LENSAR (LNSR) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 with 17 new ALLY system placements, a 30% increase over Q2 2023, and revenue of $12.6 million, up 5% year-over-year, driven by strong U.S. and global procedure growth.

• Received key regulatory clearances in the EU and Taiwan, enabling international expansion and first shipments to these regions.

• Installed base reached approximately 330 systems as of June 30, 2024, with a strong backlog and majority of Q2 placements to new customers.

• Gained over four procedural market share points in the U.S. since ALLY launch.

Financial highlights

• Q2 2024 revenue was $12.6 million, up from $12 million in Q2 2023, with recurring revenue accounting for 79% of Q2 2024 revenue.

• Gross margin was approximately 54% in Q2 2024, slightly down from 56% in Q2 2023.

• Net loss for Q2 2024 was $9 million ($0.79/share), including a $3.7 million one-time impairment charge; adjusted net loss was $1.4 million.

• Achieved positive adjusted EBITDA of $30,000 in Q2 2024, compared to negative $188,000 in Q2 2023.

• Cash, cash equivalents, and investments at quarter-end were $15.4 million, down from $24.6 million at year-end 2023.

Outlook and guidance

• Expect robust procedure and recurring revenue growth in Q3 and Q4 as new systems ramp up and international sales contribute.

• Anticipate operating breakeven quarters with consistency starting as soon as Q4 2024.

• Full-year gross margin guidance remains at approximately 50%, with potential to reach 53%-55% longer-term as recurring revenue grows.

• Management expects continued operating losses and cash outflows in the near term as commercialization expands, but liquidity is sufficient for at least 12 months.