STAAR Surgical Company (STAA) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 10% year-over-year to $88.6 million, driven by global adoption of EVO ICL lenses and commercial initiatives, with growth across all regions: Americas up 14%, EMEA up 12%, and APAC up 9%.

• Net income increased to $10.0 million ($0.20 per share) from $4.8 million ($0.10 per share) year-over-year, mainly due to strong ICL sales and a gain on foreign currency transactions.

• Gross margin declined to 77.3% from 79.2% year-over-year, impacted by lower production absorption and higher unit costs.

• Adjusted EBITDA was $16.2 million ($0.33 per share), nearly flat year-over-year.

• Cash, cash equivalents, and investments totaled $236 million at quarter-end.

Financial highlights

• Q3 2024 net sales: $88.6 million (up 10% year-over-year); ICL sales up 10% globally.

• Q3 2024 net income: $10.0 million; EPS: $0.20.

• Q3 2024 gross profit: $68.5 million; gross margin: 77.3%.

• Operating income was $5.7 million (6.4% of net sales); operating expenses increased to $62.8 million.

• Cash, cash equivalents, and investments at quarter end: $236 million.

Outlook and guidance

• Fiscal 2024 net sales expected between $340 million and $345 million; adjusted EBITDA guidance maintained at approximately $42 million.

• Gross margin for the year expected at 79%, down one point from prior estimate.

• CapEx for 2024 expected to be $30 million, including $10 million for ERP projects.

• Management expects liquidity to be sufficient for at least 12 months.

• No 2025 guidance provided, but management remains confident in long-term growth.