Sight Sciences, Inc. (Nasdaq: SGHT) ("Sight Sciences" or the
"Company"), an eyecare technology company focused on developing and
commercializing innovative, interventional technologies that
elevate the standard of care, today reported financial results for
the first quarter ended March 31, 2024, and reaffirmed financial
guidance for full year 2024.
Recent Business and Financial Highlights
- Generated first quarter 2024 total
revenue of $19.3 million, an increase of 2% compared to the same
period in the prior year.
- Achieved total gross margin of 86%
in the first quarter of 2024 compared to 84% in the same period in
the prior year.
- Reduced cash used to $10.8 million
in the first quarter of 2024, which included $3.2 million in debt
financing restructuring costs, compared to $17.7 million used in
the first quarter of 2023, a decrease of 39%, reflecting continued
operational discipline.
- On April 26, 2024, the Company
received a positive jury trial verdict associated with the patent
infringement case against Alcon Inc., Alcon Vision, LLC, Alcon
Research, LLC, and Ivantis, Inc (collectively, "Alcon") that Sight
Sciences initiated on September 16, 2021 in the U.S. District Court
for the District of Delaware (the “Court”), concerning the Hydrus®
Microstent. The jury found that Sight Sciences’ asserted patents
were willfully infringed, and awarded monetary damages for past
infringement. The monetary damages included $5.5 million in lost
profits and $28.5 million in royalty damages for sales of the
Hydrus Microstent covering the period from its commercial launch
through trial. The Court will entertain post-trial briefings by
both parties, including with respect to potential enhancements to
the damages and other remedies, and the Court’s final judgment will
be subject to appeal.
Recent Clinical Highlights
- Announced the publication of
results of a large-scale, real world minimally invasive glaucoma
surgery (“MIGS”) study demonstrating the comprehensive outflow
procedures performed with the OMNI® Surgical System (“OMNI”)
technology were effective at lowering both intraocular pressure
(“IOP”) and the need for IOP-reducing medications among study
patients, when evaluated at two years post-surgery. The other two
most commonly used FDA-approved MIGS devices combined with cataract
surgery, and cataract surgery alone were also included.
- Announced the results of the
cross-over phase (phase 2) of the Company’s SAHARA randomized
clinical trial at the annual meeting of the American Society of
Cataract and Refractive Surgery. The SAHARA data demonstrated that
interventional dry eye procedures using the TearCare® System
(“TearCare”) resulted in further clinically and statistically
significant improvements in the signs and symptoms of dry eye
disease (“DED”) at the one-year endpoint for patients who crossed
over to TearCare from Restasis® at six months. Successful
cross-over results at one year coupled with the successful results
at six months suggest that the TearCare procedure is effective
regardless of whether a patient has had prior treatment with
Restasis, and that similar results could be expected when TearCare
is used as a primary or secondary treatment for DED.
Management Commentary
"Our first quarter performance represents an
encouraging start to the year, primarily driven by improved
customer utilization within our Surgical Glaucoma segment as
compared to the prior quarter and the same period in the prior
year, and continued operational excellence with our strong gross
margins and disciplined expense management. In addition, we are
executing on our strategic initiatives to enhance market access to
our interventional technologies supported by an expanding body of
long-term clinical evidence in both our Surgical Glaucoma and Dry
Eye segments,” said Paul Badawi, co-founder and Chief Executive
Officer of Sight Sciences. “2024 is expected to be a foundational
year for the next phase of Sight Sciences’ growth as we continue to
penetrate and expand two multi-billion dollar market opportunities
in surgical glaucoma and dry eye with our clinically
differentiated, interventional technologies.”
First Quarter 2024 Financial
ResultsRevenue for the first quarter of 2024 was $19.3
million, an increase of 2% compared to the same period in the prior
year. Surgical Glaucoma revenue was $18.3 million, an increase of
5% compared to the same period in the prior year. The increase was
driven by increased utilization within existing accounts and an
increase in the number of ordering accounts in the first quarter
versus the same period in the prior year. Dry Eye revenue was $1.0
million, a decrease of 32% from 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 reduction in sales
infrastructure pursuant to the Company’s restructuring in October
2023, and the Company’s focus on the next phase of its commercial
strategy for its Dry Eye segment towards achieving market
access.
Gross profit for the first quarter of 2024 was
$16.5 million compared to $15.8 million in the same period in the
prior year. Gross margin for the first quarter of 2024 was 86%,
compared to 84% in the same period in the prior year. The increase
in gross margin was primarily driven by higher Surgical Glaucoma
gross margin, partially offset by lower Dry Eye gross margin.
Surgical Glaucoma gross margin in the first quarter of 2024
increased to 88%, compared to 86% in the same period in the prior
year, primarily driven by a one-time prior year inventory scrap
expense. Dry Eye gross margin in the first quarter of 2024 declined
to 42%, compared to 54% in the same period in the prior year,
primarily due to higher overhead costs per unit in the current
period primarily due to lower production volumes.
Total operating expenses were $31.2 million in
the first quarter of 2024 representing a 6% decrease compared to
$33.3 million in the same period in the prior year, which reflects
reduced selling, general, and administrative operating expenses and
improved operating expense leverage compared to the same period in
the prior year. Research and development expenses were $4.6 million
in the first quarter of 2024 compared to $4.7 million in the same
period in the prior year, representing a 1% decrease in the first
quarter compared to the same period in the prior year. Selling,
general, and administrative expenses were $26.6 million in the
first quarter of 2024, compared to $28.7 million in the same period
in the prior year, representing a 7% decrease in the first quarter
compared to the same period in the prior year, primarily due to
lower personnel-related expenses, which were partially offset by
expected increased legal expenses and stock-based compensation
expenses. Adjusted operating expenses1,2 were $26.6 million in the
first quarter of 2024, down from $29.7 million in the same period
in the prior year, representing an 11% decrease.
Net loss was $16.3 million ($0.33 per share) in
the first quarter of 2024, compared to $17.1 million ($0.35 per
share) in the same period in the prior year.
Cash and cash equivalents totaled $127.3 million
and total long-term debt was $35.0 million (before debt discount
and amortized debt issuance costs) as of March 31, 2024, compared
to $167.3 million and $35.0 million, respectively, as of March 31,
2023. Cash used in the quarter totaled $10.8 million, reflecting
continued operational discipline and a decrease compared to the
same period in the prior year where cash used was $17.7 million.
Cash used in the first quarter of 2024 included $3.2 million in
debt financing restructuring costs.
2024 Financial GuidanceSight
Sciences reaffirms revenue guidance expectations for full year 2024
of approximately $81.0 million to $85.0 million, representing
growth of approximately 0% to 5% growth compared to 2023. The
Company continues to expect double-digit revenue growth in the
second half of 2024 compared to the same period in the prior year
as it regains commercial momentum and expands utilization and its
customer base.
The Company reaffirms its guidance expectations
for adjusted operating expenses1,3 for full year 2024 of
approximately $107.0 million to $110.0 million, representing a
decrease of approximately 0% to 3% compared to 2023.
The Company's full year 2024 financial guidance
is forward-looking in nature, reflecting management’s expectations
as of May 2, 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.
1 “Adjusted operating expenses” is a financial
measure not prepared in accordance with the generally accepted
accounting principles in the United States (“GAAP,” and such
measure, a “non-GAAP financial measure”), and is calculated as
operating expenses less stock-based compensation expense,
depreciation and amortization, and restructuring costs. Please see
the “Non-GAAP Financial Measures” section below for additional
information.2 A reconciliation of the non-GAAP financial measures
to the most directly comparable GAAP financial measures has been
provided in the table titled "Non-GAAP to GAAP Reconciliation"
attached to this press release.3 Consistent with Securities and
Exchange Commission regulations, the Company has not provided a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable GAAP financial measures in reliance on
the “unreasonable efforts” exception set forth in the applicable
regulations, because there is substantial uncertainty associated
with predicting any future adjustments that may be made to the
Company’s GAAP financial measures in calculating the non-GAAP
financial measures.
Non-GAAP Financial Measures
Certain non-GAAP financial measures, including
adjusted operating expenses, are presented in this press release to
provide information that may assist investors in understanding the
Company's financial and operating results. The Company believes
these non-GAAP financial measures are important performance
indicators because they exclude items that are unrelated to, and
may not be indicative of, the Company's core financial and
operating results. These non-GAAP financial measures, as
calculated, may not necessarily be comparable to similarly titled
measures of other companies and may not be appropriate measures for
comparing the performance of other companies relative to the
Company. These non-GAAP financial measures are not intended to
represent, and should not be considered to be more meaningful
measures than, or alternatives to, measures of operating
performance as determined in accordance with GAAP. To the extent
the Company utilizes such non-GAAP financial measures in the
future, it expects to calculate them using a consistent method from
period to period.
Conference Call Sight Sciences'
management team will host a conference call today, May 2, 2024,
beginning at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time.
Investors interested in listening to the conference call may do so
by accessing a live and archived webcast of the event at
www.sightsciences.com, on the Investors page in the News &
Events section. The webcast will be available for replay for at
least 90 days after the event.
About Sight SciencesSight
Sciences is an eyecare technology company focused on developing and
commercializing innovative and interventional solutions intended to
transform care and improve patients’ lives. Using minimally
invasive or non-invasive approaches to target the underlying causes
of the world’s most prevalent eye diseases, Sight Sciences seeks to
create more effective treatment paradigms that enhance patient care
and supplant conventional outdated approaches. The Company’s OMNI®
Surgical System is an implant-free glaucoma surgery technology (i)
indicated in the United States to reduce intraocular pressure in
adult patients with primary open-angle glaucoma; and (ii) CE Marked
for the catheterization and transluminal viscodilation of Schlemm’s
canal and cutting of the trabecular meshwork to reduce intraocular
pressure in adult patients with open-angle glaucoma. Glaucoma is
the world’s leading cause of irreversible blindness. The SION®
Surgical Instrument is a bladeless, manually operated device used
in ophthalmic surgical procedures to excise trabecular meshwork.
The Company’s TearCare® System is 510(k) cleared in the United
States for the application of localized heat therapy in adult
patients with evaporative dry eye disease due to meibomian gland
dysfunction (“MGD”), enabling clearance of gland obstructions by
physicians to address the leading cause of dry eye disease. The
Company’s SION® Surgical Instrument is a manually operated device
used in ophthalmic surgical procedures to excise trabecular
meshwork. Visit www.sightsciences.com for more information.
Sight Sciences, TearCare, SmartHub and SmartLids
are trademarks of Sight Sciences registered in the United States.
OMNI and SION are trademarks of Sight Sciences registered in the
United States, European Union and other territories. Restasis is a
registered trademark of Allergan, an AbbVie company. Hydrus is a
registered trademark of Alcon Vision LLC.
© 2024 Sight Sciences. All rights reserved.
Forward-Looking StatementsThis
press release, together with other statements and information
publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Any statements made in this press release or during the
earnings call that are not statements of historical fact, including
statements about our beliefs and expectations, are forward-looking
statements and should be evaluated as such. Forward-looking
statements include, but are not limited to, statements concerning
execution of our strategic initiatives to enhance market access;
next steps in our litigation with Alcon, including conduct of
post-trial briefings and the ability to appeal the Court’s final
judgment; expected clinical results when TearCare is used as a
primary or secondary treatment for DED; our expectation that 2024
is expected to represent a foundational year for the next phase of
our growth as we continue to penetrate and expand our market
opportunities; our ability to achieve our 2024 revenue and adjusted
operating expenses guidance; and our expectation of double-digit
revenue growth in the second half of 2024 versus the comparable
period in the prior year as we regain commercial momentum and
expand utilization and our customer base. These statements often
include words such as "anticipate," "expect," “suggests,” “plan,”
“believe,” “intend,” “estimates,” “targets,” “projects,” “should,”
“could,” “would,” “may,” “will,” “forecast” and other similar
expressions. We base these forward-looking statements on our
current expectations, plans and assumptions we have made in light
of our experience in the industry, as well as our perceptions of
historical trends, current conditions, expected future developments
and other factors we believe are appropriate under the
circumstances at such time. Although we believe these
forward-looking statements are based on reasonable assumptions at
the time they are made, you should be aware that many factors could
affect our business, results of operations and financial condition
and could cause actual results to differ materially from those
expressed in the forward-looking statements. These statements are
not guarantees of future performance or results. These
forward-looking statements are subject to and involve numerous
risks, uncertainties and assumptions, including those discussed
under the caption “Risk Factors” in our filings with the U.S.
Securities and Exchange Commission, as may be updated from time to
time in subsequent filings, and you should not place undue reliance
on these statements. These cautionary statements are made only as
of the date of this press release. We undertake no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law.
Investor contact:Philip TaylorGilmartin
Group415.937.5406Investor.Relations@Sightsciences.com
Media contact:
pr@SightSciences.com
SIGHT
SCIENCES, INC.Condensed Consolidated Balance
Sheets (Unaudited)(in thousands, except share and
per share data)
|
|
March 31, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
127,284 |
|
|
$ |
138,129 |
|
Accounts receivable, net of allowance for credit losses of $1,019
and $1,186 at March 31, 2024 and December 31, 2023,
respectively |
|
|
15,643 |
|
|
|
14,289 |
|
Inventory, net |
|
|
6,871 |
|
|
|
7,849 |
|
Prepaid expenses and other current assets |
|
|
2,291 |
|
|
|
2,604 |
|
Total current assets |
|
|
152,089 |
|
|
|
162,871 |
|
Property and equipment, net |
|
|
1,550 |
|
|
|
1,640 |
|
Operating lease right-of-use
assets |
|
|
1,297 |
|
|
|
1,458 |
|
Other noncurrent assets |
|
|
624 |
|
|
|
682 |
|
Total assets |
|
$ |
155,560 |
|
|
$ |
166,651 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,666 |
|
|
$ |
1,731 |
|
Accrued compensation |
|
|
4,028 |
|
|
|
4,528 |
|
Accrued and other current liabilities |
|
|
5,999 |
|
|
|
3,774 |
|
Current portion - long-term debt, net |
|
|
— |
|
|
|
2,219 |
|
Total current liabilities |
|
|
11,693 |
|
|
|
12,252 |
|
Long-term debt |
|
|
33,697 |
|
|
|
31,708 |
|
Other noncurrent liabilities |
|
|
961 |
|
|
|
2,476 |
|
Total liabilities |
|
|
46,351 |
|
|
|
46,436 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, par value $0.001 per share; 10,000,000 shares
authorized; no shares issued and outstanding as of March 31, 2024
and December 31, 2023 |
|
|
— |
|
|
|
— |
|
Common stock, par value $0.001 per share; 200,000,000 shares
authorized; 49,565,200 and 49,131,363 shares issued and outstanding
as of March 31, 2024 and December 31, 2023, respectively |
|
|
50 |
|
|
|
49 |
|
Additional paid-in-capital |
|
|
420,215 |
|
|
|
414,956 |
|
Accumulated deficit |
|
|
(311,056 |
) |
|
|
(294,790 |
) |
Total stockholders’ equity |
|
|
109,209 |
|
|
|
120,215 |
|
Total liabilities and stockholders’ equity |
|
$ |
155,560 |
|
|
$ |
166,651 |
|
|
SIGHT SCIENCES,
INC.Condensed Consolidated Statements of
Operations and Comprehensive Loss (Unaudited)(in
thousands, except share and per share data)
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Revenue |
|
$ |
19,265 |
|
|
$ |
18,824 |
|
Cost of goods sold |
|
|
2,793 |
|
|
|
3,048 |
|
Gross profit |
|
|
16,472 |
|
|
|
15,776 |
|
Operating expenses: |
|
|
|
|
|
|
Research and development |
|
|
4,636 |
|
|
|
4,669 |
|
Selling, general and administrative |
|
|
26,559 |
|
|
|
28,675 |
|
Total operating expenses |
|
|
31,195 |
|
|
|
33,344 |
|
Loss from operations |
|
|
(14,723 |
) |
|
|
(17,568 |
) |
Investment income |
|
|
1,648 |
|
|
|
1,810 |
|
Interest expense |
|
|
(1,204 |
) |
|
|
(1,276 |
) |
Loss on debt extinguishment |
|
|
(1,962 |
) |
|
|
— |
|
Other expense, net |
|
|
(8 |
) |
|
|
(19 |
) |
Loss before income taxes |
|
|
(16,249 |
) |
|
|
(17,053 |
) |
Provision for income taxes |
|
|
17 |
|
|
|
14 |
|
Net loss and comprehensive
loss |
|
$ |
(16,266 |
) |
|
$ |
(17,067 |
) |
Net loss per share attributable
to common stockholders, basic and diluted |
|
$ |
(0.33 |
) |
|
$ |
(0.35 |
) |
Weighted-average shares used in
computing net loss per share attributable to common stockholders,
basic and diluted |
|
|
49,486,263 |
|
|
|
48,405,271 |
|
|
SIGHT SCIENCES,
INC.Gross Margin Disaggregation
(Unaudited)(in thousands)
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
Revenue |
|
|
|
|
|
|
Surgical Glaucoma |
|
$ |
18,257 |
|
|
$ |
17,334 |
|
Dry Eye |
|
|
1,008 |
|
|
|
1,490 |
|
Total |
|
|
19,265 |
|
|
|
18,824 |
|
Cost of goods
sold |
|
|
|
|
|
|
Surgical Glaucoma |
|
|
2,209 |
|
|
|
2,362 |
|
Dry Eye |
|
|
584 |
|
|
|
686 |
|
Total |
|
|
2,793 |
|
|
|
3,048 |
|
Gross
profit |
|
|
|
|
|
|
Surgical Glaucoma |
|
|
16,048 |
|
|
|
14,972 |
|
Dry Eye |
|
|
424 |
|
|
|
804 |
|
Total |
|
|
16,472 |
|
|
|
15,776 |
|
Gross
margin |
|
|
|
|
|
|
Surgical Glaucoma |
|
|
87.9 |
% |
|
|
86.4 |
% |
Dry Eye |
|
|
42.1 |
% |
|
|
54.0 |
% |
Total |
|
|
85.5 |
% |
|
|
83.8 |
% |
|
SIGHT SCIENCES,
INC.Non-GAAP to GAAP Reconciliation
(Unaudited)(in thousands)
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Operating
Expenses: |
|
|
|
|
|
|
Total Operating Expenses |
|
$ |
31,195 |
|
|
$ |
33,344 |
|
Less: Stock-based Compensation |
|
|
(4,400 |
) |
|
|
(3,464 |
) |
Less: Depreciation and Amortization |
|
|
(192 |
) |
|
|
(146 |
) |
Adjusted Operating Expenses(4) |
|
|
26,603 |
|
|
|
29,734 |
|
|
4 Please see section titled "Non-GAAP Financial Measures" for
additional information.
SIGHT SCIENCES,
INC.Supplemental Financial Measures
(Unaudited)
|
|
Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Surgical Glaucoma active customers (5) |
|
|
1,073 |
|
|
|
1,020 |
|
Dry Eye lid treatment units sold
(6) |
|
|
4,011 |
|
|
|
4,329 |
|
Dry Eye active customers (7) |
|
|
288 |
|
|
|
264 |
|
5 “Surgical Glaucoma active customers” means the
number of customers who ordered the OMNI Surgical System or the
SION Surgical Instrument during the three months ended March 31,
2024 and 2023.6 “Dry Eye lid treatment units sold” means the
quantity of TearCare SmartLids® sold during the three months ended
March 31, 2024 and 2023.7 “Dry Eye active customers” means the
number of customers who ordered lid treatment units during the
three months ended March 31, 2024 and 2023.
Sight Sciences (NASDAQ:SGHT)
Historical Stock Chart
From Apr 2024 to May 2024
Sight Sciences (NASDAQ:SGHT)
Historical Stock Chart
From May 2023 to May 2024