LENSAR, Inc.

Good morning and thank you for your participation. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. As a reminder, this conference is being recorded. I would now like to turn the call over to Cameron Radonovich of Burns & McClellan. Mr. Radonovich, please go ahead.

Thank you, Operator. Good morning and welcome to the Lensar fourth quarter and full year 2024 financial results conference call. Earlier this morning, the company issued a press release providing an overview of its financial results for the quarter and full year ended December 31st, 2024. This press release is available on the investor relations section of the company's website at www.lensar.com. Joining me on this call today is Nick Curtis, Chief Executive Officer of Lensar, who will review the company's recent business and operational progress. Following his comments, Tom Staub, Chief Financial Officer of Lensar, will provide an overview of the company's financial highlights before turning the call back over to the operator to facilitate answering any questions you may have. Today's conference call will contain forward-looking statements, including those statements regarding future results, unaudited and forward-looking financial information, as well as the company's future performance and or achievements. These statements are subject to known and unknown risks and uncertainties which may cause the company's actual results, performance, or achievements to be materially different from any future results or performance expressed or implied in this presentation. You should not place undue reliance on these forward-looking statements. For additional information, including a detailed discussion of the company's risk factors, please refer to the company's documents filed with the Securities and Exchange Commission, which can be accessed on the website. In addition, this conference call contains time-sensitive information that is accurate only as of the date of this live broadcast, February 27, 2025. Lensar undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this live conference call. With that, it's my pleasure to turn the call over to Nick Curtis.

Thank you, Cam, and good morning to everyone. Thank you for joining us on our fourth quarter and full year call. LentHAR's performance in 2024 can be summarized in one word, outstanding. While there's no such thing as a year completely free of challenges, our team executed exceptionally well and achieved significant milestones throughout 2024. culminating in a record fourth quarter, positioning us for continued growth and market share gains in 2025 and beyond. As always, Tom will provide more granular detail on our financial performance, but I will first share with you several operational highlights. We achieved significant revenue growth in 2024. Our fourth quarter top line revenue increased to a record $16.7 million, which represents growth of 38% over Q4 2023. with full year revenue growth coming in at an impressive 27% over 2023. The success was fueled by strong performance across all revenue lines, particularly in system placements and procedure volumes. We placed a total of 31 Ally systems in the fourth quarter, a new quarterly high for Lensar. 20 of the 31 systems were installed in the US, which is also a single quarter record for the company. We anticipate these new systems reach their full procedure productivity in the second half of 2025 and look forward to the recurring revenue these systems will contribute when they begin generating consistent procedure volume levels, which we expect to happen in mid-Q2 for many of these systems. Notably, our expansion and laser placements into Europe and Southeast Asia continued from the third quarter launch, with 24 systems total since launching Ally outside the U.S., after clearance in mid-August 2024. We also continue to build a robust pipeline of executed contracts in the U.S. and consistent demand from our distributors serving customers outside the U.S. We ended the year with a backlog of 16 Ally systems, which we expect to install and begin generating recurring revenue in 2025. Importantly, we have converted a highly significant number of new to Lensar customers adopting our technology for the first time, making the important decision to either upgrade from older competitive systems or enter the robotic laser cataract surgery market for the first time. In fact, 75% of our new system placements in the U.S. in 2024 were with customers new to Lensar. This is a clear validation of Ally's technological advancements and the significant benefits it brings to surgeons and their patients. Further, it's an acknowledgement of Lensar's ongoing commitment to improving efficiencies, outcomes, and overall experience at every level of the practice. This influx of new surgeon partners will further accelerate recurring revenue growth in the coming quarters as they fully integrate and adapt to Ally. which is a great indicator of the underlying health of the important recurring revenue in our business and near-term opportunity. Driven by our strong fourth quarter placement activity, we increased our ally placements 86% over 2023. Our installed base of ally systems has now surpassed 135 globally. And our total installed base, including the legacy LLS systems, has grown to 385 on a worldwide basis, representing an impressive 26% increase over December 31st, 2023. This impressive installed base growth, particularly in the U.S., allowed LensHour to continue gaining significant market share throughout 2024. According to MarketScope, LensHour has added an additional 7.5% share in procedures in the U.S. since the launch of Ally two years ago, bringing our total share to almost 21%. This market share growth for us represents a combination of Lensar growing the overall market and our success in displacing competitive systems from our much larger ophthalmic peers. Procedure volumes increased 24% year-over-year in both the U.S. and worldwide. In addition, 80% of our 2024 systems were installed after June 1st, meaning they haven't yet reached full practice integration and utilization. and are therefore likely to contribute to recurring revenue at a greater level by providing to the $40 million we achieved in 2024. As utilization with these newly installed systems ramps up, we expect to see continued growth in the recurring procedure revenue, particularly from users who have switched to Ally from the older competing lasers. we're focused on continuing to expand our footprint through strategic placements, which will further drive this significant procedure and revenue growth in 2025 and beyond. This continued growth in recurring revenues represents an important metric in assessing the underlying health of our business. As I mentioned previously, procedure volumes directly correlate to our recurring revenue, which we believe is a highly effective and important measure of our growth and long-term success. In the fourth quarter, our recurring revenue totaled approximately 10.8 million. And as I mentioned a moment ago, we had over $40 million in recurring revenue for the year. Looking ahead, we're confident in our ability to continue delivering strong financial results and achieving our ambitious growth objectives. One of the drivers of this growth is the increasing number of practices that are moving Ally out of a dedicated procedure room and directly into the operating room. and thus taking full advantage of Ally's ability to be a part of a fully sterile, single-room laser cataract surgical procedure. We've seen substantial growth in the number of sites that have added multiple Ally systems into multiple operating rooms, which is also expanding our overall procedure numbers because of the increased productivity and efficiencies. More surgeries in a given timeframe within the drives an increase in procedure revenue and profitability or provide surgeons the ability to finish the day earlier and reduce overhead associated with performing fewer surgeries while also cutting overhead due to inefficiencies in their current business models. This will drive additional growth and system sites. We attended several US and OUS congresses, including the AAO in the US and the ESCRS in Barcelona. where we not only performed many Ally system demos and generated many new leads, especially in the private equity groups and in-office surgical suite markets. We also had the opportunity to participate in the iNovation meeting held in Barcelona preceding the ESCRS in a panel discussion on moving digital data into the OR and the impact on the productivity and outcomes of this technology integrating the patient-level data throughout the office. We also partnered with our European distributor for an advanced ally user group meeting, as well as our Asian partner with their KOLs at the Taiwan national meeting. I'm also pleased to report we've had a total of 11 abstracts accepted for presentation at the ASCRS annual meeting in late April. We'll be providing additional details on the full slate of podium and poster presentations in the coming weeks. I hope that we'll see some of you there. Before turning the call over to Tom, I would like to take a moment to acknowledge and say thank you to the entire Lensar team for delivering such strong performance and helping us reach such critical milestones throughout 2024. We advanced our U.S. business significantly and alongside our distribution partners successfully launched Ally in the EU and Southeast Asia where surge in feedback to date has been incredibly positive. This global expansion coupled with our continued performance in the U.S. puts us in a strong position with a great deal of momentum as we head deeper into 2025. We're excited about the opportunities that lie ahead. Now, let me turn the call over to Tom, and he'll cover our financial highlights for the quarter. Tom?