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 second quarter ended June 30, 2024, and narrowed financial
guidance for full year 2024.
Recent Business and Second Quarter 2024 Financial
Highlights
- Generated total revenue of $21.4
million, an increase of 11% compared to the prior quarter and a
decrease of 9% compared to the same period in the prior year.
- Achieved total gross margin of 86%
compared to 86% in the same period in the prior year.
- Reduced cash usage to $9.1 million,
a decrease of 29% compared to $12.8 million cash used in the second
quarter of 2023, reflecting continued operational discipline.
- Surgical Glaucoma ordering account
utilization increased 5% and the number of active accounts
increased 5% compared to the first quarter of 2024. These
sequential trends highlight recovery from the LCD uncertainty
period and growing momentum within the Surgical Glaucoma segment
through the first half of 2024.
- The Company has recently informed
existing TearCare® customers of a future list price increase to
$1,200 per set of TearCare SmartLids® effective October 1, 2024.
The Company is modifying its pricing structure to more accurately
reflect the clinical and health economic value of the TearCare
procedure as demonstrated in both Phase 1 and Phase 2 of the SAHARA
RCT and its budget impact model.
Recent Clinical and Reimbursement
Highlights
- Announced the publication of the
Phase Two twelve-month results of the SAHARA RCT demonstrating
improved signs and symptoms of dry eye disease for patients crossed
over from Restasis® to TearCare. Trial results demonstrated
patients treated with a single interventional eyelid procedure
enabled by TearCare technology after receiving twice-daily Restasis
for six months during Phase One realized further clinically
meaningful improvements in the signs and symptoms of dry eye
disease at month six through month twelve beyond the improvements
seen with Restasis during the first six months.
- The Centers for Medicare and
Medicaid Services (“CMS”) published the 2025 Proposed Medicare
Payment Rules for hospital outpatient department and ambulatory
surgery center (“ASC”) settings, along with the proposed 2025
Medicare physician fee schedule. The ASC payment rule for 2025
includes a proposal to grant device-intensive status and adopt a
related proposed increase in Medicare’s facility payment rate for
canaloplasty procedures reported with CPT code 66174, a code that
is currently used to report the Company’s comprehensive OMNI®
Surgical System (“OMNI”) procedure. If the rule is finalized with
device-intensive status for CPT code 66174, it will result in an
increased ASC facility payment compared to 2024 Medicare payment
amounts, per the table below, effective January 1, 2025. These
proposed rules are not considered final until the final rule is
published, which we expect to occur in the fourth quarter of
2024.
|
|
Facility Fee – ASC (rounded to nearest
$) |
HCPCS Code |
Description |
2024 |
2025 Proposed |
$ Difference |
% Difference |
66174 |
Canaloplasty (standalone) |
$2,045 |
$2,644 |
$599 |
29% |
66174 + 66984 (50%) |
Canaloplasty + Routine Cataract |
$2,637 |
$3,247 |
$610 |
23% |
Management CommentaryPaul
Badawi, co-founder and Chief Executive Officer of Sight Sciences
commented, "In the second quarter we continued to establish
commercial momentum as we drove mid-single digit sequential
increases in account utilization and active customers in our
Surgical Glaucoma segment, and recovered the net customers lost
during the LCD uncertainty period. With increasing clarity on
coverage eligibility, thousands of surgeons can continue to
routinely use our OMNI technology for glaucoma patient management,
and this allows us to focus on supporting expanded use cases for
the technology, reengaging existing customers who were awaiting
coverage clarity, and training new surgeons who would like to
perform the procedure enabled by OMNI.”
Mr. Badawi continued, “In parallel, we continue
to advance our Dry Eye business with further clinical and market
access progress. The recent publication of the twelve-month SAHARA
results and the soon to be published budget impact model more
accurately demonstrate the true value of the TearCare technology.
We intend to ensure this value is appropriately distributed across
stakeholders by pioneering market access for interventional dry eye
procedures. Reimbursement at the levels supported by our evidence
shows compelling economics and value to patients, payors, and
eyecare providers. We are inspired by the opportunities in front of
us and remain steadfast in our commitment to elevating the
standards of care in eyecare.”
Second Quarter 2024 Financial
ResultsRevenue for the second quarter of 2024 was $21.4
million, a decrease of 9% compared to the same period in the prior
year. Surgical Glaucoma revenue was $20.2 million, a decrease of 5%
compared to the same period in the prior year. This 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. Dry Eye revenue was $1.1 million, a decrease of 46%
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 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.
Gross profit for the second quarter of 2024 was
$18.3 million compared to $20.1 million in the same period in the
prior year. Gross margin for the second quarter of 2024 was 86%,
compared to 86% in the same period in the prior year. Surgical
Glaucoma gross margin in the second quarter of 2024 was 88%,
compared to 89% in the same period in the prior year, primarily
driven by product sales mix. Dry Eye gross margin in the second
quarter of 2024 declined to 47%, from 55% in the same period in the
prior year, primarily due to product sales mix and higher overhead
costs per unit in the current period due to lower production
volumes.
Total operating expenses were $31.0 million in
the second quarter of 2024, representing a 12% decrease compared to
$35.3 million in the same period in the prior year, which reflects
reduced operating expenses and improved operating expense leverage
compared to the same period in the prior year. The decrease was
primarily due to lower personnel-related expenses, which were
partially offset by increased stock-based compensation expenses.
Research and development expenses were $4.3 million in the second
quarter of 2024 compared to $5.2 million in the same period in the
prior year, representing a 17% decrease. Selling, general, and
administrative expenses were $26.7 million in the second quarter of
2024, compared to $30.1 million in the same period in the prior
year, representing an 11% decrease. Adjusted operating expenses1,2
were $26.6 million in the second quarter of 2024, down from $31.5
million in the same period in the prior year, representing a 15%
decrease.
Net loss was $12.3 million ($0.25 per share) in
the second quarter of 2024, compared to $14.8 million ($0.30 per
share) in the same period in the prior year.
Cash and cash equivalents totaled $118.2 million
and total long-term debt was $35.0 million (before debt discount
and amortized debt issuance costs) as of June 30, 2024, compared to
$154.5 million and $35.0 million, respectively, as of June 30,
2023. Cash used in the second quarter of 2024 totaled $9.1 million,
compared to the same period in the prior year where cash used was
$12.8 million, reflecting continued operational discipline.
2024 Financial GuidanceThe
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. However, 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, before it expects a return to growth in 2025
with market access wins.
As a result, Sight Sciences 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.
The Company narrows guidance expectations for
adjusted operating expenses1,3 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.
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.
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
MeasuresCertain 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, August 1, 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. 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.
© 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
our clinical and market access progress; our ability to support
expanded use cases for our products and reengage existing
customers; the timing and impact of the ASC payment rule on payment
rates for our OMNI procedure; the impact of our dry eye pricing
strategy; the timing and impact of the publication of our budget
impact model; our ability to achieve our updated 2024 revenue and
adjusted operating expenses guidance; and our ability to achieve
surgical glaucoma revenue growth in the second half of 2024. .
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) |
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2024 |
|
|
2023 |
|
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
118,177 |
|
|
$ |
138,129 |
|
Accounts receivable, net of allowance for credit losses of $1,059
and $1,186 at June 30, 2024 and December 31, 2023,
respectively |
|
|
19,919 |
|
|
|
14,289 |
|
Inventory, net |
|
|
6,781 |
|
|
|
7,849 |
|
Prepaid expenses and other current assets |
|
|
1,452 |
|
|
|
2,604 |
|
Total current assets |
|
|
146,329 |
|
|
|
162,871 |
|
Property and equipment,
net |
|
|
1,489 |
|
|
|
1,640 |
|
Operating lease right-of-use
assets |
|
|
1,257 |
|
|
|
1,458 |
|
Other noncurrent assets |
|
|
640 |
|
|
|
682 |
|
Total assets |
|
$ |
149,715 |
|
|
$ |
166,651 |
|
Liabilities and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,923 |
|
|
$ |
1,731 |
|
Accrued compensation |
|
|
5,394 |
|
|
|
4,528 |
|
Accrued and other current liabilities |
|
|
5,971 |
|
|
|
3,774 |
|
Current portion - long-term debt, net |
|
|
— |
|
|
|
2,219 |
|
Total current liabilities |
|
|
13,288 |
|
|
|
12,252 |
|
Long-term debt, net |
|
|
33,770 |
|
|
|
31,708 |
|
Other noncurrent
liabilities |
|
|
1,019 |
|
|
|
2,476 |
|
Total liabilities |
|
|
48,077 |
|
|
|
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 June 30, 2024
and December 31, 2023 |
|
|
— |
|
|
|
— |
|
Common stock, par value $0.001 per share; 200,000,000 shares
authorized; 50,136,131 and 49,131,363 shares issued and outstanding
as of June 30, 2024 and December 31, 2023, respectively |
|
|
50 |
|
|
|
49 |
|
Additional paid-in-capital |
|
|
424,973 |
|
|
|
414,956 |
|
Accumulated deficit |
|
|
(323,385 |
) |
|
|
(294,790 |
) |
Total stockholders’ equity |
|
|
101,638 |
|
|
|
120,215 |
|
Total liabilities and stockholders’ equity |
|
$ |
149,715 |
|
|
$ |
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 June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue |
|
$ |
21,370 |
|
|
$ |
23,471 |
|
|
$ |
40,635 |
|
|
$ |
42,296 |
|
Cost of goods sold |
|
|
3,025 |
|
|
|
3,381 |
|
|
|
5,819 |
|
|
|
6,429 |
|
Gross profit |
|
|
18,345 |
|
|
|
20,090 |
|
|
|
34,816 |
|
|
|
35,867 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
4,316 |
|
|
|
5,221 |
|
|
|
8,952 |
|
|
|
9,890 |
|
Selling, general and administrative |
|
|
26,680 |
|
|
|
30,056 |
|
|
|
53,239 |
|
|
|
58,731 |
|
Total operating expenses |
|
|
30,996 |
|
|
|
35,277 |
|
|
|
62,191 |
|
|
|
68,621 |
|
Loss from operations |
|
|
(12,651 |
) |
|
|
(15,187 |
) |
|
|
(27,375 |
) |
|
|
(32,754 |
) |
Investment income |
|
|
1,526 |
|
|
|
1,793 |
|
|
|
3,174 |
|
|
|
3,602 |
|
Interest expense |
|
|
(1,145 |
) |
|
|
(1,349 |
) |
|
|
(2,350 |
) |
|
|
(2,625 |
) |
Loss on debt
extinguishment |
|
|
— |
|
|
|
— |
|
|
|
(1,962 |
) |
|
|
— |
|
Other expense, net |
|
|
(44 |
) |
|
|
(3 |
) |
|
|
(50 |
) |
|
|
(22 |
) |
Loss before income taxes |
|
|
(12,314 |
) |
|
|
(14,746 |
) |
|
|
(28,563 |
) |
|
|
(31,799 |
) |
Provision for income
taxes |
|
|
15 |
|
|
|
8 |
|
|
|
32 |
|
|
|
22 |
|
Net loss and comprehensive
loss |
|
$ |
(12,329 |
) |
|
$ |
(14,754 |
) |
|
$ |
(28,595 |
) |
|
$ |
(31,821 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.25 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.58 |
) |
|
$ |
(0.66 |
) |
Weighted-average shares used
in computing net loss per share attributable to common
stockholders, basic and diluted |
|
|
49,903,386 |
|
|
|
48,536,310 |
|
|
|
49,694,825 |
|
|
|
48,471,153 |
|
|
SIGHT SCIENCES, INC.Gross Margin
Disaggregation (Unaudited)(in
thousands) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Surgical Glaucoma |
|
$ |
20,244 |
|
|
$ |
21,398 |
|
|
$ |
38,501 |
|
|
$ |
38,733 |
|
Dry Eye |
|
|
1,126 |
|
|
|
2,073 |
|
|
|
2,134 |
|
|
|
3,563 |
|
Total |
|
|
21,370 |
|
|
|
23,471 |
|
|
|
40,635 |
|
|
|
42,296 |
|
Cost of goods
sold |
|
|
|
|
|
|
|
|
|
|
|
|
Surgical Glaucoma |
|
|
2,423 |
|
|
|
2,444 |
|
|
|
4,632 |
|
|
|
4,806 |
|
Dry Eye |
|
|
602 |
|
|
|
937 |
|
|
|
1,187 |
|
|
|
1,623 |
|
Total |
|
|
3,025 |
|
|
|
3,381 |
|
|
|
5,819 |
|
|
|
6,429 |
|
Gross
profit |
|
|
|
|
|
|
|
|
|
|
|
|
Surgical Glaucoma |
|
|
17,821 |
|
|
|
18,954 |
|
|
|
33,869 |
|
|
|
33,927 |
|
Dry Eye |
|
|
524 |
|
|
|
1,136 |
|
|
|
947 |
|
|
|
1,940 |
|
Total |
|
|
18,345 |
|
|
|
20,090 |
|
|
|
34,816 |
|
|
|
35,867 |
|
Gross
margin |
|
|
|
|
|
|
|
|
|
|
|
|
Surgical Glaucoma |
|
|
88.0 |
% |
|
|
88.6 |
% |
|
|
88.0 |
% |
|
|
87.6 |
% |
Dry Eye |
|
|
46.5 |
% |
|
|
54.8 |
% |
|
|
44.4 |
% |
|
|
54.4 |
% |
Total |
|
|
85.8 |
% |
|
|
85.6 |
% |
|
|
85.7 |
% |
|
|
84.8 |
% |
|
SIGHT SCIENCES, INC.Non-GAAP to GAAP
Reconciliation (Unaudited)(in
thousands) |
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
$ |
30,996 |
|
|
$ |
35,277 |
|
|
$ |
62,191 |
|
|
$ |
68,621 |
|
Less: Stock-based Compensation |
|
|
(4,223 |
) |
|
|
(3,671 |
) |
|
|
(8,623 |
) |
|
|
(7,135 |
) |
Less: Depreciation and Amortization |
|
|
(186 |
) |
|
|
(146 |
) |
|
|
(378 |
) |
|
|
(295 |
) |
Adjusted Operating Expenses(4) |
|
|
26,587 |
|
|
|
31,460 |
|
|
|
53,190 |
|
|
|
61,191 |
|
|
4 Please see the section titled "Non-GAAP Financial Measures"
for additional information.
SIGHT SCIENCES, INC.Supplemental Financial
Measures (Unaudited) |
|
|
|
Three Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
Surgical Glaucoma active customers (5) |
|
|
1,131 |
|
|
|
1,134 |
|
Dry Eye lid treatment units
sold (6) |
|
|
4,088 |
|
|
|
5,934 |
|
Dry Eye active customers
(7) |
|
|
277 |
|
|
|
370 |
|
|
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 June 30, 2024 and 2023.6
“Dry Eye lid treatment units sold” means the quantity of TearCare
SmartLids® sold during the three months ended June 30, 2024 and
2023.7 “Dry Eye active customers” means the number of customers who
ordered lid treatment units during the three months ended June 30,
2024 and 2023.
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