Cover page
Cover page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-40797 | |
Entity Registrant Name | PROCEPT BioRobotics Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-0199180 | |
Entity Address, Address Line One | 150 Baytech Drive | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95134 | |
City Area Code | 650 | |
Local Phone Number | 232-7200 | |
Title of 12(b) Security | Common stock, $0.00001 par value per share | |
Trading Symbol | PRCT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 51,424,151 | |
Entity Central Index Key | 0001588978 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 225,576 | $ 257,222 |
Accounts receivable, net | 56,081 | 48,376 |
Inventory | 41,622 | 39,756 |
Prepaid expenses and other current assets | 5,907 | 5,213 |
Total current assets | 329,186 | 350,567 |
Restricted cash, non-current | 3,038 | 3,038 |
Property and equipment, net | 28,488 | 28,748 |
Operating lease right-of-use assets, net | 19,892 | 20,241 |
Intangible assets, net | 1,136 | 1,204 |
Other assets | 1,160 | 919 |
Total assets | 382,900 | 404,717 |
Current liabilities: | ||
Accounts payable | 10,084 | 13,499 |
Accrued compensation | 11,469 | 16,885 |
Deferred revenue | 5,860 | 5,656 |
Operating lease, current | 1,701 | 1,683 |
Loan facility derivative liability, current | 1,914 | 1,886 |
Other current liabilities | 7,622 | 6,318 |
Total current liabilities | 38,650 | 45,927 |
Long-term debt | 51,371 | 51,339 |
Operating lease, non-current | 28,315 | 26,182 |
Other liabilities | 517 | 517 |
Total liabilities | 118,853 | 123,965 |
Commitments and contingencies (see Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, $0.00001 par value; Authorized shares: 10,000 at March 31, 2024 and December 31, 2023, Issued and outstanding shares: none at March 31, 2024 and December 31, 2023 | 0 | 0 |
Common stock, $0.00001 par value; Authorized shares: 300,000 at March 31, 2024 and December 31, 2023 Issued and outstanding shares: 51,393 and 50,771 at March 31, 2024 and December 31, 2023, respectively | 0 | 0 |
Additional paid-in capital | 744,463 | 735,240 |
Accumulated other comprehensive gain | 113 | 84 |
Accumulated deficit | (480,529) | (454,572) |
Total stockholders’ equity | 264,047 | 280,752 |
Total liabilities and stockholders’ equity | $ 382,900 | $ 404,717 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets - Parentheticals - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred Stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued (in shares) | 0 | 0 |
Preferred Stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 51,393,000 | 50,771,000 |
Common stock, shares, outstanding (in shares) | 51,393,000 | 50,771,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Revenue | $ 44,539 | $ 24,404 |
Cost of sales | 19,505 | 11,913 |
Gross profit | 25,034 | 12,491 |
Operating expenses: | ||
Research and development | 13,084 | 10,737 |
Selling, general and administrative | 39,599 | 30,131 |
Total operating expenses | 52,683 | 40,868 |
Loss from operations | (27,649) | (28,377) |
Interest expense | (1,045) | (886) |
Interest and other income, net | 2,737 | 779 |
Net loss | $ (25,957) | $ (28,484) |
Net loss per share, basic (in dollars per share) | $ (0.51) | $ (0.63) |
Net loss per share, diluted (in dollars per share) | $ (0.51) | $ (0.63) |
Weighted-average common shares used to compute net loss per share attributable to | ||
Common shareholders, Basic (in shares) | 51,011 | 45,066 |
Common shareholders, Diluted (in shares) | 51,011 | 45,066 |
Other comprehensive loss: | ||
Unrealized gain on cash equivalents | $ 29 | $ 21 |
Comprehensive loss | $ (25,928) | $ (28,463) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Stockholders’ Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Gain (Loss) | Accumulated Deficit |
Balance at the beginning of the period (in shares) at Dec. 31, 2022 | 44,828 | ||||
Balance at the beginning of the period at Dec. 31, 2022 | $ 197,072 | $ 0 | $ 545,753 | $ (6) | $ (348,675) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans (in shares) | 181 | ||||
Issuance of common stock under stock plans | 380 | 380 | |||
Stock-based compensation expense | 4,137 | 4,137 | |||
Unrealized gain on cash equivalents | 21 | 21 | |||
Net loss | (28,484) | (28,484) | |||
Balance at the end of the period (in shares) at Mar. 31, 2023 | 45,009 | ||||
Balance at the end of the period at Mar. 31, 2023 | $ 173,126 | $ 0 | 550,270 | 15 | (377,159) |
Balance at the beginning of the period (in shares) at Dec. 31, 2023 | 50,771 | 50,771 | |||
Balance at the beginning of the period at Dec. 31, 2023 | $ 280,752 | $ 0 | 735,240 | 84 | (454,572) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock under stock plans (in shares) | 622 | ||||
Issuance of common stock under stock plans | 2,586 | 2,586 | |||
Stock-based compensation expense | 6,637 | 6,637 | |||
Unrealized gain on cash equivalents | 29 | 29 | |||
Net loss | $ (25,957) | (25,957) | |||
Balance at the end of the period (in shares) at Mar. 31, 2024 | 51,393 | 51,393 | |||
Balance at the end of the period at Mar. 31, 2024 | $ 264,047 | $ 0 | $ 744,463 | $ 113 | $ (480,529) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net loss | $ (25,957) | $ (28,484) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Depreciation and amortization | 1,184 | 793 |
Stock-based compensation expense | 6,256 | 3,724 |
Change in fair value of derivative liability | 28 | 26 |
Non-cash lease adjustment | (96) | 495 |
Inventory write-down | 0 | 228 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (7,706) | (5,370) |
Inventory | (1,486) | (10,136) |
Prepaid expenses and other current assets | (679) | 1,931 |
Other assets | (241) | 0 |
Accounts payable | (2,311) | 2,225 |
Accrued compensation | (5,417) | (6,039) |
Accrued interest expense | 32 | 28 |
Deferred revenue | 205 | 1,088 |
Reimbursements for leasehold improvements from operating leases | 2,596 | 3,217 |
Other liabilities | 1,306 | 346 |
Net cash used in operating activities | (32,286) | (35,928) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (1,946) | (5,339) |
Net cash used in investing activities | (1,946) | (5,339) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock from the exercise of stock options | 2,586 | 380 |
Net cash provided by financing activities | 2,586 | 380 |
Net decrease in cash, cash equivalents and restricted cash | (31,646) | (40,887) |
Beginning of the period | 260,260 | 225,674 |
End of the period | 228,614 | 184,787 |
Reconciliation of cash, cash equivalents and restricted cash to balance sheets: | ||
Cash and cash equivalents | 225,576 | 180,972 |
Restricted cash | 3,038 | 3,815 |
Cash, cash equivalents and restricted cash in balance sheets | 228,614 | 184,787 |
Supplemental cash flow information | ||
Interest paid | 1,004 | 1,121 |
Non-cash investing and financing activities | ||
Transfer of evaluation or rental units from inventory to property and equipment, net | 177 | (62) |
Property and equipment included in accounts payable and accrued expenses | $ 559 | $ 2,269 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Organization | Organization Description of Business PROCEPT BioRobotics Corporation (the “Company”) is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. It develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery, with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. The AquaBeam Robotic System employs a single-use disposable handpiece to deliver the Company’s proprietary Aquablation therapy, which combines real-time, multi-dimensional imaging, personalized treatment planning, automated robotics and heat-free waterjet ablation for targeted and rapid removal of prostate tissue. The Company received U.S. Food and Drug Administration clearance in December 2017 to market its AquaBeam Robotic System pursuant to a de novo classification. On August 30 2023, The Company received 510(k) clearance from FDA to remove the contraindication from its labeling that restricted Aquablation therapy from treating BPH in patients that also have an active diagnosis of prostate cancer. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Preparation The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and pursuant to the rules and regulations of the United States Securities and Exchange Commission or SEC. These condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Unaudited Interim Financial Statements The accompanying balance sheet as of March 31, 2024, the statements of operations and comprehensive loss and cash flows for the three months ended March 31, 2024 and 2023, and the statements of stockholders’ equity as of March 31, 2024 and 2023, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to March 31, 2024, and the three months ended March 31, 2024 and 2023, are also unaudited. The accompanying balance sheet as of December 31, 2023 has been derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Company’s financial position as of March 31, 2024, and the results of its operations and cash flows for the three months ended March 31, 2024 and 2023. The results for the three months ended March 31, 2024, are not necessarily indicative of results to be expected for the year ending December 31, 2024, or for any other interim period or for any future year and should be read in conjunction with the annual consolidated financial statements included in the Company’s Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements. Management uses significant judgment when making estimates related to its stock-based compensation expense, right-of-use lease asset, lease liability, valuations of loan facility derivative liability, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ from those estimates. Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied either prospectively or retrospectively. The Company plans to adopt the ASU and related updates on January 1, 2025. The Company is evaluating the impact of this ASU will have on its financial statement disclosures. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurements The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 18,788 $ — $ — $ 18,788 $ 6,609 $ — $ — $ 6,609 Cash equivalents 206,788 — — 206,788 250,613 — — 250,613 Total cash and cash equivalents $ 225,576 $ — $ — $ 225,576 $ 257,222 $ — $ — $ 257,222 Loan facility derivative liability $ — $ — $ 1,914 $ 1,914 $ — $ — $ 1,886 $ 1,886 Cash equivalents consist primarily of money market deposit funds. There were no transfers in and out of Level 3 during the three months ended March 31, 2024 and year ended December 31, 2023. The following table sets forth a summary of the changes in the estimated fair value of the Company’s loan facility derivative liability, classified as Level 3 (in thousands): Three Months Ended March 31, 2024 2023 Beginning of the period $ 1,886 $ 1,779 Change in fair value 28 26 End of the period $ 1,914 $ 1,805 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consists of the following (in thousands): March 31, December 31, 2024 2023 Raw materials $ 16,138 $ 16,737 Work-in-process 1,382 1,142 Finished goods 24,102 21,877 Total inventory $ 41,622 $ 39,756 |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consist of the following (in thousands): March 31, December 31, 2024 2023 Laboratory, manufacturing and computer equipment, and furniture and fixtures $ 20,305 $ 15,610 Rental equipment $ 1,029 897 Leasehold improvements 11,955 12,362 Construction in progress — 3,548 Total property and equipment 33,289 32,417 Less: accumulated depreciation and amortization (4,801) (3,669) Total property and equipment, net $ 28,488 $ 28,748 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt In October 2022, the Company entered into a loan and security agreement (“the Loan Agreement”) with Canadian Imperial Bank of Commerce, or CIBC. The Agreement provides for a senior secured term loan facility in the aggregate principal amount of $52.0 million (the "Term Loan Facility") which was borrowed in full. Proceeds from the Term Loan Facility were used to repay and terminate the Company's previous loan facility, transaction fees, and related expenses. The Term Loan Facility is scheduled to mature on the fifth anniversary of the closing date (the “Maturity Date”). The Agreement provides for interest-only payments on the Term Loan Facility for the first thirty-six months following the Maturity Date (the “Initial Interest-Only Period”). The Initial Interest-Only Period will be extended to an additional twelve months if the Company achieves either (i) $200.0 million or greater in revenue in any twelve-month period or (ii) $0 or greater in EBITDA (as defined in the Loan Agreement) in any six-month period. Thereafter, amortization payments on the Term Loan Facility will be payable monthly until the Maturity Date in monthly installments equal to 20% of the then outstanding principal amount of the Term Loan Facility divided by 12 plus any accrued and unpaid interest. The Company has the option to prepay the Term Loan Facility without any prepayment charge or fee. The loan borrowed under the Term Loan Facility bears interest at an annual rate equal to the secured overnight financing rate or SOFR (calculated based on an adjustment of .10%, .15% and .25%, respectively, for one-month, three-month or six-month term SOFR as of a specified date, subject to a floor of 1.5%) plus an applicable margin of 2.25%. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Total stock-based compensation recognized, before taxes, are as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of sales $ 1,312 $ 461 Research and development 1,212 887 Sales, general and administrative 4,579 2,789 Stock-based compensation capitalized in inventory (847) (413) Total stock-based compensation $ 6,256 $ 3,724 Stock Options The Company had 6.8 million shares available for grant as of March 31, 2024 under the 2021 Equity Incentive Award Plan or 2021 Plan. A summary of the Company’s stock option activity and related information are as follows (options in thousands): Three Months Ended March 31, 2024 Number of Shares Weighted-Average Exercise Price Outstanding, beginning of period 5,215 $ 9.42 Granted 155 47.20 Exercised (354) 7.30 Forfeited (133) 20.46 Outstanding, end of period 4,883 10.47 Vested and expected to vest 4,883 10.47 Exercisable 3,917 6.97 As of March 31, 2024 and December 31, 2023, the aggregate pre-tax intrinsic value of options outstanding and exercisable was $168.3 million and $144.0 million, respectively, and the aggregate pre-tax intrinsic value of options outstanding were $190.2 million and $169.5 million, respectively. The aggregate pre-tax intrinsic value of options exercised was $14.5 million and $2.3 million during the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was a total of $12.2 million of unrecognized stock-based compensation expense related to stock options. The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table: Three Months Ended March 31, 2024 2023 Expected life (years) 6.0 6.0 Expected volatility 57 % 57 % Risk-free interest rate 4.1 % 4.0 % Expected dividend rate — % — % Weighted-average fair value $ 26.98 $ 21.18 Restricted Stock Units A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands): Three Months Ended March 31, 2024 Number of Shares Weighted-Average Fair Value Outstanding, beginning of period 1,565 $ 36.27 Awarded 818 48.12 Forfeited (119) 37.26 Vested (267) 36.15 Outstanding, end of period 1,997 41.09 As of March 31, 2024, there was a total of $76.7 million of unrecognized stock-based compensation expense related to RSUs. Performance Stock Units The 2021 Plan provides for issuance of performance stock units or PSUs. PSUs granted are contingent upon the achievement of predetermined market, performance, and service conditions. PSUs are awarded to executives of the Company and generally time vest over two During the period ended March 31, 2024, the Company awarded approximately 61,000 PSU shares with both a performance and service condition. A certain performance condition will be defined at a later date. Per ASC 718 – Compensation, Stock Compensation, these grants have not met the definition of having a grant date, and therefore, no expense has been recognized for these PSUs. Expense will be recognized when the performance condition becomes defined. During the period ended March 31, 2024, the Company awarded approximately 20,000 PSU shares with both a market and service condition. Unrecognized compensation expense for the period then ended was not material. No PSU awards were forfeited or released during the period ending March 31, 2024. Employee Stock Purchase Plan During the period ended March 31, 2024, there were no stock purchases made under the Employee Stock Purchase Plan or ESPP. As of March 31, 2024, there was approximately $0.3 million of unrecognized cost related to the ESPP. This cost is expected to be recognized over a weighted average period of 0.2 years. As of March 31, 2024, a total of 1.6 million shares were available for issuance under the ESPP. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Net Loss Per Share | Net Loss Per Share Net loss per share was determined as follows (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Net loss $ (25,957) $ (28,484) Weighted-average common stock outstanding 51,011 45,066 Net loss per share, basic and diluted $ (0.51) $ (0.63) The following potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): March 31, 2024 2023 Stock options 4,883 5,626 Restricted and performance stock units 2,078 1,371 Employee stock purchase plan 87 100 Total 7,048 7,097 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table presents revenue disaggregated by type and geography (in thousands): Three Months Ended March 31, 2024 2023 U.S. System sales and rentals $ 14,236 $ 8,770 Handpieces and other consumables 23,618 11,770 Service 2,347 1,235 Total U.S. revenue 40,201 21,775 Outside of U.S. System sales and rentals 1,740 1,469 Handpieces and other consumables 2,343 906 Service 255 254 Total outside of U.S. revenue 4,338 2,629 Total revenue $ 44,539 $ 24,404 |
Segment, Geographical, and Cust
Segment, Geographical, and Customer Concentration | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment, Geographical, and Customer Concentration | Segment, Geographical, and Customer Concentration The Company operates as a single operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The Company’s assets are primarily based in the United States. No customers accounted for more than 10% of revenue during the three months ended March 31, 2024 and 2023. No customer accounted for more than 10% of accounts receivable at March 31, 2024 and December 31, 2023. The following table presents revenue by significant geographical locations for the periods indicated: Three Months Ended March 31, 2024 2023 United States 90 % 89 % Outside the United States 10 % 11 % |
Segment, Geographical, and Customer Concentration | Segment, Geographical, and Customer Concentration The Company operates as a single operating segment. The Company’s chief operating decision maker, its Chief Executive Officer, reviews financial information on an aggregate basis for the purposes of allocating resources and evaluating financial performance. The Company’s assets are primarily based in the United States. No customers accounted for more than 10% of revenue during the three months ended March 31, 2024 and 2023. No customer accounted for more than 10% of accounts receivable at March 31, 2024 and December 31, 2023. The following table presents revenue by significant geographical locations for the periods indicated: Three Months Ended March 31, 2024 2023 United States 90 % 89 % Outside the United States 10 % 11 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any material claims or been required to defend any action related to its indemnification obligations. As of March 31, 2024 and December 31, 2023, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities. Facility Lease In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease. Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $1.6 million and $2.0 million for the three months ended March 31, 2024 and 2023. Future minimum annual operating lease and debt repayments are as follows (in thousands): As of March 31, 2024 Minimum Lease Payments Debt Repayments Total 2024 $ 3,129 $ — $ 3,129 2025 4,297 4,333 8,630 2026 4,426 26,000 30,426 2027 4,808 21,667 26,475 2028 4,952 — 4,952 Thereafter 22,297 — 22,297 Total minimum payments 43,909 52,000 95,909 Less: amount representing interest/unamortized debt discount (13,893) (629) (14,522) Present value of future payments 30,016 51,371 81,387 Less: current portion (1,701) — (1,701) Non-current portion $ 28,315 $ 51,371 $ 79,686 , |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Indemnifications In the normal course of business, the Company enters into agreements that contain a variety of representations and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any material claims or been required to defend any action related to its indemnification obligations. As of March 31, 2024 and December 31, 2023, the Company does not have any material indemnification claims that were probable or reasonably possible and consequently has not recorded related liabilities. Facility Lease In December 2021, the Company entered into a lease for two existing buildings, comprising approximately 158,221 square feet of space, located in San Jose, California. The lease commenced in July 2022, and will continue for 122 months following thereafter, with two five year options to extend the term of the lease. Rent expense recognized under the lease, including additional rent charges for utilities, parking, maintenance, and real estate taxes, was $1.6 million and $2.0 million for the three months ended March 31, 2024 and 2023. Future minimum annual operating lease and debt repayments are as follows (in thousands): As of March 31, 2024 Minimum Lease Payments Debt Repayments Total 2024 $ 3,129 $ — $ 3,129 2025 4,297 4,333 8,630 2026 4,426 26,000 30,426 2027 4,808 21,667 26,475 2028 4,952 — 4,952 Thereafter 22,297 — 22,297 Total minimum payments 43,909 52,000 95,909 Less: amount representing interest/unamortized debt discount (13,893) (629) (14,522) Present value of future payments 30,016 51,371 81,387 Less: current portion (1,701) — (1,701) Non-current portion $ 28,315 $ 51,371 $ 79,686 , |
Defined Contribution Plan
Defined Contribution Plan | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan The Company has a defined contribution retirement savings plan under Section 401(k) of the Internal Revenue Code. This plan allows eligible employees to defer a portion of their annual compensation on a pre-tax basis. Employer contributions were $0.7 million and $0.5 million for the three months ended March 31, 2024 and 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net loss | $ (25,957) | $ (28,484) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Frederic Moll [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 29, 2024, Frederic Moll, M.D., the Chair of the Company’s Board of Directors, terminated a pre-arranged written stock sale plan in accordance with Rule 10b5-1 (the “Moll 10b5-1 Plan”) under the Exchange Act, for the sale of shares of the Company’s common stock. The Moll 10b5-1 Plan was terminated during an open trading window in accordance with the Company’s policies regarding transactions in the Company’s securities and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Moll 10b5-1 Plan provided for the potential sale of up to 237,000 shares of the Company’s common stock, so long as the market price of the Company’s common stock was higher than certain minimum threshold prices specified in the Moll 10b5-1 Plan. The Moll 10b5-1 Plan was to expire on December 31, 2024, or on such earlier date on which all of the trades thereunder had been executed. |
Name | Frederic Moll |
Title | M.D., the Chair of the Company’s Board of Directors |
Adoption Date | February 29, 2024 |
Rule 10b5-1 Arrangement Terminated | true |
Aggregate Available | 237,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Preparation |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the condensed consolidated financial statements. Management uses significant judgment when making estimates related to its stock-based compensation expense, right-of-use lease asset, lease liability, valuations of loan facility derivative liability, as well as certain accrued liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update, or ASU, 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company does not expect the adoption of this ASU to have an impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for all public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted and should be applied either prospectively or retrospectively. The Company plans to adopt the ASU and related updates on January 1, 2025. The Company is evaluating the impact of this ASU will have on its financial statement disclosures. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following is a summary of assets and liabilities measured at fair value on a recurring basis (in thousands): March 31, 2024 December 31, 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash and cash equivalents: Cash $ 18,788 $ — $ — $ 18,788 $ 6,609 $ — $ — $ 6,609 Cash equivalents 206,788 — — 206,788 250,613 — — 250,613 Total cash and cash equivalents $ 225,576 $ — $ — $ 225,576 $ 257,222 $ — $ — $ 257,222 Loan facility derivative liability $ — $ — $ 1,914 $ 1,914 $ — $ — $ 1,886 $ 1,886 |
Schedule of Derivative Liabilities at Fair Value | The following table sets forth a summary of the changes in the estimated fair value of the Company’s loan facility derivative liability, classified as Level 3 (in thousands): Three Months Ended March 31, 2024 2023 Beginning of the period $ 1,886 $ 1,779 Change in fair value 28 26 End of the period $ 1,914 $ 1,805 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following (in thousands): March 31, December 31, 2024 2023 Raw materials $ 16,138 $ 16,737 Work-in-process 1,382 1,142 Finished goods 24,102 21,877 Total inventory $ 41,622 $ 39,756 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consist of the following (in thousands): March 31, December 31, 2024 2023 Laboratory, manufacturing and computer equipment, and furniture and fixtures $ 20,305 $ 15,610 Rental equipment $ 1,029 897 Leasehold improvements 11,955 12,362 Construction in progress — 3,548 Total property and equipment 33,289 32,417 Less: accumulated depreciation and amortization (4,801) (3,669) Total property and equipment, net $ 28,488 $ 28,748 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount | Total stock-based compensation recognized, before taxes, are as follows (in thousands): Three Months Ended March 31, 2024 2023 Cost of sales $ 1,312 $ 461 Research and development 1,212 887 Sales, general and administrative 4,579 2,789 Stock-based compensation capitalized in inventory (847) (413) Total stock-based compensation $ 6,256 $ 3,724 |
Schedule of Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information are as follows (options in thousands): Three Months Ended March 31, 2024 Number of Shares Weighted-Average Exercise Price Outstanding, beginning of period 5,215 $ 9.42 Granted 155 47.20 Exercised (354) 7.30 Forfeited (133) 20.46 Outstanding, end of period 4,883 10.47 Vested and expected to vest 4,883 10.47 Exercisable 3,917 6.97 |
Schedule of Fair Value Assumptions | The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table: Three Months Ended March 31, 2024 2023 Expected life (years) 6.0 6.0 Expected volatility 57 % 57 % Risk-free interest rate 4.1 % 4.0 % Expected dividend rate — % — % Weighted-average fair value $ 26.98 $ 21.18 |
Schedule of Restricted Stock Unit Activity | A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands): Three Months Ended March 31, 2024 Number of Shares Weighted-Average Fair Value Outstanding, beginning of period 1,565 $ 36.27 Awarded 818 48.12 Forfeited (119) 37.26 Vested (267) 36.15 Outstanding, end of period 1,997 41.09 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Loss Per Share, Basic | Net loss per share was determined as follows (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Net loss $ (25,957) $ (28,484) Weighted-average common stock outstanding 51,011 45,066 Net loss per share, basic and diluted $ (0.51) $ (0.63) |
Schedule of Loss Per Share, Diluted | Net loss per share was determined as follows (in thousands, except per share amounts): Three Months Ended March 31, 2024 2023 Net loss $ (25,957) $ (28,484) Weighted-average common stock outstanding 51,011 45,066 Net loss per share, basic and diluted $ (0.51) $ (0.63) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to losses reported (in common stock equivalent shares, in thousands): March 31, 2024 2023 Stock options 4,883 5,626 Restricted and performance stock units 2,078 1,371 Employee stock purchase plan 87 100 Total 7,048 7,097 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from External Customers by Geographic Areas | The following table presents revenue disaggregated by type and geography (in thousands): Three Months Ended March 31, 2024 2023 U.S. System sales and rentals $ 14,236 $ 8,770 Handpieces and other consumables 23,618 11,770 Service 2,347 1,235 Total U.S. revenue 40,201 21,775 Outside of U.S. System sales and rentals 1,740 1,469 Handpieces and other consumables 2,343 906 Service 255 254 Total outside of U.S. revenue 4,338 2,629 Total revenue $ 44,539 $ 24,404 The following table presents revenue by significant geographical locations for the periods indicated: Three Months Ended March 31, 2024 2023 United States 90 % 89 % Outside the United States 10 % 11 % |
Schedule of Revenue from External Customers by Products and Services | The following table presents revenue disaggregated by type and geography (in thousands): Three Months Ended March 31, 2024 2023 U.S. System sales and rentals $ 14,236 $ 8,770 Handpieces and other consumables 23,618 11,770 Service 2,347 1,235 Total U.S. revenue 40,201 21,775 Outside of U.S. System sales and rentals 1,740 1,469 Handpieces and other consumables 2,343 906 Service 255 254 Total outside of U.S. revenue 4,338 2,629 Total revenue $ 44,539 $ 24,404 |
Segment, Geographical, and Cu_2
Segment, Geographical, and Customer Concentration (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Geographic Areas | The following table presents revenue disaggregated by type and geography (in thousands): Three Months Ended March 31, 2024 2023 U.S. System sales and rentals $ 14,236 $ 8,770 Handpieces and other consumables 23,618 11,770 Service 2,347 1,235 Total U.S. revenue 40,201 21,775 Outside of U.S. System sales and rentals 1,740 1,469 Handpieces and other consumables 2,343 906 Service 255 254 Total outside of U.S. revenue 4,338 2,629 Total revenue $ 44,539 $ 24,404 The following table presents revenue by significant geographical locations for the periods indicated: Three Months Ended March 31, 2024 2023 United States 90 % 89 % Outside the United States 10 % 11 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments | Future minimum annual operating lease and debt repayments are as follows (in thousands): As of March 31, 2024 Minimum Lease Payments Debt Repayments Total 2024 $ 3,129 $ — $ 3,129 2025 4,297 4,333 8,630 2026 4,426 26,000 30,426 2027 4,808 21,667 26,475 2028 4,952 — 4,952 Thereafter 22,297 — 22,297 Total minimum payments 43,909 52,000 95,909 Less: amount representing interest/unamortized debt discount (13,893) (629) (14,522) Present value of future payments 30,016 51,371 81,387 Less: current portion (1,701) — (1,701) Non-current portion $ 28,315 $ 51,371 $ 79,686 |
Schedule of Maturities of Long-term Debt | Future minimum annual operating lease and debt repayments are as follows (in thousands): As of March 31, 2024 Minimum Lease Payments Debt Repayments Total 2024 $ 3,129 $ — $ 3,129 2025 4,297 4,333 8,630 2026 4,426 26,000 30,426 2027 4,808 21,667 26,475 2028 4,952 — 4,952 Thereafter 22,297 — 22,297 Total minimum payments 43,909 52,000 95,909 Less: amount representing interest/unamortized debt discount (13,893) (629) (14,522) Present value of future payments 30,016 51,371 81,387 Less: current portion (1,701) — (1,701) Non-current portion $ 28,315 $ 51,371 $ 79,686 |
Organization (Details)
Organization (Details) customer in Millions | 3 Months Ended |
Mar. 31, 2024 customer | |
Accounting Policies [Abstract] | |
Number of men impacted by BPH | 40 |
Fair Value Measurement - Fair V
Fair Value Measurement - Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Total cash and cash equivalents | $ 225,576 | $ 257,222 | $ 180,972 |
Derivative liability, statement of financial position | Loan facility derivative liability, current | Loan facility derivative liability, current | |
Fair Value, Measurements, Recurring | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Cash | $ 18,788 | $ 6,609 | |
Cash equivalents | 206,788 | 250,613 | |
Total cash and cash equivalents | 225,576 | 257,222 | |
Loan facility derivative liability | 1,914 | 1,886 | |
Level 1 | Fair Value, Measurements, Recurring | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Cash | 18,788 | 6,609 | |
Cash equivalents | 206,788 | 250,613 | |
Total cash and cash equivalents | 225,576 | 257,222 | |
Loan facility derivative liability | 0 | 0 | |
Level 2 | Fair Value, Measurements, Recurring | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Cash | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Total cash and cash equivalents | 0 | 0 | |
Loan facility derivative liability | 0 | 0 | |
Level 3 | Fair Value, Measurements, Recurring | |||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||
Cash | 0 | 0 | |
Cash equivalents | 0 | 0 | |
Total cash and cash equivalents | 0 | 0 | |
Loan facility derivative liability | $ 1,914 | $ 1,886 |
Fair Value Measurement - Fair_2
Fair Value Measurement - Fair Value, Inputs, Level 3 - Fair Value, Measurements, Recurring (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Fair value, net derivative asset (liability), recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income | Change in fair value of derivative liability | Change in fair value of derivative liability |
Fair Value, Measurements, Recurring | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Beginning of the period | $ 1,886 | $ 1,779 |
Change in fair value | 28 | 26 |
End of the period | $ 1,914 | $ 1,805 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 16,138 | $ 16,737 |
Work-in-process | 1,382 | 1,142 |
Finished goods | 24,102 | 21,877 |
Total inventory | $ 41,622 | $ 39,756 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Construction in progress | ||
Total property and equipment | $ 33,289 | $ 32,417 |
Less: accumulated depreciation and amortization | (4,801) | (3,669) |
Total property and equipment, net | 28,488 | 28,748 |
Laboratory, manufacturing and computer equipment, and furniture and fixtures | ||
Construction in progress | ||
Total property and equipment | 20,305 | 15,610 |
Rental equipment | ||
Construction in progress | ||
Total property and equipment | 1,029 | 897 |
Leasehold improvements | ||
Construction in progress | ||
Total property and equipment | 11,955 | 12,362 |
Construction in progress | ||
Construction in progress | ||
Total property and equipment | $ 0 | $ 3,548 |
Long-Term Debt (Details)
Long-Term Debt (Details) - Canadian Imperial Bank of Commerce - Senior Loans - USD ($) | 1 Months Ended | 9 Months Ended | 18 Months Ended |
Oct. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2024 | |
Line of Credit Facility [Line Items] | |||
Aggregate principal amount | $ 52,000,000 | ||
Debt instrument, covenant compliance interest-only period term | 36 months | ||
Debt instrument, covenant compliance interest-only period renewal term | 12 months | ||
Debt instrument, covenant compliance, revenue threshold amount | $ 200,000,000 | ||
Debt instrument, covenant compliance, EBITDA threshold amount | $ 0 | ||
Debt instrument, convertible, threshold percentage of stock price trigger | 20% | ||
Deposits | $ 90,000,000 | ||
Non-US | |||
Line of Credit Facility [Line Items] | |||
Pledged subsidiary equity interests in Non -US subsidiaries, percent | 65% | ||
Secured Overnight Financing Rate One Month Term | |||
Line of Credit Facility [Line Items] | |||
Facility interest, spread on base rate | 0.10% | ||
Secured Overnight Financing Rate Three Month Term | |||
Line of Credit Facility [Line Items] | |||
Facility interest, spread on base rate | 0.15% | ||
Secured Overnight Financing Rate Six Month Term | |||
Line of Credit Facility [Line Items] | |||
Facility interest, spread on base rate | 0.25% | ||
Secured Overnight Financing Rate Floor Rate | |||
Line of Credit Facility [Line Items] | |||
Facility interest, spread on base rate | 1.50% | ||
Secured Overnight Financing Rate Margin Rate | |||
Line of Credit Facility [Line Items] | |||
Facility interest, spread on base rate | 2.25% |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-Based Payment Arrangement, Expense | $ 6,256 | $ 3,724 |
Inventories | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-Based Payment Arrangement, Expense | 847 | 413 |
Cost of sales | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-Based Payment Arrangement, Expense | 1,312 | 461 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-Based Payment Arrangement, Expense | 1,212 | 887 |
Sales, general and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Share-Based Payment Arrangement, Expense | $ 4,579 | $ 2,789 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangements | |||
Options outstanding and exercisable, aggregate intrinsic value | $ 168.3 | $ 144 | |
Options outstanding, aggregate intrinsic value | 190.2 | $ 169.5 | |
Options exercised in the period, intrinsic value | 14.5 | $ 2.3 | |
Unrecognized compensation cost | $ 12.2 | ||
2021 Equity Incentive Award Plan | |||
Share-based Compensation Arrangements | |||
Shares available for grant (in shares) | 6,800,000 | ||
2021 Equity Incentive Award Plan | Maximum | |||
Share-based Compensation Arrangements | |||
Award vesting period (in years) | 3 years | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangements | |||
Shares available for grant (in shares) | 1,600,000 | ||
Unrecognized compensation cost | $ 0.3 | ||
Employee Stock Purchases Plan | 0 | ||
Average vesting period for unrecognized compensation cost (in years) | 2 months 12 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangements | |||
Unrecognized compensation cost | $ 76.7 | ||
Award (in shares) | 818,000 | ||
Forfeited or released (in shares) | 119,000 | ||
Performance Stock Units | 2021 Equity Incentive Award Plan | |||
Share-based Compensation Arrangements | |||
Forfeited or released (in shares) | 0 | ||
Performance Stock Units | 2021 Equity Incentive Award Plan | Minimum | |||
Share-based Compensation Arrangements | |||
Award vesting period (in years) | 2 years | ||
Performance Shares, Performance and Service Condition | 2021 Equity Incentive Award Plan | |||
Share-based Compensation Arrangements | |||
Award (in shares) | 61,000 | ||
Performance Shares, Market and Service Condition | 2021 Equity Incentive Award Plan | |||
Share-based Compensation Arrangements | |||
Award (in shares) | 20,000 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Stock Option Activity (Details) - Stock options | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Balance at the beginning of the period (in shares) | shares | 5,215,000 |
Granted (in shares) | shares | 155,000 |
Exercised (in shares) | shares | (354,000) |
Forfeited (in shares) | shares | (133,000) |
Balance at the end of the period (in shares) | shares | 4,883,000 |
Vested and expected to vest (in shares) | shares | 4,883,000 |
Exercisable (in shares) | shares | 3,917,000 |
Weighted-Average Exercise Price | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 9.42 |
Granted (in dollars per share) | $ / shares | 47.20 |
Exercised (in dollars per share) | $ / shares | 7.30 |
Forfeited (in dollars per share) | $ / shares | 20.46 |
Balance at the end of the period (in dollars per share) | $ / shares | 10.47 |
Vested and expected to vest (in dollars per share) | $ / shares | 10.47 |
Exercisable (in dollars per share) | $ / shares | $ 6.97 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Stock options - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangements | ||
Expected life (years) | 6 years | 6 years |
Expected volatility | 57% | 57% |
Risk-free interest rate | 4.10% | 4% |
Expected dividend rate | 0% | 0% |
Weighted-average fair value (in dollars per share) | $ 26.98 | $ 21.18 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Number of Shares | |
Outstanding, beginning of period (in shares) | shares | 1,565 |
Award (in shares) | shares | 818 |
Forfeited (in shares) | shares | (119) |
Vested (in shares) | shares | (267) |
Outstanding, end of period (in shares) | shares | 1,997 |
Weighted-Average Fair Value | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 36.27 |
Awarded (in dollars per share) | $ / shares | 48.12 |
Forfeited (in dollars per shares) | $ / shares | 37.26 |
Vested (in dollars per shares) | $ / shares | 36.15 |
Outstanding, endof period (in dollars per share) | $ / shares | $ 41.09 |
Net Loss Per Share - Net loss p
Net Loss Per Share - Net loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Net loss | $ (25,957) | $ (28,484) |
Weighted-average common stock outstanding, basic (in shares) | 51,011 | 45,066 |
Weighted-average common stock outstanding, diluted (in shares) | 51,011 | 45,066 |
Net loss per share, diluted (in dollars per share) | $ (0.51) | $ (0.63) |
Net loss per share, basic (in dollars per share) | $ (0.51) | $ (0.63) |
Net Loss Per Share - Potentiall
Net Loss Per Share - Potentially Dilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 7,048 | 7,097 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 4,883 | 5,626 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 2,078 | 1,371 |
Employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 87 | 100 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 44,539 | $ 24,404 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 40,201 | 21,775 |
Outside of U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,338 | 2,629 |
System sales and rentals | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 14,236 | 8,770 |
System sales and rentals | Outside of U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,740 | 1,469 |
Handpieces and other consumables | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 23,618 | 11,770 |
Handpieces and other consumables | Outside of U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,343 | 906 |
Service | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,347 | 1,235 |
Service | Outside of U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 255 | $ 254 |
Segment, Geographical, and Cu_3
Segment, Geographical, and Customer Concentration (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Revenue Benchmark | Geographic Concentration Risk | U.S. | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue by significant geographical locations outside the United States | 90% | 89% | |
Revenue Benchmark | Geographic Concentration Risk | Outside of U.S. | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue by significant geographical locations outside the United States | 10% | 11% | |
Customer 1 | Accounts Receivable | Customer Concentration Risk | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Revenue by significant geographical locations outside the United States | 10% | 10% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 ft² renewalOption building | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Guarantor Obligations | |||
Number of renewal options | renewalOption | 2 | ||
Renewal term (in years) | 5 years | ||
Rent expense | $ | $ 1.6 | $ 2 | |
Building | |||
Guarantor Obligations | |||
Number of square feet | ft² | 158,221 | ||
Number of buildings | building | 2 | ||
Operating lease term (in years) | 122 months |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments and Long-Term Debt Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Minimum Lease Payments | ||
2024 | $ 3,129 | |
2025 | 4,297 | |
2026 | 4,426 | |
2027 | 4,808 | |
2028 | 4,952 | |
Thereafter | 22,297 | |
Total minimum payments | 43,909 | |
Less: amount representing interest/unamortized debt discount | (13,893) | |
Present value of future payments | 30,016 | |
Less: current portion | (1,701) | $ (1,683) |
Non-current portion | 28,315 | 26,182 |
Debt Repayments | ||
2024 | 0 | |
2025 | 4,333 | |
2026 | 26,000 | |
2027 | 21,667 | |
2028 | 0 | |
Thereafter | 0 | |
Total minimum payments | 52,000 | |
Less: amount representing interest/unamortized debt discount | (629) | |
Present value of future payments | 51,371 | |
Less: current portion | 0 | |
Long-term debt | 51,371 | $ 51,339 |
Total | ||
2024 | 3,129 | |
2025 | 8,630 | |
2026 | 30,426 | |
2027 | 26,475 | |
2028 | 4,952 | |
Thereafter | 22,297 | |
Total minimum payments | 95,909 | |
Less: amount representing interest/unamortized debt discount | (14,522) | |
Present value of future payments | 81,387 | |
Less: current portion | (1,701) | |
Non-current portion | $ 79,686 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Employer contribution amount | $ 0.7 | $ 0.5 |