PROCEPT BioRobotics Reports First Quarter 2023 Financial Results and Increases 2023 Revenue Guidance
PROCEPT BioRobotics Corporation (Nasdaq: PRCT) reported strong financial results for Q1 2023, with total revenue of $24.4 million, up 72% year-over-year. U.S. handpiece and consumables revenue surged 165% to $11.8 million, while system and rental revenue increased 13% to $8.8 million. The company raised its 2023 revenue guidance to $128 million, a 71% growth from the previous year. PROCEPT also received a positive coverage policy from United Healthcare and signed a national sales contract with a significant U.S. integrated delivery network.
Despite these gains, the net loss widened to $28.5 million from $17.2 million in the prior year. Operating expenses rose to $40.9 million, reflecting increased sales and marketing investments. Gross margin decreased to 51% from 54%.
- Total revenue increased by 72% to $24.4 million in Q1 2023.
- U.S. handpiece and consumables revenue surged 165% to $11.8 million.
- Raised full-year 2023 revenue guidance to $128 million, representing 71% growth.
- Secured positive coverage policy from United Healthcare effective June 1, 2023.
- Signed national sales contract with largest U.S. integrated delivery network.
- Net loss widened to $28.5 million from $17.2 million year-over-year.
- Operating expenses increased significantly to $40.9 million.
- Gross margin decreased to 51% from 54% in the prior year.
REDWOOD CITY, Calif., April 27, 2023 (GLOBE NEWSWIRE) -- PROCEPT® BioRobotics Corporation (Nasdaq: PRCT) (the “Company”), a surgical robotics company focused on advancing patient care by developing transformative solutions in urology, today reported unaudited financial results for the quarter ended March 31, 2023.
Recent Highlights
- Total revenue of
$24.4 million for the first quarter of 2023, an increase of72% compared to the prior year period in 2022 - U.S. handpiece and consumables revenue of
$11.8 million for the first quarter of 2023, an increase of165% compared to the prior year period in 2022 - U.S. system and rental revenue of
$8.8 million for the first quarter of 2023, an increase of13% compared to the prior year period in 2022 - Increased fiscal year 2023 total revenue guidance to
$128.0 million - Received positive coverage policy decision from United Healthcare, effective June 1, 2023
- Signed national sales contract with largest U.S. IDN on April 1, 2023
“We are very pleased with this strong start to 2023, particularly utilization within our growing U.S. install base and the increase of new accounts entering our capital pipeline,” said Reza Zadno, Chief Executive Officer. “We achieved a number of important milestones in the first quarter of 2023 that will continue to allow us to execute against our long-term growth plan, including expanding payor coverage and signing a national contract with a key strategic IDN. Our recent commercial team hires are also progressing nicely as they build out their respective territories. The future for PROCEPT is bright as awareness of Aquablation therapy grows and utilization among our surgeon base continues to expand."
First Quarter 2023 Financial Results
Total revenue for the first quarter of 2023 was
Gross margin for the first quarter 2023 was
Operating expenses in the first quarter of 2023 were
Net loss was
Cash and short-term investments as of March 31, 2023, totaled
Full Year 2023 Financial Guidance
- The Company projects revenue for the full year 2023 to be
$128 million , which represents71% growth over the Company’s prior year revenue. This compares to previous revenue guidance of$125 million . - The Company projects full year 2023 gross margin to be approximately
54% . This compares to previous guidance of approximately53% . - The Company projects full year 2023 total operating expense of approximately
$167 million . This compares to previous guidance of approximately$163 million . - The Company reiterates full year 2023 Adjusted EBITDA loss to be (
$70.5) million .
Adjusted EBITDA is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States (GAAP). For more information about the Company’s use of non-GAAP financial measures, please see the section below titled “Use of Non-GAAP Financial Measures (Unaudited).”
Webcast and Conference Call Information
PROCEPT BioRobotics will host a conference call to discuss the first quarter 2023 financial results on Thursday, April 27, 2023, at 8:00 a.m. Eastern Time.
Investors interested in listening to the conference call may do so by following one of the below links:
- Webcast link for interested listeners:
- https://edge.media-server.com/mmc/p/qk7hrxz5
- Dial-in registration for sell-side research analysts:
- https://register.vevent.com/register/BIadc240895f944ef3b7f80601d78f317c
About PROCEPT BioRobotics Corporation
PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. PROCEPT BioRobotics develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. PROCEPT BioRobotics designed Aquablation therapy to deliver effective, safe and durable outcomes for males suffering from lower urinary tract symptoms, or LUTS, due to BPH that are independent of prostate size and shape or surgeon experience. The Company has developed a significant and growing body of clinical evidence, which includes nine clinical studies and over 100 peer-reviewed publications, supporting the benefits and clinical advantages of Aquablation therapy.
Use of Non-GAAP Financial Measures (Unaudited)
This press release references Adjusted EBITDA, a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States (GAAP). The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization and stock-based compensation. Non-GAAP financial measures are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.
The Company believes that presenting Adjusted EBITDA provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.
Forward Looking Statements
This release contains forward‐looking statements within the meaning of federal securities laws, including with respect to the Company’s projected financial performance for full year 2023, statements regarding the potential utilities, values, benefits and advantages of Aquablation® therapy performed using PROCEPT BioRobotics’ products, including AquaBeam® Robotic System, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware. Forward-looking statements may include statements regarding financial guidance, market opportunity and penetration, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, gross margin, profitability, operating expenses, installed base growth, commercial momentum and overall business strategy. Forward‐looking statements should not be read as a guarantee of future performance or results and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These forward‐looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward‐looking statements as a result of these risks and uncertainties. These risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s annual report on Form 10-K filed with the SEC on February 28, 2023. PROCEPT BioRobotics does not undertake any obligation to update forward‐looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward‐looking statements contained herein. These forward-looking statements should not be relied upon as representing PROCEPT BioRobotics’ views as of any date subsequent to the date of this press release.
Important Safety Information
All surgical treatments have inherent and associated side effects. For a list of potential side effects visit https://aquablation.com/safety-information/
Investor Contact:
Matt Bacso, CFA
VP, Investor Relations and Business Operations
m.bacso@procept-biorobotics.com
PROCEPT BioRobotics Corporation CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share data) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
Revenue | $ | 24,404 | $ | 14,197 | |||
Cost of sales | 11,913 | 6,505 | |||||
Gross profit | 12,491 | 7,692 | |||||
Operating expenses: | |||||||
Research and development | 10,737 | 5,011 | |||||
Selling, general and administrative | 30,131 | 18,385 | |||||
Total operating expenses | 40,868 | 23,396 | |||||
Loss from operations | (28,377 | ) | (15,704 | ) | |||
Interest expense | (886 | ) | (1,421 | ) | |||
Interest and other income (expense), net | 779 | (60 | ) | ||||
Net loss | $ | (28,484 | ) | $ | (17,185 | ) | |
Net loss per share, basic and diluted | $ | (0.63 | ) | $ | (0.39 | ) | |
Weighted-average common shares used to | |||||||
Compute net loss per share attributable to | |||||||
Common shareholders, basic and diluted | 45,066 | 43,855 | |||||
PROCEPT BioRobotics Corporation RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (Unaudited, in thousands) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
Net loss | $ | (28,484 | ) | $ | (17,185 | ) | |
Depreciation and amortization expense | 793 | 758 | |||||
Stock-based compensation expense | 3,724 | 1,552 | |||||
Interest (income) and interest expense, net | 49 | 1,385 | |||||
Adjusted EBITDA | $ | (23,918 | ) | $ | (13,490 | ) | |
PROCEPT BioRobotics Corporation RECONCILIATION OF GAAP NET LOSS TO ADJUSTED 2023 EBITDA Guidance (Unaudited, in thousands) | |||
2023 | |||
Net loss | $ | (98,325 | ) |
Depreciation and amortization expense | 5,050 | ||
Stock-based compensation expense | 22,125 | ||
Interest (income) and interest expense, net | 650 | ||
Adjusted EBITDA | $ | (70,500 | ) |
PROCEPT BioRobotics Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) | |||||||
March 31, 2023 | December 31, 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 180,972 | $ | 221,859 | |||
Restricted cash, current | 777 | 777 | |||||
Accounts receivable, net | 20,642 | 15,272 | |||||
Inventory | 38,926 | 28,543 | |||||
Prepaid expenses and other current assets | 4,263 | 6,175 | |||||
Total current assets | 245,580 | 272,626 | |||||
Restricted cash, non-current | 3,038 | 3,038 | |||||
Property and equipment, net | 11,934 | 8,656 | |||||
Operating lease right-of-use assets, net | 22,446 | 23,481 | |||||
Intangible assets, net | 1,409 | 1,477 | |||||
Other assets | 51 | 51 | |||||
Total assets | $ | 284,458 | $ | 309,329 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 10,341 | $ | 9,391 | |||
Accrued compensation | 7,408 | 13,447 | |||||
Deferred revenue | 3,943 | 2,855 | |||||
Operating leases, current | 2,998 | 2,129 | |||||
Other current liabilities | 7,814 | 7,468 | |||||
Total current liabilities | 32,504 | 35,290 | |||||
Long-term debt | 51,241 | 51,213 | |||||
Operating leases, non-current | 25,782 | 23,975 | |||||
Loan facility derivative liability | 1,805 | 1,779 | |||||
Total liabilities | 111,332 | 112,257 | |||||
Stockholders’ equity: | |||||||
Additional paid-in capital | 550,270 | 545,753 | |||||
Accumulated other comprehensive loss | 15 | (6 | ) | ||||
Accumulated deficit | (377,159 | ) | (348,675 | ) | |||
Total stockholders’ equity | 173,126 | 197,072 | |||||
Total liabilities and stockholders’ equity | $ | 284,458 | $ | 309,329 | |||
PROCEPT BioRobotics Corporation REVENUE BY TYPE AND GEOGRAPHY (Unaudited, in thousands) | ||||||
Three Months Ended March 31, | ||||||
2023 | 2022 | |||||
U.S. | ||||||
System sales and rentals | $ | 8,770 | $ | 7,754 | ||
Handpieces and other consumables | 11,770 | 4,444 | ||||
Service | 1,235 | 359 | ||||
Total U.S. revenue | 21,775 | 12,557 | ||||
Outside of U.S. | ||||||
System sales and rentals | 1,469 | 742 | ||||
Handpieces and other consumables | 906 | 745 | ||||
Service | 254 | 153 | ||||
Total outside of U.S. revenue | 2,629 | 1,640 | ||||
Total revenue | $ | 24,404 | $ | 14,197 | ||
FAQ
What were the Q1 2023 financial results for PROCEPT BioRobotics (PRCT)?
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