PROCEPT BioRobotics (US:PRCT)2024-10-28 14:32Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $58.4 million, representing a growth of 66% compared to Q3 2023 [7][24] - U.S. revenue for the quarter was $52.2 million, reflecting a growth of 62% year-over-year [24] - Gross margin reached an all-time high of 63.2%, driven by strong execution and higher average selling prices [29] - Net loss for Q3 2024 was $21 million, an improvement from a loss of $24.6 million in the same period last year [31] - Adjusted EBITDA loss was $12.4 million, compared to a loss of $19.4 million in Q3 2023 [32] Business Line Data and Key Metrics Changes - Sold 45 robotic systems in Q3 2024, with approximately 80% being HYDROS systems [25] - U.S. handpiece and consumable revenue was $29.6 million, representing a growth of 74% year-over-year [27] - International revenue was $6.2 million, showing a growth of 121% compared to the previous year [28] Market Data and Key Metrics Changes - U.S. installed base of robotic systems grew to 445, a 64% increase from the prior year [7] - International revenue growth was primarily driven by strong sales momentum in the United Kingdom [10] Company Strategy and Development Direction - The company is focused on the commercial launch of the HYDROS Robotic Systems, which is expected to drive widespread adoption and improve patient outcomes [12][17] - A new randomized clinical study for prostate cancer has been initiated, with the goal of expanding the market for Aquablation therapy [18][21] - The company aims to become the standard-of-care for BPH and a leading global neurology company [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying trends, including system average selling prices and customer demand [14] - The company anticipates challenges in Q4 due to sales team training and macro factors affecting procedures [46][47] - Management remains optimistic about the long-term growth potential and profitability, emphasizing the importance of controlling operating expenses [71] Other Important Information - The company expects full-year 2024 total revenue to be in the range of $222.5 million to $223 million, representing growth of approximately 63% to 64% compared to 2023 [33] - Full-year 2024 gross margins are now expected to be approximately 61%, an increase from previous guidance [35] Q&A Session Summary Question: Comments on HYDROS pricing and customer reaction - Management noted that customer reactions to HYDROS have been extremely positive, with excitement around its features [41] - They are maintaining pricing flexibility for the fourth quarter, with expected ASPs in the range of $420,000 to $430,000 [43] Question: Utilization trends and impact of sales rep training - Management acknowledged that removing reps from the field for training would impact utilization, but they saw strong procedure activity in September [45][46] Question: Sales rep training and procedure delays - The majority of launches for HYDROS are scheduled for Q4, with training impacting the timing of procedures but not leading to lost cases [54] Question: Replacement cycle and market opportunity - Management indicated that the focus remains on new accounts for 2024, with discussions of a replacement cycle expected in 2025 [57][61] Question: Reimbursement dynamics and Medicare audits - Management addressed concerns about Medicare audits and noted that they are working to resolve size restrictions with payers [83][85]