RxSight, Inc. (NASDAQ:RXST) Q3 2022 Earnings Call Transcript

Shelley Thunen: Okay. Thank you, Ron. And so I think that that’s important overall, because we probably won’t be adding many people in the fourth quarter. And so, as we think about bringing down the amount that we’re spending, a portion of that is non-cash stock based compensation. And with the pressure the stock is under as well as everybody else’s stock, the value of options that we grant and RSUs that we grant is lower. And so that tends to drive it down. And then I think, overall, we’re being careful on our spending despite the amount of investments that we make.

David Saxon: Great. Thanks so much and congrats on the quarter.

Shelley Thunen: Thank you very much.

Operator: Thank you. Our next question comes from Charles (ph) with Wells Fargo. Charles?

Unidentified Participant: Hi. Thanks for taking the question and congrats on the nice quarter. So I wonder I get some maybe early thoughts on it for 2023. I know it’s too soon to give any official guidance, but wondered if first you might give any reaction? It looks like consensus is sitting around $80 million or looks like that would be around 67% growth year-over-year versus the midpoint of your guidance. First, do you have any initial reaction to that number?

Shelley Thunen: Yes. As we’re not giving guidance until later for 2023. I don’t think we’re reacting to that, but what I would say as we enter 2023, it’s the same strategy as we’ve employed this year. First, sell the LED, sell it and get those practices up and successful in using that technology and increasing the number of LDDs used in each of our accounts. So I think as we think about 2023, there is blocking and tackling on the top line, same as we’ve done this year. And I think we’ve done that very successfully. We’ve raised guidance now 3 times for this year.

Unidentified Participant: Okay. Thank you. And then, maybe just a quick follow-up on pivoting. So it sounds like you said there weren’t many staffing or COVID challenges that you were seeing so far. So wondering either late in the quarter or early October so far, have you seen any early impacts around the macro uncertainty, whether it’s like on the hospital side with capital budgets or on like the customers — the patient side with — like reticence to pay for a premium IOL?

Ron Kurtz: So, Charles, as you know, almost all of our LDDs are sold to individual practices. So they’re not constrained as much perhaps as those large hospital capital budgets. That’s not to say it’s easy, but at least that’s not typical constraint. On the patient side, I think it’s always important to recall that our patient demographic is older. There tend to be people who are at the peak of their earning potential or soon thereafter. They’re still very active and focused on optimizing their vision for their particular lifestyles. And they’re willing to pay for that for the best outcomes that they can achieve. So we have not anecdotally seen any — an effect from some of the macro headwinds. It’s not to say that we won’t, but both historically that hasn’t necessarily been the case with the premium IOL market if you go back to say 2008, 2009.

Unidentified Participant: Okay. Good to hear. Appreciate it.

Operator: Thank you very much. And our next question is from Ryan Zimmerman of BTIG. Ryan?

Ryan Zimmerman: Hi. Thank you — Yes, thank you. Can you hear me okay?

Ron Kurtz: Perfectly, Ryan. How are you?