Procept Biorobotics Corp. ((PRCT)) has held its Q4 earnings call. Read on for the main highlights of the call.
Procept Biorobotics Corp. recently held its earnings call, revealing a positive sentiment driven by strong revenue growth, successful product launches, and advancements in prostate cancer treatment. Despite these achievements, the company acknowledged challenges such as a significant saline supply disruption affecting procedure volumes and higher-than-expected operating expenses.
Significant Revenue Growth
Procept Biorobotics reported impressive financial results for the fourth quarter of 2024, with total revenue reaching $68.2 million, marking a 57% increase compared to the same period in 2023. For the full year, the company achieved $224.5 million in revenue, reflecting a robust 65% growth.
Successful HYDROS Robotic System Launch
The launch of the HYDROS Robotic System was a major highlight, receiving FDA 510(k) clearance and exceeding market expectations. The system accounted for 95% of the 60 systems sold in the fourth quarter, with an average selling price of approximately $460,000, showcasing strong demand and acceptance.
Prostate Cancer Initiative Progress
Procept Biorobotics made significant strides in its prostate cancer initiatives, successfully demonstrating that Aquablation therapy does not spread cancer cells. This led to the FDA lifting the contraindication for patients with prostate cancer and the initiation of a pivotal randomized study with FDA-IDE approval.
International Revenue Surge
The company experienced a remarkable surge in international revenue, reaching $7.8 million in the fourth quarter, a 137% increase compared to the previous year. This growth was primarily driven by strong sales in the UK.
Record Gross Margin
Procept Biorobotics achieved a record gross margin of 64% in the fourth quarter of 2024, attributed to operational efficiencies and higher selling prices of the HYDROS System.
Saline Supply Shortage Impact
A significant challenge faced by the company was a saline supply disruption due to Hurricane Helene, affecting approximately 50% of accounts and resulting in an estimated delay or cancellation of up to 2,000 procedures in the fourth quarter.
Higher Operating Expenses
The fourth quarter saw operating expenses exceed guidance by about 3.5%, mainly due to higher variable compensation expenses, highlighting a need for cost management.
Forward-Looking Guidance
Looking ahead, Procept Biorobotics provided optimistic guidance for 2025, projecting total revenue to reach approximately $320 million, a 43% increase from 2024. The company expects to sell around 210 new robotic systems and approximately 52,500 handpieces. International revenue is anticipated to grow by 36% to $32.5 million, with gross margins improving to about 64.5%. Operating expenses are expected to rise to approximately $300 million, driven by noncash stock-based compensation.
In summary, Procept Biorobotics Corp.’s earnings call reflected a strong performance with significant revenue growth and successful product launches, despite facing challenges such as supply disruptions and rising expenses. The company’s forward-looking guidance indicates continued growth and expansion, particularly in international markets and prostate cancer initiatives.