RxSight Inc (RXST) Reports Significant Revenue Growth in Q4 and Full Year 2023
Revenue Growth: Q4 revenue surged by 78% year-over-year, while annual revenue grew by 82%.
Gross Profit Margin: Gross profit margin improved significantly from 46% to 62% in Q4, and from 44% to 60% for the full year.
Net Loss Improvement: Q4 net loss narrowed to $(9.2) million from $(15.6) million in the prior year, with a reduced loss per share.
Operating Expenses: Operating expenses increased by 27% in Q4, reflecting investment in growth.
2024 Guidance: RxSight Inc (NASDAQ:RXST) reiterates its full-year 2024 revenue and operating expense guidance, projecting continued growth.
RxSight Inc (NASDAQ:RXST), a commercial-stage medical technology company focused on enhancing vision post-cataract surgery, released its 8-K filing on February 28, 2024, detailing a remarkable year of financial growth. The company's innovative intraocular lens technology, which allows for post-surgery vision customization, has seen a surge in demand, as evidenced by the significant increase in sales of both Light Delivery Devices (LDDs) and Light Adjustable Lenses (LALs).
Financial Performance Highlights
In the fourth quarter of 2023, RxSight Inc (NASDAQ:RXST) achieved a revenue of $28.6 million, marking a 78% increase compared to the same period in 2022. This growth was propelled by a 35% increase in LDD units sold and a 98% increase in LAL procedures. The full-year revenue reached $89.1 million, an 82% jump from the previous year, driven by substantial sales growth in both product lines.
The company's gross profit saw a remarkable rise, with Q4 gross profit reaching $17.7 million, or 62% of revenue, up from $7.4 million, or 46% of revenue in Q4 of 2022. The full-year gross profit also improved significantly to $53.8 million, or 60% of revenue, compared to $21.3 million, or 44% of revenue in 2022. This improvement was attributed to a favorable product mix and increased margins on the LDD introduced in the third quarter of 2023.
Despite these gains, RxSight Inc (NASDAQ:RXST) reported a net loss of $(9.2) million, or $(0.26) per basic and diluted share, for Q4 2023, which is an improvement from a net loss of $(15.6) million, or $(0.56) per share, in the same quarter of the previous year. The full-year net loss also narrowed to $(48.6) million, or $(1.41) per share, from $(66.8) million, or $(2.41) per share in 2022.
Operational and Strategic Developments
Operating expenses for Q4 2023 increased to $28.5 million, up 27% from the previous year, reflecting RxSight Inc (NASDAQ:RXST)'s strategic investments in expanding its LDD installed base and supporting higher LAL procedure volumes. The full-year operating expenses also rose by 23% to $103.9 million due to increased sales and marketing efforts, costs associated with operating as a public company, and a rise in non-cash stock-based compensation expense.
RxSight Inc (NASDAQ:RXST) is maintaining its 2024 full-year revenue guidance, projecting a range of $128.0 million to $135.0 million, which would represent a growth of 44% to 52% compared to 2023. The company also anticipates a gross margin improvement and a controlled increase in operating expenses.
CEO and President Ron Kurtz expressed gratitude towards partner doctors and practices and emphasized the company's commitment to optimizing premium cataract surgery outcomes through its adjustable lens technology.
"We are very thankful to all our partner doctors and practices for joining with the RxSight team to consistently deliver high-quality vision across a range of distances," said Ron Kurtz, CEO and President of RxSight. "As we step into 2024, we aim to expand our ability to optimize premium cataract surgery by unlocking the full potential of adjustable technology for patients."
With a strong balance sheet, including $127.2 million in cash, cash equivalents, and short-term investments as of December 31, 2023, RxSight Inc (NASDAQ:RXST) is well-positioned to continue its growth trajectory and further its mission of providing high-quality customized vision to patients following cataract surgery.
Investors and interested parties are invited to listen to the conference call discussing these results and can access the webcast through the company's investor relations website.
Looking Ahead
RxSight Inc (NASDAQ:RXST) is poised for continued growth in 2024, with a clear strategy and a strong product offering. The company's focus on expanding its market presence and enhancing its technology platform is expected to drive further revenue growth and operational efficiency. As RxSight Inc (NASDAQ:RXST) moves forward, it remains a company to watch in the ophthalmic medical device industry.
Explore the complete 8-K earnings release (here) from RxSight Inc for further details.
This article first appeared on GuruFocus.
