PROCEPT BioRobotics (PRCT) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 revenue of $58.4M, up 66% year-over-year, driven by strong U.S. and international sales, higher ASPs, and robust Hydros system demand.

• U.S. install base grew 64% to 445 systems; international revenue reached $6.2M, up 122% year-over-year, led by UK momentum and global adoption.

• Hydros system launched post-FDA clearance in August, featuring AI-assisted imaging and digital scope, with rapid adoption and positive customer feedback.

• Initiated pivotal WATER IV PCa clinical trial for Aquablation in prostate cancer after FDA Breakthrough Device Designation and IDE approval.

• Net loss narrowed to $21M for Q3 2024 (vs. $24.6M prior year); Adjusted EBITDA loss improved to $12.4M (vs. $19.4M prior year); record gross margins achieved.

Financial highlights

• Q3 2024 revenue: $58.4M (+66% YoY); U.S. revenue: $52.2M (+62% YoY); international revenue: $6.2M (+122% YoY); sold 45 robotic systems, ~80% Hydros, with blended ASP of ~$432,000.

• U.S. handpiece/consumable revenue: $29.6M (+74% YoY); shipped 8,740 handpieces (+79% YoY), ASP ~$3,200.

• Gross margin improved to 63.2% in Q3 2024 (Q3 2023: 53.8%), driven by higher Hydros ASPs and better overhead absorption.

• Q3 net loss: $21M (vs. $24.6M prior year); Adjusted EBITDA loss: $12.4M (vs. $19.4M prior year); cash balance: $200M.

• Operating expenses increased to $59.3M in Q3 2024, mainly from R&D and SG&A investments.

Outlook and guidance

• FY2024 revenue expected at $222.5M–$223M (+63–64% YoY); gross margin guidance raised to ~61% (from 59%).

• Expect to sell ~186 U.S. robotic systems in 2024, with Q4 ASP guidance of $420,000–$430,000.

• Project 33,500 handpieces sold in 2024 (+80% YoY); Q4 handpiece ASPs to remain stable.

• FY2024 Adjusted EBITDA loss expected at ~$60M, improved from initial guidance; operating expenses expected at $231.5M (+29% YoY).

• Existing cash and anticipated revenue expected to fund operations for at least the next 12 months.