Vicarious Surgical Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Vicarious Surgical Inc. (NYSE: RBOT), a next-generation robotics technology company, reported its Q2 2024 financial results. The company is on track to achieve its V1.0 integration milestone this fall and aims for its first clinical patient around this time next year. Key highlights include:

- Partnership agreement with LSU Health New Orleans, the fifth U.S. hospital system to partner with Vicarious Surgical
- Operating expenses decreased by 17% to $17.7 million
- Adjusted net loss of $16.8 million ($2.86 per share)
- GAAP net loss of $15.2 million ($2.59 per share)
- Cash and investments of $73.2 million as of June 30, 2024
- Q2 2024 cash burn rate of $10.9 million
- Full year 2024 cash burn guidance reiterated at approximately $50 million

Positive

• On track to achieve V1.0 integration milestone in fall 2024
• Partnered with LSU Health New Orleans, the fifth U.S. hospital system
• Operating expenses decreased by 17% year-over-year
• Cash and investments of $73.2 million as of June 30, 2024

Negative

• Adjusted net loss of $16.8 million in Q2 2024
• GAAP net loss of $15.2 million in Q2 2024
• Cash burn rate of $10.9 million in Q2 2024
• Expected full year 2024 cash burn of approximately $50 million

Financial Analyst

Vicarious Surgical's Q2 2024 results show a mixed financial picture. The company's operating expenses decreased by 17% year-over-year, indicating improved cost management. However, the adjusted net loss of $16.8 million remains substantial, albeit an improvement from the previous year.

The cash position of $73.2 million and a quarterly burn rate of $10.9 million suggest a runway of approximately 6-7 quarters at the current burn rate. This timeline aligns with their goal of achieving the first clinical patient "around this time next year." However, investors should monitor the burn rate closely as clinical trials approach, which could accelerate expenses.

The reiterated full-year cash burn guidance of $50 million demonstrates confidence in their financial projections, but also highlights the capital-intensive nature of medical device development.

Medical Research Analyst

The progress towards the V1.0 integration milestone this fall is a critical development for Vicarious Surgical. This step is essential for advancing to their first clinical patient, targeted for next year. The company's focus on a single-port robotic system could potentially offer significant advantages in minimally invasive surgery, if successful.

The partnership with LSU Health New Orleans, marking the fifth U.S. hospital system partnership, is noteworthy. These collaborations are important for clinical validation and potential market adoption. However, investors should be aware that the path from development to widespread clinical use in robotic surgery is often long and complex, with regulatory hurdles and the need for extensive clinical data to prove superiority over existing methods.

WALTHAM, Mass.--(BUSINESS WIRE)-- Vicarious Surgical Inc. (“Vicarious Surgical” or the “Company”) (NYSE: RBOT, RBOT WS), a next-generation robotics technology company seeking to improve lives by transforming robotic surgery, today announced financial results for the quarter ended June 30, 2024. Management will host a corresponding conference call at 4:30 p.m. ET today, August 12, 2024.

“Our team’s effective execution of our development plans during the first half of this year has positioned us well to achieve our V1.0 integration milestone this fall, as scheduled,” said Adam Sachs, Co-Founder and Chief Executive Officer. “With the final refinements from our Spring lab now being integrated into the V1.0 system, we look forward to advancing towards our first clinical patient around this time next year. We are eager to demonstrate the significant clinical value that our differentiated single-port robotic system can deliver for both patients and surgeons.”

Second Quarter 2024 Financial Results & Recent Highlights

• Entered a partnership agreement with LSU Health New Orleans, making it the fifth U.S. hospital system to partner with Vicarious Surgical.
• Operating expenses were $17.7 million for the second quarter of 2024, compared to $21.5 million in the corresponding prior year period, a decrease of 17%.
• R&D expenses for the second quarter of 2024 were $10.9 million, compared to $12.7 million in the second quarter of 2023.
• General and administrative expenses for the second quarter of 2024 were $5.6 million, compared to $7.1 million in the second quarter of 2023.
• Sales and marketing expenses for the second quarter of 2024 were $1.2 million, compared to $1.7 million in the second quarter of 2023.
• Adjusted net loss for the second quarter was $16.8 million, equating to a loss of $2.86 per share, as compared to an adjusted net loss of $20.4 million, or a loss of $4.82 per share, for the same period of the prior year. GAAP net loss for the second quarter was $15.2 million, equating to a net loss per share of $2.59, as compared to a GAAP net loss of $15.3 million or a net loss per share of $3.62 for the same period of the prior year.
• The Company had $73.2 million cash and investments as of June 30, 2024. The Company’s cash burn rate for the second quarter of 2024 was $10.9 million.

Full Year 2024 Cash Burn Guidance

• Vicarious Surgical reiterates expected full year 2024 cash burn of approximately $50 million.

Conference Call

Vicarious Surgical will host a conference call today, Monday, August 12, 2024, at 4:30 p.m. ET to discuss its second quarter 2024 financial results. The call may be accessed through an operator by dialing +1 833-470-1428 for domestic callers or +1 404-975-4839 for international callers, using access code: 997268. A live and archived webcast of the event will be available at https://investor.vicarioussurgical.com.

About Vicarious Surgical

Founded in 2014, Vicarious Surgical is a next generation robotics company, developing a unique disruptive technology with the multiple goals of substantially increasing the efficiency of surgical procedures, improving patient outcomes, and reducing healthcare costs. The Company’s novel surgical approach uses proprietary human-like surgical robots to virtually transport surgeons inside the patient to perform minimally invasive surgery. The Company is led by an experienced team of technologists, medical device professionals and physicians, and is backed by technology luminaries including Bill Gates, Vinod Khosla’s Khosla Ventures, Innovation Endeavors, Jerry Yang’s AME Cloud Ventures, Sun Hung Kai & Co. Ltd and Philip Liang’s E15 VC. The Company is headquartered in Waltham, Massachusetts. Learn more at www.vicarioussurgical.com.

Use of Non-GAAP Financial Measures

In addition to providing financial measurements that have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), Vicarious Surgical provides additional financial metrics that are not prepared in accordance with U.S. GAAP (“non-GAAP”). The non-GAAP financial measures included in this press release are Adjusted Net Loss and Adjusted Net Loss Per Share (“Adjusted EPS”, and together with Adjusted Net Loss, “Non-GAAP Financial Measures”). The Company presents Non-GAAP Financial Measures in order to assist readers of its consolidated financial statements in understanding the core operating results that its management uses to evaluate the business and for financial planning purposes. Vicarious Surgical’s Non-GAAP financial measures provide an additional tool for investors to use in comparing its financial performance over multiple periods.

Adjusted Net Loss and Adjusted EPS are key performance measures that Vicarious Surgical’s management uses to assess its operating performance. These Non-GAAP Financial Measures facilitate internal comparisons of Vicarious Surgical’s operating performance on a more consistent basis. Vicarious Surgical uses these performance measures for business planning purposes and forecasting. Vicarious Surgical believes that the Non-GAAP Financial Measures enhance an investor’s understanding of Vicarious Surgical’s financial performance as it is useful in assessing its operating performance from period-to-period by excluding certain items that Vicarious Surgical believes are not representative of its core business.

The Non-GAAP Financials Measures may not be comparable to similarly titled measures of other companies because they may not calculate this measure in the same manner. Adjusted Net Loss and Adjusted EPS are not prepared in accordance with U.S. GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with U.S. GAAP. When evaluating Vicarious Surgical’s performance, you should consider the Non-GAAP Financial Measures alongside other financial performance measures prepared in accordance with U.S. GAAP, including net loss.

The Non-GAAP Financial Measures do not replace the presentation of Vicarious Surgical’s U.S. GAAP financial results and should only be used as a supplement to, not as a substitute for, Vicarious Surgical’s financial results presented in accordance with U.S. GAAP. In this press release, Vicarious Surgical has provided a reconciliation of Adjusted Net Loss to net loss, the most directly comparable U.S. GAAP financial measure, and the calculation for Adjusted EPS.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. All statements other than statements of historical facts contained herein, including without limitation the quotations of our Chief Executive Officer regarding Vicarious Surgical’s opportunity, among other things, are forward-looking statements that reflect the current beliefs and expectations of management. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Vicarious Surgical’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the ability to maintain the listing of Vicarious Surgical’s Class A common stock on the New York Stock Exchange; the approval, commercialization and adoption of Vicarious Surgical’s initial product candidates and the success of its single-port surgical robot, called the Vicarious Surgical System, and any of its future product candidates and service offerings; changes in applicable laws or regulations; the ability of Vicarious Surgical to raise financing in the future; the success, cost and timing of Vicarious Surgical’s product and service development activities; the potential attributes and benefits of Vicarious Surgical’s product candidates and services; Vicarious Surgical’s ability to obtain and maintain regulatory approval for the Vicarious Surgical System, and any related restrictions and limitations of any approved product; the size and duration of human clinical trials for the Vicarious Surgical System; Vicarious Surgical’s ability to identify, in-license or acquire additional technology; Vicarious Surgical’s ability to maintain its existing license, manufacture, supply and distribution agreements; Vicarious Surgical’s ability to compete with other companies currently marketing or engaged in the development of products and services that Vicarious Surgical is currently marketing or developing; the size and growth potential of the markets for Vicarious Surgical’s product candidates and services, and its ability to serve those markets, either alone or in partnership with others; the pricing of Vicarious Surgical’s product candidates and services and reimbursement for medical procedures conducted using its product candidates and services; the company’s estimates regarding expenses, revenue, capital requirements and needs for additional financing; Vicarious Surgical’s financial performance; economic downturns, political and market conditions and their potential to adversely affect Vicarious Surgical’s business, financial condition and results of operations; Vicarious Surgical’s intellectual property rights and its ability to protect or enforce those rights, and the impact on its business, results and financial condition if it is unsuccessful in doing so; and other risks and uncertainties indicated from time to time in Vicarious Surgical’s filings with the SEC. Vicarious Surgical cautions that the foregoing list of factors is not exclusive. The company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Vicarious Surgical does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

VICARIOUS SURGICAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except share and per share data)
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Operating expenses:
Research and development		$	10,924			$	12,714			$	20,892			$	26,070
Sales and marketing			1,197				1,666				2,338				3,626
General and administrative			5,592				7,078				10,592				14,077
Total operating expenses			17,713				21,458				33,822				43,773
Loss from operations			(17,713	)			(21,458	)			(33,822	)			(43,773	)
Other income (expense):
Change in fair value of warrant liabilities			1,590				5,081				(277	)			(998	)
Interest and other income			918				1,044				1,893				2,517
Interest expense			—				(1	)			—				(2	)
Income/(loss) before income taxes			(15,205	)			(15,334	)			(32,206	)			(42,256	)
Provision for income taxes			—				—				—				—
Net income/(loss)		$	(15,205	)		$	(15,334	)		$	(32,206	)		$	(42,256	)
Net income/(loss) per share of Class A and Class B common stock, basic		$	(2.59	)		$	(3.62	)		$	(5.49	)		$	(10.02	)
Weighted average shares, diluted			5,873,019				4,233,072				5,865,003				4,218,785
Other comprehensive income/(loss):
Net unrealized gain/(loss) on investments			(10	)			(195	)			(61	)			(130	)
Other comprehensive gain/(loss)			(10	)			(195	)			(61	)			(130	)
Comprehensive net income/(loss)		$	(15,215	)		$	(15,529	)		$	(32,267	)		$	(42,386	)

VICARIOUS SURGICAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share data)
		June 30,				December 31,
		2024				2023
Assets
Current assets:
Cash and cash equivalents		$	20,250			$	52,822
Short-term investments			52,980				45,355
Prepaid expenses and other current assets			2,703				2,776
Total current assets			75,933				100,953
Restricted cash			936				936
Property and equipment, net			5,325				6,402
Right-of-use assets			11,021				11,459
Other long-term assets			132				114
Total assets		$	93,347			$	119,864
Liabilities, Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,355			$	1,258
Accrued expenses			4,695				4,975
Lease liabilities, current portion			1,131				1,047
Total current liabilities			7,181				7,280
Lease liabilities, net of current portion			13,198				13,785
Warrant liabilities			1,107				830
Total liabilities			21,486				21,895
Stockholders’ equity:
Class A Common Stock			15				15
Class B Common Stock			2				2
Additional paid-in capital			236,813				230,654
Accumulated other comprehensive income			(51	)			10
Accumulated deficit			(164,918	)			(132,712	)
Total stockholders’ equity			71,861				97,969
Total liabilities and stockholders’ equity		$	93,347			$	119,864

VICARIOUS SURGICAL INC. RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in thousands, except share and per share data) Adjusted net loss and Adjusted EPS
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Net income/(loss)		$	(15,205	)		$	(15,334	)		$	(32,206	)		$	(42,256	)
Change in fair value of warrant liabilities			1,590				5,081				(277	)			(998	)
Adjusted net loss			(16,795	)			(20,415	)			(31,929	)			(41,258	)
Adjusted EPS, basic and diluted		$	(2.86	)		$	(4.82	)		$	(5.44	)		$	(9.78	)
Weighted average shares, basic and diluted			5,873,019				4,233,072				5,865,003				4,218,785

 

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Investor Contact

Kaitlyn Brosco

Vicarious Surgical

Kbrosco@vicarioussurgical.com

Media Inquiries

media@vicarioussurgical.com

Source: Vicarious Surgical Inc.

FAQ

What were Vicarious Surgical's (RBOT) Q2 2024 financial results?

Vicarious Surgical reported an adjusted net loss of $16.8 million ($2.86 per share) and a GAAP net loss of $15.2 million ($2.59 per share) for Q2 2024. Operating expenses decreased by 17% to $17.7 million compared to the same period last year.

When does Vicarious Surgical (RBOT) expect to achieve its V1.0 integration milestone?

Vicarious Surgical is on track to achieve its V1.0 integration milestone in fall 2024.

What is Vicarious Surgical's (RBOT) cash position as of June 30, 2024?

Vicarious Surgical reported $73.2 million in cash and investments as of June 30, 2024.

What is Vicarious Surgical's (RBOT) cash burn guidance for 2024?

Vicarious Surgical reiterated its expected full year 2024 cash burn guidance of approximately $50 million.