Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How do you see LAL utilization trends evolving in 2025, and how does utilization vary between mature and newer accounts? A: Shelley Thunen, CFO, explained that LAL utilization is influenced by the installed base of LDDs and the number of LALs implanted. Utilization can fluctuate due to seasonality and the mix of newer LDDs. However, cohorts of LDD installs from previous years show consistent growth, with no ceiling observed. The focus remains on driving more LALs through increased LDDs and adoption within accounts.
Q: Can you elaborate on the potential of the new Aspheric IOL functionality and its target patient demographic? A: Ron Kurtz, CEO, clarified that both LAL and LAL Plus are already aspheric lenses. The new LDD functionality allows doctors to modify the level of asphericity, which can be advantageous for different patient populations. This advancement opens the door for higher customization in cataract surgery, similar to corneal refractive surgery advancements.
Q: What are the main areas of focus for growth investments in 2025, particularly in the commercial organization and marketing? A: Ron Kurtz, CEO, stated that the focus is on clinical training, field support, and education within practices and the wider eye care community, including optometry. Shelley Thunen, CFO, added that the commercial organization has expanded significantly to support new and existing customers, with a goal to capture a larger share of the premium IOL market.
Q: How should we think about the cadence for gross margin and spending in 2025, and the mix between LDD and LAL? A: Shelley Thunen, CFO, indicated that LAL is expected to grow faster and become a more predominant portion of revenue, leading to margin expansion. While LDD sales are not held back to manage gross margin, the mix will determine quarterly margins. The company expects consistent gross margin improvements, with potential to reach 80% plus at maturity.
Q: What gives you confidence in maintaining or accelerating LAL utilization growth in 2025? A: Shelley Thunen, CFO, emphasized that the key metric is the absolute number of LALs implanted. The company expects steady growth consistent with revenue expectations, and while LALs per LDD may vary quarterly, the overall trend is positive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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