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    RxSight (RXST)

    RXST Q3 2024: Utilization Growth Slows, Q4 Up 8% YoY

    Reported on Jul 9, 2025 (After Market Close)
    Pre-Earnings Price$50.85Last close (Nov 7, 2024)
    Post-Earnings Price$47.03Open (Nov 8, 2024)
    Price Change
    $-3.82(-7.51%)
    • Strong Utilization and Adoption Trends: Q&A responses highlighted that RxSight’s LAL implantation utilization per LDD is growing steadily across practices, with newer accounts ramping up quickly to established levels, suggesting increasing clinical adoption and favorable outcomes.
    • Compelling Capital Economics: The management emphasized a rapid payback period of approximately 6 months on the LDD investment and consistent, stable pricing for both LAL and LDD, which makes the capital expenditure attractive and supports repeat purchases.
    • Broadening Market Reach via Optometrist Engagement: The executives outlined initiatives to educate the approximately 50,000 U.S. optometrists, positioning them to drive referrals and further market penetration, thereby expanding the overall addressable market for RxSight’s products.
    • Hurricane impact risk: The earnings call Q&A noted that hurricanes contributed to lost surgical days in Q3, potentially affecting revenue and procedure volumes, especially in key markets like Florida.
    • Deceleration in utilization growth: Analysts highlighted a potential deceleration in LAL utilization growth, with Q4 projected to show an 8% year-over-year increase compared to previous quarters in the high teens to low 20s, which could indicate a slowdown as market saturation occurs.
    • Challenges with market penetration and adoption: Questions regarding maintaining pricing, securing new capital equipment placements, and expanding market share beyond the current ~10% benchmark suggest that achieving higher and sustainable adoption rates could be challenging in a competitive environment.
    1. Margin Outlook
      Q: Is gross margin stable post‑2024?
      A: Management expects gross margins to remain around 70–71% thanks to ongoing cost efficiencies and a favorable shift in product mix.

    2. Capital & LDD Growth
      Q: How is LDD placement growing?
      A: Strong capital demand is evident with robust LDD placements delivering a return on investment in about 6 months.

    3. Pricing Stability
      Q: Will product pricing remain unchanged?
      A: Management is confident in holding the $1,000 LAL price and preserving steady LDD ASPs despite market pressures.

    4. Revenue Guidance 2025
      Q: Any early guidance for 2025?
      A: While no specific numbers were provided, management remains bullish on sustained growth driven by compelling clinical results.

    5. Utilization Trends
      Q: Why is utilization growth moderating?
      A: As the installed base expands, percentage growth naturally moderates even though overall LAL utilization stays strong.

    6. Global Expansion
      Q: When will international approvals arrive?
      A: Regulatory approvals in Asia and Europe are expected in the coming months, a key step in expanding global market share.

    7. Active Surgeons
      Q: What’s the average surgeon count per LDD?
      A: The average number of active physicians per LDD is roughly 1.5–1.6, varying with practice size.

    8. International Sales Channels
      Q: How will international sales be managed?
      A: A market-specific approach is planned; some regions like Canada will use distributors, while others will rely on direct sales.

    9. Optometrist Outreach
      Q: How is the optometrist program progressing?
      A: The program is gaining momentum as optometrists educate patients and refer them, supporting wider premium IOL adoption.

    10. Seasonality Effects
      Q: Was seasonality a factor this quarter?
      A: Yes, more pronounced seasonality—primarily due to extended doctor vacations—affected LAL volumes, though LDD sales stayed consistent.

    Research analysts covering RxSight.