Sight Sciences (SGHT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $21.4 million, up 11% sequentially but down 9% year-over-year, with Surgical Glaucoma accounting for 94.7% of revenue and Dry Eye for 5.3%.

• Gross margin remained strong at 86% in Q2 2024, reflecting a higher mix of Surgical Glaucoma sales.

• Net loss for Q2 2024 was $12.3 million ($0.25 per share), improved from $14.8 million ($0.30 per share) in Q2 2023, driven by lower operating expenses.

• Cash usage in Q2 2024 was $9.1 million, a 29% improvement year-over-year, with cash and equivalents at $118.2 million and debt at $35 million.

• Announced a price increase for TearCare effective October 2024 and awarded a $34 million patent verdict, with final judgment pending.

Financial highlights

• Q2 2024 revenue: $21.4 million (up 11% sequentially, down 9% year-over-year); gross profit: $18.3 million; gross margin: 86%.

• Surgical Glaucoma Q2 2024 revenue: $20.2 million (up 11% sequentially, down 5% year-over-year); gross margin: 88%.

• Dry Eye Q2 2024 revenue: $1.1 million (down 46% year-over-year); gross margin: 46%–47%.

• Operating expenses: $31 million in Q2 2024 (down 12% year-over-year); adjusted operating expenses: $26.6 million (down 15%).

• Cash and equivalents: $118.2 million as of June 30, 2024; debt: $35 million.

Outlook and guidance

• Full-year 2024 revenue guidance narrowed to $81–$83 million (0–2% growth year-over-year).

• Double-digit Surgical Glaucoma revenue growth expected in H2 2024; Dry Eye revenue for 2024 expected to be less than $3 million, with growth anticipated in 2025 as reimbursement improves.

• Adjusted operating expense guidance for 2024 narrowed to $107–$109 million.

• Q3 2024 revenue expected to be down sequentially due to seasonality, but up slightly year-over-year.

• Management expects continued net losses for at least the next several years as investments in clinical studies, market access, and product development continue.