PROCEPT BioRobotics (US:PRCT)2023-11-02 04:01Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $35.1 million, representing a growth of 72% compared to Q3 2022 [7][38] - U.S. revenue for the quarter was $32.3 million, reflecting a growth of 73% year-over-year [38] - Net loss for Q3 2023 was $24.6 million, compared to a net loss of $22.6 million in the same period of the prior year [42] - Adjusted EBITDA loss was $19.4 million, compared to a loss of $18.3 million in Q3 2022 [42] - Cash and cash equivalents as of September 30, 2023, were approximately $287 million, including $162 million raised from an equity offering [42][36] Business Line Data and Key Metrics Changes - Sold 38 robots in the U.S. during Q3 2023, representing a unit growth of 46% compared to the prior year [8] - U.S. handpiece and consumable revenue increased by 113% compared to Q3 2022, amounting to $17 million [9][18] - Monthly utilization per account was 6.4 handpieces, which increased sequentially by 5% compared to Q2 2023 [10][39] - U.S. install base grew by 62% compared to the end of 2022, reaching 271 systems by the end of Q3 2023 [30][40] Market Data and Key Metrics Changes - International revenue for Q3 was $2.8 million, representing a growth of 62% [41] - The company expects full-year international revenue to be approximately $11.5 million [22] - In the UK, NICE granted a strong endorsement for Aquablation therapy, which is expected to enhance market penetration [13] Company Strategy and Development Direction - The company plans to invest in expanding its sales infrastructure in the UK to accelerate growth [35] - The strategy focuses on long-term clinical data, gaining reimbursement coverage, and building a high-performing sales team [28] - The company aims to become the standard of care for treating men with BPH, with Aquablation therapy currently representing only 6% of annual receptive BPH procedures in the U.S. [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth plans, citing positive trends in all tracked metrics [16] - The company is not providing 2024 financial guidance but remains optimistic about growth drivers such as increased utilization and a robust capital sales pipeline [50][51] - Management noted that the addition of UnitedHealthcare coverage allows access to approximately 95% of men in the U.S. [37] Other Important Information - The company completed an equity follow-on offering in August 2023, raising $162 million to strengthen its balance sheet [15] - The company moved its corporate headquarters to a larger facility in San Jose to support future growth [36] Q&A Session Summary Question: How are new systems performing in terms of utilization? - Management noted that new accounts typically launch with two to three surgeons, contributing to increased utilization [46][65] Question: What are the key drivers for revenue growth in 2024? - Management highlighted strong pipeline growth, increased utilization, and the addition of UnitedHealthcare as key drivers for future growth [50][51] Question: How does the company view the competitive landscape regarding TURP and Greenlight procedures? - Management indicated that TURP and Greenlight are the primary competitors, with Aquablation therapy offering advantages such as shorter therapy time and faster recovery [76] Question: What is the expected impact of IDN relationships on pricing? - Management stated that IDN relationships do not negatively impact system average selling prices and that they are on track to have most large IDNs under contract by the end of 2023 [79] Question: Can you provide insights on the Aquablation therapy for prostate cancer? - Management expressed excitement about the potential of Aquablation therapy for prostate cancer, emphasizing that it is still early in the research phase [126][127]