PROCEPT BioRobotics (PRCT) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $68.2 million, representing a growth of 57% compared to Q4 2023 [7] - Full year total revenue was$ 224.5 million, indicating a growth of 65% [8] - Gross margin for Q4 2024 reached 64%, marking an all-time high [36] - Net loss for Q4 2024 was $18.9 million, an improvement from$ 27.5 million in the same period of the prior year [40] - Adjusted EBITDA loss was $10.3 million compared to a loss of$ 23.3 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - The company sold 60 new robotic systems in Q4 2024, with over 95% being HYDROS systems at an average selling price of approximately $460,000 [20][33] - US handpiece and consumable revenue for Q4 2024 was$ 29.3 million, representing a growth of 36% compared to Q4 2023 [34] - International revenue in Q4 2024 was $7.8 million, showing a growth of 137% compared to the prior year period [35] Market Data and Key Metrics Changes - The US installed base of robotic systems grew to 505, a 60% increase year-over-year [8] - Approximately 50% of all BPH resective surgeries are Medicare, with the other half being private pay [23] Company Strategy and Development Direction - The company aims to transform the global treatment of BPH and become the standard of care, currently holding about 10% US BPH resective market share [9] - The introduction of the HYDROS Robotic System and FirstAssist AI is expected to enhance procedural accuracy and outcomes [11][12] - The company is pursuing a pivotal randomized clinical study for prostate cancer, which could position Aquablation therapy as a first-line surgical treatment [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in procedure volumes following a saline supply shortage that impacted Q4 2024 [28][30] - The company anticipates full year 2025 total revenue to be approximately$ 320 million, representing growth of about 43% compared to 2024 [41] - Management highlighted the importance of strategic investments to drive long-term growth, particularly in clinical trials [48] Other Important Information - The company experienced a saline supply shortage due to Hurricane Helene, which resulted in a delay or cancellation of 10% to 20% of expected procedures in Q4 [26][28] - The company has a strong cash position with $337 million in cash, cash equivalents, and restricted cash as of December 31 [40] Q&A Session Summary Question: Impact of saline shortage on procedures - Management estimated that the saline shortage resulted in a delay or cancellation of up to 2,000 procedures in Q4, based on customer surveys and internal analysis [67][70] - Accounts not impacted by the saline shortage performed as expected, showing strong sequential growth [76] Question: Q1 utilization growth - Q1 guidance does not fully assume that all lost procedures from Q4 will return, but there is optimism for recovery in February and March [80][81] Question: HYDROS feedback and account mix - Customers are excited about the HYDROS features, with 95% of procedures utilizing the FirstAssist AI [102] - There is a growing demand from medium and low-volume BPH hospitals for Aquablation systems [106] Question: Replacement revenue and ASP - Replacement ASPs for AquaBeam customers are expected to be lower, around$ 50,000 to $100,000, while future replacements will align more closely with greenfield sales [128][129] - The$ 3 million in anticipated replacement revenue is separate from the guidance for new systems [135]