Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the PROCEPT BioRobotics Fourth Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded for replay purposes.

I would now like to turn the call over to Matt Bacso, Vice President, Investor Relations, for a few introductory comments.

Matt Bacso

Thank you. Good afternoon and thank you for joining PROCEPT BioRobotics Fourth Quarter 2022 earnings conference call. are Financial Chief Officer. call Kevin Officer; today's Chief Waters, on Reza Executive Zadno, and Presenting

relate events Before listeners as Act on that of that begin, defined statements future we I'd Securities made this like under the XXXX. conference Litigation forward-looking performance are or to Private remind to statements plans, Reform call

that expressed are to While on www.sec.gov. statements are and and at materially Securities subject are statements which in risks, these based uncertainties expectations results forward-looking to filings and this assumptions could and expectations of conference call. online the from disclosed PROCEPT the factors risks These with other beliefs, and differ uncertainties all available on management's detail Exchange cause Commission, in more several are BioRobotics current

cautioned BioRobotics any or today's XX, date, which unanticipated undue these reliance Listeners to circumstances arise. information, required no February PROCEPT events update to undertakes place obligation of that or on revise by speak may as are forward-looking forward-looking not statements law, reflect only new as XXXX, except statements, to

to the With like turn I'd call Reza. over that, to

Reza Zadno

afternoon you and us. joining Good for thank

detail and by the For will business our followed comments provide Q&A. provide Kevin, to call initial performance regarding additional who and today's update financial XXXX guidance will opening a opening I call, before

revenue XXX% full therapy. was benefits Aquablation our million, was XXXX. quarter, the basis, with On compared full fourth patients XXXX to our of Starting of million, quarter $XX of total quarterly XXXX. revenue continue significant growth of a year for revenue pleased fourth XXX% to growth customers XXXX quarter and of year representing the $XX.X where representing clinical realize for results, another strong for are report we to the the Total

U.S. accomplishments, average having As I than our commercial doubling utilization I'm approximately XX% of look proud monthly despite base. increased installed by on XXXX, our extremely more back

per average Given X utilization therapy, the in XXXX. deliver to were we handpieces of account Aquablation strong per for approximately able underlying month demand

initial rate pieces future. approximately utilization guidance confident Aquablation X to Due this adoption XXXX company's of support in more assume for handpieces Our our ever I'm of and than per month. therapy,

we are plans. to several will against there to us our which allow continue we growth execute enter As positive strategic XXXX, believe factors,

importantly, underlying business to the standard become fundamentals More these believe is of we laying the BPA that reflect the foundation care. surgical

Starting to operate a market, with are men fortunate the PPA. urologist the where with #X urology market, current symptoms are very we see associated reason in

many growth with treatment, millions Given attractive be an for currently come. increasing who will population men, aging years of underlying believe the along to market forego we

the also urology grow pre-COVID patient We above at believe volume nicely and accounts continue levels. to are

procedures. urologists surgical in fact, most have to scheduling patient number the addition activity, men pandemic who to to are a indicated now have us postponed that large due surgery In normal of

earnings our Turning reps in to quarter our team which on mentioned Aquablation commercial previous clinical of reps, was plan organization, fourth the to our calls, consists further expand as capital sales specialists. commercial of support and XXXX, field-based

from approximately XXXX X capital the productivity remember reps, a important to third capital capital sales is our specifically months. Speaking increase personnel, of approximately about which is is ended XX% for with sales It reps quarter XXXX. we curve XX the

meaningfully will until do period, X-month system the quarter the be of for out contributing pipelines. of half in capital we U.S. they fourth factored second our is risk XXXX respective their XXXX sales guidance. the to XXXX, responsible which Over expect building Thus, added not start into the to

footprint we and currently outcome market momentum, today. robust continue beyond expand Given hiring and XXXX our clinical excellent we strong have pipeline, real-world in field-based the to sales to further plan commercial penetrate what our

across support continue base. Aquablation new accounts, at case expanding surgeons existing for be our our identifying, will clinical coverage XXXX in and while training new to educating goal reps Our installed to and facilitate staff

around As to a multitude capital and early-stage Systems Robotic positive remain continued around sales factors AquaBeam positioned for technology it of due market our to penetration. spending, pertains our hospital we adoption our of

With to in not ensure We installed competitive surgeries, area to XXX hospitals lose XXXX XXX space. BPH We technologies high-volume quarter increasing systems allows Robotic procedures of motivated the hospitals in targets, are X,XXX performing to total averaging estimate year. the exited Systems technology in to hospitals. PPA patients operate the XXX invest fourth growing U.S. surgical the approximately of an patient hospitals with our stay which they base We are population, U.S. cutting-edge are over and a other in and educated AquaBeam cutting-edge believe BPH per of in

very this Given in with still a front of adoption curve our in runway us. large early market, we are long

the our grow this QX stage of where meaningfully. approximately of we close. to confidence of the When exited to cleared February continue opportunities, compared pipeline, terms with signed more In number of we XXXX, opportunities which XX% level to a high end have have

how by us pipeline, progress, informed what are overall we seeing and are is opportunities rate. in guidance close XXXX Our what telling our customers

which a contract. of to the The of meaningful I establishing for consuming increased contract our across Next, with in network. The that will team the involved to of hospital have U.S. XXXX. time of entity in our revenue, in meaningfully visibility an anticipate strategic of We operate predictable the to numerous our our XXXX, contracts penetrate and contracts we to having agreed legal its corporate phases most sales IDN benefit to future a selling IDNs contract we provides believe of the importance under working Exiting with standardized pipeline. is which capital more which the the securing market, IDNs, expedited in on legal U.S. touch majority contracts want contribute end to our manner. signed has one equipment these progress XXXX, will IDN ability is allow by

this become to have the care prioritized to to and investors interest, surgery. achieve therapy standard our communicated for we goal, training. is over Turning surgeon we for XX as the engagement months, and surgeon of BPH patient Aquablation increased have And to focus primary last

hospital its Given in our surgeons to education value to in training robust demonstrated being team our and addition and staff. clinical procedures, most has program support

provides Our consistent prostate their resulting consistent our of operating in practice levels. compared outcomes, and customers active XXX% to ranges realizing surgeons peer-to-peer in to presence and to with standardize predictable are shapes. more has the surgeon meaningfully, surgeon the treat sizes Due of to XXXX confidence all growth increased communication room

our brand Promoter track metric and which very measures experience Another customer is we Net loyalty. closely Score,

with December and a also clinical product XXXX, commitment providing while our was superior of Promoter a direct high-quality Net delivers we We Promoter is urologists, that partnering impressive Score of XX. our it As outcomes. Net an believe reflection our surveyed Score, to

particularly As since have driven Aquablation search direct-to-patient predominantly a meaningful hospitals has been also relates to uptick advertising patient specific it to online This up this interest, is in activity. by we point. noteworthy seen

on to engagement focused Our current continue awareness. strategy and surgeon will be

and believe Aquablation in therapy through a is representing we actively see However, awareness patients surgeon and indicator the expanding positive presence following another to marketplace. our product for

touch our to and payers and aggregate, reimbursement coverage. on of want for population. increased Aquablation significant patient In pay private Medicare percentage we a coverage target I Next, provide estimate private

the private have policy, pay by market given BPH should covered While yet few years coverage under to in low positive our a rate patients of penetration our over a not XX% that be additional issue coverage. the Medicare, are limited roughly growth and payers the fact next few

XXXX, the XXXX hospital which its CMS the prospective fourth Level our in provide each slight procedure quarter finalized Additionally, the APC over XXXX procedure, X payment rate. $X,XXX a approximately The increase code is of for outpatient for system. will hospitals Aquablation

briefing removal Lastly, effective with respect increased has activities, the life. experts NICE, technologies Aquablation to of set the Excellence care medtech Institute additional such and international to in innovation with for development early February, tissue Health of market for from ability BPH in to offers a the the recognized received Care quality National Kingdom. prostate standard NICE that therapy is therapy United people preserve PPH. benefits for as and the innovative of compared of Aquablation Clinical or

has stated prostates. Enucleation with TURP will for associated experts potential the to Laser prostate larger that the the replace technology and of challenge the Holmium Clinical review

U.K. future. presence from we market in today, attractive is updated small our this the believe given be the an for the While in U.K. could NICE, guidance PROCEPT

XXXX penetrating I will strategic of execute to are and highlighted prostate plan continue shapes allow to sizes pleased In our and BPH our hospitals, tailwinds full performance private of expanding range utilization treating increasing coverage. we summary, believe growth the us their and with by payer

we Aquablation this therapy positive believe of will Given treatment momentum, revolutionize BPH. the truly

I Kevin. call over turn that, With will the to

Kevin Waters

of million, fourth XXXX. representing $XX.X of quarter revenue the the of to $XX.X to quarter, prior quarter Robotic growth we revenue U.S. was compared growth period. revenue of AquaBeam year $XX.X XXXX system quarter revenue of system the of million, Reza. total fourth compared was quarter fourth for the fourth XXX% to XXX% Systems sold representing million, the generating growth XX Thanks, the XXX% U.S. of compared XXXX. representing Total In for

U.S. handpiece the XXXX. has representing increase fourth an Systems, consumable of the compared XXXX. base $XX.X grown quarter for and of from XXX% was AquaBeam to growth driven of revenue fourth by QX growth XXX% Robotic approximately in Handpiece was quarter million, of the installed which

increase as an installed Additionally, handpieces measured we sold utilization base from our have per in account. seen by

their step execution XX% quarter the in treatment choice of increased to of long-term. Aquablation We and direct market reflection for indicator quarter overall was procedures. approximately fourth therapy the XXXX. of Utilization a adopt per to as taking compared view leading as commercial the true strong the outperformance next Utilization account fourth resective of adoption utilization surgeons

the XXXX approximately with unit the revenue fourth representing shipped quarter was X,XXX fourth in We of XXX% for of handpieces representing XX%. fourth prices quarter, U.S. the approximately average during $X growth million, the of $X,XXX. approximately International selling in quarter growth of

XXXX quarter the a of XXXX. the of write-offs manufacturing in quarter components handpiece. negatively fourth yield Gross were identified in was margin the related quarter and of disposable write-offs. resolved issue was fourth lower approximately impacted This in inventory margin the to Gross fourth by was certain $XXX,XXX XXXX on for the first early XX%. The of quarter in inventory

in growing a per this fourth cost direct sequentially than standard increase along faster not is noted year, the declined overhead out material the throughout in function unit. While an point XXXX gross in to with charges it quarter, revenue, onetime expenses margins manufacturing our that of important is

and in confidence standard expenses start XXXX XXXX. favorable overhead robot of of both handpiece, increased and half showing profile margin our we in the gross Given expansion absorb our second have to margin

to San margins, Jose, feet. nice our square increase on progress to continue we to XXX,XXX Xx by move will to footprint which with make Lastly, regards California, our

the stated As location into quarter third XXXX. previously, to by Jose of we our new move San expect

to $XX.X to prior the of primarily $XX.X expenses, and year XXXX. operating Moving increase the down were increased of the the expenses million The income and quarter and expand research expenses. $XX.X increased same statement, and million by fourth general quarter sales in in marketing period increased driven expenses and development of third the compensation commercial the total is organization, compared XXXX in and variable million administrative

in the interest other quarter Total was and $X.X expense million.

As new reminder, loan entered agreement a XXXX. October we X-year $XX a million into in

the loan in of XXXX. this extinguishment part of fourth refinancing, As million quarter $X.X of charges we recognized

Given expense the quarterly associated with loan, estimate in $XXX,XXX approximately to XXXX. we lower of new interest this $XXX,XXX interest rate

was of million $XX.X period $XX.X to fourth for quarter $XX.X million Adjusted loss a the loss million Net the quarter prior $XX.X same in million fourth a to compared XXXX compared of loss EBITDA year. of was the the of XXXX. in of

to liquidity cash and We believe as balance strong of December and XX capital was $XXX.X Our the current needed will million. equivalents sheet our cash grow our resources business. balance provide support and

year XXXX total XXXX. representing our guidance, to to growth $XXX approximately revenue to full be million, we approximately compared XXXX XX% expect Moving financial of

U.S. rate and are market and remains Our we penetrating robust surgery. at unprecedented for growing, the to excited an capital pipeline robotic continue

to reps Reza XXXX. mentioned in a of comments, productive our the half in we capital we end become our expect had capital of his new reps XXXX. Therefore, by second in the As fully increase XX%

expect selling prices also average We be U.S. approximately $XXX,XXX. to

installed we for year sold handpieces X% in utilization XXXX. to the full Regarding across monthly base U.S., average expect our be approximately

price other revenue selling be $X,XXX approximately approximately and $X Additionally, we to average million. to for handpiece expect be consumables

approximately be of to compared revenue million, approximately international representing growth year XXXX. to full $X expect we Lastly, XX%

of income year margins high QX Based full overhead the expect on QX my be down we expect gross statement, to XX% comments XX% be low in we rate margins previous and absorption, to range. and approximately Moving gross the to current given XX%. XXXX the

our investments general business operating to underlying we $XXX This expansion in operating forecast XXXX with and expenses costs full strategic the us million. is a year in on commercial be administrative Additionally, plan. team and increase position expense execute put long-term growth R&D, approximately favorable to associated in to support and

adjusted XXXX to comments. to call year back for be turn Reza At EBITDA Lastly, to expect point, I'd million. approximately this closing we full negative the $XX.X like

Reza Zadno

for thank our Kevin. and closing, standard for support of the our I all shareholders to patients. employees, Thanks, care want along their customers becoming to In us journey help to these

We commercial to investments on will continue leverage strategy. our clinical execute and our to long-term

at Have point, day, I look a you forward investor questions. we will the and take this of upcoming great meeting conferences. many At Operator? to

Operator

Instructions] from first come The of Cowen. [Operator question Joshua will Jennings

Joshua Jennings

seasonality strong experience beginning about the some XXXX, with see to any different in thinking of just we the various wanted PROCEPT being transition? progression. in spending to cadence anything finish XXXX I in was the XQ your are just about this early that XXXX. of, one, bases ways. XQ, hoping that And start to hear just should the of is capital Congratulations better kind in year, then But year. the revenue impacted get companies environment, of a the revenue understanding the med as device I can assuming there and should share quarterly be we sequential on you blossom to

Reza Zadno

is this question. for Reza. Josh, Thanks the

answering met and our enthusiasm XXXX. respect starting we our has Before Recently, I are I I also are hired sales product sales enthusiastic, the provide Probably, is our increasing. environment, and wanted some get interest our seeing the from level to in high-level in newly what not changed. to a global rep, using with commentary, pipeline meeting anything macro growing seeing not into we our participated ever and very capital surgeon question,

slowdown any to to let this. going on seeing more Kevin I'm capital are XXXX. the color not to of going We provide

Kevin Waters

million, would just specificity full into utilization out we the you and question, system when your U.S. momentum some his if remarks. to coming the suggest which going prepared for we back in the our sales fruition total So the to around full you'll XXXX XXX $XXX pipeline parse that Reza that to metrics see year, guidance capital look to in continue around we're the through at year, of revenue provided, the went

your similar we're somewhere first the to do range to part of to of currently of question, U.S. Specifically given in XXXX sales guidance to sales XX. quarter, QX would system expect be we in XXXX. This XX was imply as very which compared distribution at the today, where unit a

of your think in were year and that's If normal the seasonality all you go that our back capital about environment. we of sales And and which capital you first of year, look be would a half. in half a at XX% back the that typical cadence in very of were mentioned addresses the last comments, the in XX% perhaps some of QX

just lot summarize with Reza have a confidence the mentioned of achieve And capital of the is high capital capital continue just to of opportunities, give to targets. high-quality that provided. we pipeline to around field-based just our us number degree side, the expanded a the our growth I and expansion our this team conviction on

Joshua Jennings

just how talk thinking contracts, if contribution contracts the And mentioned about you with it couple of heard Reza, by hear heard, I you've but you make of end point couple major of that U.S. [indiscernible] want just XXXX? growth is starting one that? think you for I with then from I IDNs, IDNs correctly majority about major opportunity entering to I two, maybe in the of just I these Can an sure wins was, is you follow-up, correctly. of where did the the correctly? that One a announcements, big XXXX. anticipate and if IDN the had know having I a

Kevin Waters

as opportunity. to how signed in this go the our We and do XXXX to that we’re And and thinking represents that’s assume about with few of a to few factored in purchased how Reza take I Yes. Thanks, several. a contracts And it think we would characterize mentioned, ones. that translates significant into We do guidance. larger capital how I’ll that. Josh. just IDNs XXXX. a This with IDN, that is specific Kevin. capital

that factoring given not our think we’re we of So do could are time. large orders but into this multisystem but that quarter. any any not at in this type guidance, guidance our We happen, assuming in is

Operator

question [Operator Bank Bijou Instructions] The of of coming Craig from next is America.

Craig Bijou

this How should a but impressive at to in again, look we you -- lot, you an think bit I that I place? get And you trends. look if versus quarters 'XX. more if color a placed if but apologize systems from ramp get -- on recent could more question about the do utilization little changed, ramp a you earlier for once so the quarters? utilization system Congrats the asking wanted know see I you provide on has

Reza Zadno

This Craig. is Yes. Reza. Thanks,

are across installed We very base. the utilize it to pleased all

last broad using per is despite start We they finished the entered are procedure. And because year, surgeons it account takes more account recall, X. And range to X, on and are system. surgeons size open. that new per many quarters accounts standardizing get we X all It on you was we the year, to X our about the As using goal that month. the

And so accounts, goal to our are we call that despite going XXX from X. to we XXX even, for are XXX adding, maintain XXXX, example, main-- let's accounts, is roughly and we are at to going

-- is excited our accounts we current are continue So that increasing. very that

X X to if question. getting your quarters, that's roughly So about

Craig Bijou

it a just maybe in that, And faster than earlier are maybe placements? systems you now? a helpful. That's on utilization follow-up placed Is saw what ramp

Kevin Waters

This It's is highly Craig. variable, Kevin.

that those so surgeon greater in seeing a each I commercial new of we're number of accounts. definitely our accounts early What we're trajectory. say is Given will in at interest

surgeon a and whereas system performing seeing X we're go surgeons be performing So we're much ago, surgeon Aquablation surgeon more of that perhaps interest more placing and a Aquablation. in identify when or only kind champion X today, I hospital, years the we'd back the if might maybe

we initially variable, directionally, again, it's I a year were but seeing higher highly are than think, X we or utilization ago.

Craig Bijou

if it. number hires. And and can I helpful. large That's reps ask of the capital the Got then on

more existing strategy little geographic and kind for into you locations? expect new productivity at greenfield bit Or rep to reps? opportunities, that maximum in geographies could And the the those demand what handle is remind it of if in a productivity of rep on going the currently? capital you're then guys us Just not there, are just you some do

Reza Zadno

Yes. Thanks, Craig.

were about we year, last and XXX So XX reps produced capital they about systems.

takes they get half capital to be that It added rep capital about XXXX. new quarter the -- new XX a are the Seattle, that these cities the of reps about level in expanding back fourth was have Minneapolis, to we added that level become The productivity of systems. second we the X new in to XX half will territory, productivity. for large months get that So in rep Charlotte. territories in And all like we of

So these where -- going. are are the they

Kevin Waters

forecast didn’t and first highly we split And that’s a to or into of majority greenfield those just that is half through focused presence. primary referenced, didn’t Reza a back is to start productivity the capital in really Craig, – in did come that are and the have we think the have the they – presence going territories, back ‘XX. in going half where of hires either XX% reason not half XX% a of And that The the we new year.

Operator

Instructions] Pasquale question of be will from [Operator Nephron. Next coming Chris

Chris Pasquale

Aquablation of in the the terms of And detail 'XX, sales rep the what of exited tell capital targeting then end reps? as you your headcount the to where us overall sales think year you terms year? on for in on the Can I force. the by appreciate growth I wanted we side. follow-up are about you

Reza Zadno

Yes.

of the a of So lot of force consists myself have Reza spend reps. we X time sales we types made and through -- capital that going very a -- so

person who responsible which the So the was assume team, for we didn't we can for training those reps. increase also utilization, is Aquablation reps We also to increase responsible numbers, buckets person specific a and that surgeon case comparable have very are in but coverage. with have driving provide you robotic sales clinical and

So absolute number. that's the

to continue timing, of terms we're throughout In to is something the cadence going evaluate year. and that

make expense guidance investments the operating in Our the throughout year. to commercial team allow does us

we the do guidance. to So expect what encompassed but expect we isn't have and we that's in today our what to end year, add

Chris Pasquale

the handpiece And X climbing then or over now. quarters been has ASP the Okay. past X steadily pretty

here hospital? couldn't you higher the out Is levels it for reason given any in the incrementally take favorable assuming You're continue 'XX. there to economics price

Kevin Waters

Yes.

So quarters in of few what kind been $X,XXX actually and $X,XXX today, have to the stable in range, last to fairly that’s that guided we ‘XX.

we’d the on take We there’s company. think hospital that’s short-term, near-term. both sides the expect and in to the And both the price on looking win the where that price in for a for I feel customers. to charge up handpiece that’s the I don’t us be

Operator

[Operator Newitter will Richard Instructions] coming The next Truist. be question from of

Richard Newitter

the to strong finish year. I'll echo my congrats the on

sense within Just rather in are, going percentage or characterized your confidence opportunities beginning And I'm guess, together back last high the just visibility percentage in capital have high that accounts to with XX% max think IDN year? curious, get comment, those just the also more or X like IDNs of items. that Maybe guidance there, your when in some with those than of compared you of that provided if a to cycle that just pipeline me curious point greater gets kind at have what and providing more shortened? contracting a confidence mean quantitatively this sales contracts would established to at the your trying trying of and today high I'm or does the Help more you're of ahead rate confidence your those at through cohort funnel IDN conversion you the I into year a I'm you time? your much the of confidence funnel. guide place. how to to possible, things high

Kevin Waters

have of lean experience just the answer than commercial and much due history into your to I'll today fact visibility have take that to another our on. is, the and Kevin. funnel And is greater we short year This ago, did year really we question. we predictability a

that higher to that we that, provided, today. But we It's have to deal that, the note the of a every we as by have XX%. Stage it the in have pipeline visibility metrics that specifically will and already important measured increase that a is close. a call pipeline include of metric surgeon X, that So degree and deal does where high not in funnel. deals of the within degree we internally account, identified reached we've champion confidence that That

the we So has we're which certainty we the question variable, you high metric capital have degree that and of providing guide, to we primary know, metric the is as comfortable close high full world. think degree of could your a that is to deal, a year feel the visibility with very reason in albeit into be our that timing capital

So that's visibility. on

To us. on right for really to IDNs, license your that's now, a question hunt

funnel time in that legal definitely the of still the but IDN we're journey a X-month any drafting that very having But should and there. assume would shorten in contract to differences from contract evaluating early sales IDN place takes kind X and that of You shorten period, are an still time.

Richard Newitter

Okay. turning growth per system Maybe no handpiece year-over-year. guess, I'm average That's per per guiding That utilization, per really on year per virtually guidance you're to, -- I sorry, an so month. month to system the and of -- was X the X helpful.

quarters why there year, is room -- few that's large numbers install getting just X. that's curious, the just growing think a for the over base You been have at of just now. it things leave the Or last in about the guided lot Is develop beginning Is should to I delivered as anything several quarters? think You've they about bigger X way for I'm it? potentially last teens happened? overage you does that to conservatism? that? guess how your I of if is that at continue been to utilization and

Reza Zadno

it, increased We a this for we base as question. same. stayed we call the mentioned the another, installed that’s comment. good Thanks the installed the I to year, Yes, And last going let’s But had are base. add Good XXX. question. year,

stay we’re accounts maintaining XXX more average from XXX, in current means, that use than to to order X. to So going utilization to X have at

– new we to it again adding new X, XXX at for accounts, accounts to utilization from XXX are X about maintaining quarters and We level. going are that reach takes

So with of accounts. are many new where installing level utilization, are happy we very particularly we so that

Operator

[Operator Instructions] of And next Riley. B. our Neil coming question Chatterji is from

Neil Chatterji

mentioned demand think I but of patient-driven lot -- of activity. on an you think maybe been kind asked, in a earlier, uptick I might have

Just that curious, kind to over time? expectations you there any DTC And color campaigns of a intend launch growing any for on driver? more be to do

Reza Zadno

It So Whatever -- have on through but run advertising. do provide yes, to we not the campaign. their out are when reach to we accounts, accounts. update not direct-to-consumer the seeing patients, hits are but the new we planning a we website, we through direct-to-consumer material is do to the currently that

Kevin Waters

This is Kevin.

to have a to different an on other patients already are hospitals to urologist I service. there, growing market. may at don't and a reason DTC remember, these think a to early the We're site patients some embark see The lack it's #X existing perhaps shortage cannibalize same treat and trying to treat. to of our patients commercialization. is not go move I of therefore, important no there's men we to our to initial commercial large technologies that think the strategy of just been comparable those And kind patients. viable There's in have alternatives of

Neil Chatterji

anticipate to this specific to awareness? conference we the secondly, then KOL should just raise AUA any or occupation relation events maybe anything in spring And hearing upcoming at Great.

Reza Zadno

Yes.

presentations. data the along we that about presented. be other that to most the X-year is AUA, is order presentations, So And but there be -- some be important excited are presented will will what will

Kevin Waters

going management again an again, out along with speakers the event, at IR to going AUA, to but where have also shortly, at have year this we’re well. announcement surgeon give that as We’re to that do an AUA going we’ll team we’re

Operator

be coming Nathan Fargo. Wells question next Treybeck will from Instructions] [Operator Our of

Nathan Treybeck

status the December PPP, comment Can of understand but has extended expire by it in your to year. wanted was there? to just set you I 'XX, of been looks like it

Reza Zadno

for the thanks Yes, question.

more X some account. not news APC have are for It we and -- at little we level, incremental in The pass-through, year. increased it not fact, in meaningful change about doesn't it's some benefit. Level that over transitional XXXX. stayed every was a it, would accounts, the the affect much a benefit it impact. -- bit -- doesn't It's X excited will some is to manner It accounts. for Definitely, by years increased So it but has but it's just some the brings X any positive negative accounts good

Kevin Waters

has always we Nate, basically, assumed pass-through guidance, to sales effort our Specific away. going transitional is

change extension, thinking it the even in year didn't about our the So with XXXX.

there mentioned, marginal to that customers But 'XX been team be away. for commercial our beginning of communicating general, may going a since was the has benefit Reza some accounts. this in As

we're only, had utilization because coverage, really for not for to we example. It private with now nice have payer system people a But this given position, coverage limited are commercial the our or Level wasn't given where So we're of Reza referenced, APC had X right where that at when very moving forward. driver us was Medicare PPP. we buying when in a increasing

Nathan Treybeck

seen procedures months Aquablation? smaller any end X of And around can the in down seen you so? prostate on in addressed you've you that into of trends -- being Okay. sizes kind mean last prostate the the I changes comment recent have move by spectrum in are or the

Reza Zadno

between the the curve majority bell we XXX but for top and gram, So of the last and XX of are below roughly, years the have is XX cases monitoring this gram. the been X

now. this all histogram histogram what on all using are is using side. we they're that that prostate prospects are of seeing now shows with right the The BPH, represents prostates on it patients are So surgeons

Nathan Treybeck

in. Okay. If just more one could I sneak

Just around the gross margins.

the be that inventory indicated XX% comfortable the impacted the issue. to is first year the at in going QX. the half through by should case? And think believe exiting But understand previously, I you how you about I were year? So progression still Is we

Reza Zadno

Yes.

the be it’s So would a And the blended that back that the year, And the the of in team into revenue the would and in half to the really of of in QX increases. year. QX year the investments the expect, we manner would same low-XXs. team we you’re to we range grow to us going note basis, in XXXX, and as the get operations back that will see that XX%. year, in in we’re then made we implied, just important and progression on you need to the start this which And half be not through mid-XX% high-XXs as to expanding leverage

Operator

And Instructions] question coming [Operator the KeyBanc. next from Mishan Matthew of is

Matthew Mishan

it step-up dollars. noticeable a in XQ was R&D, sequentially on R&D on XQ and the Just

Just where incrementally? you're are kind you bit about and the little of a can going spending comment dollars where

Kevin Waters

for Thanks Matt. Yes. question, the

million see in So reasons an that. we sequential And a $X increase QX. for of few did R&D

to people. Just in highly specific And philosophically, in R&D. innovation, always It platform in be talk processes. was in a was investments future on QX. in the R&D made focused we're robotic going It board company, going about not we products, This as we're type was to and across products. of to

working our a to advantage technology clinical We are from always maintain standpoint.

and you simpler R&D your items on we near-term, QX system, like should overall system that definitely spending view as improving observation, where rest dollars. assured, OpEx we're our as on And run use, our workflow, XXXX. the make of we're head working in the those into to So design the we to of more the focused are But that. quarterly improving that's reflective things rate robotic

So of of guide, assume well. our run for around $XXX maintains would QX all million $XX million rate 'XX R&D revenue that as that that

Matthew Mishan

Okay.

I think with And on just force. your increase the capital that's level great. then in sales of

of talking you a placements. I kind were think, in previously, about lift guys gradual

a that to you level the people place these more right months do over next of to maintain start to as that have think certain going you the hired [Technical they you're and the a Are you like accelerated fashion that place get I more Difficulty] the you've training in in ramp outcomes now you devices. wanted where with months? been X XX that same over device comfortable getting as you've last you outcome X the that

Kevin Waters

medtech outcomes. know and capital happy look, continue and in education and focus, is We ultimately, reps, that's Yes, that our hire experienced we it's with recruit a leads great field while people and clinical observation. the the we're training getting. to we're really what definitely to and success And

staff the to our specialists the last of we've hiring the and have But sure continue year. physicians that capital remember, support So and hiring patients also that. being seen deserve clinical number we're to same cognizant very outcomes what we're of and that comparable and at time, the a over make front they that on our

cognizant of we're highly not day. sacrificing every patient So and growing fast, growing about but responsibly outcomes. Think it

Reza Zadno

are is the very is, customers. to was our we we number. that impressive Promoter support giving believe, Score XX And in showed a that also Net we reflected the

Operator

BTIG. next Zimmerman be Ryan of Our will coming Instructions] [Operator question from

Ryan Zimmerman

about multiple range some All XX%. you first about system, we in bit. within the right. I incremental system? And And the utilization you because for site number seeing our gave ask then I little surprised as question, system that of support that want of isn't first quarter XX% think part the own a of commentary, level Just be would care to system marginally we're sales kind higher are of bit sites sites to care think, you second for as a a at Kevin, of share asking suggests to what the a systems? quarter? diligence that, can think

Kevin Waters

to doesn't just to year. the capital things to and absolute second there a think the team rep year well. first, our first start of number last we the the So X is, wide XX%-XX%, fairly reflective split field-based split we Point productivity number while what contribute half the is sales half we gave of I X. as That's few in that QX, really a and is think the expanded of range, did the address half back to of point the sales capital

And in you it's system. folks change growth fact, the year. in or it So our XX%-plus in view actually if growth, no first of the whether there's capital quarter the really is at look to quarter kind our how compared environment first prior

even million. last our view don't first within sales albeit our near-term. as a about growth, we that on to pleased, range multi-systems a million quarter of hospital, business the of really To in of your we're question capital $XX with $XX So a main driver

will potentially in it's near-term. to be customers are driver the interested the I main hear a not say, starting system, second we from would that in some but Although

within use, average at month near-term. of a supportability a If on you about procedures at And hospital, you see system XX a the average. look look high-volume for BPH don't they in need really a do of ease hospital, the if an you our the system second

Reza Zadno

we factored over happen. not But now, that have in. time We are factoring right not may

Ryan Zimmerman

for Okay. a has 'XX, lot been as asked also so the because the Are second That's those to out the is hospitals this XXX and with capital conjunction But think very would you characterize just or for question would put going that high-volume -- purely reps, like And volume about are systems for where expansion helpful. you're high XXX beyond, Or targeting think around that you should you going is we resection in how those purely those me target of tonight. in? that then systems you're those say, target you've -- there? XXX? that

Reza Zadno

that been some those ‘XX there. are that’s in low medium target initial And of installed to and accounts. December of And hospitals. volume surprise that have a further is just actually provide base our volume to upside. to and metrics success end So hospitals, nice of in seen low said, and fact, the of we With at high-volume medium the in XXX XX% XXX, XX%

now you and low hospitals. and medium volume XX% comprised pipeline, that If at look the is of about pipeline about hospitals right XX% high-volume

the but expand their So perhaps looking we’re and offering. hospitals definitely medium well as focus low seeing volume volume, that to on interest high are nice from

Operator

Thank like pass Q&A would Go the session. you. close Zadno, Reza call today's of remarks. back That to CEO ahead, sir. I to concludes

Reza Zadno

for today. of I everyone, see nice in Thank you. to upcoming day. our a Have call Thanks, hope you many joining the conferences.

Operator

all you Thank for joining today's call. conference

Goodbye. great a have everyone, and disconnect, evening. may You

PROCEPT BioRobotics (PRCT) 28 Feb 232022 Q4 Earnings call transcript