PRCT - Earnings call transcript Q1 2024 | PROCEPT BioRobotics Corporation

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

Operator

Good morning, and welcome to the PROCEPT BioRobotics' First Quarter 2024 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 of Investor Relations, for a few introductory comments.

Matthew Bacso

Good morning, and thank you for joining PROCEPT BioRobotics' first quarter 2024 earnings conference call. Presenting on today's call are Reza Zadno, Chief Executive Officer; Sham Shiblaq, Chief Commercial Officer; and Kevin Waters, Chief Financial Officer.

Before we begin, I'd like to remind listeners that statements made on this conference call that relate to future plans, events or performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.

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

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

are about accordance GAAP. nearest included well to During earnings the call, GAAP we we how as measures release. are also financial that prepared More reconciliations with not reference measures information their these equivalent measures certain non-GAAP use these as our of in in financial

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

Reza Zadno

Good us. morning, for thank and joining you

additional performance will call, guidance to commercial who Sham, regarding opening general the update, business detail today's comments then and Q&A. financial XXXX the provide by For go will provide Kevin a our few followed into initiatives. and on key updated will opening call details before I

approximately to that of of prior quarter system is international U.S. to demand We an curve expanded XXX million, utilization hospitals to installed which base record growing our U.S. first in XX% with of increase by representing BPH strong U.S. execution, are compared the significant accounts out our revenues. for strong team's a consistent for only our our XX% of the U.S. surgeries. increased utilization installed therapy. XXXX Growth X,XXX base was quarter systems XXXX to significant of another increased of total sales, commercial move period, given from quarter conjunction utilization base. quarter report perform up the market driven year monthly and The X% further of $XX.X in We exited the the target growth new and pleased with demonstrates in with total quarter Aquablation accounts installed first but first revenue compared patient the of XXXX. ability not increase customer in

year, to standard direction, these being that As us franchise to while which a right earlier fundamentals reflect foundation of to we technology the BPH our profitability. the trending to against highlighted and the this path the believe surgical a a execute care multiple are is ensuring We will there leading allow in growth continue long-term become underlying business globally. factors urology laying that be plan disciplined will

Starting hospital with CapEx the environment.

XX previous to We to continue to market months. improving compared is to the stable X the believe

hospital with Specifically, macro ago ensure they exercising network having are we in in the lingering IDN hospitals more to competitive With more given not to are who AquaBeam a few quarters conversations with stay growing partners educated other patient CFOs area urologists, along and pursuing were and seeing proactive Robotic population, patients prioritize CapEx hospitals. motivated and lose just investment our investment general we headwinds. System increasingly caution a

with are now patients to build Given and can independent our have robust not refer therapy the patient or area hospital a to specialists. of BPH technology that Aquablation experience, disruptive nature outcomes out practice certain of every and of skill BPH

runway of BPH curve market dynamics, early in Given a our in to long selling very with hospitals. these us still front are we adoption

the most placed with in and experienced we systems XXX. first aforementioned the our of Additionally, but ambulatory XXth be is sold our one the United To in we a surgeons. first of XX first base the is at quarter, U.S. included quarter, program Aquablation launched clear, in center ASC installed our States pilot in XX. surgery The

Our strategy penetrating urologists who thousands hospitals BPH focused perform of with receptive the partnering and remains on primary commercial surgeries.

majority For are Aquablation we in of hospital and primarily therapy TURP to to the first a setting performed transition convert which laser ASC. the market procedures, be the meaningful leader, before need making to

approximately Our objective at medication To either expand is that ASCs to procedure. long Aquablation in market reimbursement in ultimately note, $X,XXX placing therapy failed term for volumes were Medicare overall surgical previously ASC medication. established the and increase the there's systems on surgical patient at per or

with when We additional metrics will updates utilization at provide are this center in makes early future. encouraged it the and sense

capital fourth approximately quarter XX of organization. the commercial XXXX. of added XX our We XXXX to which in entered were reps, Turning sales and with third

we our As expect XXXX Over the do U.S. to guidance. rep this the sales half contributing are capital fourth of to X reps quarter into factored system respective for of X added is is not productivity pipelines. the a in XXXX we months. for meaningfully building start XXXX, which they the period, capital out until approximately second reminder, Thus, months their believe responsible curve

Additionally, we on provide is the detail Sham this first strategic which account hired team, further included capital early the team's in new reps. will quarter. XX a in not impact

our utilization team. on touching Next,

in support strong expanding momentum our capital we company's increase future team, and entered the growth. most year commercial meaningfully pipeline, our with head count team add XXXX utilization history. investment and Given the capacity rep Similar experienced an was to XXXX to to

increase pace headcount will slower we to in to compared XXXX, continue it will be a XXXX. While at

and new accounts for XXXX continue to train reps goal increase Our new and existing to utilization. be will at to these the surgeons in identify

period. of was once strong sales the international With to international the respect million quarter. We the first prior by the revenue first quarter Kingdom. in performance to Growth again driven XX% United first in growth the year in in compared primarily of of momentum quarter XXXX, representing $X.X generated

from Given further handpiece XXXX awareness. the we and prices, and accelerating make surgeons the on accelerate average in strong plan to and to growth interest expand economics patient U.K. unit system investments selling in U.K.

Japan, interest in survey generated post-market we have surgeons. Japanese our from following Additionally, significant

contracts currently and with this are signing Japan, reputable urology We final of most the later in of therapy Aquablation launch plan practices to in some the we year. sales stages program

take early key and While we to Kingdom, lead sustainable are our launch volumes excited meaningful revenue. is time build commercial will generating opinion more accounts Like with and our United clinical data the leader adoption about pipeline strategy and start and it robust and procedure support to to placements, U.S. the these launch. to a

available at cancer. a.m. an Association Lastly, I will Friday, X be website prostate Friday's for in American cancer hosting prostate data on months of on want agenda Conference XXXX event to for surgeon to will IR will patients Urological in The the with touch Central. be for be follow-up cannot San we attend announced event ago, option highlight A at few we A panel X investor and on our webcast therapy. Antonio those person. Xrd treated Aquablation May who weeks

Additionally, how one and the treated. of cancer our case was panelists will a specific patient share prostate

track with USC. Lastly, Executive options a prostate of fireside will chat Dr. Gill, has we therapy look fireside and The who Cancer focus metrics great in of is Chairman prepared the a many to to reduce conclude my We of the at Inderbir and forward Keck want Aquablation that this to recommend on Director direction. unnecessary Medicine to conduct USC the School Urology option ultimately, continues harm. be and in remarks, patients treatment cancer for potential every will the we limitations seeing Urological current chat person. right you effective key Friday why of move surgeons founding Surgery rates of of and, To treatment of

active, stable in a we to improving To grow On summarize, currently more believe the environment. do. to our is has longer they nicely pipeline been and what sales average, procedures the funnel account continued macro an

more We are new retention while launching above surgeons rates accounts sustaining XX%. with consistently

in therapeutic is Our clinical we history, increased we to lead Aquablation larger will productivity. And to organization this urology to studies patients both footprint and the which prostate will to most believe support commercial the in market. expand therapy's continue enroll value our area company's the in cancer largest in tenured lastly,

laying Given PROCEPT care surgical positive a BPH we standard the as leading emerging believe global therapy become foundation this to is the company. urology of momentum, and is Aquablation

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

Sham Shiblaq

have years now and X the for company appreciate number tours. very various investor I been Shiblaq, and name I to Officer able My is a Sham you of been bus opportunity Commercial time is with March the Chief since our back first over calls, time. process at at quarterly XXXX. in to to earnings this speak as look of relatively participating been in have PROCEPT's period fulfilling am collectively events and is Having while at a met Reza. Thanks, today my short accomplish I've we what

While transformational. been our recent history be will believe we our future exciting, has

relationships starting a with with section, want to To additional I accounts key team strategic and build on Reza's few update our areas, an context off IDNs. on provide

with utilization Reza selling As The building a selling will networks this focus our capital joined both strategic equipment targeted on and capital role we be IDNs. country efficiencies sales IDN decades team at the team experience the large in successfully strategic mentioned, who robotic to to of successful accounts and with of hired partnering programs improve and PROCEPT IDNs. process improved

in successfully reminder, allowed team established with strategic quarter. the in a XXXX, As the to the and new we this which first hit sales running legal ground of large majority IDNs contracts

focused Our for strategic BPH hospitals. IDN account top on initially XX% of is IDNs that the XX strategy

level regional quarters, our targeted multiple IDNs. first IDNs. so sales The Regarding This already funds local to year, demonstrating or used the forecast in we in our system prior first incrementally. corporate by were positive to the saw system. pipeline sales to did AquaBeam sales well funds a access several in the IDNs and complete hospitals sales in AquaBeam these shift strategic of is strategic first In IDNs Aquablation strategic in this at our systems process would of of progressed quarter quarter, quarter to they the therapy the purchased corporate support IDNs purchases. these purchase add In the not these

champion. AquaBeam crucial played team in have systems funds an utilizing deploy where account strategic the already surgeon role corporate we hospitals to existing in a Nevertheless,

environment early not and of high expectations future Given confidence, seasonally what the as can quarters. degree that contributions only but a is have accomplish they in team's quarter an for improving high hospital in typically difficult and CapEx

patient Turning interest and to awareness. surgeon

surgeon for the BPH prioritized primary the and engagement, focus As standard we we Aquablation therapy have few have communicated this become patient achieve training. to care to years, investors goal, outcomes to over last is surgery. And of our for

in medical who of engagement, surgeon the first introduced time. we therapy held from participation quarter, Aquablation education for the to Regarding included peer-to-peer events, numerous which hundreds urologists first

Robotic experienced medical System. physicians. to have This engage AquaBeam to to our and allows experience more positive have way technology our we eventually Aquablation the prospective acquire for with to their growth years, CFOs great the effectively last share surgeons respective hospital been Given with participant customers to a highlight few over our education events their an

procedure quarter the first procedure both be and adding new surgeon accounts. active continued drivers of surgeons Regarding to growth and volumes, new primary at volume existing

surgeon the to our surgeon above and technology, XX% leads retention Additionally, ultimately ability clear demonstrates benefits to increased which our utilization. of maintain rates patient

As from a surgeons. of team surgeon greatly as can company, focus this high on commercial adding new we our level benefit retention

I over turn that, the with will call And Kevin. to

Kevin Waters

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

we indicated, an XX the additional but ASC. at first quarter, systems placed in Reza an sold As system

these the XXXX. While revenue XXX% an approximately $XX.X XXXX, the in guidance growth XXXX. U.S. representing additional grown placements are Systems for was of may handpiece compared Robotic consider AquaBeam quarter system placements factored the we quarter our the XXXX was not first growth first of quarter and XX% by into in consumable XXXX. for of installed revenue base driven to from Handpiece which of has million, of first ASC increase

of Overall, shipped adopt quarter training and per all strong their direct X,XXX treatment commercial step first as a surgeons Additionally, quarter. of procedures. We of X% procedure new expected, to first of guidance representing XXX% X.X and in U.S. is to XXXX. the taking as choice in surgeons Utilization see the quarter XXXX. next seasonality to sequentially, which compared to the compared down utilization continue increased execution, in handpieces the fourth Aquablation across the the approximately monthly cohorts, therapy for unit normal of first growth all quarter elective initial increased of exceeded given handpieces quarter resective to we our first compared utilization reflection the account was calendar

prices average handpiece $X,XXX. quarter were approximately First selling

International million the quarter all-time approximately $X.X of recorded representing margin of the XX%. quarter XXX also operations representing we first high of and overachievement. revenue absorb first million, expansion in execution revenue XX.X%, basis Gross to was expenses the XXXX $X.X first of along XXXX. was guidance points for consumable team quarter quarter other growth We for and provided in due quarter in to the above the first with margin our high from our first February. overhead of strong revenue Gross was ability our an end

the for the increased period the and marketing were to million statement. a $XX.X prior prior the When of year. period growth, of increase a the quarter revenue comparing the we quarter compared $XX.X fourth $XX.X expenses the to XXXX and first sales in million to $XX.X income growth first development of XX% million. million same and by interest XXXX. Quarterly favorable operating commercial the down million Total million XXXX to million loss of was expense expenses. loss in and is interest research quarter $XX from ratio interest X.Xx. term in million grew Moving XXXX. of of in was of which operating XX% administrative first was favorable EBITDA same Total the our loss expense expenses was quarter income $XX.X loan and The and organization in year Adjusted expenses, in income first of balances. Net on from primarily million compared a $XX.X operating $XX driven by offset revenues quarter expense of to expand general the was and other cash increased $X.X our growth, compared the

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

approximately Moving total representing revenue to to XXXX U.S. to guidance. $XXX.X XXXX full growth our XX% compared year of approximately be We financial with Starting now expect XXXX. million, systems.

of a sales expanded seasonality in system in becoming We what to the more attribute cadence continue experienced XX% XXXX, expect in and half to the of normal of approximately we our half be we second sales productive XXXX. to exhibits similar which force XXXX. to first This

$XXX,XXX. anticipate system be selling to prices also We average in XXXX approximately

handpieces. U.S. to Turning

average approximately handpieces of full expect for year We continue approximately to sell XX,XXX to prices the with selling $X,XXX.

revenue to approximately We year. for also full $X expect other million consumables be the

we expect utilization modestly cadence, quarterly year. sequentially increase the throughout to Regarding

Additionally, approximately to we expect U.S. service revenues be $XX million.

Lastly, on international revenue.

full and Given expect in we XX%. approximately the positive another strong momentum to quarter United Kingdom, be international revenue million, of year $XX.X approximately growth now representing

the be expect now an gross increase XX%. issued guidance XX%, XX% down We to margins full income previously year XX% to of our statement. approximately Moving XXXX to from

XX%. gross the margins second sequentially throughout quarterly Regarding we expect the to cadence, being year quarter approximately increase with

Turning to operating expenses.

approximately We to continue be operating growth $XXX.X XX%. of year million, to expect expenses full XXXX representing

growth year low XX quarter range be the to the to prior compared quarterly expect period. third in terms second percentage expense operating of cadence, and In we the

rates, generate of $X net income to approximately we XXXX. expect in million Given current interest interest

gross Given loss full be expect the increase $XX margin, revenue in we of EBITDA a to year an $XX million our million, loss approximately and XXXX from from previous improvement guidance. now adjusted

for Lastly, closing the we turn Reza the this to and EBITDA burn throughout I'd comments. our year. At point, to call expect back cash improve approximate adjusted like to our sequentially

Reza Zadno

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

May at this take execute and San We in investor on of great seeing forward I clinical X and event Central a.m. look our a will on Have at many our investment we strategy. to Time commercial X our Antonio, will point, continue AUA you Texas. At to long-term to questions. day, leverage Operator?

Operator

[Operator from Bijou with question Craig Instructions] Our Securities. BofA comes first

Craig Bijou

bit kind I last Congrats you Kevin, wanted on in sequential focus a on year. your and a it's utilization. good that different start seasonality year. monthly little the saw utilization to than And the the on, improvement the of to comments

that accelerate see of can us if more bit you seeing can year? gives color little utilization So maybe that the give what you on confidence you that the a throughout you're kind

Kevin Waters

Yes. and good you Thanks, this see morning. to Craig,

a fair observation. So it's

procedures is start the quarter, at We monthly year-over-year. points sequential and we strong with off And now previously utilization, sequential really coming the pleased that's this new utilization. variety We're which leads multiple look high X% a with were believe whether of accounts to surgeons, first has which are proof continue surgeon utilization, to now the cohorts seeing up the rates which launching on year we And lastly, multiple about we to confidence drive continue do of to provided And in the more just utilization throughout retention around specifically, perform increased us metrics prior to older XX%. year. than increases also over kind above see with performing. year, they

larger given dilutive So expectations when U.S. less the the want right accounts ahead we don't with the of will as guidance effect, which implies, in to sequentially the around we're And exit year. are throughout but and we base, increase ourselves, couple confidence modestly year XXX those factors going exiting utilization less to to having together, the -- give a us get we're our of systems installed new some

Craig Bijou

some That's it of Got on despite can was revenue it where if stayed was good I guidance, ask -- OpEx profitability raised your helpful. raising margin, the the gross And to it. obviously, guidance. metrics, see you

that see. leverage you bit confident to and already you're business to a more upside potentially additional color the So that continue love you leverage And would any drive leverage little on the that's to I can in how get good to the are expecting? or

Kevin Waters

our kind where expenses, specifically, on our And for velocity to when overachieve the on we that wanted we be of room look guidance the felt full at there implies that we to was expense year issued from line, last maintain guidance our year leverage would stated first a and when guidance quarter around our top call I and be a business itself but in really we standpoint. XXXX operating exit results. operating investors And disciplined the our this that exciting is manifested what's OpEx, Yes.

fourth growth improving the exiting range to should low which see be plus XX% margins, OpEx quarter the year. the going in with XX% year-over-year You're in

really year this think to tremendous leverage I to exit going achieve the we ability feel is that. demonstrate, investors, to about our we our and as good

Operator

from Piper next Our with Sandler. comes O'Brien Matthew question

Matthew O'Brien

starters ASC the Maybe on just side. for

You what in I guess, of pursuing the versus now about is why you setting. just start hospital pursue for the make down go you that time the And be that hospital? to talked to all to within have need just opportunity that you're going pathway, given looking profitability the terms profile opportunity, the to investments the that to

Reza Zadno

Matt. Thanks, Yes.

a pursue was, individual that frankly, is are one majority system meaningful the the when Our This particular before surgeons. primary market we quite fact, with in to leader, remains we ASC. an And commercial and the the resective performing this most penetrating if experienced become strategy high-volume focusing push. we our want on of tenured the actually we hospital surgeries. remarks thousands I don't who first in know TURP in ultimately order anything have add about not and system and partnering at market. Sham, urologists to pull, to same make to time, to ASCs. And to this? we transition talked this our a a in you laser prepared ASC the In placing installed But requested of expand site convert know, is to objective the at procedure of hospitals

Sham Shiblaq

we've question. past from one ASC not now the it. to for a is surgeons about we've of good a interest to in desire Matt, sense The is in received, the talked Thanks, go and our new why Yes. the question this

As in Reza mentioned, remaining the have a opportunity setting. we hospital lot of

certain said, have quite We where at in continue a there areas adopted when lot on hyper-focused technology we With being of are geographic Aquablation specific rapidly, to look that the with be that that large experience. opportunity. areas, markets, some have penetration surgeons we

feel There a in like ASC. surgeons as Medicare a Reza established XXXX that we the to it. of have to And goes. are pilot like as do in the things desire that lot want reimbursement have have we We mentioned, validate program potentially we far

this So we're program up for as pilot year of using and us kind get to XXXX going. a

if out. process So worked in desire to we we that the future, ASC, expand have

leveragability U.S. good have we a sales the and -- the Regarding footprint there's profitability, of force now in

utilization have current so We a experience people force. with these experience go we to additional just -- hospital, that team into sales to need won't surgeons leverage to the continuing and We're worked environment. the ASC hire our has in

Matthew O'Brien

I quarter. extent Can some well velocity for where QX it. know side, Appreciate of in on we for maybe gross Sham. this as went sustainability versus Got good then quarter. exit And the we of it talk been few was the talking an thinking what what I guide higher ago? then just have of really the Kevin even from And about on about margin may improvement? the or there, you B, the margins were a that in for performance out months Is that metric. the coming that, up potentially the but improvement extremely And came to gross Matt was above was Craig well, expecting softer just some think year

Kevin Waters

Yes. Thanks.

The new on proved absorption, We at viewed from us first improve call, increased had operating last reduced to items. our performance. quarter of about do production. So our majority that continue increase as our to think talked the we we which out. and revenue. And this quarter, QX fourth address had did And we onetime particularly trend I'll the we of as first I expect being more compared kind this scrap, We come to fixed had upside facility. cost efficiently improved

favorability systems. be the solidly do to XXX our we're We revised pricing also some guidance. believe on see range in now in You going

in that about see is handpiece and predictability all $X,XXX. $XX confidence And up gross ASPs of our going helping kind to drive You margins. of

XX% say guide I would that improving to quarter get do be definition, did from the approximately to QX to year we second QX, mean around of and to which, I didn't XX%. by mean, expect guide XX% specificity to to XX% particular full a be that has number. there, plus Regarding we that

Operator

Our next comes TD Josh question with Cowen. from Jennings

Joshua Jennings

to up follow leverage. profitability guidance expense some here in XXXX. about the questions of thinking 'XX see on for Great to the strong I operating and these just start and wanted the

I I think XXXX. called over revenue X.Xx out, in 'XX Xx growth guess, you've growth in OpEx versus

As pace and you we're know the not the but moving guidance is models? updating of XXXX think our of out improvement to right and XXXX you're issuing leverage kind about into as I that for years, think about as we're XXXX

Kevin Waters

Yes. just leverage to so a that X:X We're to consistent get not that this comments. is company, to saying striving in do will something OpEx and 'XX, of few the those demonstrate we're good going something think the did I on profitability first guide quarter. achieve leverage we for to future the years And than specifically I'll numbers. been better make and business are that that in a I've

in management profitability that show that here whole revenue good investment a about of to changed is quarter, a first That's And profitability, our technology the have than at the to previously. internal feel heading this the that has growth, been But say what I've and market of making it -- revenue the the mentality understanding kind business have -- but say company, took of I been can't ability could shareholders. years. our become growth sole the to care. of to with kind lot of the fashion more now prove and we're And this commitment of has feel is internally I just that pathway operating we by now is mentality to PROCEPT only we where ultimately I focus, do. And one and we sure to quarter disciplined the to say, that team profits standard team don't focus the want and, to I was previously X-plus the much I and now direction we embraced but the was definitely need the where in. would

Joshua Jennings

home ASC Understood. patients algorithm maybe their follow-up -- share the then hoping just hospital or another guess different schedule protocol. department, -- pace centers more channel. just the to using And that And the are I a same are follow-up on the on was outpatient I And Are centers there could discharging you of I are the treatment? guess, is for day. discharge a with additionally, something algorithm the on are catheter coming adoption market mean, check? And of a in then can and is that that they even -- to back drive increased centers? attractive sent kind discharge being I team Aquablation Is same-day per that -- these And just that patients trends? profitability stronger for drive

Reza Zadno

Josh. Thanks,

COVID So same-day same-day accounts the hospital allowed many at that were discharge, have a that implementing at we discharge. setting protocol started that

account? So at want ASC happens. the particular this also setting, that Sham, you do to about add anything

Sham Shiblaq

to significantly surgery the surgeons -- environment many send of same percentage standard in have improved don't them that a situations so a we the you large years setting point time inpatient patients same-day the you Obviously, very patients choose Josh, of setting, you where where the hospital now has a an in to ASC day. day. over same a of you on Yes. have the could, keep discharge where most in uptake

an in your have so to setting, And ASC when a on do you in go is physician-owned that day. intent the same patient Aquablation an setting, ASC

far in as this a of year home -- uncomfortably patients that ASC the that you that as the as discharge, other outside now, day are there the the wouldn't the patients your going the routinely surgeon. sending question at multiple one AUA surgery, doing and and You'll centers publications which one U.S. goes the U.S. and in to see are back do

treat a that confidence ultimate have same not home ASC did send you If them do your the day, at patient in would never so the you to patient ability and confidence. without

improvement the speaks It the to safety that's clinical have over surgeons that confidence so happened speaks product. years. our X last And the to that our the in of

of And a checked boxes all and you when those safety ASC perspective. clinical happened only so all in things from an those have

reimbursement desire be surgeons the is since an established, environments patient's this like As of take the far like procedure, as we the side the for in care profitability is to of to opportunity feel ASC.

think for opportunity a hospital. said, to opportunity don't we as -- the so for there's to expansion this in hospital, the in expand beyond a And patients of the are market But on think sense environment. a the into an about we in I ASCs. the go When a that and like that ASC the think us is to to there's lot we're sidelines the opportunity we future us large market focused a us for go that there's desire market hospital

Operator

Our Newitter Securities. next question with from Truist comes Richard

Richard Newitter

does give wondering when funnel sight line the of conversion. also translate can that existing if Several you perhaps to you visibility Congrats all I'm and year. into you start terms it a of this see strategic to timing great stake just $XXX,XXX place, in right at the you're visibility team. does in starting like in time better the Maybe Does on the into just to of IDN Good accounts level said just funnel a to to for fluctuate you a from ASP. it's for corporate visibility that. C-suite tended and to on the when me. your place. That seems to IDN good contracts a coming kind pricing for a into the right, for in always if now of the of firm something What this you've have your putting do talk could ground really that that brace revenue.

there? So follow-up. a has And I have changed anything

Kevin Waters

Yes.

AquaBeam at in quarter as is time, administrators in with over deals did in turn their the Kevin. the to these this funnel, funds to regional did use just dynamics it were of first where we And multiple start. So And see and in is wouldn't IDNs deals incremental were team I for that the Sham. they're And Maybe targeted complete had mention this corporate argue momentum. team, already relationships I'll IDN. over finish while of these remarks, I'll in strategic positive, that it the Sham his in first in good prior without progressed accounts purchases quarter. first adds see gone and pipeline, that local the the is strategic or some This would funds we the sales the quarters, these well to line our used, have

a maybe it to turn talk about the little Sham that, with there. bit team over to I'll dynamics So

Sham Shiblaq

Sure.

think goal. IDN couple to when Every and about IDN actually So you relationships think there's success. has a a different things I think programmatic of about

And so to we're it's are really where hospitals important that starting in a to when company, with are we not and X you as X working the get IDN. point

programs just IDNs years, the what those in really as footprint program have footprint. focused goals each goals we are on past a we're we the and great these there's and building to achieve companies significant you're are focus necessarily on starting hospital that some that a In the We now show network of of to hospital. when clinical few need to for their that to build trying benefit that not you something And our is that procedure. have understand

new One hospitals to number sure So is make bifurcated but strategic obviously they are successful. programs to of the get for technology, our have to acquire accounts those kind very is two goal. a team,

buy about we 'XX, talked the saw IDNs robots IDN sell corporate future. we contracts our in What used. In QX or the let continue in really past, So time wants regional the was the in to level would at funds robots more the of that prepared be local first corporate to remarks yes, funds but we buy they for allocating PROCEPT. to the with funds had the IDNs we

make understanding starting difference to that and is the obviously of this term, us will serve And is that so long well. the corporate in shift showing IDN IDNs team hopefully, a our needs

Richard Newitter

the ASC to kind hospital in the that procedure resective kind with use you? of opportunity What's just just color. the procedures their up ASC. have ASC, from as see of up XX% their and on to they physician much suggested of spoken the XX% or outpatient you anywhere stacks could to the actually could maybe back being we've physicians as done and performed checks have we've receptive But on that guess And curious, and the brought so just in of ASC I'm the anecdotal how volumes volumes you being -- helpful some their to Aquablation. I this performed feedback ASC. of That's open Okay. what out TURP reconcile

Kevin Waters

resective was XXXX, ASC. Thanks, in Yes. shared Kevin. that were data This Richard. the XXX,XXX performed from about which the that The we procedures publicly is last suggested of XX%

haven't if ASC. but XX% us the that you it that resective same think that, from have that were We hear number, would I procedures thing anecdotally, updated of that XXXX. in has we data increased we just surprise the hear that number the is But last

Reza Zadno

read the setting. that we procedures to in for on aware choose to that of more in I long we a on like that. hospital would when And sense that expansion of naturally, There to a procedures at the that we not as setting. fail be we've look -- hospital focused setting, long the market ASCs, us. at that I But wanting men surgery. there's term, as the serve majority ASC an of majority opportunity that's term in to of are to hospitals, the hospital say the are market believe, And the continue opportunity our the millions is what well. great vast all And expanding the said, market. trends that we're are pharmaceuticals, to resective move we look Yes. have go We're pharmaceuticals,

Operator

Brandon Our next with William question comes Blair. from Vazquez

Brandon Vazquez

on just I focus first want to systems.

a great there. systems quarter had You the on

of forward. to visibility a system talk kind that bit the because as need we through maybe year the Just you kind move about have what through still placements little into of and ramping comfort year ramp

Kevin Waters

Yes, good speak with you. to

large over sold But terms half unchanged. unchanged So which do where 'XX, terms fourth believe we to of expect 'XX of fully of of imply, sales I systems the of suggest year, of as And number our guidance a have our QX of But that, the which, productive in growth would if when specifically about is first in capacity, the to are XX% have we that. in systems cadence what think XX% unit guidance in look to our QX, we're kind the exit is to quarter. the well. a XX% you sold be does you of really look obviously, fact of that I systems XX% alluding in that funnel require somewhere in we more the still that sales XX% to kind it of would going at reps our at supports

believe we we kind degree capacity, we of have have the that kind into QX, that. do supports of only high robust not of and have believe that the do funnel So visibility but a sales we also we

in our stick surface, the performance what be think line while hockey with historical in in to of kind productivity and in So we we it's on appear see funnel. our may and it with line a metrics with line the

Brandon Vazquez

the side. And IDN Okay. then on

little to high-volume is you've IDNs to the that it to the Can mentioned about do whole accounts the guys where of is XX initially in them your about talked curve, XX still talk just care? are already you of strategic you on think these adoption to as focused versus with a the a that on I data, adoption on about obviously, first here better the some you focus get what of you have team. XX these maybe accounts in make XXX% was past, fall opportunity I sense Aquablation new are Or of have some basically of know quartile Aquablation, standard this us that you're more? Are adoption kind accounts switched just the specific market. these IDNs and bit account opportunity --

Reza Zadno

represent strategic that hospitals. XX% our IDNs of roughly XX BPH The talking we're about

IDN that sheer only those is momentum that systems. market IDNs. from on across That's many the to we hospitals. country. But That focusing the we it have. contracts the our not primary just IDNs numbers strategy, with build working top our focus are in just with is just are There also perspective, other have our the we're Just make buying largest clear, about opportunity XXX XX, strategic to

hospitals. the practices hospital in that and there Regarding We about our medium-sized that to across us talked we've coming Aquablation. There's the with is very to the us rest us actually and why and to Aquablation their IDN shared and I IDNs, Aquablation. large think we small that hospital BPH their already addition necessarily business have is do in pretty data total adoption rate this an point. our country, XXXX similar adopt a technology due the the a occurred represents urology long opportunity faster hear whole it told strategic the their from and business reason is shifting the adoption, of IDNs we showed country urology benefits as in for they these adopting that increasing to see of what good the some surgeons of have before, because primary a has at actual don't at patients high-volume seeing like term, we're

excitement on So a front. lot the of there IDN

Kevin Waters

IDN quarter, of to it's And just pricing even fourth in see XXXX. did to compared downward systems that quarter we to also first that, close on the corporate think the with good I these sales pressure on see not

to well. as good really see So there

Operator

Chris question next from Nephron Pasquale Our with Research. comes

Christopher Pasquale

on milestone couple ASC a an of is of important the opportunity. on A [indiscernible] follow-ups couple fronts.

there's risk. that For bleeding one in don't of where procedures thing, like a do physicians setting to to lot tend

where standpoint with today resolving issues could about those procedure? very start, talk from early just says maybe to it and So you what stands safety some Aquablation of about a the

Reza Zadno

Yes. Thanks.

on with then, published conducted data had since are bleeding that implemented than with protocol January outcomes. XXXX, ago the a we in happy recall, procedures all of you As year we we very more the the

is procedures. best In compared as far day. same as bleeding accounts, in fact, mentioned, in it's -- discharging class have I And the other even many already to as concerned started

I XXXX. say, the doesn't great pre, seeing in composition was much protocol that anymore. It are we So up would there was come that progress and over implemented

Christopher Pasquale

just you for hospital, at you potentially settings high-volume going ASC when Or can you Do just the multiple you think as not opportunity. but cases a that of And might look what wholly these shift where unit in a into of means this ASC in an could a your units multiple clarify you Reza, some is unit, into about being a care? and one now setting mean it's hospital? long-term gone that placement otherwise have and system really then, think incremental, see it

Reza Zadno

The is million XX really but market with XXXX Initially, to as data, XXX,XXX we there this we and said with about men XXX started BPH I, As the procedures, Sham up expansion. in to thoughtfully yes, of was very and failed more hospitals resective centers mentioned we Kevin than medication. high-volume are X,XXX. said, many

the that goal So starting with expanding market, hospitals. our ultimate is

we -- either both placing ASCs. system, as our at hospitals these not So this seeing are and is or, it this all

Sham Shiblaq

ASC to sense Yes. the [indiscernible] I lot have of already of that to interest add very the in to that deliberate that, go we're setting. Chris, just we would being a

and have we a have want We market, not we are lot penetrating a job geographic now opportunity of certain penetrated proper that have of their Aquablation a done doing that that, experienced to do that to and there hospitals. continue where have many lot area hospital have that but areas we sure we because the has make of high-volume surgeons

ASC opportunity from on market are complete at of There hear us -- footprint areas hospitals, that geographic to and MSAs at that an conference. build for expand a point. Friday investor is the -- You'll that that's our Aquablation not

Operator

next Our Nathan Fargo. Treybeck question comes with from Wells

Nathan Treybeck

the strong on on focus quarter. Congrats to wanted AUA. I

are you physicians your the X-month expect points cancer focused on And that trial. the good, from data XXXX? Aquablation about in prostate do showing key is what talked you data cancer assuming here? I data be expect will prostate follow-up You use guess in

Reza Zadno

their commercialization too on very their who present this to The we -- this profile can the is is step FDA was initially to leverage Friday. to if procedure on excited treat for I shows focus attend. data cancer, efficacy hope the X-month so say those that we same contraindication follow-up to studies be are contraindication. primary to to starting But Definitely, BPH our early that is patients is organ goal one BPH there. goal next treat early patients. and because is today, started to IDE same cancer it's those The is But and the cancer. to Yes, again, will the X ready for safety have have cancer you and BPH. shown have safety that BPH previous patients have profile with patients remove early and more removed for for The we more on highlight patients, able share for thanks. and that their data agenda the

Sham Shiblaq

Nathan, say about opportunity. excited I'd that just the very we're

labeling You'll and Reza couple in like their that prostate hear for us, cancer. treat patients us mentioned, experience Aquablation and cancer. to The of BPH from personal allows have surgeons Friday with BPH

men. You'll see data a segment as that large well some of of it's on Friday,

we data. collect we'll this. will they the so We'll data, the surgeons running adoption then see continue talking collect and We'll And to there's to once drive be -- and cancer, cautious. no prostate we're the will about the data let

Nathan Treybeck

believe setting? study increased from into I to that I this interest drive also correct ASC going what I Okay. saw mean, can you're at AUA. to but presented if we wrong, ASC an do this the data And expect me moving to expect I'm have data? you like

Sham Shiblaq

our safety this Yes, I what for us validates of would the it is does procedure. say

do. is years, to an many commercialization. surgeons had For was safe kind in doing procedure this on like about would procedure if in of a talked that not procedure fact And early this we've not call, be years our defend the it safe we've the setting, multiple ASC to times of

highlighted that paramount, that's data on the safety that basically setting efficacy get mirror and the And so outcomes clinical the you'll see in the this well. is and you hospital obviously side a in as

Operator

Zimmerman from comes with question next Our Ryan BTIG.

Ryan Zimmerman

otherwise you're ASC And with resective. the would the sick broader feel you not that think or alternatively the ask. but I I in you I on of market the topic to don't be answered to are expansive, of that just non-resective apologize, me. is also TURPs have strategy if some answering are it's but ASC ASC just about the clear and stay into done to kind done bring hate goal expand When segment? goal to cases questions, you those in nonresective you the this, these -- the know like to to saying I Is sure I'm of

Reza Zadno

Thanks, Ryan.

they BPH. whether lot are have or most non-resective. the Our of men medication, goal A these treat on of men today is impact, to who resective go for

those to of setting. a in is all nonresective get wanted and, some men to hospital today, patients get So goal we are yes, our treat who

are are So or focusing procedure. nonresective patients who resective, necessarily efficacy looking durability the these not long-term the patients for we are for are that, and on

Sham Shiblaq

looking Ryan, anything have million means to we to in men time done spend and over ASC say opportunity where want surgeons talk a don't as expansion, failed and the be be that take and both at market those with their that to And patients and I from that or that pharmaceuticals When we front real. from at U.S. is our look BPH operating. huge to in in. are we're the We're to a hospital have ultimately, another. there say We this us, the currently that would it's have ASCs taking a target that opportunity. that procedure going of so ultimate that. us. beyond about to one going opportunity medications surgical are the the want It's real we necessarily failed option for we not settings X There's

Ryan Zimmerman

then setting? other question to the if One, want loss and throw on thus investors here. in of I'm that point how I'll to those that about? just of just seen for any could discrepancy I Okay. wondering concerned the And and utilization payment in squeeze reconcile just the here of hospital questions, my second is to you they're and pass-through that kind something Two in impact growth of far you've and to handpiece talk dynamic as the look the between at growth kind sales that that X

Reza Zadno

it. I'll of answer TPT no. short take the So No, is the part

that. not We seeing are

of we the and a practice ago, year more system outcome talking have clinical TPT making In for started more buying are than our about fact, and the the hospitals retirement efficient. the

In with in we installed. pricing saw, and happy utilization we slight fact, were as an our quarter, last you increase and increase, a had very

we is So the that short answer impact. seeing no, are not

Kevin Waters

it's we we fantastic to all. just subset a that proof pass-through to mean at I our Reza business a able what second up the on point is follow where believe not To I to your in that reiterate ASPs were said, handpiece impactful did to quarter question, think it's itself, which transitional raise

the we very from the in price implemented increase that fact, pushback In we saw first little quarter.

the I Your kind any are of trying second your question, Is that to of you between handpieces question, think, and discuss procedures. Ryan? differences genesis shipped

Ryan Zimmerman

Yes, that's Kevin. right, I think

Kevin Waters

Yes.

U.S. direct in look, sell So for our the customers, we us,

the they don't somewhere houses. customers standard need the our We So to large fulfillment which order we have tend product, as don't in the range, size. stocking XX therefore, distributors have is sell to orders. is don't and, order We X

I'd we high. us, in also see that the for is So that. don't suggest our visibility procedures very

have So high a we have are and degree our ability the procedures when there. who's performed, to visibility see doing cases, of we

have of concern trends a public in community we all. been there be sold hasn't haven't or at we changes fact, told dynamics we And there So would XXXX, between between seen ever handpieces investment in went when I proactive back kind in don't if any any procedures. and was we there just change those that the anything and

Operator

Partners. Our next Mike Kratky question comes with from Leerink

Michael Kratky

the prostate from just on program. us ones high-level development of couple a cancer Maybe

indication for are how can follow-up, maybe regulatory opportunity? update what about trials? on of First, like? a your forward an this commercial you the ultimately thinking this path you expansive. TAM the this lines extent what time And as be a size then And provide And clinical to ongoing in just can could look

Reza Zadno

Yes. Thanks.

to we the WATER safety the current see because the that. And great our with who is are. will assess That's safety you -- to conduct clinical that a if as our of for of can is, could On cancer, start are So U.S. for the And studies. basically again, watchful early as repeat... the and the for Hopefully, we the Friday, benefit we attend replicate starting the as what the are -- in see study, this in had and it's detail. there part opting sidelines market. us, that are we -- discussed they question, same on I are opportunity to profile why more treatments of men we far second is millions waiters profile where can in this are technology plus you be

Michael Kratky

for what the the on the and lines trials ongoing path... regulatory just clinical Yes, time

Reza Zadno

Yes.

the is So PRCTXXX the patients. are XXX. conducting XXX second One -- we and

The and One BPH cancer. XX other patients. one, with

do need to Patient not BPH. doesn't. one other necessarily The have

similar this at because whole we to we once time another the of is data finish But we generate talking lead goal going are with those So move to not this point, about line. we to that we data study, the studies, BPH nature enter are into market. enough to then clinical want but when

Operator

Reza any questions back I'm any remarks. time. not call the further closing CEO, to I'd showing at Zadno, like to this over for turn

Reza Zadno

hopefully attending at investor May Yes. the Thanks, look this for many We call. X. you And see seeing event on AUA forward you thanks everyone, to again, of and soon.

Operator

and Ladies conclude presentation. today's gentlemen, this does

wonderful may a and now have day. You disconnect,

PROCEPT BioRobotics (PRCT) 1 May 242024 Q1 Earnings call transcript