PROCEPT BioRobotics (NASDAQ: PRCT) announced a substantial revenue increase for the third quarter of 2024, with total revenue reaching $58.4 million, reflecting a 66% increase compared to the previous year. The company’s financial performance was significantly enhanced by strong demand for its robotic systems, particularly in the U.S., where the installed base expanded by 64%. The introduction of the HYDROS Robotic System played a critical role in this achievement, despite some initial challenges. Additionally, PROCEPT revealed a new clinical trial for Aquablation therapy and reported a reduction in net losses, signaling strategic growth and progress towards profitability.
Key points from the company’s financial report include U.S. revenue contributing $52.2 million with a 62% growth, where the HYDROS Robotic System accounted for 80% of new sales. International revenue saw an 86% rise, with notable sales in the U.K. The company achieved record gross margins of 63.2% and improved its net loss from $24.6 million to $21 million, with adjusted EBITDA loss also showing improvement. PROCEPT forecasts full-year 2024 revenue to be between $222.5 million and $223 million with gross margins around 61%.
Looking ahead, the company expects full-year 2024 revenue growth of approximately 63% to 64% and aims to sell roughly 186 robotic systems by year-end. International revenue is projected to grow by 88%, reaching $22.4 million. Operating expenses are anticipated to rise by 29%, totaling $231.5 million, with an expected adjusted EBITDA loss of around $60 million for the year.
The company faced some challenges, including a decline in utilization per account, saline shortages, and hurricane disruptions affecting procedure volumes. However, PROCEPT remains optimistic about its HYDROS system, which has been well-received, with most launches scheduled for late 2024. The company is also looking to expand treatment options for prostate cancer and grow its ASC channel pilot program in 2025, supported by favorable reimbursement dynamics with Medicare and private payers.
Sales representatives’ training for the HYDROS system is expected to temporarily impact procedure volumes in the fourth quarter, with some procedures being sacrificed for a careful rollout of the HYDROS platform.
During the Q&A session, Kevin Waters discussed fourth-quarter ASP guidance and the cost implications of the HYDROS rollout, expressing confidence in future cost competitiveness and margin improvements. Reza Zadno emphasized the company’s focus on generating Level 1 data to support guideline inclusion and market expansion.
In summary, PROCEPT BioRobotics is successfully executing its growth strategy, with strong financial performance in the third quarter of 2024 and promising developments in its product offerings. The company remains focused on expanding its market presence in the treatment of prostate cancer and driving towards profitability in the upcoming fiscal year.
InvestingPro Insights highlight that the impressive Q3 2024 performance aligns with key metrics, showing a strong growth trajectory in revenue and stock performance. Despite current unprofitability indicated by negative operating income, the company is effectively managing costs. PROCEPT operates with a moderate level of debt, providing financial flexibility during its growth phase, and its stock is trading near its 52-week high, indicating bullish sentiment. InvestingPro offers additional tips for a deeper insight into the company’s financial health and market position.