PROCEPT BioRobotics Reports Fourth Quarter and Full Year 2022 Results
PROCEPT BioRobotics Corporation (Nasdaq: PRCT) reported significant financial growth for 2022, with total revenue reaching $75.0 million, a 118% increase from 2021. In Q4 2022 alone, revenue was $23.8 million, marking a 135% rise year-over-year. System and rental revenue for the U.S. hit $10.4 million, up 109%, while handpiece and consumable revenue soared by 202%. Despite a net loss of $28.2 million for the quarter, the company projects $125 million in revenue for 2023, reflecting a 67% growth forecast. Key factors driving growth include expansion in the sales team and increased market interest.
- Total revenue for 2022 was $75.0 million, up 118% from 2021.
- Q4 2022 revenue reached $23.8 million, a 135% year-over-year increase.
- U.S. handpiece and consumables revenue in Q4 rose by 202% compared to the previous year.
- Gross margin for 2022 improved to 49%, from 46% in 2021.
- 2023 revenue guidance is projected at $125 million, indicating 67% growth.
- Net loss for Q4 2022 was $28.2 million, larger than the loss of $18.3 million in Q4 2021.
- Total operating expenses for 2022 increased by 68% to $117.8 million.
- Adjusted EBITDA loss for 2022 was $68.0 million, compared to $47.0 million in 2021.
- Significant inventory write-offs of approx $0.7 million impacted gross margins.
REDWOOD CITY, Calif., Feb. 28, 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 financial results for the year ended December 31, 2022.
Recent Highlights
- Total revenue of
$75.0 million for full year 2022, an increase of118% compared to 2021 - Total revenue of
$23.8 million for the fourth quarter of 2022, an increase of135% compared to the prior year period - U.S. system and rental revenue of
$10.4 million for the fourth quarter of 2022, an increase of109% compared to the prior year period - U.S. handpiece and consumables revenue of
$10.4 million for the fourth quarter of 2022, an increase of202% compared to the prior year period - Issued 2023 total revenue guidance of approximately
$125 million
“We are very pleased with the results we delivered in 2022 and continue to see positive adoption heading into 2023,” said Reza Zadno, Chief Executive Officer. “We believe there are several positive factors we have seen that will allow us to continue to execute against our strategic growth plan in 2023, including an expanded field based commercial team, increased surgeon and patient interest, and having secured contracts with many of the large IDNs. We believe these catalysts will further the adoption of our technology to become the standard of care for BPH.”
Fourth Quarter 2022 Financial Results
Revenue for the fourth quarter of 2022 was
Gross margin for the fourth quarter 2022 was
Operating expenses in the fourth quarter of 2022 were
Total interest and other expense in the fourth quarter of 2022 was
Net loss was
Cash and cash equivalents as of December 31, 2022 totaled
Full Year 2022 Financial Results
Revenue for the full year 2022 was
Gross margin for full year 2022 was
Operating expenses were
Net loss was
2023 Financial Guidance
- The Company projects revenue for the full year 2023 to be approximately
$125 million , which represents67% growth over the Company’s prior year revenue. - The Company projects full year 2023 gross margin to be approximately
53% . - The Company projects full year 2023 total operating expense of approximately
$163 million . - The Company projects full year 2023 Adjusted EBITDA loss to be approximately
$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 fourth quarter 2022 financial results after the market close on Tuesday, February 28, 2023, at 1:30 p.m. Pacific Time / 4:30 p.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/pbyn22v3
- Dial-in registration for sell-side research analysts:
- https://register.vevent.com/register/BIac8fb5d0a7e245dd9f8c5ad7c0b22c2e
Live audio of the webcast will be available on the “Investors” section of the company’s website at: https://ir.procept-biorobotics.com.
An archived recording will be available on the “Investors” section of the company’s website at: https://ir.procept-biorobotics.com. The webcasts will be available for replay for at least 90 days after the event.
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 2022, 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, overall business or the overall macroeconomic environment, which may impact customer spending or the Company’s costs. 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 December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 23,777 | $ | 10,138 | $ | 75,014 | $ | 34,473 | ||||||||
| Cost of sales | 13,101 | 5,622 | 37,929 | 18,608 | ||||||||||||
| Gross profit | 10,676 | 4,516 | 37,085 | 15,865 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 9,682 | 5,076 | 28,981 | 18,993 | ||||||||||||
| Selling, general and administrative | 26,034 | 16,271 | 88,828 | 51,036 | ||||||||||||
| Total operating expenses | 35,716 | 21,347 | 117,809 | 70,029 | ||||||||||||
| Loss from operations | (25,040 | ) | (16,831 | ) | (80,724 | ) | (54,164 | ) | ||||||||
| Interest expense | (866 | ) | (1,441 | ) | (5,183 | ) | (5,810 | ) | ||||||||
| Interest and other income, net | 992 | (76 | ) | 2,011 | 121 | |||||||||||
| Loss on loan extinguishment | (3,258 | ) | — | (3,258 | ) | — | ||||||||||
| Net loss | $ | (28,172 | ) | (18,348 | ) | (87,154 | ) | (59,853 | ) | |||||||
| Net loss per share, basic and diluted | $ | (0.63 | ) | $ | (0.42 | ) | $ | (1.96 | ) | $ | (3.63 | ) | ||||
| Weighted-average common shares used to | ||||||||||||||||
| Compute net loss per share attributable to | ||||||||||||||||
| Common shareholders, basic and diluted | 44,770 | 43,540 | 44,400 | 16,480 | ||||||||||||
PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(Unaudited, in thousands)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net loss | $ | (28,172 | ) | $ | (18,348 | ) | $ | (87,154 | ) | $ | (59,853 | ) | ||||
| Depreciation and amortization expense | 663 | 763 | 2,841 | 3,324 | ||||||||||||
| Stock-based compensation expense | 2,885 | 1,496 | 10,337 | 3,796 | ||||||||||||
| Interest (income) and interest expense, net | (320 | ) | 1,414 | 2,687 | 5,735 | |||||||||||
| Loss on loan extinguishment | $ | 3,258 | $ | — | $ | 3,258 | $ | — | ||||||||
| Adjusted EBITDA | $ | (21,686 | ) | $ | (14,675 | ) | $ | (68,031 | ) | $ | (46,998 | ) | ||||
PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED 2023 EBITDA Guidance
(Unaudited, in thousands)
| 2023 | ||||
| Net loss | $ | (99,925 | ) | |
| Depreciation and amortization expense | 5,025 | |||
| Stock-based compensation expense | 21,200 | |||
| Interest (income) expense and other (income) expense, net | 3,200 | |||
| Adjusted EBITDA | $ | (70,500 | ) | |
PROCEPT BioRobotics Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 221,859 | $ | 304,320 | ||||
| Restricted cash, current | 777 | — | ||||||
| Accounts receivable, net | 15,272 | 4,464 | ||||||
| Inventory | 28,543 | 13,147 | ||||||
| Prepaid expenses and other current assets | 6,175 | 4,242 | ||||||
| Total current assets | 272,626 | 326,173 | ||||||
| Restricted cash, non-current | 3,038 | 777 | ||||||
| Property and equipment, net | 8,656 | 5,045 | ||||||
| Operating lease right-of-use assets, net | 23,481 | 3,279 | ||||||
| Intangible assets, net | 1,477 | 1,750 | ||||||
| Other assets | 51 | — | ||||||
| Total assets | $ | 309,329 | $ | 337,024 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 9,391 | $ | 2,029 | ||||
| Accrued compensation | 13,447 | 6,475 | ||||||
| Deferred revenue | 2,855 | 1,025 | ||||||
| Operating leases, current | 2,129 | 2,105 | ||||||
| Other current liabilities | 7,468 | 4,608 | ||||||
| Total current liabilities | 35,290 | 16,242 | ||||||
| Note payable – non-current portion | 51,213 | 50,004 | ||||||
| Operating lease , non-current | 23,975 | 1,991 | ||||||
| Loan facility derivative liability | 1,779 | 1,496 | ||||||
| Other non-current liabilities | — | 200 | ||||||
| Total liabilities | 112,257 | 69,933 | ||||||
| Stockholders’ equity: | ||||||||
| Additional paid-in capital | 545,753 | 528,666 | ||||||
| Accumulated other comprehensive loss | (6 | ) | (54 | ) | ||||
| Accumulated deficit | (348,675 | ) | (261,521 | ) | ||||
| Total stockholders’ equity | 197,072 | 267,091 | ||||||
| Total liabilities and stockholders’ equity | $ | 309,329 | $ | 337,024 | ||||
PROCEPT BioRobotics Corporation
REVENUE BY TYPE AND GEOGRAPHY
(Unaudited, in thousands)
| Three Months Ended | Twelve Months Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| U.S. | ||||||||||||
| System sales and rentals | $ | 10,446 | $ | 5,007 | $ | 36,527 | $ | 19,375 | ||||
| Handpieces and other consumables | 10,361 | 3,435 | 28,543 | 8,893 | ||||||||
| Service | 957 | 302 | 2,698 | 680 | ||||||||
| Total U.S. revenue | 21,764 | 8,744 | 67,768 | 28,948 | ||||||||
| Outside of U.S. | ||||||||||||
| System sales and rentals | 848 | 768 | 3,201 | 2,493 | ||||||||
| Handpieces and other consumables | 904 | 475 | 3,273 | 2,634 | ||||||||
| Service | 261 | 151 | 772 | 398 | ||||||||
| Total outside of U.S. revenue | 2,013 | 1,394 | 7,246 | 5,525 | ||||||||
| Total revenue | $ | 23,777 | $ | 10,138 | $ | 75,014 | $ | 34,473 | ||||
FAQ
What were the financial results of PROCEPT BioRobotics for 2022?
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How did PROCEPT BioRobotics's gross margin change in 2022?
