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Jun 30, 2024
Sight Sciences Q2 2024 Earnings Report
Reported financial results for the second quarter ended June 30, 2024, and narrowed financial guidance for full year 2024.
Key Takeaways
Sight Sciences generated $21.4 million in revenue, a 9% decrease compared to the same period last year. They achieved a gross margin of 86%, and reduced cash usage to $9.1 million. The company narrowed its full-year revenue guidance to $81.0 million to $83.0 million.
Total revenue of $21.4 million, a decrease of 9% compared to the same period in the prior year.
Total gross margin of 86% compared to 86% in the same period in the prior year.
Cash usage reduced to $9.1 million, a decrease of 29% compared to the second quarter of 2023.
Surgical Glaucoma ordering account utilization increased 5% and the number of active accounts increased 5% compared to the first quarter of 2024.
Sight Sciences
Sight Sciences
Sight Sciences Revenue by Segment
Revenue by Segment
Surgical Glaucoma Revenue
CapyFin.comDry Eye Revenue
CapyFin.com Forward Guidance
Sight Sciences expects double-digit surgical glaucoma revenue growth in the second half of 2024. However, they anticipate a decrease in Dry Eye revenue due to a price increase effective October 1, 2024. The company narrows revenue guidance expectations for full year 2024 to approximately $81.0 million to $83.0 million and adjusted operating expenses to approximately $107.0 million to $109.0 million.
Positive Outlook
- Company continues to expect double-digit surgical glaucoma revenue growth in the second half of 2024 compared to the same period in the prior year as it regains commercial momentum and expands its customer base and account utilization.
- Company believes increase in dry eye pricing effective October 1, 2024, which it believes will have a significant negative impact on cash-pay procedure volumes in the second half of 2024, before it expects a return to growth in 2025 with market access wins.
- Company narrows revenue guidance expectations for full year 2024 to approximately $81.0 million to $83.0 million, representing growth of approximately 0% to 2% compared to 2023, versus its prior range of $81.0 million to $85.0 million.
- The Company expects dry eye revenue for full year 2024 to be less than $3.0 million, including the $2.1 million of revenue achieved through the end of the second quarter.
- Company narrows guidance expectations for adjusted operating expenses for full year 2024 to approximately $107.0 million to $109.0 million, representing a decrease of approximately 1% to 3% compared to 2023, versus its prior range of $107.0 million to $110.0 million.
Challenges Ahead
- The Company expects Dry Eye revenue to decrease as it implements an increase in dry eye pricing effective October 1, 2024, which it believes will have a significant negative impact on cash-pay procedure volumes in the second half of 2024
- The Company's full year 2024 financial guidance is forward-looking in nature, reflecting management’s expectations as of August 1, 2024, and is subject to significant risks and uncertainties that limit its ability to accurately forecast results.
- This outlook assumes no meaningful changes to the Company's business prospects or risks and uncertainties identified by management that could impact future results, which include, but are not limited to: changes in the reimbursement environment, including coverage decisions and reimbursement rates; the outcome of clinical trials; the outcome of legal proceedings or regulatory matters; changes in economic conditions, including discretionary spending and inflationary pressures; and supply chain disruptions, constraints and related expenses.
- Decrease was primarily driven by lower account utilization and a lower average selling price in the second quarter versus the same period in the prior year.
- The expected decline was primarily due to fewer new accounts and related SmartHub® sales, as a result of the planned reduction in sales infrastructure, and the Company’s focus on the next phase of its commercial strategy for its Dry Eye segment, which involves achieving market access.
Revenue & Expenses
Visualization of income flow from segment revenue to net income