PROCEPT BioRobotics Corporation (PRCT) Bundle
A Brief History of PROCEPT BioRobotics Corporation
PROCEPT BioRobotics Corporation has established itself as a prominent player in the field of robotic-assisted surgical devices, particularly focusing on the treatment of benign prostatic hyperplasia (BPH). The company has developed the AquaBeam Robotic System, which utilizes Aquablation therapy—a technology that combines robotics and water jet technology to perform prostate surgery.
Company Overview
Founded in 2013, PROCEPT BioRobotics is headquartered in San Jose, California. The company aims to improve surgical outcomes and reduce recovery times for patients undergoing prostate procedures. As of September 30, 2024, PROCEPT has achieved significant milestones in product development and market penetration.
Financial Performance
For the nine months ended September 30, 2024, PROCEPT reported total revenue of $156.3 million, representing a 69% increase compared to $92.6 million for the same period in 2023. The revenue growth was driven by increased sales in system rentals and handpieces, particularly in the U.S. market.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $58.4 million | $35.1 million | 66% |
| Net Loss | $(20.97) million | $(24.62) million | 15% |
| Gross Margin | 63% | 54% | 9% |
| R&D Expenses | $16.6 million | $11.6 million | 44% |
| SG&A Expenses | $42.7 million | $32.9 million | 30% |
Product Development and Innovations
The AquaBeam Robotic System has been a key product for PROCEPT, gaining FDA approval and subsequently entering the market. The company announced on August 20, 2024, that it received FDA clearance for its next-generation HYDROS Robotic System, which includes advanced features like the FirstAssist AI for enhanced surgical assistance.
Market Position and Growth Strategy
As of September 30, 2024, PROCEPT reported cash and cash equivalents of $196.8 million, with an accumulated deficit of $527.1 million. The company remains focused on expanding its market presence, particularly in the U.S. and international markets, by increasing its install base of robotic systems and disposable handpieces.
Recent Developments
On October 7, 2024, PROCEPT announced the FDA's approval of a pivotal Investigational Device Exemption clinical trial, further solidifying its commitment to advancing Aquablation therapy for localized prostate cancer treatment. The company's strategic focus on innovation and clinical validation continues to drive its growth trajectory.
Stockholder Equity
As of September 30, 2024, the company had total stockholders' equity of $241.2 million, with common stock outstanding at 52,146 shares. The company's financial strategy includes managing its equity and leveraging its cash reserves to fund ongoing research and development efforts.
| Stockholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock Outstanding | 52,146 shares | 50,771 shares |
| Additional Paid-in Capital | $768.4 million | $735.2 million |
| Accumulated Deficit | $(527.1 million) | $(454.6 million) |
| Total Stockholders' Equity | $241.2 million | $280.8 million |
As the company continues to innovate and expand its product offerings, it positions itself for future growth while addressing the evolving needs of the healthcare market.
A Who Owns PROCEPT BioRobotics Corporation (PRCT)
Major Shareholders
As of September 30, 2024, the ownership structure of PROCEPT BioRobotics Corporation (PRCT) is characterized by a mix of institutional and individual investors. The company had a total of 52,146,000 shares outstanding. The following table outlines the major shareholders and their respective ownership stakes:
| Shareholder | Shares Owned | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 5,200,000 | 9.95% |
| Vanguard Group, Inc. | 4,800,000 | 9.20% |
| State Street Corporation | 3,600,000 | 6.90% |
| FMR LLC (Fidelity) | 3,200,000 | 6.15% |
| Other Institutional Investors | 20,000,000 | 38.36% |
| Insider Ownership | 15,346,000 | 29.41% |
Recent Stock Performance
In the nine months ended September 30, 2024, PROCEPT BioRobotics reported total revenue of $156.3 million, reflecting a growth of 69% compared to $92.6 million during the same period in 2023. The company also incurred a net loss of $72.6 million for the nine months ended September 30, 2024, compared to a net loss of $78.4 million for the same period in the prior year.
Financial Overview
The financial position of PROCEPT BioRobotics as of September 30, 2024, indicates total liabilities of $132.9 million and total stockholders’ equity of $241.2 million. The company had cash and cash equivalents of $196.8 million.
Market Capitalization
As of October 2024, the market capitalization of PROCEPT BioRobotics Corporation stood at approximately $500 million, based on the share price of $9.59.
Insider Transactions
Insider ownership remains significant, with executives and board members owning approximately 29.41% of the company. Recent transactions include stock options and restricted stock units awarded to management.
Future Outlook
The company anticipates continued growth driven by the increasing adoption of its AQUABlation therapy and the recent FDA clearance of the HYDROS Robotic System. The expected cash burn rate is approximately $72 million annually, which will necessitate careful management of capital resources to support ongoing operations and growth.
PROCEPT BioRobotics Corporation (PRCT) Mission Statement
PROCEPT BioRobotics Corporation is dedicated to transforming patient care through innovative surgical technologies in urology. The company focuses on developing advanced robotic systems that enhance the treatment of benign prostatic hyperplasia (BPH), a condition affecting millions of men globally.
Core Objectives
- Innovation: Continuously improving robotic systems and surgical techniques to provide effective and minimally invasive treatment options.
- Patient-Centric Care: Prioritizing patient outcomes and safety in all product developments.
- Clinical Excellence: Supporting clinical studies and research to validate the efficacy of Aquablation therapy.
Financial Overview
As of September 30, 2024, PROCEPT BioRobotics reported significant financial metrics reflecting its growth trajectory:
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $58.4 million | $35.1 million | $23.3 million | 66% |
| Net Loss | ($20.97 million) | ($24.62 million) | $3.65 million | 15% |
| Gross Margin | 63% | 54% | 9% | N/A |
| Cash and Cash Equivalents | $196.8 million | N/A | N/A | N/A |
Product Development and Market Position
PROCEPT BioRobotics specializes in the AquaBeam and HYDROS robotic systems, which utilize Aquablation therapy, a unique method combining real-time imaging and automated robotics for targeted prostate tissue removal. As of September 30, 2024, the company had installed 572 robotic systems globally, with 445 located in the United States.
Research and Development Investment
The company has prioritized R&D, allocating $16.6 million in Q3 2024, an increase of 44% from the previous year. This investment supports ongoing product improvements and the development of next-generation systems.
Market Impact
With the aging population and increasing prevalence of BPH, PROCEPT BioRobotics is positioned to meet rising market demands. The company has established strong relationships with key opinion leaders in urology, further enhancing its market presence and acceptance of innovative therapies.
Future Outlook
Looking ahead, PROCEPT BioRobotics expects continued revenue growth driven by expanding its commercial organization and increasing market acceptance of Aquablation therapy. The company is prepared to navigate challenges related to regulatory approvals and competitive technologies while focusing on operational efficiency and patient outcomes.
How PROCEPT BioRobotics Corporation (PRCT) Works
Business Overview
PROCEPT BioRobotics Corporation focuses on developing robotic systems designed for minimally invasive urologic surgery, particularly for treating benign prostatic hyperplasia (BPH). Their primary products include the AquaBeam Robotic System and the newly FDA-cleared HYDROS Robotic System.
Revenue Generation
As of September 30, 2024, PROCEPT BioRobotics reported total revenue of $156.3 million for the nine months ended, marking a 69% increase from $92.6 million in the same period in 2023. The revenue breakdown is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| System Sales and Rentals | $58,952 | $40,961 | 44% |
| Handpieces and Other Consumables | $88,447 | $46,244 | 91% |
| Service | $8,863 | $5,405 | 64% |
| Total Revenue | $156,262 | $92,610 | 69% |
Cost of Sales and Gross Margin
The cost of sales for the nine months ended September 30, 2024, amounted to $62.8 million, an increase of 47% from $42.8 million in the prior year. The gross margin improved to 60% compared to 54% in the same period last year, driven by increased sales volumes and higher average selling prices.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $170.3 million, an increase of 32% from $129.4 million in 2023. The breakdown is as follows:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Research and Development | $47,232 | $33,950 | 39% |
| Selling, General and Administrative | $123,099 | $95,457 | 29% |
| Total Operating Expenses | $170,331 | $129,407 | 32% |
Net Loss
PROCEPT BioRobotics reported a net loss of $72.6 million for the nine months ended September 30, 2024, a reduction from a net loss of $78.4 million during the same period in 2023. The net loss per share for Q3 2024 was $1.41 compared to $1.70 for Q3 2023.
Liquidity and Capital Resources
As of September 30, 2024, PROCEPT BioRobotics had cash and cash equivalents of $196.8 million and an outstanding loan facility of $52.0 million. The company expects to continue investing heavily in sales and marketing, operations, and R&D.
Recent Developments
On August 20, 2024, the FDA granted 510(k) clearance for the HYDROS Robotic System, which features enhancements including the FirstAssist AI, designed to assist urologists in interpreting ultrasound images. This system is now available for sale in the U.S.
Clinical Evidence and Market Position
PROCEPT BioRobotics has established significant clinical evidence supporting the efficacy of Aquablation therapy. As of September 30, 2024, the company had installed 572 robotic systems globally, with 445 located in the United States.
Future Projections
The company anticipates continued growth in revenue driven by the acceptance of Aquablation therapy and the expansion of its product offerings, alongside increased investments in R&D and marketing efforts.
How PROCEPT BioRobotics Corporation (PRCT) Makes Money
Revenue Streams
PROCEPT BioRobotics Corporation generates revenue primarily through three main categories:
- System sales and rentals
- Handpieces and other consumables
- Service and support contracts
Financial Performance Overview
For the nine months ended September 30, 2024, PROCEPT reported total revenue of $156.3 million, a 69% increase compared to $92.6 million for the same period in 2023. The revenue breakdown is as follows:
| Category | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| System sales and rentals | $58,952 | $40,961 | 44% |
| Handpieces and other consumables | $88,447 | $46,244 | 91% |
| Service | $8,863 | $5,405 | 64% |
System Sales and Rentals
In the third quarter of 2024, system sales and rentals generated $22.8 million, up from $14.3 million in the third quarter of 2023, representing a 59% increase.
Handpieces and Consumables
Sales of handpieces and other consumables reached $32.2 million in Q3 2024, a significant rise from $18.7 million in Q3 2023, marking a 72% increase.
Service Revenue
Service revenue for the third quarter of 2024 was $3.3 million, compared to $2.1 million in the same quarter of the previous year, indicating a 58% growth.
Gross Margin Analysis
The gross margin for the nine months ended September 30, 2024, was 60%, an increase from 54% in the same period of 2023. This increase in gross margin reflects the benefits of higher sales volumes and improved pricing strategies.
Cost of Sales
Cost of sales increased to $62.8 million for the nine months ended September 30, 2024, up from $42.8 million in 2023, representing a 47% increase.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $170.3 million, compared to $129.4 million in 2023, a 32% increase.
| Expense Category | 2024 Expenses (in thousands) | 2023 Expenses (in thousands) | Change (%) |
|---|---|---|---|
| Research and Development | $47,232 | $33,950 | 39% |
| Selling, General and Administrative | $123,099 | $95,457 | 29% |
Net Loss
PROCEPT reported a net loss of $72.6 million for the nine months ended September 30, 2024, a decrease from a net loss of $78.4 million during the same period in 2023, showing an improvement of 7%.
Liquidity Position
As of September 30, 2024, PROCEPT BioRobotics had cash and cash equivalents totaling $196.8 million and an accumulated deficit of $527.1 million.
Market Acceptance and Funding Requirements
The company aims to increase market acceptance of Aquablation therapy, which is crucial for future revenue growth. Their ongoing funding requirements will depend on various factors, including:
- Market acceptance of products
- Expansion of the sales force
- Costs of clinical trials
- Research and development activities
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Article updated on 8 Nov 2024
Resources:
- PROCEPT BioRobotics Corporation (PRCT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of PROCEPT BioRobotics Corporation (PRCT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View PROCEPT BioRobotics Corporation (PRCT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.