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01/11 03:33
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with record revenue growth, particularly internationally. Despite increased operating expenses, the company is improving its margins and reducing net losses. The Q&A section indicates robust buyer interest and strategic market expansion plans. Although there are some regulatory and tariff challenges, management is optimistic about maintaining EBITDA guidance. The stock's market cap suggests it may not react as strongly as small-cap stocks, but overall positive financials and guidance should lead to a positive stock price movement.
Total Revenue $69.2 million, representing growth of 55% compared to Q1 2024, driven by increased US systems and handpieces sold, as well as record international revenues.
US Revenue $60.3 million, representing growth of 50% compared to Q1 2024.
US System Revenue $18.7 million, representing system revenue growth of 32% compared to Q1 2024.
Robotic Systems Sold 43 systems sold at an average selling price of approximately $435,000.
US Handpiece Revenue $38 million, representing growth of 61% compared to Q1 2024, driven by the sale of 11,235 handpieces at average selling prices of approximately $3,200.
International Revenue $8.9 million, representing growth of 104% compared to Q1 2024, primarily driven by strong sales momentum in the United Kingdom.
Gross Margin 63.9%, consistent with Q4 2024 and up 750 basis points year-over-year, driven by improved operational efficiencies and higher average selling prices.
Total Operating Expenses $71.6 million, compared to $52.7 million in Q1 2024.
Net Loss $24.7 million, compared to $26 million in Q1 2024.
Adjusted EBITDA Loss of $15.8 million, compared to a loss of $20.4 million in Q1 2024.
Cash and Cash Equivalents Approximately $319 million as of March 31, 2025.
Robotic Systems Sold: 43 robotic systems sold in Q1 2025 at an average selling price of approximately $435,000.
Handpieces Sold: 11,235 handpieces sold in Q1 2025, representing year-over-year unit growth of 65%.
Aquablation Therapy: Aquablation therapy shows similar symptom relief to laser enucleation with a 0% transfusion rate and lower rates of complications.
International Revenue Growth: International revenue grew by 104% to $8.9 million, driven by strong sales in the UK.
Medicare Coverage Expansion: First Coast and Novitas updated local coverage determinations, removing key limitations and expanding access to aquablation therapy.
Gross Margin: Gross margin for Q1 2025 was 63.9%, up 750 basis points year-over-year due to operational efficiencies.
Inventory Management: Maintained significant inventory levels to mitigate supply chain risks and tariff exposure.
Market Positioning: PROCEPT is viewed as a leading med tech company, with Hydro's technology gaining traction among large strategic IDNs.
Future Clinical Trials: Received IDE approval from the FDA for a randomized trial comparing surgical therapy against radical prostatectomy for prostate cancer.
Supply Chain Challenges: The company has proactively de-risked its supply chain by sourcing the majority of strategic components in the US and maintaining significant inventory levels to mitigate risks of supply disruption and tariff escalations.
Tariff Exposure: The company has exposure to tariffs primarily affecting its ultrasound system sourced from China, with potential gross margin headwinds estimated at approximately $5 million in 2025 if current tariff rates remain elevated at 145%.
Regulatory Issues: Changes in Medicare coverage by First Coast and Novitas could streamline access to aquablation therapy, but the company must navigate the evolving regulatory landscape.
Economic Factors: Market uncertainties present challenges, but the company believes hospitals view robotic surgery as a long-term strategic priority, which may reduce the likelihood of investment cuts even if macro conditions worsen.
Operating Expenses: The company expects full-year 2025 operating expenses to be approximately $300 million, representing a growth of 28% over 2024, which could impact profitability.
US Installed Base Growth: Exited Q1 2025 with a US installed base of 547 systems, representing growth of 55% compared to the prior year.
Supply Chain Strategy: Sourced majority of strategic components in the US to mitigate supply chain risks and reduce exposure to tariffs.
Clinical Updates: Presented positive results from the WATER III trial, supporting aquablation therapy's efficacy and safety.
Medicare Coverage Expansion: Updated local coverage determinations by First Coast and Novitas, removing key limitations and expanding access to aquablation therapy.
Hydro's Launch Momentum: Significant increase in engagement with large strategic IDNs and strong interest in standardizing aquablation therapy.
International Revenue Growth: International revenue grew by 104% in Q1 2025, driven by strong sales in the UK.
2025 Total Revenue Guidance: Expect full-year 2025 total revenue to be approximately $323 million, representing growth of approximately 44% compared to 2024.
US System Revenue Guidance: Guiding total full-year US system revenue of approximately $95 million.
Handpiece Sales Guidance: Expect sales of approximately 52,500 handpieces for the full year, representing a 63% increase in unit volume compared to 2024.
International Revenue Guidance: Expect full-year international revenue to be $34.5 million, representing annual growth of 44%.
Gross Margin Outlook: Expect gross margin to be impacted by tariffs, estimating a potential headwind of approximately $5 million in 2025.
Operating Expenses Guidance: Expect full-year 2025 operating expenses to be approximately $300 million, representing growth of 28% over 2024.
Adjusted EBITDA Guidance: Anticipate a full-year 2025 adjusted EBITDA loss of approximately $35 million.
Share Repurchase Program: None
The earnings call revealed mixed signals: strong revenue guidance and strategic focus on growth, but concerns about profitability delays, tariff impacts, and vague responses on future plans. The Q&A highlighted management's confidence in long-term growth but also noted uncertainties in capital sales timelines and utilization improvements. The market cap suggests moderate stock movement, balancing positive growth prospects with operational challenges.
The earnings call summary and Q&A reveal strong financial performance with a 55% growth in US installed base and optimistic guidance, despite an adjusted EBITDA loss. The Hydros launch and international growth, particularly in the UK, Japan, and Korea, are positive indicators. Tariff impacts are being mitigated, and the Medicare coverage expansion is promising. The Q&A section highlights management's confidence in overcoming potential risks, with positive analyst sentiment. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction.
The earnings call reveals strong financial performance with record revenue growth, particularly internationally. Despite increased operating expenses, the company is improving its margins and reducing net losses. The Q&A section indicates robust buyer interest and strategic market expansion plans. Although there are some regulatory and tariff challenges, management is optimistic about maintaining EBITDA guidance. The stock's market cap suggests it may not react as strongly as small-cap stocks, but overall positive financials and guidance should lead to a positive stock price movement.
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