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PROCEPT BioRobotics® Reports Third Quarter 2024 Financial Results and Increases 2024 Revenue and Adjusted EBITDA Guidance

SAN JOSE, Calif., Oct. 28, 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 unaudited financial results for the quarter ended September 30, 2024.

Recent Highlights

  • Total revenue of $58.4 million for the third quarter of 2024, an increase of 66% compared to the prior period in 2023
  • U.S. handpiece and consumables revenue of $29.6 million for the third quarter of 2024, an increase of 74% compared to the prior period in 2023
  • Sold 45 robotic systems in the U.S. in the third quarter of 2024 at an average selling price of approximately $432,000
  • U.S. system and rental revenue of $19.6 million for the third quarter of 2024, an increase of 46% compared to the prior period in 2023
  • International revenue of $6.2 million, for the third quarter of 2024, an increase of 122% compared to the prior period in 2023
  • Reported record gross margin of 63.2% in the third quarter of 2024
  • Increased fiscal year 2024 total revenue guidance range to $222.5 million to $223.0 million
  • Increased fiscal year 2024 gross margin guidance to 61%
  • Increased fiscal year 2024 Adjusted EBITDA guidance to a loss of $60.0 million

“I’m extremely proud of the entire PROCEPT team for their collective effort and execution in launching HYDROS in the third quarter,” said Reza Zadno, Chief Executive Officer. “After receiving HYDROS FDA clearance in August, we successfully converted the third quarter capital pipeline, manufactured sufficient quantities of commercial product, trained our clinical teams while mitigating downside pressure on procedures, and effectively managed customer relationships during this critical phase of our Company’s growth. As a result, we delivered another successful quarter with annual revenue growth of 66% and record gross margins of 63.2%.”

Third Quarter 2024 Financial Results

Total revenue for the third quarter of 2024 was $58.4 million, an increase of 66% compared to the prior year period. U.S. revenue was $52.2 million, representing growth of 62% compared to the prior year period. The increase was primarily driven by increased system sales, higher system average selling prices, and increased handpiece and other consumable revenue. U.S. handpiece and consumable revenue for the third quarter of 2024 was $29.6 million, an increase of 74% compared to the prior year period. U.S. system revenue for the third quarter of 2024 was $19.6 million, an increase of 46% compared to the prior year period. As of September 30, 2024, the install base of robotic systems in the U.S. was 445 systems. International revenue was $6.2 million for the quarter, an increase of 122% compared to the prior year period.

Gross margin for the third quarter 2024 was 63.2% compared to 53.8% in the prior year period. Gross margin improvement was primarily due to improved overhead absorption and increased U.S. robotic system average selling prices.

Operating expenses in the third quarter of 2024 were $59.3 million, compared with $44.5 million in the prior year period. The increase was driven by increased sales and marketing expenses primarily to expand the commercial organization and increased research and development expenses.

Net loss was $21.0 million for the third quarter of 2024, compared to a loss of $24.6 million in the prior year period. Adjusted EBITDA was a loss of $12.4 million for the third quarter of 2024, compared to a loss of $19.4 million in the prior year period.

Cash, cash equivalents and restricted cash as of September 30, 2024, totaled $199.8 million.

Full Year 2024 Financial Guidance

  • The Company projects revenue for the full year 2024 to be in the range of $222.5 million to $223.0 million, which represents 63% and 64% growth respectfully over the Company’s prior year revenue. This compares to previous revenue guidance of $217.0 million.
  • The Company projects full year 2024 gross margin to be approximately 61%. This compares to previous guidance of approximately 59%.
  • The Company projects full year 2024 total operating expense of approximately $231.5 million, which is unchanged from previously issued guidance.
  • The Company projects full year 2024 Adjusted EBITDA loss to be ($60.0) million. This compares to previous guidance of ($67.5) 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 third quarter 2024 financial results on Monday, October 28, 2024, 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/yhamkcsz
  • Dial-in registration for sell-side research analysts:
    • https://register.vevent.com/register/BI271ff7de75a342d8941d642d1900ba40

About PROCEPT BioRobotics Corporation
PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. PROCEPT BioRobotics manufactures the AQUABEAM® and HYDROS™ Robotic Systems. The HYDROS Robotic System is the only AI-Powered, robotic technology that delivers Aquablation therapy. 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. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. The Company has developed a significant and growing body of clinical evidence with 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 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
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 September 30,   Nine Months Ended September 30,
      2024       2023       2024       2023  
Revenue   $ 58,370     $ 35,102     $ 156,262     $ 92,610  
Cost of sales     21,459       16,228       62,835       42,816  
Gross profit     36,911       18,874       93,427       49,794  
Operating expenses:                
Research and development     16,647       11,600       47,232       33,950  
Selling, general and administrative     42,691       32,883       123,099       95,457  
Total operating expenses     59,338       44,483       170,331       129,407  
Loss from operations     (22,427 )     (25,609 )     (76,904 )     (79,613 )
Interest expense     (1,140 )     (1,019 )     (3,215 )     (2,870 )
Interest and other income, net     2,593       2,006       7,562       4,090  
Net loss   $ (20,974 )     (24,622 )     (72,557 )     (78,393 )
Net loss per share, basic and diluted   $ (0.40 )   $ (0.51 )   $ (1.41 )   $ (1.70 )
Weighted-average common shares used to                
Compute net loss per share attributable to                
Common shareholders, basic and diluted     52,011       48,310       51,550       46,131  
                 

PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(Unaudited, in thousands)
           
    Three Months Ended September 30,   Nine Months Ended September 30,
      2024       2023       2024       2023  
Net loss   $ (20,974 )   $ (24,622 )   $ (72,557 )   $ (78.393 )
Depreciation and amortization expense     1,328       1,054       3,781       2.489  
Stock-based compensation expense     8,512       5,326       22,755       14.153  
Interest (income) and interest expense, net     (1,296 )     (1,126 )     (4,694 )     (1.477 )
Adjusted EBITDA   $ (12,430 )   $ (19,368 )   $ (50,715 )   $ (63.228 )
                                 

PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED 2024 EBITDA Guidance
(Unaudited, in thousands)
     
      2024  
Net loss   $ (90,500 )
Depreciation and amortization expense     5,100  
Stock-based compensation expense     31,300  
Interest (income) and interest expense, net     (5,900 )
Adjusted EBITDA   $ (60,000 )
         

PROCEPT BioRobotics Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
     
    September 30,
2024
  December 31,
2023
Assets        
Current assets:        
Cash and cash equivalents   $ 196,762     $ 257,222  
Accounts receivable, net     69,048       48,376  
Inventory     50,850       39,756  
Prepaid expenses and other current assets     6,321       5,213  
Total current assets     322,981       350,567  
Restricted cash, non-current     3,038       3,038  
Property and equipment, net     26,605       28,748  
Operating lease right-of-use assets, net     19,267       20,241  
Intangible assets, net     1,000       1,204  
Other assets     1,251       919  
Total assets   $ 374,142     $ 404,717  
         
Liabilities and Stockholders’ Equity        
Current liabilities:        
Accounts payable   $ 15,088     $ 13,499  
Accrued compensation     18,834       16,885  
Deferred revenue     7,989       5,656  
Operating leases, current     1,839       1,683  
Loan facility derivative liability     2,000       1,886  
Other current liabilities     7,896       6,318  
Total current liabilities     53,646       45,927  
Long-term debt     51,438       51,339  
Operating leases, non-current     27,361       26,182  
Other liabilities     479       517  
Total liabilities     132,924       123,965  
         
Stockholders’ equity:        
Additional paid-in capital     768,365       735,240  
Accumulated other comprehensive loss     (18 )     84  
Accumulated deficit     (527,129 )     (454,572 )
Total stockholders’ equity     241,218       280,752  
Total liabilities and stockholders’ equity   $ 374,142     $ 404,717  
                 

PROCEPT BioRobotics Corporation
REVENUE BY TYPE AND GEOGRAPHY
(Unaudited, in thousands)
 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
      2024       2023       2024       2023  
U.S.                
System sales and rentals   $ 19,643     $ 13,467     $ 50,978     $ 37,065  
Handpieces and other consumables     29,620       17,047       81,217       42,418  
Service     2,952       1,811       7,888       4,545  
Total U.S. revenue     52,215       32,325       140,083       84,028  
Outside of U.S.                
System sales and rentals     3,155       828       7,974       3,896  
Handpieces and other consumables     2,616       1,651       7,230       3,826  
Service     384       298       975       860  
Total outside of U.S. revenue     6,155       2,777       16,179       8,582  
Total revenue   $ 58,370     $ 35,102     $ 156,262     $ 92,610  
                 

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