LENSAR Inc (LNSR) 2023 Q4 法說會逐字稿

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

早上好，感謝您的參與。此時。所有參與者都處於只聽模式。隨後，我們將進行問答環節。提醒一下，本次電話會議將被錄音，我現在想將電話轉給伯恩斯·麥克萊倫 (Burns McClellan) 的卡梅倫·拉迪諾維奇 (Cameron Radinovic)。拉迪諾維奇先生，請繼續。

Thank you, operator. Good morning, and welcome to the LENSAR fourth quarter and full year 2023 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 31, 2023. This press release is available on the Investor Relations section of the Company's website at www.lensar.com. Joining me on the 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 Staab, 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.

謝謝你，接線生。早安，歡迎參加今天上午舉行的 LENSAR 第四季度和 2023 年全年財務業績電話會議，該公司發布了一份新聞稿，概述了截至 2023 年 12 月 31 日的季度和全年財務業績。本新聞稿可在本公司網站 www.lensar.com 的投資者關係部分取得。今天與我一起參加電話會議的是 LENSAR 執行長 Nick Curtis，他將回顧公司最近的業務和營運進度。LENSAR 財務長 Tom Staab 發表評論後，將概述該公司的財務亮點，然後將電話轉回給接線員，以便回答您可能提出的任何問題。

Today's conference call will contain certain 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 at that is accurate only as of the date of this live broadcast, March fourth, 2020. For lens, our undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this live call.

今天的電話會議將包含某些前瞻性聲明，包括有關未來業績、未經審計的前瞻性財務資訊以及公司未來業績和/或成就的聲明。這些陳述受到已知和未知的風險和不確定性的影響，可能導致公司的實際結果、業績或成就與本簡報中明示或暗示的任何未來結果或業績存在重大差異，您不應過度依賴這些前瞻性陳述有關其他資訊的聲明，包括對公司風險因素的詳細討論，請參閱公司向美國證券交易委員會提交的文件，這些文件可以在網站上存取。此外，本次電話會議包含時間敏感訊息，僅截至本次直播之日（2020 年 3 月 4 日）準確。對於Lens，我們不承擔修改或更新任何前瞻性陳述以反映本次現場電話會議之後發生的事件或情況的義務。

And with that, it's my pleasure to turn the call over to Nick Curtis. NIck?

至此，我很高興將電話轉給尼克·柯蒂斯。缺口？

Thank you, Cam, and good morning to everyone. Thank you for joining us on our fourth quarter 2023 conference call. 2023 was by all measures, a very strong year for our company. I'm confident that the significant momentum built throughout the year will continue in 2024. I'm excited to share with you both our achievements of the past 12 months as well as some of the numerous reasons we're so excited for the future.

謝謝你，卡姆，祝大家早安。感謝您參加我們的 2023 年第四季電話會議。從各方面來看，2023 年對我們公司來說都是非常強勁的一年。我相信，全年建立的巨大勢頭將在 2024 年繼續下去。我很高興與您分享我們過去 12 個月的成就以及我們對未來如此興奮的眾多原因之一。

As Tom will review in greater detail, Q4 revenue grew 18% compared to a year ago, while full year revenue increased 19% in 2023 compared to 2022, also marking our highest annual revenue in the Company's history. I can safely say that since launching in the mid third quarter of 2022, Ally has exceeded our expectations. We placed a total of 44 systems last year, approximately 50% above our initial guidance of 30 placements in the first full year of commercial launch. It's also significant to note half of our 2023 placements were with surgeons and sites new to LENSAR a majority that have converted to Ally from competitive devices. Although Allied is currently only available in the US, we grew our total worldwide installed base by 13% to approximately 305 systems comprising both the next-generation Ally and our legacy LLS.

Tom 將更詳細地回顧，第四季營收較上年同期成長 18%，而 2023 年全年營收較 2022 年成長 19%，也創下了公司史上最高的年度營收。我可以肯定地說，自 2022 年第三季中期推出以來，Ally 超出了我們的預期。去年，我們總共投放了 44 個系統，比我們在商業發布的第一個全年投放的 30 個系統的最初指導水準高出約 50%。同樣值得注意的是，我們 2023 年的安置中有一半是外科醫生和新使用 LENSAR 的網站，其中大多數已從競爭設備轉換為 Ally。儘管 Allied 目前僅在美國提供，但我們的全球總安裝量增加了 13%，達到約 305 個系統，其中包括下一代 Ally 和我們的傳統 LLS。

Significant growth was achieved despite issues in South Korea, whereby an ongoing dispute between third-party payers and health care providers has resulted in premium cataract procedures being virtually nonexistent in what was previously a robust market. If we focus on our total revenue growth without South Korea, 2023 revenue increased 26% compared to 2022. Once again, this growth percentage is even more impressive if you consider the fact that we're currently limited to installing allies in the US. Accordingly, our US installed base grew over 23% with strong performance in any event. Importantly, demand for the technology remained strong as we finished 2023 with a backlog of nine systems and a robust pipeline of potential Ally customers that we are diligently working to convert in the year ahead.

儘管韓國存在問題，但仍實現了顯著增長，第三方付款人和醫療保健提供者之間持續存在爭議，導致以前繁榮的市場幾乎不存在優質白內障手術。如果我們專注於不包括韓國在內的總收入成長，2023 年營收將比 2022 年成長 26%。再一次，如果你考慮到我們目前僅限於在美國建立盟友的事實，那麼這個增長百分比就更加令人印象深刻。因此，我們的美國裝機量成長了 23% 以上，無論如何都表現強勁。重要的是，到 2023 年結束時，對該技術的需求依然強勁，我們積壓了 9 個系統，並且擁有大量潛在的 Ally 客戶，我們將在未來一年努力將這些客戶轉化為客戶。

In addition to the strong growth in our installed base. We continue to report highly encouraging utilization trends with full year procedure volume up 4% over 2022 and fourth quarter procedures increasing nearly 20% compared to the year ago period.

除了我們的安裝基礎的強勁增長之外。我們繼續報告非常令人鼓舞的利用率趨勢，全年程序量比 2022 年增長 4%，第四季度程序量比去年同期增長近 20%。

Similar to the revenue story, our full year procedure growth becomes even more impressive when you exclude the effect of South Korea, which has essentially been shut down since mid '22. Backing out South Korea activity for both '22 and '23, our worldwide procedure volumes increased 15% over last year. We continue to demonstrate with our customers. The benefits Ally offers primarily with the significant speed performance, astigmatism management and overall ergonomic efficiency compared to legacy technologies.

與收入情況類似，如果排除韓國的影響，我們的全年業務成長會變得更加令人印象深刻，韓國自 22 年中期以來基本上已經關閉。在取消 22 年和 23 年韓國的活動後，我們的全球手術量比去年增加了 15%。我們繼續與客戶一起示範。與傳統技術相比，Ally 的優勢主要在於顯著的速度性能、散光管理和整體人體工學效率。

These benefits will drive further adoption of Ally as well as increased utilization as surgeons comfort levels continue to grow and they see firsthand the value that our platform can create within their practice as our installed base and utilization continues to expand peer-to-peer referrals will become increasingly credible sources for those that are considering the right time to replace their older competitive devices with Ally. Again, this is not really a matter of if the technology gets replaced. But when is the optimal time to upgrade to that end, we recently completed for time and motion studies in ASCs with different model workflows and determined that surgeons can save up to 8 minutes per case, staff can save up to 19 minutes per case by streamlining workflow due to Allied performance and efficiencies and reducing the number of staff interactions with the patient.

這些好處將推動Ally 的進一步採用以及利用率的提高，因為外科醫生的舒適度不斷提高，他們親眼目睹了我們的平台可以在他們的實踐中創造的價值，因為我們的安裝基礎和利用率不斷擴大，點對點轉診將對於那些正在考慮用 Ally 更換舊的競爭設備的人來說，它已成為越來越可靠的來源。再說一次，這其實並不是技術是否被取代的問題。但何時是升級到這一目標的最佳時間，我們最近完成了使用不同模型工作流程的ASC 的時間和運動研究，並確定外科醫生每個病例最多可以節省8 分鐘，工作人員可以透過簡化每個病例最多節省19 分鐘由於 Allied 的績效和效率而優化了工作流程，並減少了工作人員與患者互動的次數。

Ultimately, this can result in patient spending up to 51 minutes less time in a surgical facility using Ally as compared to using a lens X laser and manually marketing patients, preoperatively using average CMS payment schedules, average conversion rates and market scope data of the average charge per patient for performing estimated incisions and managing astigmatism surgeons and staff can end their day 90 to 120 minutes earlier, saving the ASC up to $12,000 per surgical day and up to $540,000 per year. Alternatively, and very busy centers were time and a lot of capacities consideration surgeons can choose to treat more patients, generating an additional $8,000 of revenue per day or $364,000 per year, while ASCs can garner an additional $11,000 in facility fees and staff costs per day or $497,000 per year.

最終，與使用 X 鏡雷射和手動行銷患者（術前使用平均 CMS 付款計劃、平均轉換率和平均市場範圍數據）相比，使用 Ally 可以使患者在手術設施中花費的時間最多減少 51 分鐘每位患者進行估計切口和控制散光的費用外科醫生和工作人員可以提前90 至120 分鐘結束工作，每個手術日為ASC 節省高達12,000 美元，每年節省高達540,000 美元。另外，非常繁忙的中心需要考慮時間和能力，外科醫生可以選擇治療更多患者，每天額外產生 8,000 美元的收入，即每年 364,000 美元，而 ASC 每天可以額外獲得 11,000 美元的設施費和員工成本或每年497,000 美元。

This makes Ally a very compelling value proposition, providing a solid return on investment, an alternative to the big company bundles. As you can see, independent data is beginning to emerge in support of our long-standing belief that Ally offers a better device and overall technology solution to optimize the cataract surgical experience for surgeons, staff and patients while the growth we've delivered over the last year is exciting on its own. Looking at it in the context of the broader sector tells a similarly promising story in the fourth quarter, our US market share reached 16.9% according to MarketScope. This marks our seventh consecutive quarter of gains in our primary geography and representing a 2.8% gain in market share since launching ally in the US.

這使得 Ally 成為一個非常引人注目的價值主張，提供可靠的投資回報，是大公司捆綁產品的替代方案。正如您所看到的，獨立數據開始出現，支持我們長期以來的信念，即Ally 提供更好的設備和整體技術解決方案，以優化外科醫生、工作人員和患者的白內障手術體驗，同時我們在過去幾年中實現的成長去年本身就令人興奮。根據 MarketScope 的數據，從更廣泛的行業背景來看，第四季度我們的美國市佔率達到了 16.9%。這標誌著我們在主要地區連續第七個季度實現成長，自在美國推出盟友以來，市佔率成長了 2.8%。

Additionally, there's a significant number of competitive systems currently in use that are based on data technology and approaching end of life demographics of an aging population and organic growth in cataract surgeries on average represent 3% plus organic growth per year benefits Essentis second, laser-assisted cataract surgery are contributing to a higher annual growth rate expected to be between 5% and 8%, visually significant astigmatism for which Allyes ideally suited affects 70% to 90% of all cataract patients. This data combined with the benefits, surgeons, staff and patients recognize with Allied provide strong support for our expectation. That leads are has the potential to achieve 20% plus year over year growth for the foreseeable future. Our growth to date and this anticipated growth are fueled not only by Allyes efficiencies and business opportunities as previously outlined, but also the significant clinical contribution allies making for surgeons and their patients.

此外，目前正在使用的大量競爭性系統基於數據技術和接近老齡化人口的生命末期人口統計數據，白內障手術的有機增長平均佔 3% 以上，每年的有機增長有利於 Essentis 第二，激光-輔助白內障手術帶來了更高的年增長率，預計在5% 至8% 之間，好耶非常適合視覺上顯著的散光，影響了70% 至90% 的白內障患者。這些數據與外科醫生、工作人員和患者認可的 Allied 帶來的好處相結合，為我們的期望提供了強有力的支持。在可預見的未來，這些領先優勢有可能實現 20% 以上的年成長。我們迄今為止的成長和這一預期成長不僅受到先前概述的好耶效率和商業機會的推動，而且還受到好耶為外科醫生及其患者做出的重大臨床貢獻的推動。

Specifically, we now have four peer review papers, demonstrating the superiority of Landauer's proprietary Eastick Matic guiding technology and Tele access that enables surgeons to create a semantic incisions and guide torque IOL alignment and deliver better outcomes to their patients. The most recent peer review paper was published this month in the Journal of Cataract and Refractive Surgery where renowned professors, Tim Schultz, MD and Burkhard kick MD. from Ruhr University Hospital in bolt them, Germany compared their outcomes using lens. Our Iris Registration technology with the Intelie access refractive capsule or excess compared to those using another axis of astigmatism alignment tool from size called the Callisto to align toric interocular lenses and found that Intelie access guided statistically significant improvements in outcomes for their cataract patients.

具體來說，我們現在有四篇同行評審論文，展示了Landauer 專有的Eastick Matic 引導技術和遠端存取的優越性，使外科醫生能夠創建語義切口並引導扭矩IOL 對齊，並為患者提供更好的結果。最近的同行評審論文本月發表在《白內障和屈光手術雜誌》上，著名教授蒂姆·舒爾茨醫學博士和伯克哈德踢醫學博士。來自德國魯爾大學醫院的螺栓使用鏡頭比較了他們的結果。與使用另一種散光對準工具（尺寸為Callisto）來對準複曲面人工水晶體的技術相比，我們的虹膜配準技術使用Intelie 接入屈光囊或超出，並發現Intelie 接入引導白內障患者的結果在統計上顯著改善。

Turning to our outlook for 2024 and beyond, we believe that there are multiple reasons to be optimistic, both specific to LENSAR and related to the broader market. First, we've achieved this meaningful growth despite the continued freeze in South Korea. Revenue of revenue after Q2 was essentially zero for the following six quarters. We can't speculate as to when the market might reopen, but clearly, it's a matter of when and not if it happens.

談到我們對 2024 年及以後的展望，我們認為有多種理由保持樂觀，既有針對 LENSAR 的，也有與更廣泛市場相關的。首先，儘管韓國持續寒冷，我們還是實現了這有意義的成長。第二季後的營收在接下來的六個季度基本上為零。我們無法推測市場何時會重新開放，但顯然，這只是時間問題，而不是是否會發生的問題。

However, the bigger question is when it does, how significant a role will South Korea play in terms of our future growth, particularly once Ally is available to put it in perspective, South Korea represented less than 1% of our product and service revenue in 2023. This compares to 7.4% and 14.9% of our product and service revenue in fiscal '22 and '21, respectively. Our end market distributor stated that when the third-party payer issues are resolved, the result will be a market estimated to be roughly 50%. The size that it was prior to the shutdown. As a reminder, Allyes currently available for use only in the United States, but we expect this to evolve in the year ahead.

然而，更大的問題是，當它發生時，韓國將在我們未來的成長方面發揮多大作用，特別是一旦Ally 能夠正確看待這一點，韓國在我們的產品和服務收入中所佔比例不到1 %. 2023 年。相較之下，22 財年和 21 財年我們的產品和服務收入分別佔 7.4% 和 14.9%。我們的終端市場經銷商表示，當第三方付款人問題解決後，預計市場佔有率將達到 50% 左右。關閉前的大小。提醒一下，Allyes 目前僅在美國可用，但我們預計這種情況將在未來一年發展。

We submitted ally for CE Mark certification in the European Union in September of 2022, and we expect a decision on certification later this year. Our distributors are well equipped and excited to make Ally available to European surgeons quickly once we receive marketing authorization, enthusiasm for Ally within the international pharma community is significant and extends beyond our distributors to the surgeons they serve.

我們於 2022 年 9 月向歐盟提交了 CE 標誌認證申請，預計今年稍後將做出認證決定。我們的經銷商裝備精良，一旦我們獲得行銷授權，他們很高興能夠迅速將Ally 提供給歐洲外科醫生，國際製藥界對Ally 的熱情非常高，並且超出了我們的經銷商範圍，延伸到了他們所服務的外科醫生。

These surgeons are witnessing the results being achieved by their American counterparts and are eager to experience the many advantages of the Ally adaptive cataract treatment system firsthand for the benefit of their practices and more importantly, their patients were approaching a perfect storm, combining an industry that has been ripe for innovation, which we're addressing through our world-class technology in anticipation of an expanded geographic footprint through new regulatory clearances and improving market global market conditions, I believe we're well positioned to translate these favorable dynamics into significant growth in the years to come. We have a clear set of objectives focused on maximizing the success of Ally, and I'm proud to say that we are well on our way to making our vision a reality.

這些外科醫生正在見證美國同行所取得的成果，並渴望親身體驗Ally 自適應白內障治療系統的眾多優勢，以造福於他們的實踐，更重要的是，他們的患者正在接近一場完美風暴，結合了一個行業，創新的時機已經成熟，我們正在透過世界一流的技術解決這個問題，預計透過新的監管許可和改善全球市場條件來擴大地理覆蓋範圍，我相信我們有能力將這些有利的動態轉化為顯著的成長在未來的歲月裡。我們有一套明確的目標，專注於最大限度地提高 Ally 的成功，我很自豪地說，我們正在努力實現我們的願景。

Now let me turn the call over to Tom to cover our financial highlights for the quarter and year. Tom?

現在讓我將電話轉給湯姆，介紹我們本季和年度的財務亮點。湯姆？

Thank you, Nick. Our fourth quarter and full year 2023 financial results are included in our press release issued earlier this morning, but I'd like to add some color to the information contained in the press release.

謝謝你，尼克。我們的第四季和 2023 年全年財務業績已包含在今天早上早些時候發布的新聞稿中，但我想為新聞稿中包含的資訊添加一些色彩。

Total revenue for the quarter was $12.1 million compared to total revenue of $10.2 million in the fourth quarter of 2022. Q4 was a strong quarter for us with revenue increasing $1.9 million or 18% from the fourth quarter of 2022. Allyes system sales and procedure volume represented the largest contributors to this increase. As Nick mentioned, we significantly exceeded our Allied placement guidance for the year, having placed 44 systems with the fourth quarter of 2023, representing our highest Allied placements in a quarter with 15 Let me also add a little color on our full year 2023 revenue. We were extremely pleased with our 19% revenue growth for the year based upon two limitations that we faced and will continue to face in 2024. One, we were limited to placing Allyes in the United States.

該季度的總收入為 1,210 萬美元，而 2022 年第四季的總收入為 1,020 萬美元。第四季對我們來說是一個強勁的季度，營收比 2022 年第四季增加了 190 萬美元，成長 18%。好耶系統銷量和手術量是這一增長的最大貢獻者。正如Nick 所提到的，我們大大超出了今年的Allied 佈局指導，在2023 年第四季度佈局了44 個系統，代表了我們在一個季度中最高的Allied 佈局，其中有15 個。讓我也為我們2023 年全年的收入增添一點色彩。基於我們面臨並將在 2024 年繼續面臨的兩個限制，我們對今年 19% 的收入成長感到非常滿意。第一，我們僅限於將 Allyes 放置在美國。

So all new Allied placements in the related revenue growth was directly associated with US operations into our revenue. Growth was entered into a strong headwind in South Korea, where by premium cataract procedures have been virtually nonexistent for the last 18 months due to third party payer reimbursement issues. If you exclude South Korea from our results, 2023 annual revenue growth was more than 26% over 2022. In the fourth quarter of 2023, we sold 37,414 procedures compared to 31,400 procedures sold in the fourth quarter of 2022.

因此，相關收入成長中所有新的盟軍安置都與我們的收入中的美國業務直接相關。韓國的成長遇到了強勁阻力，由於第三方付款人報銷問題，過去 18 個月韓國幾乎不存在優質白內障手術。如果將韓國排除在我們的結果之外，2023 年的年收入成長將比 2022 年成長 26% 以上。2023 年第四季度，我們售出了 37,414 台手術，而 2022 年第四季售出了 31,400 台手術。

Our procedure volume increased 19% over the fourth quarter of 2022 for the quarters ended December 31, 2023 and 2022 approximately 73% of our revenue was attributable to recurring sources. As Nick mentioned, procedure growth for the year increased 4% from 2022 once again, if you exclude South Korea in both years, procedures increased a robust 15% in 2023, which corresponds directly with the US procedure growth year over year. Gross margin for the quarter was $5.1 million and represented a gross margin percentage of 43%.

截至 2023 年 12 月 31 日和 2022 年的季度，我們的手術量比 2022 年第四季度增長了 19%，我們約 73% 的收入來自經常性來源。正如 Nick 所提到的，今年的手術增長較 2022 年再次增長了 4%，如果將這兩年的韓國排除在外，2023 年的手術增長將強勁 15%，這與美國手術的同比增長直接對應。該季度的毛利率為 510 萬美元，毛利率為 43%。

Our margins decreased in the latter half of 2023 associated with a higher proportion of total revenue from system sales, which have a significantly lower gross margin than procedure sales as well as the roll off of inventory charged to research and development prior to Ally receiving regulatory clearance in the United States. Our gross margin for the full year 2023 was 50% and is consistent with our guidance of gross margins in the low 50s going forward with a heavier system sales in our overall revenue mix and with the full cost of ally in our cost of sales, we expect our gross margin percentage to be approximately 50% in 2024.

我們的利潤率在 2023 年下半年下降，原因是系統銷售佔總收入的比例較高，其毛利率明顯低於程序銷售，以及在 Ally 獲得監管許可之前用於研發的庫存滾存在美國。我們2023 年全年的毛利率為50%，與我們未來50 多歲的毛利率指引一致，因為我們的整體收入組合中系統銷售量更大，並且我們的銷售成本中包含了盟友的全部成本，我們預計 2024 年我們的毛利率約為 50%。

As a reminder, our inventory costs charged to research and development expenses for the year ended December 31, 2022, were approximately $3.4 million when evaluating our aggregate gross margin. It is important to realize that our recurring procedure revenue carries an approximate 80% gross margin at the cost of sale as the cost of a procedure sale is limited due to the patient interface device, whereby our system sales generate a significantly lower margin. This is important to understand as greater success in placing Allied units will drive benefit to our recurring revenue over time, but it compresses our overall gross margin at the time of sale. You can see this phenomenon in the fourth quarter of 2023 when we had 11 systems sales, our highest sales volume in a quarter to date, but our gross margin percentage was below 50% that we realized for the entirety of 2023.

需要提醒的是，在評估我們的總毛利率時，我們在截至 2022 年 12 月 31 日止年度計入研發費用的庫存成本約為 340 萬美元。重要的是要認識到，我們的經常性手術收入以銷售成本計算的毛利率約為 80%，因為手術銷售成本由於患者介面設備而受到限制，因此我們的系統銷售產生的利潤率明顯較低。理解這一點很重要，因為隨著時間的推移，放置盟軍單位的更大成功將為我們的經常性收入帶來好處，但它會壓縮我們在銷售時的整體毛利率。你可以在 2023 年第四季看到這種現象，當時我們銷售了 11 個系統，這是迄今為止一個季度的最高銷量，但我們的毛利率低於我們在 2023 年全年實現的 50%。

Total operating expenses for the fourth quarter of 2023 were $8.1 million compared to $9.1 million in the fourth quarter of 2022. This $1 million decrease was largely due to less stock compensation and professional expenses, somewhat offset by higher sales and marketing costs. Noncash stock-based compensation was $0.8 million and $1.7 million in the fourth quarters of 2023 and 2022, respectively. Net loss increased quarter over quarter and was $3.9 million or $0.35 loss per share in the fourth quarter of 2023 compared to a $2.5 million loss or a $0.24 loss per share in the fourth quarter of 2022.

2023 年第四季的總營運費用為 810 萬美元，而 2022 年第四季為 910 萬美元。這 100 萬美元的減少主要是由於股票報酬和專業費用的減少，但在一定程度上被銷售和行銷成本的增加所抵消。2023 年和 2022 年第四季的非現金股票薪酬分別為 80 萬美元和 170 萬美元。淨虧損逐季增加，2023 年第四季淨虧損為 390 萬美元，即每股虧損 0.35 美元，而 2022 年第四季淨虧損為 250 萬美元，即每股虧損 0.24 美元。

The $1.4 million increase in loss was almost entirely related to the change in fair value of our warrants, which was $1.2 million in the fourth quarter of 2023. As of December 31, 2023, we had cash and investments of $24.6 million as compared to $14.7 million on December 31, 2022. The increase in cash between the two years is the result of $19.1 million of net proceeds received in financing we completed in May 2023. This financing was design and is expected to get us to positive cash flow from operations based on our current operating plan, cash utilized was $0.4 million in the fourth quarter, $0.9 million for the last six months of 2023 and was $9.9 million for the full year in 2024.

損失增加 140 萬美元幾乎完全與我們認股權證公允價值的變化有關，2023 年第四季為 120 萬美元。截至 2023 年 12 月 31 日，我們的現金和投資為 2,460 萬美元，而 2022 年 12 月 31 日為 1,470 萬美元。兩年間現金的增加是我們在 2023 年 5 月完成的融資中收到的 1,910 萬美元淨收益的結果。根據我們目前的營運計劃，這筆融資預計將使我們從營運中獲得正現金流，第四季度使用的現金為40 萬美元，2023 年最後六個月使用的現金為90 萬美元，全年使用的現金為990 萬美元2024年。

We will continue to invest in our commercial organization, and we will work to increase our ally installed base on a worldwide basis. As we look forward, we expect for the investment in both our commercial organization and installed base to yield positive net operating cash flow quarters within 2025. As Nick mentioned, we also look forward to receiving European clearance of Ally as well as clearance and some other small operating regions in 2024. If we received clearance in Europe, we would expect placement numbers to increase significantly as Ally would then be cleared into significant operating regions.

我們將繼續投資於我們的商業組織，我們將努力增加我們在全球範圍內的盟友安裝基礎。展望未來，我們預計對商業組織和安裝基礎的投資將在 2025 年季度內產生正的淨營運現金流。正如尼克所提到的，我們也期待在 2024 年獲得 Ally 的歐洲許可以及其他一些小型營運地區的許可。如果我們在歐洲獲得許可，我們預計安置數量將大幅增加，因為 Ally 將被許可進入重要的營運區域。

Now I'd like to turn open the call up for your questions. Laura?

現在我想打開電話詢問你們的問題。勞拉？

Thank you.

謝謝。

Ladies and gentlemen. We will now begin the question-and-answer session. (Operator Instructions)

女士們，先生們。我們現在開始問答環節。（操作員說明）

Ryan Zimmerman, BTIG.

瑞安·齊默爾曼，BTIG。

Good morning. Thanks for taking the questions and congrats on the strong end of the year here. Maybe just to start, we can talk about kind of how you're thinking about going into 2024. You've already alluded to the nine systems that are in process but also a strong pipeline. Could you just help us understand kind of in the context of a growing sales force and the momentum you have on how you're thinking about adoption in 2024? And any any metrics? Certainly there would be appreciated.

早安.感謝您提出問題，並祝賀您在今年取得了豐碩的成果。也許首先，我們可以談談您對 2024 年的看法。您已經提到了正在運行的九個系統，而且還有一個強大的管道。您能否幫助我們了解一下銷售團隊不斷壯大的背景以及您對 2024 年採用情況的看法？還有什麼指標嗎？當然會有。

Thanks, Ryan. Appreciate I appreciate the question and your call. So as we get into 2024, I'm a little reticent to give up too much too soon here. We've I don't think that as a whole, we couldn't be more enthusiastic in terms of the sort of momentum that we're trying that we're picking up and that we continue to sustain. As I mentioned in the call, you know, timing is Doug is really more of the issue versus the the if it's more of the wind. And so that's why I'm a little reticent early because the activity levels never been higher and we've got more significant larger deals sort of in the works and the first two meetings that were more national meetings, but there were smaller venue meetings like the Caribbean, I and the and the of the East Coast meeting this year, significant presentations regarding ones are some unexpected by lens are in the commentary there like we knew that some of them would contain some of the content, but some we're actually big surprises.

謝謝，瑞安。感謝 我感謝您的提問和您的來電。因此，當我們進入 2024 年時，我有點不願意過早放棄太多。我認為，作為一個整體，我們對我們正在努力拾起並繼續維持的勢頭充滿熱情。正如我在電話中提到的，你知道，時機確實是道格的問題，而不是風的問題。這就是為什麼我一開始有點沉默寡言，因為活動水平從未如此之高，我們正在進行更重要的大型交易，前兩次會議更多的是全國性會議，但也有一些較小的場地會議，例如加勒比地區，我和今年的東海岸會議，關於一些重要的演講是一些鏡頭之外的評論，就像我們知道其中一些會包含一些內容，但有些我們實際上是大驚喜。

And so the interest level there and these are, as you know, very high-level meetings with surgeons that do significant volume. I expect that the uptake is going to continue and it's going to continue to grow. And I expect that the numbers of procedures that we're doing despite headwinds macroeconomically for for people here in the US that we're going to continue to see procedure numbers grow and grow within some of the commentary that we made during the during the call.

因此，正如您所知，那裡的興趣水平是與外科醫生舉行的非常高級別的會議，會議量很大。我預計這種吸收將持續下去並且將繼續增長。我預計，儘管宏觀經濟上存在逆風，但我們正在為美國人民所做的手術數量，我們將繼續看到手術數量不斷增加，根據我們在電話會議期間所做的一些評論。

Okay. That's helpful, Nick. And you guys alluded you've spent a good amount of time. I think talking about the benefits of Ally, some of the time and economic savings that users are seeing. Just curious kind of how that playing into adoption, if that is kind of opening doors for people as it gets published, have some of the things that you just talked about, maybe podium presentations, kind of what's the plan in terms of utilizing that data in 2024 to further get the word out.

好的。這很有幫助，尼克。你們提到你們已經花了很多時間。我想談論 Ally 的好處，用戶看到的一些時間和經濟節省。只是好奇這如何影響採用，如果這在發佈時為人們打開了大門，有一些你剛才談到的東西，也許是講台演示，在利用這些數據方面有什麼計劃2024 年進一步宣傳。

Yeah, that's a really great question. And something that we're obviously like really a well-focused on people are used to certain ways of buying. And I again, I made some comment to it in terms of the big, the big company of sort of product bundles, if you will, which is like really easy and straightforward for them to to understand, you know, it's something that they've done for years and years and years and years, you do actually get actually you do actually get a rebate of acts of why this is obviously a little more nuanced. And but yes, it's way more significant.

是的，這是一個很好的問題。我們顯然非常關注人們習慣了某些購買方式。我再次就大公司的產品捆綁發表了一些評論，如果你願意的話，這對他們來說非常容易和直接理解，你知道，這是他們的東西。經過多年的努力，你確實得到了一些行為的回扣，這顯然是更微妙的。但是，是的，它更重要。

And then any just straightforward, you know, discount here on the product in terms of what the numbers are and like I said with for time and motion studies with multiple time and motion studies now using different models, each one of them of net-net result in of I say, a substantial savings of time, which either equates to a reduction in overhead or the ability to add more cases in that time and drive significant revenue and EBITDA and so work some of the private equity groups that represent large opportunities for us from total number of procedures and installation base, let's say, are reticent to put capital dollars forward, given the current interest rate environment, the reality is that they're very receptive through these, and we've done some of the some of these studies within a couple of these private equity groups.

然後，任何簡單的，你知道，在產品上根據數字打折，就像我所說的時間和運動研究，現在使用不同的模型進行多個時間和運動研究，每個模型都是網絡-網絡我想所說的是，這會節省大量時間，這要么相當於減少管理費用，要么相當於能夠在這段時間內添加更多案例並帶來可觀的收入和EBITDA，因此，一些私募股權集團代表著巨大的機會從程序總數和安裝基礎來看，我們不願意提供資本美元，考慮到當前的利率環境，現實是他們非常容易接受這些，我們已經做了一些這些研究是在幾個私募股權集團內進行的。

And so these numbers make sense. And so really, it's going to be the continued education of this. More people at the podium appear to appear as our as our installed base expands and then being there at the right time and having set the right relationship with people so that when they're ready to grasp this into and to move forward, that they that we're in a good position to do so with them.

所以這些數字是有道理的。事實上，這將是這方面的持續教育。隨著我們的安裝基礎擴大，更多的人出現在講台上，然後在正確的時間出現並與人們建立正確的關係，以便當他們準備好抓住這一點並繼續前進時，他們我們有能力與他們一起這樣做。

Yeah. Now that makes sense. I mean, I think you've asked a couple more questions, if that's okay. I want to ask about international markets. I mean, it's a big focus for you guys this year. I know you've been spending time over in Europe. What are the markets we should be keeping an eye on that are probably most of them that offer the most potential for lens are in 2024.

是的。現在這是有道理的。我的意思是，我想你又問了幾個問題，如果可以的話。我想問一下國際市場的情況。我的意思是，這是你們今年的一大焦點。我知道你一直待在歐洲。我們應該關注哪些市場，其中大多數可能在 2024 年為鏡頭提供最大的潛力。

I know South Korea at one point was a very decent market for you guys. Obviously everyone is aware of kind of what's happened there. So curious about that. And then and also if you can just comment on the growth of the sales force that's been a focus, I think, for the company in 2023, kind of when do you kind of get that the size you want? And when we see the benefits of that expanded sales force in 2024? And then I have maybe one for Tom.

我知道韓國曾經對你們來說是一個非常好的市場。顯然每個人都知道那裡發生了什麼事。對此很好奇。然後，如果你能評論一下銷售團隊的成長，我想，對於 2023 年公司來說，銷售團隊的成長一直是個焦點，你什麼時候才能達到你想要的規模？到 2024 年，我們什麼時候才能看到擴大的銷售團隊帶來的好處？然後我可能會為湯姆準備一份。

Okay, great. Thanks, Ryan. So speaking to South Korea First, Doug, as I mentioned, our distributor and others believe that ultimately this market comes back, but it comes back to about 50% of what it once was. So I don't think and as we continue to grow. Obviously, those percentages of revenue that were as high as 14.9% for LENSAR are going to be less significant, particularly if that market comes back to 50% of what it was. But nonetheless, and we're looking to get Ally approved there and we're looking to ultimately move into South Korea, albeit with lower expectations that that market recovers to about 50% of what it was, number one, number two, in terms of looking at markets that that are going to be significant for lens, our Europe will be significant for LENSAR.

好的，太好了。謝謝，瑞安。因此，正如我所提到的，Doug 在接受《韓國優先》採訪時，我們的分銷商和其他人相信，這個市場最終會回歸，但會恢復到原來的 50% 左右。所以我不認為隨著我們的不斷成長。顯然，LENSAR 高達 14.9% 的收入百分比將不再那麼重要，特別是如果該市場恢復到原來的 50%。但儘管如此，我們希望 Ally 在那裡獲得批准，我們希望最終進入韓國，儘管對韓國市場恢復到第一、第二的 50% 左右的預期較低。考慮到對鏡頭來說非常重要的市場，我們的歐洲對LENSAR 來說也非常重要。

And primarily we had a phenomenal presence and our market share in Germany, and I expect in Germany and Austria in Switzerland that that's going to be those are going to be significant for lens are and to the extent that we can get an approval there as we're hoping in the in the back half of the year, we're looking forward to moving into those markets very rapidly. I think you'll also see some business for us later this year in the Southeastern Asia, albeit in a much smaller market, but where we had a decent market penetration into up into like Hong Kong, Taiwan and into perhaps the Philippines, again smaller. But you should see some presence there from us later this year.

首先，我們在德國擁有驚人的存在和市場份額，我預計在德國和瑞士的奧地利，這對鏡頭來說將是重要的，我們可以在那裡獲得批准，因為我們希望在今年下半年，我們期待能夠非常迅速地進入這些市場。我想今年晚些時候你還會在東南亞看到我們的一些業務，儘管市場要小得多，但我們在香港、台灣等地以及菲律賓（同樣規模較小）的市場滲透率相當不錯。 。但今年晚些時候你應該會看到我們的一些身影。

Okay, great. And then just expectations on when the sales force is at the level you want and when you think productivity from that could pick up?

好的，太好了。然後只是對銷售人員何時達到您想要的水平以及您認為生產力何時可以提高的期望？

Yeah, so we brought a new Vice President. We bought a vice president of sales in in December, and he's been great, and it gets relieved some of the responsibility for me it directly in that regard. And so it's allowing you to leverage and leverage myself a lot, a lot better there, and he's doing a really nice job. We're also bringing in some new processes to help us you know, if you, let's say, manage the leads and the interaction between marketing and sales.

是的，所以我們帶來了一位新的副總統。我們在 12 月聘請了一位銷售副總裁，他非常出色，這直接減輕了我在這方面的一些責任。所以這讓你能夠充分利用自己，做得更好，而且他做得非常好。我們也引入了一些新流程來幫助我們了解您是否管理潛在客戶以及行銷和銷售之間的互動。

And so we've got a couple of a new practice development as well as in the digital marketing area that generate leads for sales. And I think we're starting to see some good activity in that regard, expansion of territories, and we've expanded to territories thus far and you'll see, you know, some additional as we get to later in the year. We're doing -- we're being very conscious here of making sure that we both manage the growth and the expenses at the same time.

因此，我們在數位行銷領域進行了一些新的實踐開發，以產生銷售線索。我認為我們開始在這方面看到一些良好的活動，擴大領土，到目前為止我們已經擴展到了領土，你會看到，你知道，我們將在今年晚些時候進行一些額外的活動。我們正在做——我們非常有意識地確保我們同時管理成長和支出。

Yes, no, Mike, makes sense. And then, Tom, I think you were very clear about margin dynamics this quarter, just given the proportion of sales and outright sales, which was really nice to see. Maybe just you talked about the guidance of 30% gross margins for 2024, but from a pacing perspective, kind of how do you think that plays out through the year if you have any kind of crystal ball there on the recovery in margins and also the uptake of more of the consumable or razor blade portion of the business?

是的，不，麥克，有道理。然後，湯姆，我認為您非常清楚本季的利潤動態，僅考慮到銷售額和直接銷售額的比例，這真的很高興看到。也許您剛才談到了 2024 年毛利率為 30% 的指導，但從節奏的角度來看，如果您對利潤率復甦以及未來的增長有任何水晶球，那麼您認為這一年會如何實施？吸收更多的消耗品或刮鬍刀刀片業務部分？

Yes. So I think what's, as Nick mentioned, the important thing for us, Brian, and thanks for your question is that we manage growth and use of capital. We are still at the sort of opposite ends of the spectrum as things go. We expect probably the margins to be a little higher in the first quarter because of a seasonal business, a little harder for us to place as many systems in the first quarter as is in the subsequent three quarters. But as you go, that's going to level out and be 50%, I think based on the expectations of volume and certainly with the expectation that have an EU clearance in the latter half of 2024, then you're going to see us really hitting our recurring revenue in the razor blade piece of our revenue.

是的。所以我認為，正如尼克所提到的，對我們來說最重要的是，布萊恩，感謝你的提問，那就是我們管理資本的成長和使用。隨著事情的發展，我們仍然處於光譜的兩端。由於業務季節性，我們預計第一季的利潤率可能會稍高一些，對我們來說，在第一季部署與隨後三個季度一樣多的系統會有點困難。但隨著你的發展，這將趨於平穩，達到 50%，我認為基於銷量的預期，當然還有 2024 年下半年獲得歐盟許可的預期，那麼你會看到我們真正實現了目標我們收入中剃刀刀片部分的經常性收入。

I would say in the tail end of '25, really going into '26 and you're going to see an increase of our margins on it. If we if we continue to be as successful as we are, obviously, you're going to have a governor on those margins with system sales. And we have totally changed the paradigm in the United States in regards to Ghana, placements of systems versus sales of systems, and you've seen that in 2024 or 2023, just with the amount of systems we were able to sell in very, very difficult macro environments, working capital, capital equipment purchases so we fully expect that to continue. And with these time and motion studies just kicking off and the cross-pollination between physicians, we're hopeful that 2024 is a big year for us in regards to system sales, which will put a governor on the margins in that we move forward in 2025 and really see the recurring revenue that kick in.

我想說，在 25 年末，真正進入 26 年，你會看到我們的利潤率增加。如果我們繼續像現在一樣成功，顯然，系統銷售的利潤將會受到監管。我們完全改變了美國在加納方面的模式，系統的放置與系統的銷售，你已經看到，在 2024 年或 2023 年，我們能夠銷售的系統數量非常非常多。困難的宏觀環境、營運資金、資本設備採購，因此我們完全預期這種情況將持續下去。隨著這些時間和運動研究剛開始以及醫生之間的異花授粉，我們希望 2024 年對我們來說是系統銷售的重要一年，這將使州長處於邊緣地位，因為我們在到2025 年，我們就會真正看到經常性收入的出現。

The other thing I'd tell you just mentioned and I mentioned we're having here because it's somebody that's important because it takes an account in the neighborhood of 60 to 90 days from the time that they install to get trained and begin to ramp up in the practice. And this is where you start to see like you know, towards the because we did a lot of systems in the last quarter. It won't be until we start to get really into mid year.

我剛才提到的另一件事是我要告訴你的，我提到我們聚集在這裡是因為這是一個很重要的人，因為從他們安裝到接受培訓並開始增加的時間需要大約60 到90天的時間在實踐中。這就是你開始看到的地方，因為我們在上個季度做了很多系統。直到我們開始真正進入年中。

You start to see the sort of the fruits of those earlier installs and saw kind of a role. And so to Tom's comment, the more systems we sell has a drag on gross margins initially and then 90 days later, you start to see those accounts begin to generate a higher gross margins, if you will. And this is kind of like a rolling. And so I expect in the latter part of the year, you'll start to see those things begin to improve. And then if we sell a bolus of lasers again in the second half, you start to see that it's a little bit of Rowley, if you will, but starts to trend up.

你開始看到那些早期安裝的成果，並看到了某種作用。因此，根據湯姆的評論，我們銷售的系統越多，最初就會拖累毛利率，然後 90 天后，如果你願意的話，你會開始看到這些帳戶開始產生更高的毛利率。這有點像滾動。因此，我預計在今年下半年，您將開始看到這些事情開始改善。然後，如果我們在下半年再次銷售一團激光，您會開始看到它有點羅利（如果您願意的話），但開始呈上升趨勢。

Yes, that makes sense. I appreciate all the color, guys. Yes, congrats on all the progress this year. Thanks for taking the question.

是的，這是有道理的。我很欣賞所有的顏色，夥計們。是的，祝賀今年取得的所有進展。感謝您提出問題。

Thanks, Ryan.

謝謝，瑞安。

Thank you. There are no further questions at this time. I'd now like to turn the call back over to Mr. Nick Curtis, final closing comments.

謝謝。目前沒有其他問題。我現在想將電話轉回給尼克·柯蒂斯先生，並作最後的總結評論。

So I really appreciate everyone taking the time this morning to come and listen to the LENSAR fourth quarter and full year results for 2023. We're really excited about the year ahead and done. Stay tuned with us. Thank you. Appreciate your support.

因此，我非常感謝大家今天早上抽出時間來聆聽 LENSAR 2023 年第四季和全年業績。我們對未來的一年感到非常興奮並完成了。請繼續關注我們。謝謝。感謝您的支持。

Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Speakers, please stay on the line.

謝謝你，先生。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。發言者請保持通話。