PROCEPT BioRobotics (US:PRCT)2024-05-01 16:56Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $44.5 million, representing an 83% increase compared to Q1 2023 [17] - US revenue for the quarter was $40.2 million, reflecting an 85% growth year-over-year [56] - Net loss for Q1 2024 was $26 million, an improvement from a loss of $28.5 million in the same period last year [30] - Adjusted EBITDA loss was $20.4 million, compared to a loss of $23.9 million in Q1 2023 [30] - Gross margin for Q1 2024 was 56.2%, the highest ever, and 120 basis points above the high end of guidance [59] Business Line Data and Key Metrics Changes - Sold 38 AQUABEAM Robotics Systems in Q1 2024, generating US system revenue of $14.2 million, a 62% increase compared to Q1 2023 [56] - US handpiece and consumable revenue for Q1 2024 was $23.6 million, representing a 101% growth year-over-year [57] - Monthly utilization of handpieces per account increased approximately 7% compared to Q1 2023 [27] Market Data and Key Metrics Changes - International revenue for Q1 2024 was $4.3 million, a 65% increase compared to the prior year [20] - The US install base of AQUABEAM systems reached 354, with a target market of 2,700 hospitals performing BPH surgeries [5] Company Strategy and Development Direction - The company aims to establish Aquablation therapy as the standard of care for BPH surgery, focusing on penetrating BPH hospitals and partnering with urologists [48] - Plans to invest further in the UK market to accelerate growth and expand patient awareness [8] - The strategic accounts team is focused on improving sales efficiencies and utilization at targeted IDNs [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability and improvement of the hospital CapEx environment, leading to more proactive discussions with hospital CFOs [18] - The company anticipates continued growth in utilization and system placements, with expectations for a strong Q4 2024 [37][116] - Management highlighted the importance of clinical data and surgeon engagement in driving adoption of Aquablation therapy [54] Other Important Information - The company expects full-year 2024 total revenue to be approximately $213.5 million, representing a 57% growth compared to 2023 [61] - Operating expenses for 2024 are expected to be approximately $231.5 million, reflecting a 29% growth [63] Q&A Session Summary Question: Can you provide more color on utilization and its expected acceleration throughout the year? - Management noted a 7% year-over-year increase in monthly utilization and highlighted metrics indicating strong confidence in continued sequential improvement [68] Question: What is the strategy for pursuing ASC opportunities? - The company is using 2024 as a pilot year for ASC placements, leveraging existing sales force capabilities without needing to hire additional personnel [42] Question: How does the strategic accounts team impact funnel conversion and pricing visibility? - The strategic accounts team has improved visibility into the sales funnel and has facilitated corporate-level purchases from IDNs, enhancing the likelihood of future sales [86] Question: What are the expectations for gross margin sustainability and improvement? - Management indicated that gross margin improvements are expected to continue, with Q4 2024 margins projected to exceed 60% [76] Question: How does the company view the ASC market in relation to hospital settings? - The ASC market is seen as a market expansion opportunity, with a focus on both hospital and ASC placements to serve a larger patient population [120]