STAAR Surgical (STAA) 7 May 242024 Q1 Earnings call transcript

Greetings. Welcome to the STAAR Surgical First Quarter 2021 Earnings Call and Webcast. [Operator Instructions] Please note this call is being recorded today, Tuesday, May 7, 2024. I would now like to turn the call over to Brian Moore, Vice President of Investor Relations of STAAR Surgical. Please go ahead.

operator. you, Thank and the everyone, ended for us joining XX, Good financial thank results discuss company's quarter for to XXXX. afternoon, you the March first

Officer; Frinzi, On release press p.m. first issued and are Eastern call was our Williams, Tom results after the Chief Financial today of Executive just and quarter Officer. The Time. Patrick Chief President X:XX

website We Investor Relations the presentation supplement have to posted the of earnings at STAAR's release and our earnings www.staar.com. section

public periodic by STAAR these the could to forward-looking those intend no cause date SEC. during forward-looking filings Except law, or described actual you Before the that will this to we of update results These projections, comments reflect on as forward-looking and obligation analysis and let required based harbor a to the begin, you important is implied of remarks in future with press statement statement. is to forward-looking as plans, beliefs statement the call call risks remind the forward-looking any risks not and statement that statements company's well does uncertainties caution statements. The by and these are quickly this are statements release about a numerous uncertainties safe with from associated or conference expressed subject assumes today's statements events statements. We historical and STAAR's in outcomes include as are actual to differ do and prospects. fact that This materially company me judgment that such so. not includes of expectations, as

certain share. in EBITDA including and and this discuss adjusted on addition, the measures, press per call adjusted release, EBITDA financial In non-GAAP we

Definitions in are provide constant to press today's and also GAAP We release. data reconciliations sales in included currency.

on will relevant comparisons call For on basis year-over-year the all today's be period. versus a otherwise specified, brevity, unless

as a FD. Such under open and the with we we nonpublic material, to means remarks, be website information prepared will disclosure conference should will website Instructions] in that, would included Investor Finally, of webcast. the public following questions for in SEC and calls the website Regulation intend turn obligations analysts. our use now section. disclosures publishing our like Accordingly, with to on Tom? [Operator disclosing our our our call complying and Frinzi. Following over from monitor press our addition filings, I call And to to investor Relations releases, to investors Tom

Thank exceeded to first million you, of Brian, good generated $XX.X the report net I'm our pleased outlook. for which XXXX, and of afternoon, sales everyone. STAAR quarter

procedure is lens-based quarter, expectations our positive focus enhanced original above-market key EVO geographies. We all momentum even the our our refractive for share And commercial in results. proprietary down for delivered exceeded our ICL rates industry, the yielding taking laser growth Our technology, the in channel market a is building EVO growing. of is again market across for correction. and correction vision vision predominant

sales go-to-market this quarterly record million. We program. Robert XXXX, U.S. Lynn and $X ICL sequential We base ever Laser milestones U.S. quarterly ICL XXXX. Including the of agreement Thus U.S., our the XX in sales in with U.S., a of United in part growth of generated and Highway are of believe in achieving we multiple of level new sales as XX% months commitment IQ the the far represents States. a few Dr. first to largest the report proud announcement to in business today's strategic EVO Vision execution

and the we with is Dr. commitment the Our the sharp to vision ICL EVO announced agreement first date on agreement follows quarter. also in U.S. with to largest ever Lin the in

customers ICLs, mix, and if of ICLs of ICL percentage over has of move are XX% in since XX%. months initial surgeons growing into the hundreds his strategic to refractive believe month, agreement is the target Meeting program Surgeries and our new American EVO agreements and under XX Annual the prior XX to the Refractive period. Last we fast Cataract patients. They EVO significant engaged Boston, procedure ASCRS, of fast prior committed EVO growth the over in in Society X,XXX of fourth representing of in qualified scientific ICL procedure measurement a will, year paper confidence quarter you the at launched where targeting the were EVO surgeon the and the the papers selection. meeting. the poster implanted the eye have lane ready in as Len -- are We XX Highway signed least to that lane, meaningfully in dozen featured a presentations with X,XXX size has U.S. presented XXXX. customers we in in lens X increase increasingly At merits sessions was initially and the recommending will their ICL to or Dr. believe These at

data training medical University, underway ASCRS health website will clinical And We and our science at discussed. further surgeon care STAAR including portal. and I just the also including and work Universities University research, videos launched Star papers feature for expand professionals. STAAR is the to surgeons other features,

our and enhance ICL and practice and comprehensive at the We a flow ordering system efficiency Stella is ecosystem. planning also step EVO initial surgeon introduced will ASCRS. towards Stella

first step Pacific the growth next reached minus in a the as just calmer in curve, Asia diopter drawn surveyed above choice million last the sold. moving have total ICLs XX% more on surgeons a of in recent Half our clinical significant and at X quarter, of agreed with implantable above. And the data that sold years. Expert sand were We surveyed X those line Summit, for we the minus ICL celebrated were X based recommending in our both down or ASCRS lenses presented, our they comfortable represents those EVO strongly and data finally, patients be for we and agreed opportunity. When which to the and X

Belgium Pacific XXXX region, to the of We including Asia the for tough year the European the which in year XX% and first full years generated XX% each distributor newer and the of such the generated X% China. In in results ago in of Middle Growth ago East XX% quarter attention fourth fiscal XXXX, ICL sales COVID-XX share expectations of reflected growth X% my ahead quarter, began quarter which markets, now XXXX. removal of in Netherlands, China the our outlook reached EMEA which XXXX. We sales in and our the for growth first in following restrictions Turning and by growth of flat just the APAC the hybrid was a our growth quarter growth region, the year the for approximately our in investing quarter sales have comp fiscal market. markets regional and we where despite first now as exceeded was pent-up XXXX. outperformed driven demand of our includes region a few outlook full

the our growth grew In region, Americas generated which XX% XX% including we sequentially. in U.S., growth sales also sales of XX%,

U.S. outperformed the outlook new in quarterly growth in the believe on the once results XXXX. sales. We have And first of Our saw achieved in our base flat returns U.S. a first quarter half. we level our for during XXXX of investments we again, strategic

in a just our Affairs leadership In Officer Regulatory an adding critical added last ago we further investments share business may we Chief are presidents. you Officer. Officer capture to many of quarter, fourth market and when General our April business Counsel it X announced drive forward. a As was uptake, week, Chief investment These already will new we Marketing to a Medical impact EVO our Operating team. In and people, making about our on year new ICL we Chief began third customer-facing accelerate a individuals our having innovation. And vice XXXX, and recall, made and Clinical the positive and

We opportunity into in consumer our India We employees vision have spending. for momentum emerging and large STAAR example, for the largest Brazil. including In field lower we against to end expect than year the of globally in achieved organizations refractive the markets, as aim the we with both correction. U.S., invested headwind China, new XXX business discretionary we in to market lean and more the strong growth continue have hires with China, the

and our level result, cash as have disciplined a in been built our have on We a of balance sheet. investments, record

build dynamic model we generate of trends, is range sales We to million fiscal environment. acknowledge and net XXXX at and to that structured and outlook expect of we higher current But $XXX on results, the to quarter first our $XXX the challenging geopolitical be end Based macroeconomic stronger-than-expected based our million. We are reiterating business cash. Patrick? confident are continue on the our to range.

good you, Tom, Thank everyone. afternoon, and

of in better profitability were QX sales, net to net net were the slightly $XX.X we the announcement results $XX.X cash. areas key Our in than year what our XXXX April compared prior quarter. for sales sales in Total reported QX million preliminary as and million of XXXX

to in sales, sales offset seasonally our company represented a XXXX. Changes $X.X QX historically the have $X.X first X% decrease IOL, by wholly of cataract which a sales currency million in QX and increase net net impacted quarters. QX negatively partially attributable million points or exited in $X total XXXX in XXX reminder, increase constant million a As in quarter in ICL lowest The or approximately the basis approximately XXXX. by is fiscal

distributor During operations. China for a added our we the successfully second quarter,

how business with place net have ASP very in new in across this our are in agreements China. and We resulted total smoothly gone has realized higher pleased the

sales primarily of or is product margin decline to XXXX. net profit prior is to the XX.X% for in year-over-year for inventory of adjustments. QX or due profit year and XX.X% million in country gross gross increase primarily For net of XXXX, $XX.X margins mix. The net or to $XX.X was sequential due compared million of QX million The and gross $XX sales sales XX.X% as quarter gross

XX% margin and For the gross quarter XXXX, year. will for expect full continue to net of each approximately sales be we

Total prior statement. million as to in XXXX quarter Moving operating in $XX.X the year $XX.X for million compared QX million the down expenses XXXX. QX and income were $XX.X

growth $XX.X plan. quarter $XX.X in to our look outside reflects services QX $XX.X lean increase and prior G&A sequential G&A facilities is million expenses year-over-year the expenses. costs. in and decision market expenses to operating investments compared due as due build and to increased our outside to year million in Taking increase ICL closer services. operating we for increase foundation and a a for future expense the compensation-related of million the is at the in in The expansion in XXXX. The XXXX The build QX later EVO was to primarily strategic components G&A for years margin into of

million be $XX and to million XXXX, quarter. Selling marketing expense continue to we G&A quarter the For $XX.X approximately million year and expense expect in to was compared QX prior for expenses, advertising XXXX decreased by trade QX and marketing per expenses year was $XX.X increase The increased prior million to activities. expenses shows promotional XXXX. due selling offset the meeting from in in compensation-related and $XX.X and

prior approximately year-over-year was QX $XX for percent is be per in For sales. XXXX, million we periods prior $XX.X will million and XXXX. quarter, with $XX.X selling Research as and in compensation-related R&D XXXX which for million to of is a to continue increase expect net compared million development due expenses. year expense expense quarter to QX marketing the The $XX.X consistent and

R&D For as XXXX, Global at as Professional we we per investments of Department expect million $XX as well approximately be our Education quarter, now slightly expense STAAR will University. in higher increase training and

the XXXX, For net share quarter. income or was loss to in per million net $X.X share prior million QX of or income loss $X.XX $X.XX compared $X.X per year

the of EBITDA to dollar. $X.X in investments $X.X million related first U.S. GAAP in quarter, at cash a U.S. for have yen, million back did our to $X.XX all Japan $X.XX the or which quarter. This $XX business, majority currency and from from quarter. had requires Consistent which share million to to per per loss prior been levels foreign our the the previously in related record a us significantly adjusted of year communicated exchange, to coming has quarter, dollar our the generated with we at quarter the on profitability adjusted but EBITDA weak loss compared net versus cash in or mark the is drove During share outperformed we expectations which loss

profitability metric a on and significant reconcile for model accurately tax quarter, financial release. prior be income generation. We to are metric an EBITDA earnings an our at higher per for operating of company's peers. be per periods financial an underlying believe measure, fiscal with for unchanged tool performance we XX% performance our reminder, $X of expect compensation to to calculated our quarter. investors is allowance. included to net a expense the item business we $X of the providing interest, rate We other progress. that net now more provides profitability income represents cash reflection believe in relative to at and non-GAAP unchanged today's line quarter. using from per outlook, to tax own is evaluating no details. Provision Amortization $X order a our proxy million in stock-based compensation, expect core believe following our useful be a taxes, per at change for use XXXX approximately our income subject $X adjusted we valuation more EBITDA We slightly adjusted now per to amortization basis performance unchanged of before we stock-based and slightly financial approximately introduced this approximately quarter. In quarter. And better evaluation and million A at approximately that effective reconciling Depreciation adjusted as EBITDA adjusted or As table it for absolute operating income additional depreciation, an EBITDA the adjusted

we $XXX million range sales $XXX Tom reiterating fiscal As our million. of said, outlook to are XXXX

on the range. based to expect be end So of trends, higher we do current at this

on For income QX we anticipate rates $X after an we million XX changes and globally markets. sales EBITDA all items, our of from million expect of approximately growth now of our approximately outstanding above Based in profitability key our in full adjusted adjusted higher share quarter contemplate million, and $X.XX. continues up resulted $XX approximately EBITDA or performance the second market be year to line to net of statement mentioned will XXXX, per $X.XX approximately using shares which $XX million

Turning now sheet. balance our to

receivable preliminary for was and record our of the as equivalents XXXX compared the reached globally. We across many first weeks are our of you to end receivable to $XXX.X investments reduction sales we in the all was a in ahead. for better than progress $XXX.X as available sale $XX.X our forward quarter China business, customers a to of cash reducing million was on and announcement at and to XXXX. This accounts cash, related in to million historical levels million. Notably, percent Our year-end look the as with back accounts fiscal meeting this anticipated days

participate week in June. next in Healthcare Virtual Stanley Morgan and Goldman will We Sachs Conference Conference the the Asian

Kong meetings Hong Shanghai, We California. in-person will in participate York investor also in New and Southern

our report our results are to take quarter in concludes expect August. We second now we remarks. early prepared Operator, This ready to questions.

Instructions] [Operator

Malgorzata from with Kaczor Blair. comes question William first Today's

a expecting me year. had mean great nice for sounds is expectations, the your you're worth The think around expectations, U.S. for really meet expecting first question you I I It sequential our guys really to still you XX% great that. quarter, were full the like

I the So it is of rest year, the U.S. the that you a range. issue flat above $X million the if gets for keep quarter

now like in used million XX program. half the for details about of those IQ So you on I of had cadence kind the for Vision expect the U.S. Highway what's that these step-up year? implied SharpVision folks the you Do kind not? And new guess the any remainder that $X entered throughout second partners the of to still in talk or metrics

one to in put course resulting place people XXXX fruit, at not with prudent. We're investments strategies IQ we think, And year. lens-based the today, And surgery, coming beginning very we agreements make said we we've and U.S. of a look we of pre signaled does we announcement, to we the of new when for what XXXX. bear are like QX, I during results be build were the reiterated at where it I categories, and quarter -- we SharpeVision you trying ahead question. here thanks Laser. the refractive certainly time. And signed in out made as certainly with pleased Malgorzata, as takes the the look, think started And the in

confident business some to at headwinds opportunity just cautiously back new I I I established signaled that macroeconomic upside that as we've think think we're year Do baseline the as be quarter. $X out we of the are mentioned in here given we're trying per a in but around of originally. this half optimistic million have marketplace. we do, of the we

XX% correction QX, being laser being QX But So year-over-year. see plays up XX% with and clearly, down out. we'll I vision in think that how EVO

to I refractive lens-based embrace to think, speaks really and market beginning is volumes the engage surgery.

Okay. That's helpful.

around and look year, throughout maybe bit little -- sounds some for Highway metrics XX we'll in referenced So on the it a Tom. we partners go you the macro that answer, hopefully like as had

like as macro So can what China. you give how going and the especially little at environment, getting maybe the there's worse, thinking a that to you're are of about we within any us any think guys into true up ASPs can on update year. on Great or to improving, flavor the some, are anticipating rest markets as about but bit us guidance hear you if you change QX all stable, increasing

the economic Yes. Obviously, that. headlines China, year and of market. are in XX% think May. We're nice a uptick we papers. China, readers, the that we half continue to none We're X would we all we saw some choppy flat. into mentioned saw be of growth. nice by environment. we it's or continuing year back We relatively in there China of week April, came previously, and it And signaled and bit see in the thought early market again, We're We saw March that in believe the I the in pleased slowdown a the some the earlier see in uptick would thought April with so the in encouraged back we half in economists. to of a in as February. I've us little January in into same growth be China, particular And in particular, we a but continue We

be optimistic. trying again, be we're cautiously So We're trying to prudent. to

growth geographies. major our as of markets is business of QX across good all many are because we as our other well China saw in in Our shape,

comes Our Tom next Stifel. with question from Stefan

Maybe XQ, guess, to noticeable maybe the as of you finding continue start momentum. of your well U.S. early what in you're see believe or there I'll any that's again, patients? a elaborate your play, execution, on bit with U.S. in qualitatively, refine nice with EVO areas Tom, to improvement you in with are strategy, sort whether I going you can is the specifically doctors

Yes.

of I all, question. the think, first Tom, for thanks

think it across board. is I the

data people procedure the out we I look to around mentioned, missing have selection. addition think said, papers the we're confidence published also whether XXXX the first that perform and surgery that safe is demonstrating as concentrated lend mentality the building support added declining or herd confidence on and signing effective. I in I And end we size you of the want fear could additional just more as agreements face think this to surgeon and measurement momentum new that in lens-based we As in and meaningful you refractive at quarter, signed and X we're vision in call are it in the laser practices. of the we since that X more becoming of agreements, U.S., correction

We're more our yes, customer way. execution the surrounding a is better. effective So in

bear our We to the code, bring it's that you in of level. is I we're crack real that numbers. beginning have and if all And reflected at confidence to to practice been will, new tools think that us giving

follow-up guidance. my color. That's is then just great And on question

Patrick, key for just And additional cadence conservatism quick million. least Sorry for you by, think, rest a for you year? didn't by revenue rest kind more I be to Any at ahead XQ I talk the beat flush you have follow-up color prudent. through missed look you. of at million You million. the we if why I want that. reasons maybe basically the But to now, upside $X of $X the then of and there's or $X only over of XQ 'XX. know on about all But raised of as can

Sure.

the I first of think think I prudent. question, of in your terms part is just it

at comes us a in. in comes And 'XX. our either we'll preannounce I call, quarter react QX earnings as August up. next QX, tuned. stay think accordingly. QX then in. following QX how we see in see for Let's or And talk I strong think how And let's was

for million QX $XX approximately our current trends that seeing we're on there. said had based we And up

comes And Wood our today Morgan question next Stanley. Patrick from at

U.S., can that to but it to ICL you're know couldn't seeing early the I structural keep it's in high penetration term, any picture, the lot a to longer the turnaround, teens of guess, get you XXs, think I'll Amazing. the X. days big seeing U.S. progress reason we're the quite rates of low and I in that given EMEA.

fair I a the XX%, that moving XX%, kind keep question, things clinical confidence we're down, Yes. support. and have doing XX%, the marketing know head it's Patrick, I to doing think we we the needle, whether of keep XX%, surgeon think it's providing increasing our just are but

will, that we brand out thought surrounding as spend numbers we it said, we of do is And lens-based that. We'll confident from going clinically really kind as did practices to becoming continue been customer in out, I that. EVO. marketing commercially. bear embracing and surgery think think QX, to in more we will to if of our the remain As was downstream meaningful bear the and appropriate refractive we've execute, awareness what adjust more away, each are they you doing the to I we but it's And

way consumer in to out think U.S. not moment? some but is for degree. in the of the so overall you you on But then a a Is that taking the share at get Totally you're speculate market do I market we of signals time? appreciate up to read a mixed weak And guess difficult guys refractive of or is why get do the lot that sort you that. it's a the I there? slowly, having think why

Yes.

in cost continuing a again, with choppiness reality, to economy, And because in been encouraged we're the Vision in people are spending. But and market. that vest discretionary playing in outpace the a fear the of historically, closer I think obviously, it the to factor been little there's think terms I face factor. we're correction, a the there's of

in what terms EVO in fear the value postoperative seeing So outcomes. and of is people are clearly, overcoming delivering we're factor

confidence So continue to that we'll it us out. certainly gives

with our Jefferies. from Li And Young comes today question next

starting All Highway right. to and more adding retraining I Maybe the in into wanted beat bit some practices accounts? 'XX practices thoughts how 'XX. hear accounts on or Highway no training broad-based. It little guys performed XX fairly was XX the U.S. And Highway seems with maybe XX about or like you maybe XQ versus a

on said I we new didn't is we're customers, go We're to We several I've from bearing occasions, the the take there. that's walk wider. to think Highway Look, to going demand focus never on deeper. on initiative go to out fruit. continuing away needed needed just but our Uber XX

continuing we're et are whether that technology, a and staff, So those of cetera, et that's a clinical care, set benefits to confident whether for are that whether EVO focus to committed speaking of the it's up on surgeon cetera. success, in practices really our setting coordinators that's

to idea be very So Boston, of out went XX% we continue again, XX as missing confident that to embracing a technology. example, XX to Herman this XX% are presentations year the and the podium, presentations. or from there's And that think XX I they great right on those really we probably feel ASCRS caliper XX now, to a XX ago, a base of accounts

of avid confidence us So of we're this commerce technology that go going is to now and where the in the gives U.S. part of flow

times the other accounts. couple Tom XXX that did give perform a out, surgeon volumes confidence. basis I is to rollout we year-over-year on -- clearly, think we see But benefits bit what call but but U.S., we're that. And directionally, of the and call as there's fear said forward think we're we University, now, the it, but and only missing of a which a better want what not herd the XX on effect to I of specifics, to than the of we'll move focus Highway -- seeing the or speaks of going the STAAR increased not

imperative above. X% just to lot hear because the globe we're that to and curve this across U.S., continue not throughout about the roll out we us how it's move really but as know we owning outer down You're began for going at talk to going minus a that that year, the and more

Great. on I right. All up very guess to helpful. follow China. That's

more the early seems million in year. strong. for about heard For the like there's the intra-quarter, towards built you But end, the the end little bit some especially a China the quarter, quarter. off to quarter quarter. towards like hear it bit guidance the comments of Maybe starting first any toughest second comp the so first the I enter of the second started conservatism the wanted performance year. I far pretty results there $XX the on little And you It in pressure. seems it, as a of quarter was

Yes.

previously Young, part the little as I half we're back we March of January, by in through that and February, a the what into strong at mentioned, of softer I encouraged think saw good, a April continued April seeing. first early May, we're

Yes.

we just comp. to I last year overall, this million talked year, was it think this we the mentioned need about $XX for remember, that you think tough time I a

out The half, of saw a the strong year we then as specifically as was we, XXXX, very China that COVID of the first last the was very second half there. And was course, the into of especially enthusiasm APAC, restrictions going in back of procedures QX, half lot strong. just out weren't came robust. of

So I think we feel about the good million. $XX

we entire put obviously that happens about. We coming there numbers remember feel goal QX, in feel in up little what next see a that about confident we'll year we Our related as But the overperformed and out is good we days history, this sure of to to we pretty are make wanted QX. a to do that people bit comp report and XX hard QX.

question Young next our comes from Canaccord. And John at

of want quarter. QX I talked China here, we on can. traveled recently also kind there too, about or I Tom, to the you Patrick. if Congrats at least circle to guys know call. back

perspective get that there the supported of your talking you you're outlook growth I what love ground that the on So today. to would saw about

any we DCP the specifically, thinking second impact that And year half be lens update on about? or the this coming competition local should that any of from may either in be

the for Thanks the this February I question. John. problem, no there March year. or No, of Yes. in was

crowded, On again, months impressed X user the meeting the I spending very in And last restaurants malls had our expert end are Japan. in that crowded. are pretty of that People comp. there And region, are was in as account I've good a and strong a XX Patrick trips be they again, money. And in out continue that back spent to time year-over-year. largest our said, that's QX against every again,

clinics to feel of year cetera. good reaction, terms continue on in time I consumer are every So the busy, the cetera, et et

remains will part to confidence appropriately. We big going XX to commitment continue that commitment the to year XXX, our revenue again, we market's today. demonstrating ground to that from over of probably is us. invest of be market, revenue, and and hope to to about high. China part our a a on this continue our my back exit big So employees It

and we had on China. Yes. big reason cities, Maybe become that in to able add, in much timely, larger to did which why is a X talked more the we the efficient, but comments, that second adding more this was about my second part a especially Tier trying distributor within X bring prepared Tier of it deliver being products to and distributor, infrastructure

more gives some people us get perhaps So there. an that to out opportunity

on And any are you Or trickle any VBP competition from eclipses? thinking back. Have updates then guys about impact? seen Great. just local the the you

thing couple is half will. But they to next in of of it's come we as past, material. opportunity, And again, times, material things our you rise, in all it the about has continue No, in again, John, year side. this the past certainly to if the and coming. into think boats parable a couple of successful. the and the to It heard not second that will market product That year. about I us market of a in from the or I sometime particular, a been think Yes. revenue an have only toric. that said toric acre XX% not from But that hear comes validates be good the market you've come what competition It they're early could we

I continue respectful to we think competition it. the cognizant in face a certainly competition be to we have going ground hamper in So that's place but strategies momentum of think and of our rollout. But even able on team that the to strong coming, we're of from

question from Group. today at Anthony next Mizuho our Petrone comes And

I'll program thoughts second on and a And is your curious can in momentum half, have in on see there have from we the of tech. thought couple China companies a and announced Tom, on one On some stimulus China in March, China, the of stimulus specifically. med areas one that just we more different in U.S. the focused

half? second ICL any stimulus one I'll follow-up how U.S. thoughts And out the into on China So quick then plays on have for in

the Yes, Anthony, stimulus. obviously, customers seem by Sure. encouraged

in obviously As second see thought we signaled, we the originally, half. the growth with China we relatively the half QX. in of We've first a in would year flat growth seen

received, think our being stimulus impact that signaled feel it. and I certainly of well the is customers half they So of should has the second the to us year,

how and in on helpful. also That's that but bulk And quick just out implementation real training, the the plays had some meeting studies -- follow-up ASCRS measurements just a world. surgeon at for U.S. on

what a the just what in you thoughts process? barrier streamline is U.S. your adoption view potentially as in here can program software for that that on timing the a still So seeing do U.S. the curve? latest that measurements And wondering

come those in that's a with between confidence and fudge think measurement make out selections. We created Boston, do X the surgeon factor doubt size parcel believe indicate, that they while barriers, surgeons in could as in of particular sense, those all part a difference out Well, one in lend we biometer papers help are factor the there. and I that's the we certainly or as had actually out the that marketplace were

has physician. some but based And surgery, embracing available doctors' only they're EVO that already investigator that and physician with year, do is with UVN it using to or that's think STAAR, whether marketplace, we'll necessarily working doctors clarity whether around it's around lens in of to the learning, not growing implementing more like-to-like, ICL whether through intersegment the are several in to confidence playing available, particular. independent think role are gets half have AI the but trials not to factor of second this I I that continue We in OCT. And the but tools how certainly are

comes Sellers from George question next Our at Stephens Inc. today

also mentioned? that X and new expectation the distributor what's versus that your higher detail from curious, cities Tier within your growth contribution the could from in what assumes XX% in then Maybe to just Tier cities. on I'm you switch just us China. And from some gears you to net back of the context Tier Patrick, market the expectation, for growth X and additional ASP, X X give

Yes.

detail is the the I think to of XX% the and broken X. haven't focusing think The Tier And not as just Tier Xs. year about out We that way Tier is still beyond on X Tier and really X those this opportunity yet. more

even China was have down numbers have refractive XX%, terms pull, minus In down. QX, that science on the don't of we in We but depending in to in on heard X%, market minus this, XX%. even who exact probably you might flat market been the look,

the did basis. as maybe which lot I get We cautiously of the beginning distributors that related out the is as a that that to switch look, did in So it profitable. the and become see saw take of there's a market some other tremendous points bottom growth year. specifically could optimistic that. the where is because say the the company, for to in of obviously couple getting we on of year-over-year but of the X that a economics they line. But potentially holding on growth on QX, of overall, basis moved they share. We public customers mentioned, of growth part comps bit hundred EVO agreement a continue for as half clearly we of top good a that second I over unit highly One easier XX% And some saw a I our them of line, high is definitely to a we're course, refractive think season. out enter China. is is And reported we're the XX% live. Most

add would George, with speed that long-term pleased both are to the distributor just and and more going is it's equal how come And and than plus together I X another. second how second distributors a and was a our X collaboratively decision working we're very to lot play, to X, up that a complementing one out and add

we -- today that we're in well marketplace and very it's tomorrow. So positioned feel

Okay. that commercial develop procedure kind impact difference some potentially That's in those Europe about curious getting opportunity more U.S. helpful. in internationally. just the the market I'm and a opportunity think you've and best your And developed started you have on and the growth. what what really U.S. maybe broadly, mentioned of then expand initiatives some to EMEA, comfortable of that the best the you've take and with practices I potentially here could practices more particular with to those on some you that think how an of for more European that doctors of

Yes. nice that going we're with really in And quarter-over-quarter relatively And and again, in there. saw growth called select of we're do if EMEA. flat growth pleased we Again, market, and what's seeing XX, the very year-over-year. program we similar accounts, a on Autoline double-digit nice will. a group And you have

globally would we're knew speak. could that the U.S., So we tentacles it that we applied, fruit very was Europe obviously, as the it Highway U.S. bear and be some XX in specific, have seeing in but

Yes.

that a approach I about, one we vital very focusing view with of surgeon think to standpoint, on back with procedure. our talked global confidence from of the a global take we coming that. The papers

out as papers Europe One China. the a authored as doctor U.S. that by prominent of the well actually in came in was key doctor

to us key order those that to a a on geographies. sure move very hitting all you'll global see company understand we're we make need and the So globally KOLs that approach. We global continue we take are that to in

Lichtman with And our next question today comes Oppenheimer. from Stephen

on for great quarter. Congrats on the Steve. Ron is This

talked the to initiatives center. meeting them? are are some of U.S. the Just still the you investor about those you And wanted going? like about other call in ask pursuing How

through you for ran end months again, was some We really better practices call downstream regarding the direct it months we of 'XX we center, way. No, tail but And Yes. of this X the things, thank had project. the we first it a think more the Yes, pilot believe a through few to currently of we pivot question. said are have surround year. dollars a those our certainly learned made because in I effective a

tools more over we've took I that months. the And show it X intended redirecting we developed pilot do learnings dollars and was we customers So with did those what to X our and to surrounding the various could what learn. to downstream us are think now last the

dollars a impactful pilot and say did I the in made those to do. pivot but educated He it way. more needed So would us to we've what direct a decision

As bear bear are of think rewarded, downstream more we begin to investments support will fruit where said, be the we want the out and to our going we invest in and QX itself to customers results. certainly

was I margin? to X% in hoping And sales on small that growth countries and different some towards unit decline and maybe growth gross sales between provide reconcile unit the gap color the guys then X% you can between how versus the growth the

gross by next pretty one anymore of we good actively that of you'll revenue some the most. really not products comps seeing that as would And China difference out and The because last longer I In that we that's some have an just no adjustments it, the we'll some we pushing year, ASP one. wide as the standpoint. right on call look, cleaned start now, go that's we working be year's some specifically. Yes. that we're sort will were numbers getting relation margin the the expect be sell. we're units, the driven on into gap up fine on our prior inventory that economics There between to

in quite that a increase taken haven't cost we have some we So time.

into on always about not think as the only through and forward next we that year. we'll so move And but continue move table, we this to that's as year

conference concludes over for management question-and-answer This Thank turn our remarks. back the closing you. I'd like to session. any to

Yes. for look forward and we us, No, joining updated to keeping I progress. you you want on thank our to

for Thank We concludes presentation. thank call. conference all you. attending This today's today's you

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