Procept Biorobotics Corp. ((PRCT)) has held its Q1 earnings call. Read on for the main highlights of the call.
Procept Biorobotics Corp. recently held its earnings call, revealing a robust revenue growth trajectory and strategic advancements, especially in system sales and Medicare coverage. However, the positive sentiment was slightly overshadowed by notable net losses and the looming impact of potential tariffs.
Strong Revenue Growth
Procept Biorobotics reported a remarkable total revenue of $69.2 million for the first quarter of 2025, marking a 55% increase compared to the same period in 2024. This significant growth underscores the company’s successful strategies in expanding its market presence and enhancing its sales performance.
US System and International Revenue Performance
The company achieved impressive results in both domestic and international markets. US revenue reached $60.3 million, reflecting a 50% growth, while international revenue soared by 104% to $8.9 million. These figures highlight Procept Biorobotics’ effective expansion efforts and growing acceptance of its products globally.
Significant Increase in Handpiece Sales
Procept Biorobotics saw a substantial increase in handpiece sales, with 11,235 units sold in the US, representing a 65% year-over-year growth. This surge in sales is a testament to the increasing demand for the company’s innovative solutions.
Favorable Clinical Outcomes
The WATER III trial results were promising, showing that aquablation therapy had a 0% transfusion rate and lower rates of ejaculatory dysfunction and incontinence compared to laser enucleation. These favorable clinical outcomes are likely to boost the therapy’s adoption and credibility.
Positive Changes in Medicare Coverage
Significant updates in Medicare coverage were announced, with First Coast and Novitas streamlining access to aquablation therapy for a broader patient population. This change is expected to enhance the therapy’s accessibility and drive further growth.
Growing Installed Base and Strategic Partnerships
The US installed base grew to 547 systems, with 43 systems sold in the first quarter. Notably, 45% of these sales were associated with IDN bulk buys, indicating strong strategic partnerships and bulk purchasing agreements.
Net Loss and Operating Expenses
Despite the revenue growth, Procept Biorobotics reported a net loss of $24.7 million for Q1 2025, with operating expenses rising to $71.6 million from $52.7 million in the prior year. This highlights the company’s ongoing investments in growth and development.
Potential Tariff Impact
The company faces potential challenges from tariffs on imports from China, which could result in a $5 million gross margin headwind, reducing guidance by 150 basis points if rates remain elevated. This potential impact underscores the importance of monitoring international trade developments.
Saline Shortage Impact
A saline shortage had a residual impact on procedure volumes in January, although the situation normalized in February and March. This temporary challenge highlights the importance of supply chain resilience.
Forward-Looking Guidance
Looking ahead, Procept Biorobotics anticipates full-year 2025 revenue to reach approximately $323 million. The company expects to sell around 210 new robotic systems in the US and forecasts US handpiece sales to reach approximately 52,500 units, representing a 63% increase in unit volume compared to 2024. These projections reflect the company’s confidence in its growth trajectory and market demand.
In conclusion, Procept Biorobotics Corp.’s earnings call painted a picture of strong revenue growth and strategic advancements, tempered by significant net losses and potential tariff impacts. The company’s forward-looking guidance suggests continued expansion and market penetration, with a focus on increasing system sales and handpiece volumes.