LENSAR Inc (LNSR) Reports 26% Revenue Growth in Q3 2023 Amid Expanding ALLY System Installations
LENSAR Inc (NASDAQ:LNSR) sees a 26% increase in total revenue for Q3 2023 compared to Q3 2022.
U.S. procedure volume grows by 16% year-over-year, despite challenges in South Korea.
Net income reaches $2.6 million, a significant improvement from a net loss of $(4.0) million in Q3 2022.
Installed base of ALLY Systems grows to 39, with a backlog of 8 additional systems.
On November 9, 2023, LENSAR Inc (NASDAQ:LNSR), a global medical technology company specializing in advanced femtosecond laser solutions for cataract treatment, announced its financial results for the third quarter ended September 30, 2023. The company reported a notable increase in revenue and procedure volume, alongside a significant improvement in net income, reflecting the successful adoption of its ALLY Adaptive Cataract Treatment System.
Financial Performance Overview
LENSAR Inc (NASDAQ:LNSR) achieved total revenue of $9.8 million in Q3 2023, marking a 26% increase from $7.7 million in the same period last year. This growth was primarily driven by increased system sales and procedure volumes, particularly in the U.S., where procedure volume rose by 16%. Despite a decrease in South Korea's procedure volume due to reimbursement challenges, the company's overall procedure volume increased by approximately 15% year-over-year.
Operational Highlights
President and CEO Nick Curtis commented on the company's progress, stating,
We have seen continued strength in our business in the third quarter, with total revenue up 26% and U.S. procedure volume increasing 16% year-over-year. This strong and continued quarterly growth was driven by 11 ALLY System installs and increased procedure volume, which we attribute in part to the significantly increased speed and ergonomic efficiencies of ALLY."
Curtis also highlighted the company's achievement of surpassing its full-year target for ALLY System installations and its preparation for international expansion in 2024.
Expense Management and Profitability
LENSAR Inc (NASDAQ:LNSR) reported a decrease in selling, general, and administrative expenses, which dropped by 16% to $5.1 million in Q3 2023, compared to $6.1 million in the prior year. This reduction was primarily due to an Employee Retention Credit of $1.4 million, which offset increased expenses related to the commercial launch of ALLY. Research and development expenses remained consistent at $1.5 million for both quarters.
The company's net income for Q3 2023 was $2.6 million, or $0.13 earnings per common share, a substantial improvement from a net loss of $(4.0) million, or ($0.39) per common share, in Q3 2022. The profitability in this quarter was primarily due to a $4.3 million gain from the change in fair value of the company's warrant liability.
Balance Sheet and Cash Flow
As of September 30, 2023, LENSAR Inc (NASDAQ:LNSR) had cash and cash equivalents of $24.9 million, compared to $14.7 million at the end of 2022. The company used approximately $0.5 million in cash during the quarter.
In summary, LENSAR Inc (NASDAQ:LNSR) has demonstrated strong financial growth and operational success in the third quarter of 2023. With an expanding installed base of ALLY Systems and a robust pipeline for future installations, the company is well-positioned for continued growth and international expansion. Investors and stakeholders can anticipate further developments as LENSAR advances its strategic initiatives and capitalizes on market opportunities.
For more detailed information and to participate in the conference call and live webcast discussing these results, please visit the Investor Relations section of LENSAR's website at https://ir.lensar.com.
Explore the complete 8-K earnings release (here) from LENSAR Inc for further details.
This article first appeared on GuruFocus.
