PROCEPT BioRobotics (US:PRCT)2022-11-06 13:22Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $20.3 million, representing a growth of 135% compared to Q3 2021 [11][32] - U.S. revenue for the quarter was $18.6 million, reflecting a growth of 152% year-over-year [32] - Net loss for Q3 2022 was $22.6 million, compared to a loss of $14.1 million in the same period of the prior year [38] - Adjusted EBITDA was a loss of $18.3 million compared to a loss of $10.9 million in Q3 2021 [39] - Cash and cash equivalents as of September 30, 2022, were $249.2 million [39] Business Line Data and Key Metrics Changes - Sold 26 AquaBeam Robotic Systems in Q3 2022, generating U.S. system revenue of $9.8 million, a growth of 95% compared to Q3 2021 [33] - U.S. handpiece and consumables revenue was $8 million, representing a growth of approximately 267% year-over-year [34] - Utilization per account increased approximately 60% compared to Q3 2021 [35] Market Data and Key Metrics Changes - The installed base of AquaBeam systems in the U.S. reached 139, with approximately 2,700 hospitals performing BPH surgeries [15] - International revenue for Q3 was $41.7 million, representing growth of approximately 34% [36] Company Strategy and Development Direction - The company aims to penetrate high-volume BPH hospitals and increase utilization by treating a full range of prostate sizes [30] - A multi-system national contract was announced with Providence, a health system with 52 hospitals, indicating a focus on large integrated hospital networks [22] - The company plans to continue expanding its field-based commercial team and clinical support staff in 2023 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and increased revenue guidance for 2022 to approximately $72.5 million, representing growth of 110% compared to 2021 [41] - The company is not experiencing material product constraints and is focused on ensuring timely supply to customers [12][16] - Management noted that hospitals are prioritizing investments in innovative technologies despite macroeconomic challenges [50] Other Important Information - The company received additional payer coverage from Horizon and other Blue Cross Blue Shield plans, enhancing market access [28] - The average selling price for handpieces in Q3 was approximately $3,100, with 2,300 handpieces shipped in the U.S. [35] Q&A Session Summary Question: Confidence in system pipeline and trends in funnel - Management expressed confidence in the visibility of system placements and noted that hospitals are prioritizing innovative technologies [49][50] Question: Utilization trends and patient conversion - Management confirmed that the majority of patients treated fall within the 60 to 80 milliliters range, indicating a shift from traditional procedures [55] Question: Impact of staffing trends on operations - Management stated that they have not faced significant staffing shortages affecting procedure volumes [71] Question: Gross margin expectations for 2023 - Management indicated that while investments in operations may limit margin expansion in the near term, they expect significant improvements at scale [60][61] Question: Coverage from United and its impact - Management reassured that the lack of coverage from United would not significantly impact growth due to existing Medicare and private payer coverage [63][65] Question: Update on the WATER III study - Management confirmed that the study is ongoing outside the U.S. and aims to strengthen clinical data for larger prostates [87][89] Question: Strategy regarding Ambulatory Surgery Centers (ASCs) - Management clarified that the focus remains on high-volume hospitals, with ASCs not being a priority at this time [74] Question: Commercial organization and hospital exposure - Management discussed plans to hire sales reps at a constant cadence to enhance market penetration [102][104]