Sight Sciences (SGHT) 7 Mar 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Sight Sciences Fourth Quarter 2023 Earnings Results. [Operator Instructions] And please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today, Trip Taylor, with Investor Relations.

Thank you for participating in today's call. Presenting today are Sight Sciences' Co-Founder and Chief Executive Officer, Paul Badawi; Chief Financial Officer, Ali Bauerlein; and Chief Commercial Officer, Matt Link. released ended for initiated December full XXXX. Sciences and X guidance Sight year year full XX, today, financial the results months for Earlier XXXX, and company's press available A release of investors.sightsciences.com. the on copy the website at is

comments opportunity, laws. would today long-term by include business These include statements operating performance, forward-looking commercial results and liquidity I of meaning related strategic will management within financial questions statements objectives, made the strategy, everyone anticipated to and market pending the litigation. reimbursement to remind forward-looking and like that company's answers federal statements the product to results costs and with position, strategy, and trial current clinical associated securities

are XX-K company's on statements to report the and as as or undertakes publicly Risk be those uncertainties on public that any statements and description its could cause statements, are results subject that materially Factors risks by based in may revise in Securities Forward-looking forward-looking call results of of cause and obligation differ Commission, these uncertainties differ by with this except Form required of the of section XX-Q. the by expressed to The found filings and assumptions Form from the reports can on those are some materially indicated Exchange from the to actual on and risks neither estimates A today, statements. to no implied guarantees, forward-looking quarterly promises including actual annual company update or nor and law.

measures GAAP that United and the important its release financial company's directly accepted non-GAAP company's company prepared not on may accounting comparable financial measures. financial the operating of operating unrelated expenses. these items in generally The information additional See with a its they are well core operating were States, measures for management that adjusted most to not refer non-GAAP as measures call, are as exclude because of about of the including be earnings to financial On results. reliance principles indicative performance indicators of may financial the believes accordance reconciliation to the non-GAAP these measures

turn now call Paul. will the over I to

Thanks, I'm to reinforced both fourth made mission standards importance procedurally full to of the year the year and quarter progress empowering the This keep in of we XXXX. seeing. elevate extremely eye the technologies allow interventional to people develop Trip. providers care proud has of care, our that transformative

initiatives. pivotal a executed as year key strategic was on XXXX for we us

enhancing proven integrated accomplished Financial We been are Commercial to high-growth Chief including executive many our vital team throughout and Bauerlein, Ali seamlessly and with additions our their enhancements. our into Matt year, the have pleased very med-tech with Link, and have Matt roles leadership to the our organizational Both Ali Officer; have experience, Chief several Officer. milestones of

realigned structure the level effective we years. hires, scale over more of the our to be next coming their and laid Following foundation for the

expanded We of technologies. clinical our supporting evidence also body long-term the

GEMINI peer-reviewed equitable from reimbursement, us study, announced X follow-up clinical over SAHARA data RCT. help drive study, differentiated a the success We of data journal, clinical time. leading in the follow-up X-month including long-term will data ROMEO the we Importantly, from the coverage, data and from X-year long-term data and X-year commercialization believe publication

the in growth revenue generated we XXXX, In mid-teens.

of Our areas. cash reimbursement on and we gross in while to operating margins usage improved spend expenses focused and our highs, critical reduced maintaining significantly all-time uncertainty, face the

were or in MACs, development Medicare pleased that administrative withdrawal December, In scheduled from contractors, late effective with the a MACs major in late the combination had including surgical which over associated is the procedural glaucoma trabeculotomy for of age go our XXXX. to certain LCDs finalized MIGS in OMNI January canaloplasty were description of a These X with identified management interno, previously investigational with patients XX, procedures ab as system. we in

Throughout clinical challenge coverage involving new the our the to preparations state We adhere evidence to procedures educate of and and available. with customers importance while of congressional dynamics of our this offices, executed and system multipronged stakeholders, our device from complex to long-term about the associations, and resulting the the MIG all the help LCDs MIG approach navigating key and OMNI these hundreds potential work with we implications national process, societies, medical surgeons surgeon to LCDs, potential customers' restrictions. MACs closely including and CMS

rely the with surgeons testament surgical is products this very OMNI a glaucoma our to its important the procedure, we reimbursement We Even their the comprehensive role our believe proved efficacy patients. patients. capabilities IOP the reduction of resilient. stakeholders OMNI of uncertainty, on to as glaucoma sales industry other medication their treat team Again, are their treating in alignment plays on that and and in are thankful steadfast clinical

advocate that this We to patient access critical will is continue equitable to to ensure there technology.

study clinically from months, months. baseline December. a significant clinically decisions long-term free at IOP-lowering significant peer-reviewed, XX% significant body and in prospective publication was process, provided of the reduction of strengthened of and XX with this study multicenter are the demonstrated at by throughout evidence long-term our reduction Coverage further by We medication the Favorable the medication governed heavily clinical of XX MACs which sustained patients from IOP study X clinical results with compelling GEMINI data. XX%

previously OMNI the multicenter continued GEMINI XX with patients across IOP the in any trial and need across OMNI end and the published washout the not all GEMINI trial sites. this participating and could XX-month procedure There longer-term isolated consistency published X the X-year points, X-year underwent OMNI studies, technology. already clinical X-year XX of and the GEMINI confirm prospective The is trial. the patients who are supports OMNI further extend assessed. outcomes that outcomes access And from from clinical medication procedure data medication-free the included be prospective demonstrated to original lowering at data effect so for X

the in be LCDs We proposed may future. believe that new MIGS

that confident appropriate our by high-quality, are GEMINI OMNI for X are continued coverage we the published population. the uncertain of data, new patient are including body as would process we LCDs followed, long-term the While of enabled timing supports finalized, procedures and if study, to be

to also additional publish XXXX clinical medically continued We CMS support the MACs, OMNI's data clinical MIGS and with and forward appropriate determinations. illustrating will engagement body and believe to and and the favorable We efficacy evidence coverage technologies. of stakeholders equitable patients throughout maintain look will to other procedures strengthen necessary to physicians we their glaucoma access ensure that further plan and reasonable

employee we fourth are quarter, surgeons. associated have first uncertainty now quarter. those Despite to roles Looking in and impacted train by working in new utilization, those with attrition accounts backfilling and the ahead, we LCDs, the LCDs, we are minimal increased reengage drive the the the

our than average given year. to quarter expected, the the training end fourth As uncertainty, funnel was the surgeon LCD historical lighter

We early the still coverage. regrowing are of the stages funnel in on visibility surgeons as have now

surgeons in to over accounts add lost, improve and and our ability confident accounts time. new recapture are We utilization

to revenue over in commercial believe in the the beneficial across efficiently we strong that return the double-digit X our Our of in uncertainty. a to growth we XXXX already is growth fourth the second our We anticipated regard. place the accounts are long foundation solid OMNI past our into to quarters quarter proving have made term, XXXX. half reengaging ordered in including drive this have and due changes utilization main focus commercial and to over increasing not customer organization base with reimbursement The

Glaucoma close our initiated discussion the I European the series want OMNI touching on In to European launch. of by of February, recent the system. Surgical our launch we Ergo surgical

and due broadly March U.S. cannula these features XXXX, adopted to been its to access Ergo precise canal. Following has design the provides Schlemm's launch invaluable and an gentle We optimized will that be partners. series European to its improved ergonomics in our believe tip

Dry now Eye Turning to our business.

TearCare patients a underlying with procedural patients comprehensive, eye eye intervention clinically dry evaporative disease, address of U.S. effective and cause proven, market and provides annual safe XX for is suffering fast-acting a long-term over which advancement, root and diagnosed. Interventional opportunity consistent, more technology eye major TearCare a procedures from dry a multibillion-dollar with patients eye TearCare million Our evaporative we the treatment. believe with represents providing dry dry disease,

commercial discussed building and some of our team on out call, now towards and payer place. streamlined strategically and business last is to our eye measures As commercial within access dry reduce that have spend that shift in spend our focus market the we taken our

who We patients from are TearCare. dry actively in interventional working with procedure for can XXXX to eye benefit equitable market drive access an

new market our for Importantly, access team significant establishing and experience reimbursement procedures. innovative and has technologies

to to we leveraging compelling are the and payer will XXXX, year of are budget discussions advocate coverage for with payers our will points foundational policy on The be RCT decisions subject the by ongoing procedures impact interventional time of with our MACs TearCare. and of enabled be coverage and update model beyond, and throughout data SAHARA eyelid work In lines. payers. These X-month publication standard commercial discussions our focal focused

of X-month in film all coverage market-leading statistically RCT period. breakup over sign time, of begin of the expand was comparing ability and shows commercialization from improvement measured X-month was ophthalmology treatment therapeutic established. December. Data in the decisions results a payers eye we and superior to as the at in objective of stability of At published goal improvements film's the to in ocular the Our delivered will is starting successful tear RCT, study's market tear clinically endpoint surface. pursue clinical where large and Restasis, point, aqueous to publication symptom SAHARA TearCare points dry significant geographies successfully The TearCare in technology we the the every the has from and disease, key this dry for a also the protect TearCare TearCare that opportunity. tear been coverage retention, Restasis primary and measure eye to time receiving XXXX

was to critical the trial We and companies determinations. insurance performance, the TearCare's coverage demonstrate This TearCare offers is efficacy long-term data are of clinical important with this trial in building most medical efficacy for from to robust block safety, generated directors of believe by and date. a their designed validation which feedback

interventional standard both that acquired paradigms of have patients. have learning know-how incredible the for value Dry Eye way. over solid Glaucoma built treatment have we businesses millions of and care along and the the foundation of and the our within past Surgical technologies We the improve and we all we closing, decade In elevate

for minorities we us. efficacy We be Glaucoma on OMNI, stand-alone have our outcomes, as about ethnic excited many the to disease In data Surgical transformational particular, large-scale of outcomes. long-term, segment, severity real-world a year this publish and differentiated expect XXXX things including outcomes additional in is year, clinical to

strategy, market-leading are In well further commitment addition, clinical to We demonstrating long-standing and starting access actively technology, also based multinational on we our are our return, meta-analysis evidence. on many LCDs we focused generating and are payers on a the OMNI critically situated, remain and may based studies conducting data. if any clinical believe all and market a differentiated societies and clinical our OMNI engaged OMNI efficacy RCT, we our with

the base deliver in We second saw customer encouraging growth we in increased of to seeing of resiliency we first year. the return now and the an quarter. fourth the are and expect is quarter, utilization This our the of to in indicator the half sales

share market. We the continue expect to continue lead to market the the take growth cataract and to stand-alone in of OMNI combo growing

segment, start dry also this year, a interventional This publish to expect treatment plan showing and health RCT in coverage eye dry in for Eye we treatment for Restasis. impact establish our of impact which budget to a versus to system of economic TearCare our to broad superior we SAHARA ultimately also step Dry the claims journey TearCare, become results, year, in for our In the a eye. show X-year We expect versus model and TearCare for continue soon to savings Restasis TearCare compelling benefits disease. to publish also the critical seeing leading TearCare paid

very important reliably on to experienced many team our create value. and execute and are place, well we plan a horizon so our With strong in positioned catalysts

We optimize towards build the we rest particularly about growth, to drive are this profitability. excited our high continue year and as business, and of to return

Ali to discuss financials. I'll to now call the over our turn

Thanks, Paul.

our are extremely I on fourth want dive we significant of I both reiterate into commercial we LCD. challenges financial as proud navigated the and to the operational execution, results, Before quarter by that brought

model. goals management Our these our to limiting used positioned support well reduction in essential were our plan. and and future expense our swift cash reflected feel financial of us and flexibility without our execution adjustments We strategic the have

strategic expense management, an facility. improved we closed the with in breakeven footing investing opportunities disciplined cash to for tranche stronger credit outstanding. secured growth. Capital, long-term flow to The up to facility capital, announced R&D while with without with and including $XX believe still with financial maintaining plan January, we need $XX our facility new a Combined equity the million we commercial positioned million as financial we As our execute funded goals, current while terms senior flexibility provides Hercules to initially we commercial us and strong debt raise expansion our additional achieve in are support well and under

results, patent all by to ongoing want appealable. turning I reported are briefly infringement defeated XXXX, filed steps Alcon, April Alcon. X which In that case on April to with invalidity challenges XXXX. to not trial is a quarterly before Lastly, had currently the we include patent touch The next that in scheduled commence we

As trial higher due preparation the work. first incur operating quarter to a XXXX to we result, in expect expenses of

January. announced the was million, expected driven quarter, to to at fourth utilization LCD by back end the reflects this our which $XX.X a was Moving uncertainty in fourth XXXX, of decrease the by during we the quarter for the the of than fourth of but quarter top continued of total range This revenue customers. with stronger we primarily compared period, OMNI X% revenue

from Surgical from versus period. ordering unique about OMNI in this and X% LCD continued revenues quarter, importance quarter patients. the was up X% of of expected but quarter the but about and sequentially comprehensive third this We the the comparable benefit surgeon XX% emphasizes were about fourth the glaucoma XXXX. $XX.X provides down X% X% shows of down dynamics. customers surgical XXXX, fourth fourth believe procedure given X,XXX ordered the the fourth of products Glaucoma accounts still million, for for Utilization down quarter about utilization quarter our still down than their of stronger the to the from XXXX, transient

increased customer retention We in we solid, LCDs Since was pre-LCD quarter, impact Similar the withdrawn, to beyond. the and as the LCDs areas surrounding these uncertainty of dynamics covered were down customer was and slightly. levels the has priority X utilization utilization higher to been our our result but MACs. base saw were last reengage drive expand the by to the our and primarily believe back

sales Our Dry of fourth our to the to in market the access of new down account strategy were primarily after infrastructure XXXX. quarter sales, achieving XXXX. our The decline Eye XX% due revenues our higher utilization, fewer on led focus and and for fourth quarter million, SmartHub was $X.X evolution compared the and which restructuring accounts related to commercial to due October to reduced

XXXX, had we customers, active XX% For a the eye XXX fourth the of fourth versus quarter dry increase quarter of XXXX.

increase dry X,XXX X% treatment quarter, lids over sold we eye period. Additionally, in the the comparable versus a

the Gross in period in prior same compared margin for the quarter year. the was XX% fourth to XX%

strong. Our margin gross overall remained profile

the the $XX.X $XX.X the were prior year $XX.X slight $XX.X by million fourth in well to million higher XX% expectations. However, Adjusted to were of operating overhead and quarter, of in decrease compared the XXXX. below compared expenses unit. to decrease and there per fourth the quarter period was same third a operating quarter, million fourth a quarter driven volumes compared production in sequentially XX% in the expenses for impact million, Total of a lower

total costs restructuring million million by the million, comparable lower-than-expected reduction incentive-based a $X.X in $X.X by expenses to operating million offset including fourth primarily quarter a nonpersonnel-related lower reduction $X.X due expense mostly the primarily was decrease partially incurred sales cash related R&D commission expenses, to The in operating due XXXX. lower revenue, and period in of $X expenses, in of and a expenses, personnel-related in driven

of the quarter to $X.X XXXX. of million in XXXX. $X.X $XX.X of compared XXXX fourth were in quarter the $XX.X expenses the SG&A the to million quarter compared fourth quarter in million fourth of million in expenses fourth R&D XXXX were

efforts We without our the value of in cost and fourth XXXX, drivers. containment R&D are quarter on and taken ability to of be the commercial agile proud compromising our

$XX.X Our loss million loss XXXX. quarter from million of the to operations for the was fourth in fourth quarter a of compared $XX.X

net compared or XXXX. loss Our the quarter million for to fourth net quarter, of million $X.XX a per the or $XX.X loss $X.XX per in share share of $XX.X was

discounts quarter debt million in discipline third amortized in $XXX.X used versus improvement $XX just compared continued million operational million continues cash to costs. We excluding XXXX of $XX of reflecting of and cash This million XXXX. evident of of used of in $X.X million quarter and sequential We used in quarter from debt the throughout cash $XX.X issuance the fourth XXXX, a cash trend a $XX.X used with and decrease and with XXXX, debt, XXXX quarter, reduction. and XX% of reduced that in was of the reflecting ended cash cash of the million cash the a million $XX.X equivalents strong used usage

for outlook our to year Moving XXXX. full the

revenue range to X% growth million $XX to of We compared X% XXXX. of a initiating representing guidance $XX are million, to

expect the XXXX. in as comparative period half and LCDs We the we first be impact revenue half to in than the the the lower prior XXXX recover year, second the of following rebuild of

We the double-digit the this base. and will regain followed momentum second as prior the of year expect commercial comparative growth half in year, expand customer versus in period the be our by utilization we and

where compared restructuring refocus decline our of dry We to seasonality commercial We stronger the to expect Dry the second XXXX full evolution full the and revenue in of year fourth first market strategy, eye XXXX, Eye year activities on typical XXXX do the due significantly access expect our team, utilization and quarters than third in this to tend the and year. to have quarters.

reimbursement commercial accelerated and revenue to XXXX Eye expanded presence. have Dry growth coverage expect with an We in

planned Eye segments, segment. builds impact continue larger In be overhead the the overall margin lower due in XXXX both terms Dry per to production increased in anticipate of in mid-XXs, do gross the cost we but to expect gross we for to margin, unit

to of $XXX adjusted to full compared quarter a litigation. operating We year higher primarily million to expenses to due X% for XXXX X% representing first operating $XXX million, range expect with higher expenses decline XXXX expenses, adjusted of pending legal

right drivers to growth XXXX it building long-term implies revenue organization achievable we than in continuing value showing efficacy is to revenue establishing the guidance produce guidance predictable by portfolio market total XXXX, the we our on our in and in and lower strong are While right believe infrastructure and equitable focused clinical growth. products, place the prudent to saw in expand and our maintaining for consistent access commercial put

and growth seen believe base will We technology. as with we've proud initiatives, of Dry of in the stages in to sales, in benefits second half is the XXXX the early these penetration double-digit our of customer our we our Eye market We a execution are we to resilience Surgical Glaucoma of OMNI revenue still opportunities. of the are in both testament return which and

the questions. open please line Operator, for

Our question Sandler. first [Operator Piper with Matthew Instructions] O'Brien is from

a And maybe that Good this early using year, days seeing just end what in perspective? clinician Glaucoma those stocks you're you're year then from what a supposed the to were things But perk you? utilization last to recovery? come many How that back up have especially not the at hear here from seeing QX on are I'm Surgical side. curious, to of of

is question. this Matt, the here. I appreciate Matt

I individual think the in ordering, asked recovery Ali, of you areas in about the all percent LCDs expect, which accounts uncertainty and reengagement you that is second considering steady state Paul what that from our sort both as with comments and reflected think accounts utilization terms the the state seeing of from of a I the last half year. active the in ordering, created of in of we're would customers, a and was steady of just

from OMNI organization, both that's the the ultimately, believe our well, Paul and we that reiterate value think the to saw it we and remarkable just comprehensive a from comments sales of Ali I customers. of our clinical nature And and our organization, delivers. reflection And also a from resiliency as

consistent so recovery And consistent a again, are state our with early signs of expectations.

to new -- on this double-digit in call. the Okay. to I to trying perspective time growth back what's here from it I previous But implied that Appreciate that, fun terms the then of training get in on the in year run the all implied didn't guess the to year, clinicians, into Matt. a of and utilization, And then model, stuff. recovery half next and get I'm getting through clinicians, what's

flow guess growth with like a to some I'm to getting trying then, cuts outlook And the existing I the spending you've levels. of positive reconcile just cash from to perspective, free that your Ali, made then with cash

together, to that just together. all all difficult putting it's reconcile Just that like,

maybe help us that just bridge So to point.

Happy take to that. Sure.

as to into So of typical we to subject we're those to and improve perspective of of and improve business, not number we QX to, metrics QX the see seasonality combo throughout of the accounts standalone. the year, course, the but recovery then cadence down being would of increase both well going expect do typically get of the But the expect as granularity you to added cataract level also utilization utilization, overall accounts higher. would in our modeling all as new utilization, or period in the where account loss, of well as

I double-digit So would will, to see that, get growth course, half business, in you that last all able are us progress that's XXXX. are that of outside in in really improvements to our record the of year. show be that the comp toughest back the to the was But continue quarter, the to we be second expect those of nice for since expecting how sales and that we of say areas year. to

takes question revenue the kind we and the before on So the that question to does of cash, on puts on move side? your answer

side it's a I somebody in in a way. more just in do, especially Yes. a what's what terms competitive market. speaking, big from there's little pretty color mind of perspective the on need still wouldn't you bit implied a coming stand-alone on Generally clinician to

all as for there back for expecting I were half year number? what's next better to Because than you that it's think to especially and get the implied well. double-digit people Just

Yes.

is I really the increase related. the majority of think utilization

double-digit but be accounts, So of of to to increases. those will course, primary we do utilization driver add continue a expect

Got it.

around continue commentary leverage, expect question looking level course, investments. expense progress of in year our our we of revenue XXXX. operating on show in well Obviously, of this So in solid our margins as as to business particularly to terms increase second the the half gross moving to and, your of to

So growing expect looking into a be to double-digit continue we company future, into to the XXXX.

level looking spend expect get to the at And operating base. leverage we investments so on needed, our to our of the run needed and business expense

So of over get that growing, incremental you cash and where, OpEx modeling is revenues lower operating the really in margin, growing is course, when expenses revenue, your leverage cash for although at flow look on to time, still with rate gross more flows to at nature, than cuts. associated growing real and a then a small with improvements breakeven that's

it the Tom Instructions] line of And Stifel. from [Operator with Stephan comes

look back double-digit It'd a on of go what XXXX, into rate bit Ali, the hear around we potentially out growth in be to great medium-term years? sort your To finer the as put targeted just might a that point a could you Paul, of like? to look growth little thoughts

XXXX. Yes. I the early opportunities We're our of we on business, on prepared don't a because want also very real that see growth. will to TearCare to still is we're in think potential accelerant for think guidance visibility detailed give today I our in And XXXX.

and very further our both we'll get potential more understand we able as of But really create market cataract procedure for market, a There's new stand-alone combo interventional the a into in that also think Glaucoma, time. are with markets be the on XXXX over should be that on in I we Dry huge Surgical the that to share side can us really and Eye So provide opportunity, really then really large. side take continuing to guidance.

drivers. those So the are really

markets also but course, associated driver have a contributor as be believe OUS us. well, the primary growth the for we the for foreseeable U.S. business small our future Of with we will

for the That's guidance. you XQ on color maybe us Got sort about it. I back guess, helpful. guess XQ my was down revenue little all if we on potentially a that could Ali, be half should quarterly cadence. thinking be, I then but wondering But customers a seasonal And work or call and to And know bit a would be as benefit, give last appreciate to benefit on the I will bears I then, it, XQ I the of in any specifically, how growth? stocking consider there just tack inventory year? of, more

Yes, sure.

So taking and something regular guidance of may But would see uptick seen in that We've material potential really baked the associated with changes increasing procedure a the volumes. material That's occur in time. tied of that improvement we into think That stocking is haven't that to be that we haven't seen certainly utilization in future. but question some first, in something be nature, inherently a their return levels. we not seen stocking just that yet. too ordering or we we've could inventory at point

challenge for down. In cadence, terms is of the second perspective comp us. be to half we quarterly biggest a as the quarter we from said, Primarily, the do expect the first

increase usually we'll to the see being with year, So those start sequentially would I the but we that we're seeing, given think and looking dynamics quarter, do you that see in overall expect this the fourth utilization at see the don't nice first QX recovery the from of down utilization to that versus QX. maybe quarter. year similar, down typically,

Congrats on the results.

Thank you.

is David Instructions] [Operator with Our Company. question next & from Saxon Needham

I it's still, on trend? Are kind back before? dropped typically but know of the love are days early hear accounts back maybe there. wanted How what specifically last of to off were does they levels for OMNI in that to back to would half that the utilization, going I follow they at to up that that coming year. you're seeing

I'll that. take is This Matt.

of seeing earlier we're of in encouraged think of more sort by ordering I comments, it's mean, sort reiterated So as obviously but the return I steady patterns. a I to early, natural a cadence

there inventory And half think period some the by OMNI second last cloud, supporting the our so withdrawn. front a were to not it There shelf. on QX, contributed but and just appreciate the second excess year. staying quarter of under or of that to them sales of again, obviously utilization, in as MIGS efforts of I sort customers particular organization ultimately manage the phenomenal decline, everybody uncertainty and which the through fortunately could our in obviously that in wasn't last effective half job a final inventory, think did to LCDs of of in uncertainty, definitely accounts in were while and year, And LCDs, the ensuring I in date uncertainty those fourth general of

the bulk not early we're around a stocking, of of will and but steady towards are anticipate ordering, trending so support regular much seeing in through again, be So stocking, we towards recovery of building OMNI, days, is again, a maintaining we a what balance cadence year. question of the patterns broader more utilization ordering but into what what state that's the inventory of normal

Super consumables? sales to wanted by Great. revenue to said Ali, just what's driven And put think then of being SmartHub it's Eye. essentially ask is is new being going assumed in force Dry TearCare guess, Okay. terms you significantly. be I on helpful. to Or placements? I the placements? Or down I out incentivized

saying to order where in was, I about for then When or what on And to XXX know, an in don't reimbursement, talk your, active front. that be are needs procedure? accounts, reimbursement attractive shake you of out it they the just terms to whatever it

Yes.

guidance the of new sale minimal SmartLids, than a smaller of the side TearCare there guidance, significantly inherent XXXX coming but is the most and at we looking in what is XXXX revenue being our of of accounts was from number XXXX. added, saw and the that So still that and business really assumes

of the with the October. is reason that and see in that force is occurred expect in to the shift So revenue the along that decline of we that that business sales resizing the

the starting too with quarter, payers. accounts are for in of XXX on working that think we fourth be the the we that. really data, compelling proposition, will conversations of TearCare just we're terms side the compelling In us but what to had appropriate still clinical say business those a for It's reimbursement value early have We the now.

a premature. pricing pay business we about already, would that to So talk on was model the effective But be cash know market.

the patients, work work procedures. there course, that think we will and, model financial for us, our providers of So will customers that those doing a the are is for that

to I'd to add like that. Yes. just

International prepared model model the society We TearCare comparing other Restasis care On the at We're area, like ISPOR, prescription in would publication very health Atlanta. impact meeting for submitted ultimate presented drops budget managed in solid the impact a soon May eye will That this budget very a that for Outcomes to system and should the economics and that. The economics be presentation submitted model we've budget savings impact others, TearCare, to and front, leading leading for excited health be. be Pharmacoeconomic Society about what of in of journal. Research.

the got and progress across be So single payers very hopefully to XX-month a between X-month SAHARA soon the the there. and our patients category data, TearCare team a dry to sales what eye. need TearCare, year that's to leading published, access MAC, team the access also model, dry working going and over the crossover, and reimbursed treatments. our compelling Patients side. the with They saw providers these we eye Restasis with treatment, all We're access. reimbursement That make in across need should commercial data, budget on crossed creating country, coupled interventional SAHARA new this the and both we're were where about big excited market outcomes coupled the country accounts impact with

question, our line from it and Joanne for last please, moment the comes One Citi. with Wuensch of

Anthony This is for on Joanne.

that I that Glaucoma assumes put year. just guidance Just is want going the essentially to out back clarify, unchanged you Surgical reimbursement to the guidance, in for

no just expect lives? do be then are your what XXXX? going a with covered these Or large payer And maybe into expectations could there's Do amount wins to of rolling So more year you expect Eye, talk Dry a to start the you LCDs. you in about basis? on

Yes.

I'm inherent sorry, in was the which reasonable the... current operating what So is broad the OMNI access and continues LCD and market, XXXX. coverage guidance to in fair assumption expectations we in that environment of is have coverage for we where under are the think

with TearCare and across the the of now, claims payers a level. is on From our the lot country. engaged. Right team that's perspective, earlier, payer our I There's engagement described a more work providers

team time, to parallel ensure with with our working appropriately. that reimbursed working be access payers TearCare get will and on policies. So effort, market coverage in providers claims Over

we this policy-type expectations to we'd At cycles, XXXX. be with work payers annual coverage hopefully we Now great will the policy generate that and policies discussions, for have expect but that have these on doing year, wins coverage engaging in point, business.

[Operator Instructions] from a Andrew We Margaret question have with Blair. William

point Any goniotomy. for I taken steps you can the push try at that around last some have any about formal this to that kind getting the other canaloplasty updates And kind to on in LCDs helpful. be hear What wanted updates might to dynamics of the months? maybe several little you we expectations bit would coverage when talk a and of further? of any share for

system, we've quickly on on system the an clinical engage half OMNI recap, and the just of OMNI Sight years. was evidence second most help the Surgical to furnished by long-term Sciences, XXXX in for on procedure the the that with opportunity the X comprehensive happened generated MACs, them us OMNI Surgical importantly, compelling over outflow for educate to what Margaret, better the,

At another MACs, which to the culminated of of the the of with and well clinical clinical glaucoma developments. our and our further our help MACs number OMNI, with it our longer-term Sciences, us KOLs stakeholders and end meeting MACs the for the year, was educate a One, meeting with Sight surgeon as the opportunity society's data. prospective on study, GEMINI X-year as following important X publication the even a

payers this intend We We've up. year. to with able throughout been to engaged stay follow the

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clinical engagement we're we prepared continued So evidence, proposed well and with if feel payers this again. with LCDs the that when are year, further very

time clinicians just conversations assumed this and more and what's well You're for the as on year guidance next relative then the cases? And for field you stand-alone as in to one hit around competitive OMNI accounts are using standpoint for year, Okay. both guys grows. with what having in to assuming utilization

field kind change that the assurances kind what commercial support growth? you're accounts. give strategy? can clearly, So to up at need hearing utilization you're that come of competition hopefully of hearing what from a Do us you Or within all? of you any guys feel your Does to

to to Sight market segment given are of based Yes, half year, this associated optimize our for a on is opportunities of and the unique us or taking believe in what last strategy. in commercial the We about the Matt. second I approach further for the comprehensive that Maybe of talked it opportunities intended positioned appreciate organization part second efficacy. to of uniquely the really is the restructuring first of the the terms the Sciences as question. the market question and continue we we OMNI nature and given bit

consistently believe the both a and MIGS type standpoint, want of receive glaucoma basis. its and of a competition positioned the nature in on OMNI we're to given from as to I hear stand-alone well we sales strongly ability in So engaging a combination the market comprehensive feedback well from as perspective, treat

marketplace. obviously So evolving as it an in relates to stand-alone, we're

opportunity in a part a rapid ultimately stand-alone in interventional of treatment the expansion the we And sort see for particular, glaucoma, of that. as so of procedures, MIGS, and of

of given develop we But that so that, the we our broad something will We that's engagement the the from again, physicians to ability label, receptive and see evolution the interventional the marketplace, there. strong OMNI, and broadly to see mindset. is this in opportunities, with of physician and comprehensive continue to opportunity significant to And pursue market nature those ultimately, advocates. continue

competitive positioned So from an to standpoint, which Sciences share. prior is continue I OMNI, market say compete the conditions I'd consistent Sight seem the as in periods, think take a with particularly and well procedure, effectively organization case, and to

you Margaret, the in, as of And very development. early we're market stand-alone days know,

entrants market welcome and we the has in from minimally to way help. additional growing but been paradigm a SLT, invasive Really, medications patients OMNI treatment it's medication and fourth We a ultimately effective proven then adding fit, very needing need an product efficacy, a and moving progressing, to and intervene While medication, can right maybe it's and days, the changing another and who early mindset, medication paradigm is now strong to a the challenge progressing, leading treatment sooner. a are third who change SLT, procedure. medication, invasive in

a treatment few buzz progress. well, and alive to been, there. and to for over for to just next paradigm the help to opportunity exciting. change We've it people change years, that shift I'd disease be earlier a years effort. tremendous the in take And around We've it's we We a and few past be to I glaucoma say the working making meeting, There's can Society expect glaucoma, it. of the there surgical this from returned interventions, disease. Glaucoma the going interventional progress the with a lead pharmaceutical American desire entrants and from towards specialists minimally medication, invasive It's that additional love on been accelerated more mindset, lot working to to very

comments. showing not to the back I'm like any questions at And I you. time. Thank would Paul this call to Badawi final further turn for

call. we Thank attending you engaging these investment management around exciting clinical an We across large team today's strategies into opportunities. community market and our interventional Thank XXXX, our robust opportunities, Coming execute compelling portfolio, X to you. differentiated have look ready to the forward commercial our efficacy for in with plan. experienced

disconnect. we you that, now you thank with for participating, And and may