Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $68.2 million, representing a growth of 57% compared to Q4 2023 [7] - Full year total revenue was $224.5 million, indicating a growth of 65% [8] - Gross margin for Q4 2024 reached 64%, marking an all-time high [36] - Net loss for Q4 2024 was $18.9 million, an improvement from $27.5 million in the same period of the prior year [40] - Adjusted EBITDA loss was $10.3 million compared to a loss of $23.3 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - The company sold 60 new robotic systems in Q4 2024, with over 95% being HYDROS systems at an average selling price of approximately $460,000 [20][33] - US handpiece and consumable revenue for Q4 2024 was $29.3 million, representing a growth of 36% compared to Q4 2023 [34] - International revenue in Q4 2024 was $7.8 million, showing a growth of 137% compared to the prior year period [35] Market Data and Key Metrics Changes - The US installed base of robotic systems grew to 505, a 60% increase year-over-year [8] - Approximately 50% of all BPH resective surgeries are Medicare, with the other half being private pay [23] Company Strategy and Development Direction - The company aims to transform the global treatment of BPH and become the standard of care, currently holding about 10% US BPH resective market share [9] - The introduction of the HYDROS Robotic System and FirstAssist AI is expected to enhance procedural accuracy and outcomes [11][12] - The company is pursuing a pivotal randomized clinical study for prostate cancer, which could position Aquablation therapy as a first-line surgical treatment [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in procedure volumes following a saline supply shortage that impacted Q4 2024 [28][30] - The company anticipates full year 2025 total revenue to be approximately $320 million, representing growth of about 43% compared to 2024 [41] - Management highlighted the importance of strategic investments to drive long-term growth, particularly in clinical trials [48] Other Important Information - The company experienced a saline supply shortage due to Hurricane Helene, which resulted in a delay or cancellation of 10% to 20% of expected procedures in Q4 [26][28] - The company has a strong cash position with $337 million in cash, cash equivalents, and restricted cash as of December 31 [40] Q&A Session Summary Question: Impact of saline shortage on procedures - Management estimated that the saline shortage resulted in a delay or cancellation of up to 2,000 procedures in Q4, based on customer surveys and internal analysis [67][70] - Accounts not impacted by the saline shortage performed as expected, showing strong sequential growth [76] Question: Q1 utilization growth - Q1 guidance does not fully assume that all lost procedures from Q4 will return, but there is optimism for recovery in February and March [80][81] Question: HYDROS feedback and account mix - Customers are excited about the HYDROS features, with 95% of procedures utilizing the FirstAssist AI [102] - There is a growing demand from medium and low-volume BPH hospitals for Aquablation systems [106] Question: Replacement revenue and ASP - Replacement ASPs for AquaBeam customers are expected to be lower, around $50,000 to $100,000, while future replacements will align more closely with greenfield sales [128][129] - The $3 million in anticipated replacement revenue is separate from the guidance for new systems [135]

BPH Market and Aquablation Therapy - The U S BPH surgical market represents a $20 billion+ opportunity[12,19] - Approximately 40 million men in the U S currently have BPH[15] - Aquablation therapy is uniquely positioned to become the BPH standard of choice for all prostate sizes and shapes[10] - Around 95% of patients have access to Aquablation therapy[11,59] Clinical and Technological Advantages - The HYDROS Robotic System elevates the Aquablation Therapy experience with AI-powered treatment planning and advanced image guidance[31] - Aquablation offers similar symptom relief to TURP across all prostates in both clinical & commercial studies[50] - WATER study showed that 14 out of 17 participating surgeons had no previous experience with Aquablation therapy, highlighting its ease of adoption[57] Financial Performance and Guidance - Worldwide revenue for Q4 2024 reached $68 2 million, a 57% year-over-year increase[88] - New U S systems sold in Q4 2024 increased by 36% year-over-year[88] - International revenue for Q4 2024 was $7 8 million, a 137% year-over-year increase[88] - The company provides revenue guidance for 2025 of $320 million, representing 43% year-over-year growth[92,93]

Group 1: Financial Performance - PROCEPT BioRobotics reported a quarterly loss of $0.35 per share, which aligns with the Zacks Consensus Estimate, an improvement from a loss of $0.54 per share a year ago [1] - The company posted revenues of $68.24 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 2.40%, compared to $43.58 million in the same quarter last year [2] - Over the last four quarters, PROCEPT BioRobotics has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2][3] Group 2: Stock Performance and Outlook - PROCEPT BioRobotics shares have declined approximately 19.1% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.32 on revenues of $66.34 million, and for the current fiscal year, it is -$1.27 on revenues of $315.64 million [7] - The estimate revisions trend for PROCEPT BioRobotics is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Medical - Instruments industry, to which PROCEPT BioRobotics belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Revenue Performance - Total revenue for Q4 2024 was $68.2 million, a 57% increase compared to the prior year period[4] - Full year 2024 total revenue reached $224.5 million, a 65% increase from $136.2 million in 2023[11] - Total revenue for the twelve months ended December 31, 2024, was $224.498 million, a 65% increase compared to $136.191 million in 2023[33] - U.S. total revenue for the three months ended December 31, 2024, was $60.389 million, up 50% from $40.269 million in the same period of 2023[33] - U.S. handpiece and consumables revenue for Q4 2024 was $29.3 million, a 36% increase compared to the prior year[10] - Handpieces and other consumables revenue in the U.S. for the twelve months ended December 31, 2024, reached $110.542 million, a significant increase of 73% from $64.051 million in 2023[33] Profitability and Loss - Net loss for Q4 2024 was $18.9 million, an improvement from a loss of $27.5 million in the prior year[7] - PROCEPT BioRobotics Corporation reported a net loss of $80 million for 2025, with an adjusted EBITDA of $(35) million[29] Operating Expenses - Operating expenses for Q4 2024 were $63.4 million, compared to $50.8 million in the prior year, marking a significant increase[6] Gross Margin - Gross margin for Q4 2024 improved to 64%, up from 49% in the prior year period[5] Assets and Liabilities - Total assets increased to $534.017 million in 2024, up from $404.717 million in 2023, representing a growth of approximately 32%[31] - Current assets rose to $481.842 million in 2024, compared to $350.567 million in 2023, marking a 37% increase[31] - Total liabilities increased slightly to $131.797 million in 2024 from $123.965 million in 2023[31] - The company's accumulated deficit increased to $(545.985) million in 2024 from $(454.572) million in 2023[31] - Cash and cash equivalents grew to $333.725 million in 2024, up from $257.222 million in 2023, indicating a 30% increase[31] Future Projections - The company projects total revenue for 2025 to be approximately $320 million, representing a 42% growth over 2024[10] - The company anticipates a depreciation and amortization expense of $6.8 million for 2025[29] Technological Advancements - The company received FDA 510(k) clearance for the HYDROS™ Robotic System in August 2024, marking a significant technological advancement[3] Install Base - The install base of AquaBeam and Hydros Robotic Systems in the U.S. was 505 systems as of December 31, 2024[4]

Core Insights - PROCEPT BioRobotics Corporation reported a total revenue of $68.2 million for Q4 2024, marking a 57% increase year-over-year, driven by higher system and handpiece sales, increased average selling prices, and international revenue growth [4][9] - The company received FDA 510(k) clearance for its HYDROS™ Robotic System and FDA-IDE approval for a pivotal clinical study for prostate cancer, indicating significant advancements in its product offerings and clinical research [3] - For the full year 2024, total revenue reached $224.5 million, a 65% increase from 2023, with a projected revenue of approximately $320 million for 2025, representing a 42% growth [10][9] Financial Performance - Q4 2024 gross margin improved to 64% from 49% in the prior year, attributed to better overhead absorption and increased revenues [5] - Operating expenses for Q4 2024 were $63.4 million, up from $50.8 million in the previous year, primarily due to expansion of the commercial organization and increased compensation expenses [6] - The net loss for Q4 2024 was $18.9 million, an improvement from a loss of $27.5 million in the same period last year, with adjusted EBITDA loss narrowing to $10.3 million from $23.3 million [7][12] Revenue Breakdown - U.S. system revenue for Q4 2024 was $27.6 million, a 67% increase year-over-year, with 60 new robotic systems sold at an average price of approximately $460,000 [4][9] - U.S. handpiece and consumable revenue for the quarter was $29.3 million, reflecting a 36% increase compared to the prior year [4] - International revenue for Q4 2024 was $7.8 million, a significant increase of approximately 137% compared to the previous year [4] Guidance and Projections - The company projects Q1 2025 total revenue to be approximately $65.5 million, with U.S. system revenue expected to be around $18.7 million [16] - For the full year 2025, the company anticipates a gross margin of approximately 64.5% and total operating expenses of about $300 million [16] - The projected adjusted EBITDA loss for 2025 is approximately $35 million [16]

Financial Results Announcement - PROCEPT BioRobotics will report financial results for the fourth quarter of 2024 after market close on February 25, 2025 [1] - A conference call will be hosted by the Company's management at 4:30 p.m. Eastern Time on the same day [1] Conference Presentations - Management will present at the TD Cowen 45th Annual Healthcare Conference on March 4 at 1:10 p.m. Eastern Time [3] - Additionally, management will present at the 2025 Leerink Partners Healthcare Conference on March 11 at 3:00 p.m. Eastern Time [3] Company Overview - PROCEPT BioRobotics focuses on advancing patient care through surgical robotics, specifically in urology [5] - The Company manufactures the AQUABEAM and HYDROS™ Robotic Systems, with the HYDROS system being the only AI-powered technology delivering Aquablation therapy [5] - Aquablation therapy is designed for effective treatment of lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH), affecting approximately 40 million men in the U.S. [5] - The Company has over 150 peer-reviewed publications supporting the clinical advantages of Aquablation therapy [5]

Core Viewpoint - PROCEPT BioRobotics Corporation (PRCT) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4][6]. Earnings Estimates and Revisions - The Zacks rating system is centered around the changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts for the current and following years [2]. - Rising earnings estimates for PROCEPT BioRobotics indicate an improvement in the company's underlying business, which is expected to drive stock price appreciation [6][9]. - The company is projected to earn -$1.75 per share for the fiscal year ending December 2024, reflecting a year-over-year change of 21.9% [9]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10][11]. Market Implications - The upgrade of PROCEPT BioRobotics to a Zacks Rank 1 positions it among the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7].

Company Overview - PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care through transformative solutions in urology [3] - The HYDROS™ Robotic System is the only AI-Powered robotic technology that delivers Aquablation therapy, designed for effective, safe, and durable outcomes for males suffering from lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH) [3] - BPH is the most common prostate disease, affecting approximately 40 million men in the United States [3] - The company has developed a significant body of clinical evidence with over 150 peer-reviewed publications supporting the benefits and clinical advantages of Aquablation therapy [3] Upcoming Events - Management will present at the 36th Annual Piper Sandler Healthcare Conference in New York City on December 4 at 8:30 a.m. Eastern Time [1] - A live webcast of the event will be available on the company's website, with archived recordings accessible for at least 90 days post-event [2]

Core Insights - PROCEPT BioRobotics Corporation (NASDAQ: PRCT) has seen a stock increase of 20% following recent fundamental updates, now trading at approximately 16 times forward sales and 20 times book value as investors reassess the value of its equity [1] Group 1 - The stock's performance reflects a positive reappraisal by investors regarding the company's equity value [1] - The current trading multiples indicate a strong market interest and potential growth outlook for PROCEPT BioRobotics [1]

Company Overview - PROCEPT BioRobotics Corporation (PRCT) currently holds a Momentum Style Score of A, indicating strong momentum potential [3] - The company has a Zacks Rank of 2 (Buy), suggesting favorable market performance [4] Price Performance - PRCT shares have increased by 34.2% over the past week, while the Zacks Medical - Instruments industry remained flat during the same period [6] - Over the past month, PRCT's price change is 32.49%, significantly outperforming the industry's 2.19% [6] - In the last quarter, PRCT shares rose by 52.15%, and over the past year, they gained 198.93%, compared to the S&P 500's increases of 13.52% and 37.4%, respectively [7] Trading Volume - The average 20-day trading volume for PRCT is 1,193,537 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, 6 earnings estimates for PRCT have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from -$1.88 to -$1.74 [10] - For the next fiscal year, 5 estimates have moved upwards, with 1 downward revision during the same period [10]