PROCEPT BioRobotics (PRCT) - 2024 Q2 - Quarterly Results

Financial & Operational Highlights PROCEPT BioRobotics reported strong Q2 2024 results with 61% year-over-year revenue growth to $53.4 million, driven by significant increases in U.S. handpiece sales and system placements. The company also achieved record gross margins of 59% and raised its full-year 2024 revenue and EBITDA guidance, reflecting strong execution in hospital penetration and operational efficiency Q2 2024 Key Performance Indicators | Metric | Value | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $53.4 million | 61% | | U.S. Handpiece & Consumables Revenue | $27.3 million | 101% | | U.S. System & Rental Revenue | $17.8 million | 20% | | International Revenue | $5.7 million | 79% | | U.S. Robotic Systems Sold | 47 units | N/A | - The company's performance was driven by a continued focus on penetrating BPH hospitals, increasing utilization, and improving operational efficiencies[2] - Achieved record gross margins of 59% and demonstrated significant operating expense leverage[2] Q2 2024 Financial Performance Total revenue for Q2 2024 reached $53.4 million, a 61% increase YoY, with U.S. revenue growing 59% to $47.7 million. This growth was fueled by a 101% surge in U.S. handpiece and consumable revenue. Gross margin improved to 59% from 56% YoY due to better overhead absorption and higher U.S. selling prices. Net loss remained stable at $25.6 million, while Adjusted EBITDA loss improved to $18.0 million from $19.9 million in the prior year Q2 2024 Financial Summary vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $53.4M | $33.1M | +61% | | Gross Margin | 59% | 56% | +3 p.p. | | Operating Expenses | $58.3M | $44.1M | +32% | | Net Loss | ($25.6M) | ($25.3M) | ~Stable | | Adjusted EBITDA | ($18.0M) | ($19.9M) | +9.5% Improvement | - The U.S. installed base of AquaBeam Robotic Systems reached 400 systems as of June 30, 2024[3] - U.S. monthly utilization per account increased by approximately 15% in Q2 2024 compared to the prior year period[3] Revenue by Type and Geography U.S. revenue dominated at $47.7 million for Q2 2024, driven by a 101% YoY increase in handpieces and consumables to $27.3 million. System sales and rentals in the U.S. also grew to $17.8 million. International revenue saw strong growth of 79% to $5.7 million, primarily from system sales and handpieces Q2 2024 Revenue Breakdown (in thousands) | Revenue Stream | Geography | Q2 2024 | Q2 2023 | YoY Growth | | :--- | :--- | :--- | :--- | :--- | | System sales and rentals | U.S. | $17,819 | $14,828 | +20% | | Handpieces and other consumables | U.S. | $27,260 | $13,601 | +100% | | Total U.S. revenue | U.S. | $47,668 | $29,928 | +59% | | System sales and rentals | Outside U.S. | $3,078 | $1,599 | +92% | | Handpieces and other consumables | Outside U.S. | $2,271 | $1,269 | +79% | | Total outside of U.S. revenue | Outside U.S. | $5,685 | $3,176 | +79% | | Total revenue | Global | $53,353 | $33,104 | +61% | Full-Year 2024 Financial Guidance The company raised its full-year 2024 revenue guidance to $217.0 million (representing 59% YoY growth) from the previous $213.5 million. It also improved its Adjusted EBITDA loss guidance to ($67.5) million from ($70.0) million, while maintaining projections for gross margin at approximately 59% and total operating expenses at $231.5 million Updated Full-Year 2024 Guidance | Metric | FY 2024 Guidance | Previous Guidance | | :--- | :--- | :--- | | Total Revenue | $217.0 million | $213.5 million | | Gross Margin | ~59% | ~58% to 59% | | Total Operating Expense | ~$231.5 million | Unchanged | | Adjusted EBITDA Loss | ($67.5) million | ($70.0) million | - Cash usage significantly improved in Q2 to $11.5 million, down from $31.6 million in Q1 2024, driven by improvements in working capital. Cash and short-term investments totaled $214.1 million as of June 30, 2024[5] Financial Statements The condensed financial statements detail the company's performance, showing a year-over-year increase in revenue and gross profit, alongside a stable net loss. The balance sheet reflects a strong cash position of $214.1 million, though total assets and equity have decreased since year-end 2023 due to cash usage and accumulated deficit Condensed Consolidated Statements of Operations (Income Statement) For the three months ended June 30, 2024, the company generated $53.4 million in revenue and a gross profit of $31.5 million. After operating expenses of $58.3 million, the net loss was $25.6 million, or ($0.50) per share, an improvement from ($0.56) per share in Q2 2023 Q2 2024 vs Q2 2023 Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $53,353 | $33,104 | | Gross Profit | $31,482 | $18,429 | | Total Operating Expenses | $58,310 | $44,054 | | Loss from Operations | ($26,828) | ($25,625) | | Net Loss | ($25,626) | ($25,285) | | Net Loss Per Share | ($0.50) | ($0.56) | Condensed Consolidated Balance Sheets As of June 30, 2024, PROCEPT BioRobotics had $214.1 million in cash and cash equivalents and total assets of $374.4 million. Total liabilities stood at $122.6 million, with total stockholders' equity of $251.8 million, a decrease from $280.8 million at the end of 2023 Balance Sheet Highlights (in thousands) | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $214,093 | $257,222 | | Total Current Assets | $321,892 | $350,567 | | Total Assets | $374,350 | $404,717 | | Total Liabilities | $122,571 | $123,965 | | Total Stockholders' Equity | $251,779 | $280,752 | Non-GAAP Financial Measures & Reconciliation The company uses Adjusted EBITDA, a non-GAAP measure defined as earnings before interest, taxes, depreciation, amortization, and stock-based compensation, to evaluate operating performance. For Q2 2024, the Adjusted EBITDA loss was $18.0 million, an improvement from a $19.9 million loss in Q2 2023. The full-year 2024 guided Adjusted EBITDA loss of $67.5 million is reconciled from a projected GAAP net loss of $97.3 million Q2 2024 GAAP Net Loss to Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net loss | $(25,626) | $(25,285) | | Stock-based compensation expense | $7,986 | $5,104 | | Depreciation and amortization | $1,269 | $642 | | Interest (income) and expense, net | $(1,559) | $(400) | | Adjusted EBITDA | $(17,930) | $(19,939) | FY 2024 GAAP Net Loss to Adjusted EBITDA Guidance Reconciliation (in thousands) | Line Item | 2024 Guidance | | :--- | :--- | | Net loss | $(97,250) | | Stock-based compensation expense | $31,050 | | Depreciation and amortization expense | $5,340 | | Interest (income) and expense, net | $(6,640) | | Adjusted EBITDA | $(67,500) |