STAAR Surgical Company (STAA) Goldman Sachs 45th Annual Global Healthcare Conference summary

Business overview and product differentiation

• Offers an implantable contact lens as a cash-pay alternative to LASIK, with over 3 million lenses sold globally and 1.5 million in the last 3 years.

• Product is tissue-sparing, reversible, and boasts a 99.4% satisfaction rate, targeting high myopia patients not eligible for LASIK.

• Company has a 40-year history, but significant revenue growth has occurred in the past 5 years.

• Management team and board have been refreshed since 2023, with strong experience in public and Asian markets.

• Large and growing total addressable market (TAM) for myopia, especially in Asia.

Financial performance and guidance

• Achieved $77.4 million in Q1 2024 revenue, representing 9% year-over-year growth.

• Maintains 2024 revenue guidance of $335–$340 million, expecting to be at the higher end.

• Raised profitability guidance and reported over $250 million in cash with no debt.

• Q2 2024 revenue expected to be approximately $95 million, reflecting seasonal demand in China.

• Company generates strong free cash flow and has a pristine balance sheet.

Market strategy and regional dynamics

• China accounts for about 60% of revenue, with 20% market share in refractive corrections.

• Added a second distributor in China (HTDK) to expand reach into tier 3 and 4 cities and improve logistics.

• U.S. market is about 5% of revenue but is a key focus for growth, with a new baseline of $5 million per quarter and expectations to exceed this.

• Strategy includes moving down the diopter curve to target a broader patient base.

• Macro headwinds in China persist, with refractive market down 10–15% year-over-year in Q2, but high season and potential government stimulus could provide upside.