RxSight, Inc.

Good day, and welcome to RxSite second quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during the session, you will need to press star 1-1 on your telephone. I would now like to hand the conference over to your speaker for today. Alex Hong, you may begin.

Thank you, Operator. Presenting today are RxSight President and Chief Executive Officer Ron Kurtz and Chief Financial Officer Shelley Tunin. Earlier today, RxSight released financial results for the three and six months ended June 30, 2022. A copy of the press release is available on the company's website. Before we begin, I would like to inform you that comments and responses to your questions during today's call reflect management's views as of today, August 8, 2022 only, and will include forward-looking statements and opinion statements, including predictions, estimates, plans, expectations, and other information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued earlier today and in our filings with the Securities and Exchange Commission. Our SEC filings can be found on our website or on the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements. We disclaim any obligation to update or revise these forward-looking statements. We will also discuss certain non-GAAP financial measures Disclosures regarding these non-GAAP financial measures, including reconciliations with the most comparable GAAP measures, can be found in the press release. Please note that this conference call will be available for audio replay on our website at rxsite.com, on the investor calendar page of the news and events section, on our investor relations page. With that, I will turn the call over to President and CEO, Dr. Ron Kurtz.

Good afternoon, and thank you all for joining us. RxSight continues to establish a track record of strong year-over-year and sequential growth, with 2022 second quarter revenue of $11.4 million, up 132% versus the year-ago quarter, and up 27% versus the quarter of this year, the first quarter of this year. Growth in the quarter was broad-based, reflecting both accelerating utilization of our light-adjustable lens, or LAL, and vigorous demand for our light delivery device, or LDD. Given this performance, we're raising our 2022 full-year revenue guidance to a range of $44 million to $46 million, which implies a 95% to 104% growth rate versus 2021. Our excite is focused exclusively on the attractive high-growth premium IOL market, where our unique clinical approach is beginning to take hold and gain share. Our proprietary system delivers outstanding outcomes that consistently exceed the exacting expectations of private pay patients who want excellent vision without glasses or compromises. These outcomes in turn provide doctors the confidence and peace of mind to offer our LALs to an increasing number of their premium cataract patients. Leveraging these significant competitive advantages, we're building an efficient razor razor blade commercial model designed to drive sustained growth expand margins, and create long-term value for shareholders. Our second quarter performance underscores the strides we're making to execute this growth strategy, starting with driving LAL adoption. During the second quarter of 2022, doctors implanted 5,400 new LALs, representing an increase of 196% versus a year-ago quarter and 30% versus the first quarter of 2022. The momentum in LAL utilization reflects a number of powerful benefits doctors and patients derive when they choose our technology. First, our LAL allows surgeons to precisely adjust each patient's refractive correction to meet that person's individual lifestyle needs and visual preferences without increasing the risk of troubling side effects like glare, halos, or loss of contrast that are common with other premium IOLs. Second, all other premium IOLs require the doctor to select a lens type and power before surgery, committing the patient to a specific visual approach and uncertainty as to whether their goals will be met. Conversely, the LAL removes this high-stakes preoperative guesswork by allowing patients to test drive their vision as the IOL power is adjusted after surgery. Third, the LAL addresses a broad-based population. The ability to correct astigmatism and sphere in the same increments as glasses or with about twice the precision of other premium mile wells makes it attractive across the board, including to perfectionists, to those who are on the fence regarding premium mile wells, as well as to patients who are worried about side effects like glare and halo. And fourth, the LAL delivers clinical results that are superior to those reported for competitive products. In our FDA clinical trials, 70% of LAL patients achieved 20-20 or better uncorrected visual acuity without glasses, while in similar trials of other premium myoWELLs, only about 40% of patients met this performance level. Moreover, subsequent real-world LAL data continues to reveal excellent, reliable outcomes, with a recent follow-up reading of 51 patients demonstrating 82.4% achieving 20-20 or better vision without glasses. Each of these are important attributes that not only help doctors deliver optimal care to individual premium cataract patients, but also help them increase practice revenue and profitability. Our clinical field and customer service teams play a critical role in the adoption process by working closely with every new account to ensure that doctors, technicians, and staff members are fully trained, proficient providers who can offer the LAL to patients with confidence. Quarterbacked by our recently established 18-person LAL account managers, our team engages with practices on an ongoing basis to assist with patient awareness and education programs, development of efficient patient flow processes, data analysis on LAL outcomes, and other referral and traffic building initiatives. The continued expansion of our LDD installed base is essential to driving robust LAL utilization and to executing our overall growth strategy. The LDD is used to administer brief in-office light treatments that induce the precise post-operative changes to the focusing power of the LAL. During the quarter, we sold 49 new LDDs to the network of clinical sites offering these post-operative LAL treatments. With these new second quarter placements, our installed base rose to 294 units, up 126% compared to the year-ago quarter of 130 units, and up 23% versus the first quarter of 2022. Importantly, the vast majority of LDD units sold in the second quarter were to new customers, signaling a continuation of favorable LAL adoption trends and the increasing productivity of our recently expanded 20-person LDD sales team. This team is focused primarily on the roughly 3,000 US cataract surgeons who perform approximately 70% of premium IOL procedures. You'll recall that we are planning to launch a lower cost to manufacture LDD, which will have the same functionality and performance as our current model. As we reported in June, the FDA requested some additional data be added to our submission, which we will provide. Consequently, we now anticipate approval in the first half of 2023. We'd launch early in the second half of next year. Since supply chain pressures continue, particularly for chips and other components, we will continue to bring in inventories for the lower to cost to manufacture LDD when available from suppliers to ensure we have supply. Since in this environment, suppliers will divert inventories on order to other customers if we do not take them when ready. In about 60 days, we head to Chicago for the American Academy of Ophthalmology annual meeting. We have numerous LAL awareness-building programs planned and expect RxSight technologies to be featured in a number of certain presentations. In addition, we will host a roundtable discussion on October 1st for members of the investment community attending AAO. The session will feature leading surgeons who will discuss their experience and insights regarding the LAL system. To summarize, we believe RxSight is well positioned to succeed in the high growth private paid premium high well market. Our second quarter performance reveals the solid inroads we're making to establish a durable LDD installed base and drive sustained utilization of the LAL. We expect these favorable trends to continue as our newly expanded commercial organization becomes even more cohesive and productive, and as an increasing number of doctors and patients recognize the significant advantages of our unique technology. With that, I'll turn the call over to Shelly for an overview of our second quarter 2022 financial results and full year guidance.