Sight Sciences Reports Fourth Quarter and Full Year 2021 Financial Resultsgrafic lines 4 Sight Sciences

Sight Sciences, Inc. (Nasdaq: SGHT), an eyecare technology company focused on creating innovative solutions intended to transform standards of care and improve patients’ lives, today reported financial results for the quarter and year ended December 31, 2021.

Recent Business Highlights

• Generated 2021 total revenue of $49.0 million, an increase of 77% compared to the prior year
• Generated fourth quarter 2021 total revenue of $14.7 million, an increase of 63% compared to the prior year period
• Expanded total gross margin to 87% in the fourth quarter 2021 versus 74% in the prior year period
• Received FDA 510(k) Clearance of the TearCare^® System for treatment of Meibomian Gland Disease (MGD), the leading cause of Dry Eye Disease
• Clinical data from the prospective, multicenter GEMINI clinical trial was published in Clinical Ophthalmology demonstrating that at 12 months post treatment, microinvasive glaucoma surgery (MIGS) using the OMNI^® Surgical System suppressed daily fluctuations in intraocular pressure – a meaningful and independent risk factor for the progression of glaucoma. Two additional publications based on data from GEMINI were recently accepted for publication in Clinical Ophthalmology
• Launched the “Don’t Wait for Too Late” educational campaign aimed to raise glaucoma community awareness of Standalone MIGS as an earlier intervention alternative to treat primary open-angle glaucoma
• Appointed health policy and legislation expert Brenda Becker to the Board of Directors

“Our fourth quarter results capped a tremendous year for Sight Sciences. We achieved strong commercial results, FDA clearances expanding indications for both OMNI and TearCare, significant progress across our ten ongoing and planned clinical trial programs, and substantial R&D advancements on existing and new products that have the potential to further improve the lives of patients with glaucoma and dry eye,” said Paul Badawi, co-founder and Chief Executive Officer of Sight Sciences. “In addition, we completed the largest medical technology IPO of 2021 by gross proceeds, raising $276 million and providing us ample financial flexibility to invest in our business plan. We will build on this momentum in 2022 and continue to execute our three strategic initiatives: (1) converting more Combination Cataract MIGS surgeons to OMNI, (2) developing the $5 billion U.S. Standalone MIGS segment, and (3) pioneering optimal access to effective MGD patient care. We are also excited to offer a preview of several new product development projects on our conference call later today.”

Fourth Quarter 2021 Financial Results
Revenue for the fourth quarter of 2021 was $14.7 million, an increase of $5.7 million, or 63%, compared to the fourth quarter of 2020. Surgical Glaucoma revenue in the fourth quarter of 2021 was $13.9 million, an increase of 60% compared to the prior year period. The growth was primarily driven by an increase in both the number of facilities ordering OMNI and utilization per ordering facility during the fourth quarter of 2021 as compared to 2020. Dry Eye revenue in the fourth quarter of 2021 was $0.8 million, an increase of 179% from the previous year. This increase reflected the transition to a more focused customer targeting strategy in the fourth quarter of 2020 that is designed to address and enhance market access to the TearCare^® System over the long-term.

Gross profit for the fourth quarter of 2021 was $12.7 million compared to $6.6 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 87%, as compared to 74% in the same period the prior year. The gross margin improvement was attributable mainly to OMNI manufacturing cost reductions resulting from transitioning production to high volume, lower cost contract manufacturers and increased revenues covering largely fixed allocated labor and manufacturing overhead.

Operating expenses were $27.5 million for the fourth quarter of 2021 compared to $15.0 million in the corresponding prior year period, representing an 82% increase. Operating expenses as a percentage of revenues increased from 167% in the fourth quarter of 2020 to 187% in the fourth quarter of 2021. The increase in operating expenses was primarily driven by additions to personnel and continued investment in R&D and SG&A to support the Company’s growth, including stock-based compensation of $2.0 million compared to $0.2 million in the prior year period.

Net loss was $15.9 million in the fourth quarter of 2021 ($0.34 per share), as compared to $9.1 million in the corresponding period of the prior year ($0.97 per share).

2021 Financial Results
Revenue for 2021 was $49.0 million, an increase of $21.3 million, or 77%, compared to 2020. Surgical Glaucoma revenue in 2021 was $46.5 million, an increase of 79% compared to the prior year. Dry Eye revenue in 2021 was $2.5 million, an increase of 50% from the previous year.

Gross profit for 2021 was $40.3 million compared to $18.4 million for 2020. Gross margin for 2021 was 82%, as compared to 67% in 2021. The gross margin improvement was attributable mainly to OMNI manufacturing cost reductions resulting from transitioning production to high volume, lower cost contract manufacturers and increased revenues covering largely fixed allocated labor and manufacturing overhead.

Operating expenses were $91.8 million for 2021 compared to $50.6 million in the corresponding prior year period, representing an 81% increase. Operating expenses as a percentage of revenues increased from 183% in 2020 to 188% in 2021. The increase in operating expenses was primarily driven by additions to personnel and continued investment in R&D and SG&A to support the Company’s growth, including stock-based compensation of $5.1 million compared to $0.5 million in the prior year period.

Net loss was $63.0 million in 2021 ($2.36 per share), as compared to $34.7 million in the prior year ($3.71 per share).

Cash and cash equivalents totaled $260.7 million and total debt was $32.7 million as of December 31, 2021.

2022 Financial Guidance
Sight Sciences projects revenue for the full year 2022 to range from $67 million to $75 million, which represents approximately 45% growth compared to 2021 using the midpoint of the range.

Conference Call
Sight Sciences’ management team will host a conference call today, March 24, 2022, beginning at 4:30 pm ET. Investors interested in listening to the call may do so by dialing 1-844-287-7410 for domestic callers or 1-914-800-3942 for international callers, five to ten minutes prior to the start time, using the passcode: 8783804. A live and recorded webcast of the call will be available on the “Investors” section of the Company’s website at https://investors.sightsciences.com/.