Sight Sciences, Inc. Q1 FY2025 earnings call

• Paul Badawi emphasized the company's focus on addressing unmet medical needs in glaucoma and dry eye, with key strategic initiatives including building commercial momentum in MIGS, establishing reimbursement for TearCare, and progressing the product pipeline. - Discussed tariff exposure from China imports and plans to expand manufacturing outside China, expecting a new manufacturing line for OmniEdge in 9-12 months. - Highlighted progress in surgical glaucoma, including Omni's performance in the MIGS market despite Medicare restrictions, engagement with surgeons, and the launch of OmniEdge. - In dry eye, discussed progress on clinical trials, market access initiatives, and the foundation built for TearCare.

In the first quarter of 2025, total revenue was $17.5 million, a 9% decrease compared to the prior year. Surgical glaucoma revenue was $17.1 million, a 6% year-over-year decrease, primarily due to a 10% decrease in account utilization. Ordering accounts were up 3% year-over-year. Dry eye revenue was $400,000, a decrease from $1 million in the prior year, mainly due to fewer SmartLids sales after the price increase. Gross margin for the first quarter was 86%, flat year-over-year. Total operating expenses were $29 million, a 7% decrease year-over-year, with adjusted operating expenses at $24.7 million, a 7% decrease year-over-year.

• Reaffirmed revenue guidance for 2025 at $70 million to $75 million. - Expected surgical glaucoma revenue to be down high single digits to low double digits in Q2 2025 compared to the prior year. - Dry eye revenue expected to be ~$1 million for full year 2025. - Adjusted operating expenses guidance revised to $101 million to $105 million for 2025, an increase of 0% to 4% compared to 2024.

• Tariff costs increasing cost of goods sold, with unmitigated tariff exposure for surgical glaucoma segment expected to increase cost of goods sold by $3.5 million to $4.5 million for full year 2025. - Uncertainty around manufacturing expansion timelines and costs. - Risks related to achieving reimbursement coverage for TearCare, with no coverage determinations made yet. - Competitive landscape and market dynamics impacting market share and revenue.

Q: Talk about MIGS trends year to date and Omni's tracking versus expectations.

A: While patient encounters grow, actual utilization declines due to Medicare LCD. Omni's comprehensive efficacy keeps it competitive, with team engaging surgeons and retaining position.

Q: Any update on TearCare reimbursement wins?

A: No covered lives yet, but having conversations with payers and expecting coverage/payment decisions this year.

Q: Thoughts on Scion and its revenue as a percent of total?

A: Scion is a modest portion of surgical glaucoma revenue, complementary to Omni, with similar trends to Omni in the market.

Q: Outlook for revenue cadence?

A: Expect sequential increase in Q2, third quarter small step back, fourth quarter seasonality, with pseudophakic standalone and dry eye market access providing tailwinds.