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Bausch & Lomb Corp (BLCO)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $1.280B, up 9% reported (11% constant currency) YoY; adjusted EBITDA excluding IPR&D was $259M, and adjusted EPS was $0.25 .
  • Broad-based growth across Vision Care (+9%), Surgical (+13%), and Pharma (+6%) with dry eye portfolio approaching ~$1B annual revenue; MIEBO and XIIDRA remained key Rx growth drivers .
  • 2025 guidance: revenue $4.950–$5.050B (~5.5%–7.5% constant currency), adjusted EBITDA ex IPR&D $900–$950M, with FX headwinds (-$100M revenue, -$20M EBITDA) and planned front-loaded MIEBO DTC/R&D investments affecting Q1 phasing (~17% of FY EBITDA) .
  • Catalysts: continued premium IOL expansion (enVista Envy, LuxLife EU), Elios Vision acquisition to enhance MIGS offerings, DTC campaigns for MIEBO/XIIDRA, and AI-enabled manufacturing and commercial tools .

What Went Well and What Went Wrong

  • What Went Well
    • “Fifth straight quarter of double-digit constant currency revenue growth,” with Vision Care, Surgical, and Pharma all delivering growth; dry eye portfolio revenue near $1B annually .
    • Contact lenses strength: Daily SiHy up 75% in Q4; ULTRA up 10%; U.S. contact lenses +17%, Intl +11%; China +12% in Q4 and +18% FY .
    • Premium IOL momentum: implantables +19% in Q4, premium IOLs +67% in Q4; enVista platform showing strong early results; LuxLife EU launch expected in Q1 .
  • What Went Wrong
    • GAAP net loss persists (Q4: -$3M), driven by interest expense ($98M in Q4; $399M FY) and FX headwinds; adjusted net income down YoY for FY .
    • Elevated SG&A tied to launches (MIEBO, XIIDRA) and transformation costs pressured margins; adjusted EBITDA growth tempered by investment .
    • 2025 guide midpoint (6.5% CC revenue growth) sits below recent double-digit organic trajectory due to IRA impact ($25M) and access investments for XIIDRA, plus FX headwinds .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Billions)$1.216 $1.196 $1.280
GAAP EPS ($USD)($0.43) $0.01 ($0.01)
Adjusted EPS ($USD)$0.13 $0.13 $0.25
Operating Income ($USD Millions)$26 $43 $87
Adjusted EBITDA ex IPR&D ($USD Millions)$209 $227 $259
Adjusted Gross Margin %~62.0% (derived from adjusted COGS $462M/rev $1.216B) ~63.0% (derived from adjusted COGS $443M/rev $1.196B) 62.5% (company figure)
Reported YoY Revenue Growth %17% 19% 9%
Constant Currency YoY Revenue Growth %20% 19% 11%

Segment revenue ($USD Millions):

SegmentQ2 2024Q3 2024Q4 2024
Vision Care$697 $684 $723
Surgical$209 $206 $231
Pharmaceuticals$310 $306 $326

KPIs (Q4 2024):

KPIQ4 2024
MIEBO revenue ($USD Millions)$53
XIIDRA revenue ($USD Millions)$104
LUMIFY reported revenue growth YoY24%
Consumer dry eye portfolio revenue ($USD Millions)$103
Daily SiHy revenue growth YoY75%
Premium IOLs revenue growth YoY67%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025N/A$4.950–$5.050; ~5.5%–7.5% CCN/A (first issuance)
Adjusted EBITDA ex IPR&D ($USD Millions)FY 2025N/A$900–$950N/A (first issuance)
FX headwind (Revenue)FY 2025N/A-$100MN/A
FX headwind (Adj. EBITDA)FY 2025N/A-$20MN/A
Adjusted Gross Margin (%)FY 2025N/A~62.5% (includes IRA impact ~-$25M)N/A
R&D as % of revenueFY 2025N/A~7.5%N/A
Interest Expense ($USD Millions)FY 2025N/A~$375N/A
Adjusted Tax Rate (%)FY 2025N/A~15%–17%N/A
CapEx ($USD Millions)FY 2025N/A~$280N/A
Revenue ($USD Billions)FY 2024$4.600–$4.700 (May 1) $4.700–$4.800 (Jul 31) Raised
Revenue ($USD Billions)FY 2024$4.700–$4.800 (Jul 31) $4.725–$4.825 (Oct 30) Raised
Adjusted EBITDA ex IPR&D ($USD Millions)FY 2024$840–$890 (May 1) $850–$900 (Jul 31/Oct 30) Raised (Jul 31), Maintained (Oct 30)

Earnings Call Themes & Trends

TopicQ2 2024 (Q-2)Q3 2024 (Q-1)Q4 2024 (Current)Trend
AI/technology initiativesNot emphasized in 8-K; focus on launches and segment growth Premium IOL approval; multi-dimensional launches AI deployed in manufacturing; digital sales platform and partnerships (Eyetelligence, Arena AI, Character Bio, proprietary AI sales tool) Increasing tech adoption
Supply chain/operationsContinued transformation; SG&A transformation costs Execution story across geographies; improvement evident “Issues in Lynchburg behind us” aiding lens growth; operational excellence focus Stabilized operations → growth
Product performance (Dry eye)Strong RX/OTC dry eye growth; MIEBO launch momentum Strength from MIEBO/XIIDRA and OTC; Pharma +76% YoY MIEBO $53M; XIIDRA $104M; dry eye consumer $103M; portfolio nearing $1B; DTC investment continues Sustained outperformance
Contact lensesDaily SiHy and ULTRA growth; INFUSE for Astigmatism launch Vision Care +6%; ongoing uptake Daily SiHy +75%; ULTRA +10%; U.S. +17%, Intl +11%; China +12% in Q4 Accelerating
Surgical/premium IOLGrowth across equipment/consumables/implantables Premium IOL expansion; FDA approval (enVista Envy) Implantables +19%; premium IOLs +67%; LuxLife EU launch; enVista pipeline building Strong trajectory
Regulatory/macroFX headwinds; raised FY guides FX headwinds moderated; raised FY revenue guide 2025 FX headwinds (-$100M rev; -$20M EBITDA); IRA impact ~$25M Headwinds quantified
R&D executionMultiple product launches; transformation costs Premium IOL approval; continued development Biomimetic lens internal studies (8), external study mid-year; myopia control; adjustable IOL early dev; enVista Beyond 2026 timeline Pipeline deepening

Management Commentary

  • “We’ve booked our fifth straight quarter of double-digit constant currency revenue growth… Our refocused pipeline is now filled with promise and potential to significantly enhance the standard of care in eye health.” — Brent Saunders, CEO .
  • “Total company revenue of $1.28 billion for the quarter reflects growth of 11% and 10% on an organic basis… Adjusted gross margin was 62.5% in Q4.” — Sam Eldessouky, CFO .
  • “We are delivering growth faster than the overall market, and our strategy remains the same. We will continue to focus on the top line growth and drive margin expansion with our premium products.” — Sam Eldessouky .
  • “Our enVista IOL platform is continuing to perform well… We are very excited about the Surgical business.” — Sam Eldessouky .
  • “Putting the issues in Lynchburg behind us last year had an obvious impact on our performance… our dry eye portfolio is all encompassing.” — Brent Saunders .

Q&A Highlights

  • Contact lens sustainability and biomimetic lens: Management highlighted broad-based growth and upcoming biomimetic lens designed for existing equipment to minimize capex and deliver high margins; external study mid-year .
  • Dry eye Rx expectations: MIEBO momentum continued into January despite seasonality; XIIDRA aims for TRx growth with managed care investments; IRA ~-$25M impact in 2025 .
  • Guidance rationale: 2025 growth anchored to mid-single-digit market growth plus share gains; FX and IRA are headwinds; EBITDA phasing weighs Q1 due to front-loaded DTC/R&D investments .
  • Surgical portfolio depth: Building comprehensive premium IOL suite (LuxLife EU, enVista Beyond in trials) and Elios MIGS expected FDA approval later in 2025 .
  • Cash flow/EPS trajectory: Adjusted cash from operations improved to $263M in 2024; management expects positive free cash flow in 2025 and EPS growth, noting tax rate and FX as headwinds .

Estimates Context

  • We attempted to retrieve Wall Street consensus (S&P Global) for Q4 2024 EPS, revenue, and EBITDA, but values were unavailable during this session due to S&P Global request limits. As a result, explicit beat/miss versus consensus cannot be determined (values unavailable via S&P Global).
  • Based on company guidance and segment momentum (premium IOLs, dry eye portfolio, Daily SiHy), estimate models may reassess 2025 mix, FX headwinds, IRA impact, and phasing, but explicit adjustments depend on consensus access .

Key Takeaways for Investors

  • Q4 execution was strong across segments, with revenue $1.280B (+9% reported, +11% CC) and adjusted EBITDA ex IPR&D $259M; adjusted gross margin sustained at ~62.5% .
  • Dry eye (MIEBO/XIIDRA + OTC) is the core growth engine, approaching ~$1B annual revenue; DTC campaigns and near-full coverage underpin 2025 growth targets .
  • Contact lenses are gaining share; Daily SiHy growth (+75%) plus ULTRA (+10%), with U.S. and China contributions, suggest continued momentum and benefits from Opal e-commerce .
  • Surgical is inflecting: premium IOLs (+67%) and Elios MIGS acquisition create a compelling mix-shift toward higher margins; LuxLife EU launch is near-term .
  • 2025 guide is prudent given FX (-$100M rev; -$20M EBITDA) and IRA (-$25M), with Q1 EBITDA phasing (~17% of FY) due to front-loaded investments; watch sequential build through the year .
  • Balance sheet/margins: interest expense remains a drag ($98M Q4; ~$375M guided for 2025); continued focus on gross margin mix and SG&A discipline supports medium-term margin expansion .
  • Near-term trading lens: monitor DTC efficacy (MIEBO/XIIDRA TRx), premium IOL traction, FX trends, and any regulatory milestones (Elios FDA) as potential stock catalysts .