What drove RXST's strong EPS growth in Q2 2024?

RxSight's strong EPS growth in Q2 2024 can be attributed to several key factors:

1. Revenue Growth: The company reported a 69% increase in revenue in Q1 2024 compared to the same period in the previous year, reaching $29.5 million. This significant revenue growth is a result of a 92% increase in LAL revenue and a 35% increase in LDD revenue.
2. Gross Margin Improvement: RxSight's gross margin improved substantially to 70% in Q1 2024, up from 59% in the same quarter the previous year. This improvement reflects a favorable shift in product mix and reduced manufacturing costs, primarily due to higher production volumes and increased margin on the LDD due to lower material costs.
3. Operating Efficiency: The company's operating efficiency also contributed to the improved financial results. Despite a 34% increase in SG&A expenses, the company reported a net loss that was narrowed by 31% from the previous year. This indicates better cost management and operational efficiency.

In conclusion, RxSight's strong EPS growth in Q2 2024 is driven by revenue growth, gross margin improvement, and operating efficiency. These factors combined to enable the company to surpass analyst expectations for both revenue and EPS.