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RxSight Reports Third Quarter 2021 Financial Results
Source: Nasdaq GlobeNewswire / 10 Nov 2021 16:05:01 America/New_York
ALISO VIEJO, Calif., Nov. 10, 2021 (GLOBE NEWSWIRE) -- (NASDAQ: RXST) RxSight, Inc., an ophthalmic medical device company dedicated to improving the vision of patients following cataract surgery, today reported financial results for the three months ended September 30, 2021.
Recent Highlights
- Achieved third quarter 2021 revenue of $5.8 million, representing growth of 39% compared to the prior year period and 18% growth over the second quarter of 2021 driven by:
- Sale of 31 Light Delivery Devices (LDD™s), expanding the installed base to 161 LDDs as of September 30, 2021;
- Sale of 1,977 Light Adjustable Lenses (LAL®s); and
- Completed roll-out of the ActivShield™ LAL, with a UV protection layer built into the lens.
“Our third quarter performance was driven by further adoption of our Light Adjustable Lens system, which lets doctors customize their patient’s vision after cataract surgery with unparalleled precision. This unique capability enables achievement of excellent vision over a range of distances at rates that are nearly double that of competitive products, but without reducing quality of vision or increasing unwanted effects, such as glare and halo.” said Ron Kurtz, Chief Executive Officer of RxSight®. Dr. Kurtz continued, “During the third quarter we also completed the roll-out of our updated ActivShield LAL, providing additional scheduling flexibility for patients and doctors.”
Financial Results
In the third quarter of 2021, total revenue was $5.8 million, an increase of 39% compared to the third quarter of 2020 and 18% growth over the prior quarter ended June 30, 2021. The revenue growth as compared to the third quarter of 2020, was primarily due to a 55% increase in the number of LDDs sold and 31% increase in the number of LALs sold during the third quarter of 2021.Gross profit for the third quarter of 2021 was $1.3 million, or 23% of revenue compared to gross profit of $0.7 million, or 17% for the third quarter of 2020. The increase in gross profit was due to the increase in the number of LALs and LDDs sold.
Total operating expenses for the third quarter of 2021 were $14.5 million, a 50% increase from $9.6 million in the third quarter of 2020. The increase was primarily driven by higher headcount in sales and marketing to support the growth of the business, costs of operating as a public company and an increase of $0.8 million in stock-based compensation expense.
In the third quarter of 2021, net (loss) was $(12.7) million, or $(0.68) per share on a basic and diluted basis, as compared to a net income attributable to common shareholders of $5.9 million, or $1.55 and $1.13 per share on a basic and diluted basis, respectively in the third quarter of 2020.
Adjusted net (loss) was $(12.2) million, or $(0.65) per share on a diluted basis, in the third quarter of 2021, compared to an adjusted net (loss) of $(32.0) million, or $(8.52) per share on a diluted basis in the third quarter of 2020.
Cash, cash equivalents and short-term investments as of September 30, 2021 were $168.3 million and long-term debt was $39.6 million.
Financial Outlook
RxSight projects 2021 full year revenue to be between $21.0 million and $21.4 million.Conference Call
On Wednesday, November 10, 2021, at 1:30 p.m. Pacific Time, the company will host a conference call to discuss its third quarter 2021 financial results. The call may be accessed by dialing 844-602-7038 (U.S.) or 916-637-9714 (International) five to ten minutes prior to the start time, using conference ID: 1239025 or through a live and archived webcast of the event available for one year at https://investors.rxsight.com/.About RxSight, Inc.
RxSight, Inc. is a commercial-stage medical technology company dedicated to improving the vision of patients following cataract surgery. The RxSight Light Adjustable Lens system, comprised of the RxSight Light Adjustable Lens (LAL), RxSight Light Delivery Device (LDD) and accessories, is the first and only commercially available intraocular lens (IOL) technology that enables doctors to customize and optimize visual acuity for patients after cataract surgery. The LAL now features ActivShield technology, a revolutionary UV protection layer built into the lens. Additional information about RxSight can be found at www.rxsight.com.Forward-Looking Statements
This press release contains forward-looking statements, including physician adoption of the RxSight Light Adjustable Lens system, the ability for doctors to customize their patients’ vision with unparalleled precision, the achievement of excellent vision nearly double that of competitive products and additional scheduling flexibility. Such statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, implied or inferred by these forward-looking statements, and among other things, our ability to maintain cash balances and successfully commercialize or partner our product candidates currently under development. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "would," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "projects," "potential," or "continue" or the negative of such terms and other same terminology. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. In evaluating these statements, you should specifically consider various factors. These and other factors may cause our actual results to differ materially from any forward-looking statement. We undertake no obligation to update any of the forward-looking statements after the date of this press release to conform those statements to reflect the occurrence of unanticipated events, except as required by applicable law.
Investor Relations Contact:
Philip Taylor
Gilmartin Group
415.937.5406
IR@rxsight.comCompany contact:
Shelley B. Thunen
Chief Financial Officer
sthunen@rxsight.comRxSIGHT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(in thousands, except share and per share amounts)Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Sales $ 5,786 $ 4,170 $ 14,167 $ 9,764 Cost of sales 4,445 3,450 12,519 9,439 Gross profit 1,341 720 1,648 325 Operating expenses: Selling, general and administrative 9,076 3,825 21,189 10,773 Research and development 5,377 5,801 18,583 16,662 Total operating expenses 14,453 9,626 39,772 27,435 Loss from operations (13,112 ) (8,906 ) (38,124 ) (27,110 ) Other income (expense), net: Change in fair value of warrants 1,503 39,518 2,717 27,933 Expiration of warrant — — 5,018 — Interest expense (1,079 ) (3 ) (2,603 ) (12 ) Interest and other income 11 63 44 522 (Loss) income before income taxes (12,677 ) 30,672 (32,948 ) 1,333 Income tax expense (4 ) 8 6 53 Net (loss) income (12,673 ) 30,664 (32,954 ) 1,280 Accretion to redemption value of redeemable preferred stock and redeemable stock options — (7,829 ) — (16,172 ) Earnings allocated to redeemable preferred stock — (16,935 ) — — Net (loss) income attributable to common stockholders $ (12,673 ) $ 5,900 $ (32,954 ) $ (14,892 ) Other comprehensive income (loss) Unrealized loss on short-term investments (5 ) (8 ) (2 ) (43 ) Foreign currency translation loss (3 ) (9 ) (6 ) (7 ) Total other comprehensive loss (8 ) (17 ) (8 ) (50 ) Comprehensive (loss) income $ (12,681 ) $ 30,647 $ (32,962 ) $ 1,230 Net (loss) income per share: Attributable to redeemable common stock, basic $ — $ 1.55 $ — $ (4.06 ) Attributable to redeemable common stock, diluted $ — $ 1.13 $ — $ (4.06 ) Attributable to Series G common stock, basic and diluted $ — $ 0.01 $ — $ (0.76 ) Attributable to common stock, basic $ (0.68 ) $ — $ (3.66 ) $ — Attributable to common stock, diluted $ (0.68 ) $ — $ (3.66 ) $ — Weighted-average shares used in computing net (loss) income per share: Attributable to redeemable common stock, basic — 3,798,504 — 3,672,121 Attributable to redeemable common stock, diluted — 5,571,793 — 3,672,121 Attributable to Series G common stock, basic and diluted — 1 — 1 Attributable to common stock, basic 18,732,459 — 8,998,895 — Attributable to common stock, diluted 18,732,459 — 8,998,895 — RxSIGHT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)September 30, December 31, 2021 2020 (1) (Unaudited) Assets Current assets: Cash and cash equivalents $ 68,278 $ 13,994 Short-term investments 99,985 54,981 Accounts receivable 4,357 2,865 Inventories 9,442 8,288 Prepaid and other current assets 4,274 1,372 Total current assets 186,336 81,500 Property and equipment, net 11,991 13,287 Operating leases right-of-use assets 4,561 5,319 Restricted cash 561 461 Other assets 287 110 Total assets $ 203,736 $ 100,677 Liabilities, redeemable common stock, stock options, convertible preferred stock and stockholders' equity (deficit) Current liabilities: Accounts payable $ 1,691 $ 1,134 Accrued expenses and other current liabilities 6,016 4,174 Warrant liability — 5,018 Lease liabilities 1,469 1,274 Total current liabilities 9,176 11,600 Long-term warrant liability — 3,828 Long-term lease liabilities 4,033 5,079 Term loan, net 39,636 24,399 Total liabilities 52,845 44,906 Commitments and contingencies Redeemable common stock: Common stock, $0.001 par value, no shares authorized, issued or outstanding as of September 30, 2021 and 24,545,966 shares authorized, 3,813,450 shares issued and outstanding as of December 31, 2020 — 80,780 Notes receivable for common stock issued — (803 ) Redeemable stock options — 53,085 Convertible preferred stock: Preferred stock, $0.001 par value, no shares authorized, issued or outstanding as of September 30, 2021 and 16,572,792 shares authorized, 14,376,272 shares issued and outstanding as of December 31, 2020 (redeemable) — 353,300 Stockholders' deficit: Common stock, $0.001 par value, 900,000,000 shares authorized, 27,324,054 shares issued and outstanding as of September 30, 2021 27 — Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2021 — — Additional paid-in capital 614,418 — Series G common stock, $0.001 par value, no share authorized or outstanding as of September 30, 2021 and 1 share authorized, issued and outstanding as of December 31, 2020 — — Series W common stock, $0.001 par value, no share authorized, issued or outstanding as of September 30, 2021 and 1 share authorized and no share outstanding as of December 31, 2020 — — Accumulated other comprehensive loss (11 ) (3 ) Accumulated deficit (463,543 ) (430,588 ) Total stockholders' equity (deficit) 150,891 (430,591 ) Total liabilities, redeemable common stock, stock options, convertible preferred stock and stockholders' equity (deficit) $ 203,736 $ 100,677 (1) The balance sheet at December 31,2020 has been derived from the audited consolidated financial statements included in RxSight, Inc.'s final prospectus for its public offering filed on July 29, 2021. Non-GAAP Financial Measures
To supplement our unaudited condensed consolidated financial statements presented under generally accepted accounting principles in the United States (“GAAP” ), we believe certain non-GAAP measures, including Adjusted net (loss), and Adjusted net (loss) per share, basic and diluted, provide useful information to investors and are useful in evaluating our operating performance. For example, we exclude stock-based compensation expense and the change in fair value of warrants because these are non-cash in nature and excluding these items provides meaningful supplemental information regarding our operational performance and allows investors the ability to make more meaningful comparisons between our operating results and those of other companies.
We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.
Adjusted Net (Loss) and Adjusted Net (Loss) Per Share
Adjusted net (loss) is a non-GAAP financial measure that we define as net (loss) adjusted for (i) stock-based compensation and (ii) change in fair value of warrants. We believe Adjusted net (loss) provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance and is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Adjusted net (loss) for Series G Common Stock is not impacted by the adjustments.
Reconciliations of net income (loss) to Adjusted net (loss) and the presentation of Adjusted net (loss) per share, basic and diluted, are as follows:
Three months ended
September 30,Nine months ended
September 30,2021 2020 2021 2020 Common Stock Numerator: Net income (loss) available to stockholders, basic $ (12,673 ) $ 5,900 $ (32,954 ) $ (14,892 ) Net income (loss) available to stockholders, diluted (12,673 ) 6,311 (32,954 ) (14,892 ) Add: Stock-based compensation 2,013 1,242 4,658 2,948 Change in fair value of warrants (1,503 ) (39,518 ) (2,717 ) (27,933 ) Adjusted net (loss) available to common stockholders, basic: $ (12,163 ) $ (32,376 ) $ (31,013 ) $ (39,877 ) Adjusted net (loss) available to common stockholders, diluted: $ (12,163 ) $ (31,965 ) $ (31,013 ) $ (39,877 ) Denominator: Weighted-average shares outstanding, basic 18,732,459 3,798,504 8,998,895 3,672,121 Weighted-average shares outstanding, diluted 18,732,459 5,571,793 8,998,895 3,672,121 Adjusted net (loss) per share, basic $ (0.65 ) $ (8.52 ) $ (3.45 ) $ (10.86 ) Adjusted net (loss) per share, diluted $ (0.65 ) $ (8.52 ) $ (3.45 ) $ (10.86 ) 
- Achieved third quarter 2021 revenue of $5.8 million, representing growth of 39% compared to the prior year period and 18% growth over the second quarter of 2021 driven by: