PROCEPT BioRobotics Reports Fourth Quarter and Full Year 2023 Results
- Total revenue for the fourth quarter of 2023 was $43.6 million, an 83% increase from the prior year period.
- U.S. system revenue grew by 59% to $16.6 million, while handpiece and consumables revenue increased by 109% to $21.6 million.
- International revenue saw a 65% increase to $3.3 million for the quarter.
- Gross margin for the fourth quarter of 2023 was 49%, with operating expenses at $50.8 million.
- Cash and cash equivalents as of December 31, 2023, were $257.2 million.
- Full year 2023 revenue was $136.2 million, a significant growth from $75.0 million in 2022.
- Gross margin for 2023 improved to 52%, with operating expenses at $180.2 million.
- The company projects revenue of $210 million for 2024, with a gross margin of 57-59% and total operating expenses of $231.5 million.
- Adjusted EBITDA for 2024 is expected to be a loss of approximately $73 million.
- Gross margin in the fourth quarter of 2023 was negatively impacted by costs associated with relocating the manufacturing facility and producing fewer units than anticipated.
- Operating expenses increased in the fourth quarter due to expansion of the commercial organization and research and development investments.
- Net loss for the full year 2023 was $105.9 million, compared to $87.2 million in 2022.
- Adjusted EBITDA for 2023 was a loss of $86.5 million, higher than the loss of $68.0 million in 2022.
Insights
The reported financial results by PROCEPT BioRobotics Corporation indicate a substantial year-over-year growth in revenue, with an 83% increase for the fourth quarter and an 82% increase for the full year of 2023. This impressive growth trajectory is noteworthy in the context of the medical device and surgical robotics market, where adoption rates and utilization are critical metrics for success.
From a financial perspective, the increase in U.S. handpiece and consumables revenue by 109% is particularly significant as it suggests a strong recurring revenue stream, which is a positive indicator of customer retention and product satisfaction. The guidance for 2024 projecting a 54% revenue growth and an improved gross margin of 57% to 59% reflects management's confidence in the company's operational efficiency and market penetration. However, the net loss and Adjusted EBITDA loss for both the fourth quarter and full year signal that the company is still in a growth phase, investing heavily in expansion and R&D, which is common in this industry sector.
The expansion of PROCEPT's install base by 89% and the 10% increase in monthly utilization rates are indicators of strong market adoption of the AquaBeam Robotic Systems. This could be a result of effective sales strategies and a growing recognition of the system's benefits in urological procedures. However, the increase in operating expenses by 53% for the full year suggests that the company is scaling up its commercial and R&D efforts to capture more market share, which is essential in the competitive landscape of surgical robotics.
The relocation of the company's manufacturing facility and corporate office, along with the 35% increase in scrap expense, are operational challenges that investors should monitor. The company's remediation efforts and reported improvements in the first quarter of 2024 will be crucial in maintaining investor confidence and achieving the projected gross margins.
PROCEPT's focus on surgical solutions in urology, specifically for Benign Prostatic Hyperplasia (BPH), positions the company in a specialized and growing segment of the medical device industry. The reported growth in revenue and install base suggests that the AquaBeam Robotic Systems are gaining traction as a potential standard of care for BPH surgery. The increased gross margin reflects operational improvements and could lead to long-term profitability as the company scales.
However, the reported net losses and negative Adjusted EBITDA highlight the financial challenges associated with the high costs of innovation and market expansion in the medical device sector. The company's ability to continue improving its financial metrics while managing operating expenses will be critical for sustainable growth. Understanding the specific clinical advantages and cost-effectiveness of the AquaBeam Robotic Systems compared to existing BPH treatments will be key in assessing the long-term potential of the company's technology.
SAN JOSE, Calif., Feb. 27, 2024 (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, 2023.
Recent Highlights
- Total revenue of approximately
$43.6 million for the fourth quarter of 2023, an increase of83% compared to the prior year period - U.S. system and rental revenue of
$16.6 million for the fourth quarter of 2023, an increase of59% compared to the prior year period - U.S. handpiece and consumables revenue of
$21.6 million for the fourth quarter of 2023, an increase of109% compared to the prior year period - Total revenue of
$136.2 million for full year 2023, an increase of82% compared to 2022 - Issued 2024 total revenue guidance of approximately
$210 million
“I am extremely proud of our commercial achievements in 2023,” said Reza Zadno, Chief Executive Officer. “We succeeded in elevating the average monthly utilization in the U.S. by approximately
Fourth Quarter 2023 Financial Results
Revenue for the fourth quarter of 2023 was
Gross margin for the fourth quarter 2023 was
Operating expenses in the fourth quarter of 2023 were
Interest expense in the fourth quarter of 2023 was
Net loss was
Cash and cash equivalents as of December 31, 2023 totaled
Full Year 2023 Financial Results
Revenue for the full year 2023 was
Gross margin for full year 2023 was
Operating expenses were
Net loss was
2024 Financial Guidance
- The Company projects revenue for the full year 2024 to be approximately
$210 million , which represents54% growth over the Company’s prior year revenue. - The Company projects full year 2024 gross margin to be approximately
57% to59% . - The Company projects full year 2024 total operating expense of approximately
$231.5 million . - The Company projects full year 2024 Adjusted EBITDA loss to be approximately
$73 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 2023 financial results after the market close on Tuesday, February 27, 2024, 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:
- Dial-in registration for sell-side research analysts:
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 150 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 2024, 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, reimbursement coverage, overall business strategy, or information regarding the impact of other global events on the Company and its operations. 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 expected to be filed with the SEC on or about February 28, 2024. 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
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, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Revenue | $ | 43,581 | $ | 23,777 | $ | 136,191 | $ | 75,014 | ||||||||
| Cost of sales | 22,326 | 13,101 | 65,142 | 37,929 | ||||||||||||
| Gross profit | 21,255 | 10,676 | 71,049 | 37,085 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 14,496 | 9,682 | 48,446 | 28,981 | ||||||||||||
| Selling, general and administrative | 36,316 | 26,034 | 131,773 | 88,828 | ||||||||||||
| Total operating expenses | 50,812 | 35,716 | 180,219 | 117,809 | ||||||||||||
| Loss from operations | (29,557 | ) | (25,040 | ) | (109,170 | ) | (80,724 | ) | ||||||||
| Interest expense | (1,125 | ) | (866 | ) | (3,995 | ) | (5,183 | ) | ||||||||
| Interest and other income, net | 3,178 | 992 | 7,268 | 2,011 | ||||||||||||
| Loss on loan extinguishment | — | (3,258 | ) | — | (3,258 | ) | ||||||||||
| Net loss | $ | (27,504 | ) | $ | (28,172 | ) | $ | (105,897 | ) | $ | (87,154 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.54 | ) | $ | (0.63 | ) | $ | (2.24 | ) | $ | (1.96 | ) | ||||
| Weighted-average common shares used to Compute net loss per share attributable to Common shareholders, basic and diluted | 50,589 | 44,770 | 47,255 | 44,400 | ||||||||||||
| PROCEPT BioRobotics Corporation RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA (Unaudited, in thousands) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Net loss | $ | (27,504 | ) | $ | (28,172 | ) | $ | (105,897 | ) | $ | (87,154 | ) | ||||
| Depreciation and amortization expense | 1,318 | 663 | 3,807 | 2,841 | ||||||||||||
| Stock-based compensation expense | 4,981 | 2,885 | 19,134 | 10,337 | ||||||||||||
| Interest (income) and interest expense, net | (2,079 | ) | (320 | ) | (3,556 | ) | 2,687 | |||||||||
| Loss on loan extinguishment | — | 3,258 | — | 3,258 | ||||||||||||
| Adjusted EBITDA | $ | (23,284 | ) | $ | (21,686 | ) | $ | (86,512 | ) | $ | (68,031 | ) | ||||
| PROCEPT BioRobotics Corporation RECONCILIATION OF GAAP NET LOSS TO ADJUSTED 2024 EBITDA Guidance (Unaudited, in thousands) | ||||
| 2024 | ||||
| Net loss | $ | (103,150 | ) | |
| Depreciation and amortization expense | 5,800 | |||
| Stock-based compensation expense | 31,500 | |||
| Interest (income) expense and other (income) expense, net | (7,150 | ) | ||
| Adjusted EBITDA | $ | (73,000 | ) | |
| PROCEPT BioRobotics Corporation CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) | ||||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 257,222 | $ | 221,859 | ||||
| Restricted cash, current | — | 777 | ||||||
| Accounts receivable, net | 48,376 | 15,272 | ||||||
| Inventory | 39,756 | 28,543 | ||||||
| Prepaid expenses and other current assets | 5,213 | 6,175 | ||||||
| Total current assets | 350,567 | 272,626 | ||||||
| Restricted cash, non-current | 3,038 | 3,038 | ||||||
| Property and equipment, net | 28,748 | 8,656 | ||||||
| Operating lease right-of-use assets, net | 20,241 | 23,481 | ||||||
| Intangible assets, net | 1,204 | 1,477 | ||||||
| Other assets | 919 | 51 | ||||||
| Total assets | $ | 404,717 | $ | 309,329 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 13,499 | $ | 9,391 | ||||
| Accrued compensation | 16,885 | 13,447 | ||||||
| Deferred revenue | 5,656 | 2,855 | ||||||
| Operating leases, current | 1,683 | 2,129 | ||||||
| Loan facility derivative liability, current | 1,886 | — | ||||||
| Other current liabilities | 6,318 | 7,468 | ||||||
| Total current liabilities | 45,927 | 35,290 | ||||||
| Long-term debt | 51,339 | 51,213 | ||||||
| Operating lease, non-current | 26,182 | 23,975 | ||||||
| Loan facility derivative liability, non-current | — | 1,779 | ||||||
| Other non-current liabilities | 517 | — | ||||||
| Total liabilities | 123,965 | 112,257 | ||||||
| Stockholders’ equity: | ||||||||
| Additional paid-in capital | 735,240 | 545,753 | ||||||
| Accumulated other comprehensive loss | 84 | (6 | ) | |||||
| Accumulated deficit | (454,572 | ) | (348,675 | ) | ||||
| Total stockholders’ equity | 280,752 | 197,072 | ||||||
| Total liabilities and stockholders’ equity | $ | 404,717 | $ | 309,329 | ||||
| PROCEPT BioRobotics Corporation REVENUE BY TYPE AND GEOGRAPHY (Unaudited, in thousands) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| U.S. | ||||||||||||||||
| System sales and rentals | $ | 16,561 | $ | 10,446 | $ | 53,626 | $ | 36,527 | ||||||||
| Handpieces and other consumables | 21,633 | 10,361 | 64,051 | 28,543 | ||||||||||||
| Service | 2,075 | 957 | 6,620 | 2,698 | ||||||||||||
| Total U.S. revenue | 40,269 | 21,764 | 124,297 | 67,768 | ||||||||||||
| Outside of U.S. | ||||||||||||||||
| System sales and rentals | 1,398 | 848 | 5,294 | 3,201 | ||||||||||||
| Handpieces and other consumables | 1,645 | 904 | 5,471 | 3,273 | ||||||||||||
| Service | 269 | 261 | 1,129 | 772 | ||||||||||||
| Total outside of U.S. revenue | 3,312 | 2,013 | 11,894 | 7,246 | ||||||||||||
| Total revenue | $ | 43,581 | $ | 23,777 | $ | 136,191 | $ | 75,014 | ||||||||
FAQ
What was PROCEPT BioRobotics Corporation's total revenue for the fourth quarter of 2023?
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