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PROCEPT BioRobotics (PRCT)
NASDAQ:PRCT
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PROCEPT BioRobotics
(NASDAQ:PRCT)
63Neutral
Positive Factors
Clinical Performance
Aquablation showed significantly improved incontinence and ejaculatory function compared to HoLEP at 3 months.
Financial Performance
Overall revenue was up 57% year-over-year and beat the Street by 2% as systems revenue beat by 17% and international beat by 27%.
Market Growth
This is another positive dataset for Procept in a core benign prostatic hyperplasia market only 10% penetrated in the U.S. and even lower globally.
Negative Factors
Operating Expenses
PRCT is pulling forward operating expense spend to accelerate enrollment in prostate cancer trials, posing challenges for investors.
Supply Chain Disruption
Saline shortages resulted in the cancellation or delay of up to 2k procedures, impacting 10%-20% of volume.
Valuation Concerns
PRCT currently trades at a significant premium to its high-growth peers, raising concerns about utilization and high expectations given the current valuation.
PROCEPT BioRobotics (PRCT) vs. S&P 500 (SPY)
Market Cap
$3.19B
Dividend YieldN/A
Average Volume (3M)985.68K
Price to Earnings (P/E)―
Beta (1Y)1.42
Revenue Growth64.84%
EPS Growth21.67%
CountryUS
Employees756
SectorHealthcare
Sector Strength65
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.76
Shares Outstanding54,818,700
10 Day Avg. Volume792,941
30 Day Avg. Volume985,684
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)14.19
Price to Cash Flow (P/CF)-24.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$92.44Price Target Upside58.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
PROCEPT BioRobotics Business Overview & Revenue Model
Company DescriptionPROCEPT BioRobotics Corporation, a surgical robotics company, develops transformative solutions in urology. It develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally-invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). The company also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. As of December 31, 2021, it had an install base of 130 AquaBeam Robotic Systems worldwide comprising 78 in the United States. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in Redwood City, California.
How the Company Makes MoneyPROCEPT BioRobotics generates revenue primarily through the sale and leasing of its AquaBeam Robotic System to hospitals and healthcare providers. The company's revenue streams also include recurring revenues from the sale of disposable handpieces and service agreements necessary for the operation and maintenance of the AquaBeam system. Additionally, PROCEPT BioRobotics may engage in strategic partnerships with medical institutions and other healthcare entities to expand the reach of its products and drive adoption. These partnerships can often provide additional revenue opportunities through collaborative endeavors and shared technological advancements.
PROCEPT BioRobotics Financial Statement Overview
Summary
PROCEPT BioRobotics is experiencing strong revenue growth and maintains a solid equity position. However, profitability remains a challenge due to negative margins and cash flows. The balance sheet is stable with low leverage, but there is a need for improved operational efficiency to achieve positive returns.Income Statement
PROCEPT BioRobotics has demonstrated strong revenue growth over the years, with total revenue increasing from $6.2 million in 2019 to $224.5 million in 2024, indicating a robust expansion trajectory. However, the company faces challenges with profitability, as reflected in negative net and EBIT margins due to high operating costs relative to revenue. Despite growing gross profit, achieving positive net income remains a critical goal.72
Positive
Balance Sheet
The balance sheet shows a strong equity position with stockholders' equity growing to $402.2 million in 2024. The debt-to-equity ratio is low, suggesting a conservative use of leverage, while the equity ratio indicates that the company is primarily equity-financed. However, the consistent net losses impact the return on equity, which remains negative, posing a challenge to profitability.65
Positive
Cash Flow
The company has improved its cash position significantly, with a substantial increase in cash and short-term investments. Although operating cash flow remains negative, indicating ongoing operational challenges, the firm has effectively raised capital through financing activities to support its growth. The negative free cash flow highlights the need for continued financial management to achieve sustainability.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 224.50M | 136.19M | 75.01M | 34.47M | 7.72M |
| Gross Profit | ||||
| 137.10M | 71.05M | 37.09M | 15.87M | -1.25M |
| EBIT | ||||
| -96.61M | -109.17M | -80.72M | -54.16M | -47.80M |
| EBITDA | ||||
| -82.00M | -98.09M | -77.65M | -51.06M | -45.05M |
| Net Income Common Stockholders | ||||
| -91.41M | -105.90M | -93.58M | -62.38M | -58.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 333.73M | 257.22M | 221.86M | 304.32M | 100.13M |
| Total Assets | ||||
| 534.02M | 404.72M | 309.33M | 337.02M | 125.97M |
| Total Debt | ||||
| 80.25M | 79.20M | 77.32M | 54.10M | 54.76M |
| Net Debt | ||||
| -253.47M | -178.02M | -144.54M | -250.22M | -45.37M |
| Total Liabilities | ||||
| 131.80M | 123.97M | 112.26M | 69.93M | 308.87M |
| Stockholders Equity | ||||
| 402.22M | 280.75M | 197.07M | 267.09M | -182.89M |
| Cash Flow | Free Cash Flow | |||
| -103.62M | -133.21M | -83.03M | -57.93M | -48.58M |
| Operating Cash Flow | ||||
| -99.21M | -108.00M | -80.38M | -57.33M | -48.34M |
| Investing Cash Flow | ||||
| -4.41M | -25.21M | -2.65M | -592.00K | -233.00K |
| Financing Cash Flow | ||||
| 180.13M | 167.79M | 3.61M | 262.12M | 106.77M |
PROCEPT BioRobotics Technical Analysis
Negative
58.26
Price Trends
64.78
Negative
77.06
Negative
74.18
Negative
Market Momentum
-1.67
Negative
39.50
Neutral
33.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PRCT, the sentiment is Negative. The current price of 58.26 is below the 20-day moving average (MA) of 59.22, below the 50-day MA of 64.78, and below the 200-day MA of 74.18, indicating a bearish trend. The MACD of -1.67 indicates Negative momentum. The RSI at 39.50 is Neutral, neither overbought nor oversold. The STOCH value of 33.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRCT.
PROCEPT BioRobotics Risk Analysis
PROCEPT BioRobotics disclosed 76 risk factors in its most recent earnings report. PROCEPT BioRobotics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PROCEPT BioRobotics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $176.21B | 77.22 | 15.62% | ― | 17.24% | 27.76% | |
73 Outperform | $22.53B | 25.53 | 7.24% | 0.85% | 3.84% | -9.29% | |
70 Outperform | $2.31B | 67.89 | 19.39% | ― | 82.74% | ― | |
69 Neutral | $11.71B | 98.33 | 2.52% | ― | 60.62% | -35.88% | |
63 Neutral | $3.19B | ― | -26.77% | ― | 64.84% | 21.67% | |
59 Neutral | $151.32M | ― | -144.19% | ― | 0.55% | -8.47% | |
48 Neutral | $6.86B | 1.11 | -51.04% | 2.47% | 16.66% | 1.53% |
* Healthcare Sector Average
Performance Comparison
PRCT
PROCEPT BioRobotics
57.09
10.53
22.62%
ISRG
Intuitive Surgical
496.36
114.00
29.81%
STXS
Stereotaxis
1.71
-1.30
-43.19%
ZBH
Zimmer Biomet Holdings
112.37
-14.97
-11.76%
GMED
Globus Medical
73.39
21.57
41.62%
TMDX
TransMedics Group
68.27
-4.35
-5.99%
PROCEPT BioRobotics Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -7.10% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful product launches, and progress in prostate cancer treatment initiatives. However, it also acknowledged challenges such as a significant saline supply disruption affecting procedure volumes and higher-than-expected operating expenses.Highlights
Significant Revenue Growth
Total revenue for the fourth quarter of 2024 was $68.2 million, representing growth of 57% compared to the fourth quarter of 2023. The full year revenue was $224.5 million, marking a growth of 65%.
Successful HYDROS Robotic System Launch
Received FDA 510(k) clearance for the HYDROS Robotic System, which saw a positive market reception and exceeded expectations. HYDROS accounted for 95% of the 60 systems sold in Q4, with an average selling price of approximately $460,000.
Prostate Cancer Initiative Progress
Successfully demonstrated that Aquablation therapy does not spread cancer cells, leading to FDA lifting the contraindication for patients with prostate cancer. Initiated a pivotal randomized study for prostate cancer with FDA-IDE approval.
International Revenue Surge
International revenue in the fourth quarter was $7.8 million, representing growth of 137% compared to the prior year period, driven by strong sales in the UK.
Record Gross Margin
Achieved a record gross margin of 64% in Q4 2024, an improvement due to operational efficiencies and higher HYDROS System selling prices.
Lowlights
Saline Supply Shortage Impact
A saline supply disruption due to Hurricane Helene affected approximately 50% of accounts, resulting in an estimated delay or cancellation of up to 2,000 procedures in Q4 2024.
Higher Operating Expenses
Fourth quarter operating expenses exceeded guidance by approximately 3.5%, primarily due to higher variable compensation expenses.
Company Guidance
During the PROCEPT BioRobotics Fourth Quarter and Year End 2024 Earnings Conference Call, the company provided comprehensive guidance for 2025, highlighting expectations for total revenue to reach approximately $320 million, a growth of 43% compared to 2024. They anticipate selling around 210 new robotic systems, with average selling prices ranging from $430,000 to $440,000. The company expects to sell approximately 52,500 handpieces at an average selling price of $3,200. International revenue is projected to grow by 36% to $32.5 million, driven by momentum in the UK and Japan. Gross margins for 2025 are anticipated to be about 64.5%, reflecting a 400 basis point improvement over 2024. Operating expenses are expected to be approximately $300 million, up 28% from the previous year, with a significant portion attributed to noncash stock-based compensation. Overall, the company is focused on leveraging strong commercial execution, expanding its installed base, and advancing its prostate cancer initiatives to drive long-term growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.