions. on that, operator

[Operator Instructions] from will Our coming BTIG. first of Ryan question be Zimmerman

FDA for usage X of range range I about ask now Can where you of before as the diopters and data. I was kind want think supplement you updated X the LAL. minus the the opportunity reviewing Ron, PMA guidance about to to that the kind plus what to you versus about was be that or size talk with just there. expanded

power of course, to approval prior most X which, plus this that the of myopic So XX This, be or broadens broad low relevant range, prior eyes to surgery. diopters, again, nearsighted, to end highly would range. was clinically the to already which was are range plus cataract likely a the

so And how to we're very pleased been something we now. for range. candidates patients going we've it's those difficult power about, exactly asked are customers that that our be of by have know and it's many approval But this certainly, this to

guidance to little bit. gears a switching just maybe And Enough.

that to which the which is in step-up of the in bit noted, you acceleration building a LDD increase, you XQ and per third XQ the to period about XX As quarter, of of this expectation, the particularly Shelley. looks out the And you're versus beat fourth one your little year a Ron, size 'XX. magnitude stood the more comparable from really like per units guidance it quarter, was things with month, think prior coupled

in utilization guidance, of in So there LDD behind kind the is of funnel Is help pipeline, look expectations, as kind what's the you higher of those what's within in year. us just base? particularly that underpinning increase guidance, half of that about back kind the you to increase a c, installed understand and that particularly that the think from

Yes, And In the LDD. number. Ryan. we quarter this correct. XX% have you continuous second X.X improvement quarter. accelerated our was that are LALs we usage XXXX, you, per to in seen of that Thank And

And of little means goes have parts it in large that, you QX number you the LALs of in of each also absolute that's increase model. bit the of can that number think number a our the I Sometimes quarter. base, really down because important X a most but

But we one, new that accelerate we of had having customers happy part our First, make need a seeing we an more than little patients their installed in customers to bit to LDD. 'XX XXXX, customers we and and in customers, from and started need successful and second, sell that 'XX. procedures rapidly for during -- in them is: adding 'XX. And again

before, as is, to an know, component you our we've increasing growth LAL and yes, important discussed revenue. So

coming JPMorgan. be will from question of next Our Robbie Marcus

Congrats on been here. on nice we grow great sell-side talked LDD a a adoption. about, you to in for quarter and have Two LAL quarter, lot health had the clearly, a me. the LAL after investor And there concerns just LDDs research number. of really adoption? conflicting some on as And sort and ability the of

if second what multiple locations about offices. So really, of LDDs they field? LDDs buying talked in at they their my you are sort is are you question today? seeing getting on placing who's halfway, Are have them?[ centers ] Where units the or yet? they Ron, multiple third Are

and on X, than that I ramp Just about imagine, of have new in improvements utilization seeing, in from sort X and the buyer did seeing increase incremental you're -- here based you utilization to still users who's then think existing help years much users. up the quicker us ago, you're

So new any great. existing or color or in there versus users you of can talk trends kind would be segment about

Robbie. you, Thank

sure to Shelley talk a still part large about So phase I'm of ask maybe that utilization early We're market. and a the at take difference. penetration the qualitatively first the of bit trends. But I'll not there's little

time more of practice. idiosyncratic see one LDDs. with is in technology them decides the certainly that it versus team. And similar a is to new to of our have move we particular to our We more that previous adopt. to the the adopt the -- people that -- putting And we sales into the why customers gives this for we don't kind as can influence customer market. LAL that the the they're to continue forward, mentioned, previous customers any terms really I our the grow time so where right And And reason are we

capacity office LDD -- not there's an before, within noted we've is As a limitation.

So throughput. to

So same it LDD a to can't be practice office highly would an an add would the office. I think would where case of a unusual. add

So They're with them. serves what practice is many that offices. new adding doing. mine patient with is offer practice going smaller that office practices local what population really almost can LDDs technology larger new the whether new offices different to serving They're And environment. in a either offices they're they're of then that couple demographically always for or that a patient population. or a to practices, to That's a different geographically their in different that

Thank Ron. you,

as stigmatizing end how in one training, to account that that have than more X, continue your going, to first the training, friend references, colleague are are larger add And them fact said, customers be results from to will folks know time And I of see and week a more move just I for adoption adoption, patients continue the another the a our helps gives we a clinical should [ reason sell noted those about to we it upgrade, of practice important the and to last thing bunch been And have patient, we've fall one, X-years, different what well you of and install. our patients seen XX% not important course, LAL the XX% would accelerated that getting monofocal consistent also have see we even in certainly, is, with their to as customers to say, penetrate improve of patient But than new management as from the come a in gives than of patient. gotten And 'XX think as now. any surveys There 'XX likely doing this a as little just the we cohorts feature customer the to going so our confidence get in premium integrate part typically a each earlier, said price sell component to customer is in from in well to continue because the have would them. of is we terms of buy. flow in talked aha, As X, of half bit have a then we adoption. less who's they about cohorts them those each LAL that, we a that in by a ] how or had newer them to PC-IOL. X/X, faster, also for and And do that another And going run market, of you're come have also an that technology continued lenses, X X/X as teaching lenses toric software which what more number faster. who important to think a we've have grow. or of of all Ron correction obviously, in

and So more opportunity within I Do the [indiscernible] have front. LAL more practice, on they our anything?

of Shelley, percentage actually maybe latest conversion monofocal follow coming from IOL. What's more that. components share here. expanding what market on the from just of are to premium It's the you're on that one story your up attractive the versus view

[ So different nationally sort color of the can you receptivity, it you add just give anything any pockets, is ]. could and

run where each and population. a that for by one conversion party the for comes existing the how is them say each customers. patient we survey of questions much third what rate from data ask among and the And will your I that's type our had charge of you So they is

but of time run last little have very run fall only We been that survey bit. a consistent up numbers the was annually, the in the usually inching XXXX. and was So the

be I if think out don't we XX%, year might I you not? you're that see when directly from last practice. anecdotal XX% information point or is this was know at started customers, visiting Ron that anything in the comes Other at time. really information

I haven't anything changed. make that, -- would has I suspect me would seen number that that

Okay.

Steven Lichtman question will coming of Co. be from & next Oppenheimer Our

first that And surgeons interest they be on seeing it to talk about what Ron, not another opener. would the see pique after customers. opportunity you LAL+, more with those new on their front? and being yet might with LAL+ quarter. seem to Can that for customers does sort convert to Congratulations what you're of I over? start you mentioned a wanted go And door

things of different. not LAL I than we're and -- more both would were lenses. to that's so faster adjustability we are the LAL+, are of the that visual order Feedback expect would from provide the the make start degree which saying why that the for both quality tasks. design They LAL+ by we same intermediate -- best and choice provides the doctor want of and lens on received great particularly for the is that what the you tasks near patient. price And perhaps and recovery we've same optical similar the

And optical consistent the design, slightly -- with the focus feedback so which to relative depth the extends that of LAL. is

Officer, Eric says technology, which starts Chief Commercial Weinberg, new entrance multiple our yes. anecdotally, who's every to a times, done with you've when you no have a sale So

they say, technological without no, so And every say always time I'll right? losing say, the and that's to the is They to we been sales for a well, opportunity LDD do to as saying, yes, sales our and reason, existing as well yes, wait practices. an can and that important in our advance, or LAL face. who's customer have you this this gives It us, he

technology. plan that's And the entering is customers. we're now long-term to -- a relationship previous because a we've into And a long-term this Yes. the carried RxSight, here that will our to important at grow also a technology record think at and acquires whoever we for I that establishes through it with benefits the that continue companies have

getting you're increase. the leverage than comp, revenue the increased SG&A and by SG&A secondly, less just then nonstock-based you And Great.

commercial plans? sheet, something balance So that investment side? of near-term continuing in to get Or the strength to not but leverage, any accelerating the the is thoughts on the just given

us from opportunity our we we what Yes. is to this in R&D say CMPO take an also in more a and which the sales and did gives -- projects, can invest while. raise marketing that quite internal and the to When money accelerate

we and so not to not and reaching those along more out for optometrist specific such efforts education to about marketing talked things the with customers, DTC. And marketing our had additional our as customers, community additional

we invest in And we the talked where ability a while that in in this most increase be so rolling. about takes million had in to at business. really about the and was said saw compensation And well, XXXX get stock-based it of of what these relates to OpEx. additional that $X will we OpEx, you It to point with all in is always time programs in careful

these we would of see programs XXXX. And effect of more in so the

One moment David which our Company. next of from question. will Saxon coming & Needham be for

for on placements, similar around flattish But in heard, your Maybe -- should cause sequentially. year strong essentially the LDDs. and second sequentially. I to for more is I'll the start flat as seasonality saw year, sequential we quarter, were be there of quarter and reason about kind a LDD so -- we impactful the in placements any number or really I last growth. look this LDD here specifically would placements Shelley, third LDD maybe Ron to trend sequential comments quarter. why be dip Obviously, thinking third Shelley. If year, placement last modest the

revenue as both in that seasonality And We with see I in seasonality. that's capital typical nominal would procedures. did in I think a in we third that do quarter. guide the Yes, equipment very specifically think as increase we well have

an on the overall numbers, if as in I it the say, years high expect so LDD early, you [ we always be the high And that's front. and would have right? growth think X lot And or wouldn't go tremendously story, growth was, still bigger ago. that I seasonality component ] bigger past And it's important as very but

So we're their that providing both that we guidance come suspect even we've effect summer the because I themselves growth LDDs added from fact as not specific have seasonality have of from as existing just LALs would in our patients. customers, is and likely for that though powerful well vacations to would customers may new some most for while

Shelley. Very it. I'll Okay. you, Got clear. with stick And probably then

So sequentially. gross pricing. around was down margin that really was sounds LDD It just like

gross quarter the half of so going and to is third top mix something maybe quarter. it even fourth sequentially like sounds really LAL the in first in XX.X%, mean like guidance increase at margin the so range. The I the is

why the there anything -- Or is pressure on So gross on really that back margins? conservatism? Is raise margin guidance? the not gross in pressure put just half would it

I wouldn't conservatism call it overall. exactly

be because I paying that pretty a mix, quarter other like do I also or ASCs things with component a have well, quarter narrow But of because costs it saw our range of balance little the expected of a our size. company while gross for out quarter. margin, right. you the the mix, that little think that's things rolling at We what of higher. than in year, think And in people and we in the the right, a for last certain customers which of the would third the is period is third for most important heavier, sometimes as fourth we have [indiscernible]. of year we're pay that the the ASCs the But see order fourth inventory. don't not that directly primarily LAL+ And end they're when

able we're to and the balanced, ASCs. quite is fulfill inventory Our

So that's we're alongside really our injector, existing disposable And out good a rolling injector. also news.

well. a talked that think I of Ron as quarters ago couple about

things a And higher quarter. can incurred onetime some and service costs, things can those costs be a the little have shipping So costs. we'll go down up up like in in of terms

room some for leave and costs try as as always period I mix. So well

Bijou Craig will from of coming be Securities. question of next Our Bank America

talk curious, your about use? specifically, of more follow sales from I I'm Ron you're as is LAL heard that. about know to how about higher it on But how to it's on is you doc up -- some perspective? how the not should we -- guys if, you the talked sure I'm your are with -- LAL+. think and driving utilization driving impacting commentary comments or a on mix LAL+ just if LAL+ LAL+ Or agnostic and utilization, is Wanted LDD on given because the maybe seeing price But

that's use mean, Well, that don't think grows really out adjustable patient that think introduced of and light utilization we different overall, the any what I as continued want them over or mean time. because well different have a uses. positive doctor hope I LAL LAL+. certainly -- very But we over just populations. that. makes I a lens, it doctors different LAL+. know in from we as lens, whether really it have adjustable both difference didn't reviews, We I from original to wouldn't work And LAL if opinions, the itself But will we LAL+ have that have an that

And it some then international you've been quarters. following on I talked you've of maybe about that few making. know the increasingly the Okay. comments up over last

know timing approval? perspective and that some Asia of So be we've think markets timing the any market of on on potential But I perspective you I or about targeting? any may talked before.

you to approvals exact an progresses. our is, terms we're entry. market of we'll Obviously, focus as as would And that you right I able to But regulatory progress. making be are now year not update in approvals. science. the continue Not mentioned, hope

we I'd us continue as a like time bit more to make progress. so And little to give

Congrats on the quarter.

Larry Our next Biegelsen Wells Fargo. from is coming question of

penetration at been from this math, about. there time. that is like, the premium your monofocal? talked you there few is by evidence quarter a any and number XX% -- now the flat the XX% scope the I'm for share by way, -- Because years. And Do market? have over of any our for are share Is you're on it evidence you I'm that curious coming your I'm numbers. it's Ron, curious expanding pretty looking IOLs that looks first market

why So of why kind else wouldn't monofocal. are -- point XX% you're all see in from market, IOL being if if XX% you're XX%, we and coming premium XXX wouldn't increase equal, a basis

I Well, haven't X looked those is at -- numbers.

also, -- directionally, are they're our they going think definitional in I time. still that may not But but adoption So numbers be those likely real capture there's questions. fully to

cataract would surgery. what versus define So surveys look that -- premium more those premium at often as IOLs we

that broadly possible procedures some involve are but that patient premium it's considered IOL. So a don't more pay

may looking you're to. can't those specific reason to that survey Again, converting I be give specific of the without at Some LAL. referring

the It I the that's wanted in something. add just market I at scope, Fair if don't -- you the was newsletter. know Shelley data to looking enough. was

right? I accurate Yes. number the you we is base No. as consider that's is of them I and submarket a [ data, of the survey ] probably and conversations particular, And well. have had have fact talk about think And around information scope what it that right, we but And most access the in had to months some think chance And projections the I people. after to the a numbers aren't some -- to. come sometimes once reported after-the-fact determined so he's that necessarily X has of and and is everybody later,

and success on LDD. not to important the really but patients can't that because and of the large their I overall that we our premium comment So we're know premium inside that's access payback market we very definitely customers. we're their enough think yet, building on And

is One moment for coming Stifel. Tom of question, Stephan from next our which

Congrats quarter. growth. on to nice on LAL just a Maybe utilization start really

in importantly, tying real XQ potential that believe kind we're out it you you're growth maybe I more year-over-year first you're in talk specifically Shelley, and like year-over-year utilization you what models, on sustainability about I over well the believe, time time a or based this? of [indiscernible] And our there XQ, seems growth. driving for then consistent do can Ron accelerated expecting year here, this seeing our that's inflection is you think saw calculations.

So comments would very maybe helpful. be sustainability any on the

Yes.

absolute rather install. look an I'll as times is that multiple when the our at that is think about our based look But we've grow. numbers. sustainability at I upon I see, important continue do one as particularly cohorts, the than think cohort Europe cohorts And what component well. we we I that's start talked And with to those

of line practice. us that thing volume with managers, clinical doctors and with certainly, to, staff managers that's if our in than need they but that if look where the think have they practices. course, their people it numbers higher we're of to a the new XXX%, account If our sure LAL the and are in And that tools total adoption that's at of we been those ask practices. Certainly, where come we customers. coming that is they of do expanding diopter and get don't that's And all Nothing people have continue the retrain know overall, as important aggregated. And each about front the We they in They most they then, They new need. is replaced, on, we tasked if sure well digital for the approaching will what's fact benefits voice max LAL+ for the is customer individual customers, working And LAL as the absolutely make answer to probably volume. terms that. member we have with we Sometimes newer that. their these LAL+. slope make And fact they we component a are in assignments They do are understand we're of the have out, of that because that of our the fact an range XX% our we do injector, have to customers their came the be be is important in are account others XXX%. predominantly the adoption. less practices. they what a

all that call to things customers. I give think opportunity of So sure those that them the make to fulfilling needs that and our are an we're

quarter fourth 'XX, but variability, quarter. that not quarter component. working that's strong right, do we were what see important and in that quarter-to-quarter, overall, the continued course, think growth quarter up we strongest. think X.X% variable of be we're with I a in to the second X.X% XX.X% is And fourth So just XX.X% and and first. line typically then with. up, in is an of second slope the the we that, then might And the had is really the And that of in your while the And third, quarter we in at And inconsistent seasonality. that's

to our market, each long-term increase goal, to XX% is the be accounts. our of a penetration one but of our goal goal first ultimate in Our and that's what is -- that's

maybe was Can I terms you Ron, U.S. differences mindful guess I'm to you. the sort Europe just That's then specifically? in compared discuss confidence pivot And of international to replicated my the that you of in specifically Europe, key your on to should market great color. the curious, specifically of be what we the success follow-up and gives end that the the in opportunity and just U.S. be can

it's it's been launches with Europe, many Well, each -- really have us as be of markets not single involved market. to individually. that there's in that a markets, I think a multiple who It's addressed have individual

And so that does take some time.

companies which We in Europe, or companies are of new many also have the with the environment a dealing now. all regulatory

end and complexity, whether also day, that the broad there's so same globe, the and ophthalmology across -- and technology. has of what Europe but added at physicians is want in And react or clinical entire it's a across of the the layer patients what Asia, a the commonality to country how

ultimate U.S. because within good for So success can necessarily it's individual if that that that, it's the a be that overnight. dynamics in outside happens that doesn't you harbinger that's been of positive, mean and a U.S. experience But success the these that, regions, -- our certainly have

call I to closing back turn would like now to remarks. for Ron the

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

for conference you participating. today's concludes call. This Thank

disconnect. now may You