PROCEPT BioRobotics (US:PRCT)2023-07-28 21:23Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $33.1 million, representing growth of 98% compared to Q2 2022 [140] - U.S. revenue for the quarter was $29.9 million, representing growth of 102% compared to the prior year period [145] - Net loss was $25.3 million for Q2 2023 compared to $19.2 million in the same period of the prior year [32] - Adjusted EBITDA was a loss of $19.9 million compared to a loss of $14.6 million in Q2 2022 [32] - Gross margin for Q2 2023 was a record 56%, with full year 2023 gross margins expected to be approximately 55% [30][26] Business Line Data and Key Metrics Changes - Sold a record 40 robotic systems in the U.S., generating total U.S. system revenue of $14.8 million, representing growth of 74% compared to the prior year [5][9] - U.S. handpiece and consumable revenue increased 138% compared to Q2 2022, with 3,904 handpieces shipped in Q2 2023, representing unit growth of 124% [29][41] - Average selling price for systems was $370,000, up 5% compared to Q1 2023 [10] Market Data and Key Metrics Changes - International revenue for Q2 was $3.2 million, representing growth of 68% compared to the prior year period, driven primarily by strong performance in the U.K. [30][144] - Approximately 95% of men in the U.S. now have access to Aquablation therapy following UnitedHealthcare's updated coverage policy [7] Company Strategy and Development Direction - The company plans to invest further in the U.K. market to accelerate growth and expand patient awareness [8] - The company continues to expect approximately 55% of system sales to be in the second half of 2023, equating to 144 placements for the full year [23] - The company signed a national sales contract with the largest IDN in the U.S., which will secure pricing for system placements and handpieces sold [136] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting sales expectations due to a growing capital sales pipeline and high surgeon retention rates [5][6] - Management noted that while Q3 system sales are expected to be down relative to Q2, Q4 is anticipated to be the strongest quarter of the year [23] - Management highlighted that the increase in operating expenses is associated with strategic investments in R&D and commercial team expansion [26] Other Important Information - The company expects full year 2023 total revenue guidance to be $131 million, representing growth of 75% compared to 2022 [33] - The company anticipates a modest benefit from UnitedHealthcare's coverage in Q4, contributing to expanded utilization [148] Q&A Session All Questions and Answers Question: Can you provide insights on patient demand for Aquablation treatment? - Management noted that there is an increase in patient demand, with patients actively seeking Aquablation treatment and awareness growing through online activities [40][52] Question: What are the plans for capital rep sales force expansion in 2023? - Management indicated that the capital sales team has been expanded from 20 to 30 reps, with plans to continue adding more reps to ensure continuity and support for growth [55] Question: How do you expect the impact of UnitedHealthcare's coverage to manifest? - Management does not anticipate a significant impact in Q3 but expects a modest benefit in Q4 from the coverage expansion [148][86] Question: Can you comment on the capital environment and system placements? - Management observed that hospitals are prioritizing spending on innovative treatments, which aligns with the company's offerings [112] Question: What is the typical time frame to close on a system placement? - Management stated that the typical time frame to close on a system placement ranges from 3 to 9 months, depending on various factors [122]