Overview

• US robotic cataract laser maker's Q1 revenue fell 5% yr/yr due to terminated Alcon deal

• Q1 recurring revenue rose 9% and made up 94% of total revenue

• Company posted net income after prior-year loss, driven by merger termination and warrant gains

Outlook

• Company expects recurring revenue to grow as utilization increases and system placements normalize

• LENSAR says underlying business fundamentals remain strong following merger-related disruption

Result Drivers

• MERGER UNCERTAINTY - Co said Q1 system sales and total revenue fell due to market disruption and uncertainty around the now-terminated Alcon merger

• RECURRING REVENUE GROWTH - Q1 recurring revenue rose 9% yr/yr, driven by higher procedure volume

• INSTALLED BASE EXPANSION - Total installed base of ALLY and LENSAR systems grew 12% yr/yr, with 7 ALLY placements and 11 systems in backlog

Company press release: ID:nGNX3x82Tp

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		$36.3 mln
Q1 EBITDA		$37.3 mln

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for LENSAR Inc is $8.50, about 62.5% above its May 7 closing price of $5.23

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