PROCEPT BioRobotics Reports First Quarter 2022 Financial Results and Increases 2022 Revenue Guidance

·10 min read
PROCEPT BioRobotics
PROCEPT BioRobotics

REDWOOD CITY, Calif., May 05, 2022 (GLOBE NEWSWIRE) -- PROCEPT® BioRobotics Corporation (Nasdaq: PRCT) (the “Company”), a surgical robotics company focused on advancing patient care by developing transformative solutions in urology, today reported unaudited financial results for the quarter ended March 31, 2022.

Recent Highlights

  • Total Revenue of $14.2 million for the first quarter of 2022, an increase of 97% compared to the prior year period in 2021

  • U.S. system and rental revenue of $7.8 million for the first quarter of 2022, an increase of 70% compared to the prior year period in 2021

  • U.S. handpiece and consumables revenue of $4.4 million for the first quarter of 2022, an increase of 174% compared to the prior year period in 2021

  • Increased fiscal year 2022 total revenue guidance range to $58.0 million to $62.0 million

  • Received positive coverage policy decisions from Aetna US Healthcare, CareFirst and Independence Blue Cross Blue Shield

  • Received regulatory approval for the AQUABEAM Robot in Korea and Japan

“We are very pleased with this strong start to 2022 and continue to make important progress in our mission to treat and transform the lives of millions of men suffering from BPH,” said Reza Zadno, Chief Executive Officer. “Our install base significantly expanded during the first quarter and we also increased account utilization. Additionally, the 5-year WATER Study Data published in February further demonstrates our clinical durability and will enhance our ability to drive penetration and utilization.”

First Quarter 2022 Financial Results

Revenue for the first quarter of 2022 was $14.2 million, an increase of 97% compared to the prior year period. The increase was primarily driven by U.S revenues, including both system sales to new hospital customers and increased handpiece revenue. U.S. system revenue was $7.8 million, an increase of 70% compared to the prior year period. Growth was influenced largely by strong underlying demand from high-volume BPH hospitals. As of March 31, 2022, the install base of Aquabeam Robotic Systems in the U.S. was 93 systems. U.S. handpiece and consumable revenue for the quarter was $4.4 million, an increase of 174% compared to the prior year period. International revenue was $1.6 million for the quarter, an increase of 75% compared to the prior year period.

Gross margin for the first quarter 2022 was 54% compared to 49% in the prior year period. Gross margin improvement was primarily attributable to the growth in units sold, higher U.S. handpiece average selling prices and spreading the fixed portion of our manufacturing overhead costs over a larger number of units produced.

Operating expenses in the first quarter of 2022 were $23.4 million, compared with $14.9 million in the prior year period. The increase was primarily driven by increased selling, general and administrative expenses to expand the sales organization and increased expenses associated with being a public company.

Net loss was $17.2 million for the first quarter of 2022, compared to a loss of $12.8 million in the prior year period.

Cash and short-term investments as of March 31, 2022, totaled $284.3 million, while long-term borrowings totaled $50.0 million.

Full Year 2022 Financial Guidance

  • The Company projects revenue for the full year 2022 to range from $58 million to $62 million, which represents 68% to 80% growth over the company’s prior year revenue. This compares to previous revenue guidance of $54 million to $58 million.

  • The Company reiterates full year 2022 Adjusted EBITDA loss to be in the range of ($63) million to ($60) million.

Adjusted EBITDA is a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States (GAAP). For more information about the Company’s use of non-GAAP financial measures, please see the section below titled “Use of Non-GAAP Financial Measures (Unaudited).”

Webcast and Conference Call Information
PROCEPT BioRobotics will host a conference call to discuss the first quarter 2022 financial results after the market close on Thursday, May 5th, 2022, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time. Investors interested in listening to the conference call may do so by dialing (866) 374-5140 for domestic callers or (808) 238-9813 for international callers, using conference ID: 25960799. Live audio of the webcast will be available on the “Investors” section of the Company’s website at: https://ir.procept-biorobotics.com. The webcast will be archived and available for replay for at least 90 days after the event.

About PROCEPT BioRobotics Corporation
PROCEPT BioRobotics is a surgical robotics company focused on advancing patient care by developing transformative solutions in urology. PROCEPT BioRobotics develops, manufactures and sells the AquaBeam Robotic System, an advanced, image-guided, surgical robotic system for use in minimally invasive urologic surgery with an initial focus on treating benign prostatic hyperplasia, or BPH. BPH is the most common prostate disease and impacts approximately 40 million men in the United States. PROCEPT BioRobotics designed Aquablation therapy to deliver effective, safe and durable outcomes for males suffering from lower urinary tract symptoms, or LUTS, due to BPH that are independent of prostate size and shape or surgeon experience. The Company has developed a significant and growing body of clinical evidence, which includes nine clinical studies and over 100 peer-reviewed publications, supporting the benefits and clinical advantages of Aquablation therapy.

Use of Non-GAAP Financial Measures (Unaudited)
This press release references Adjusted EBITDA, a financial measure that is not prepared in accordance with generally accepted accounting principles in the United States (GAAP). The Company defines Adjusted EBITDA as earnings before interest expense, taxes, depreciation and amortization and stock-based compensation. Non-GAAP financial measures are not a substitute for or superior to measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to any other performance measures derived in accordance with GAAP.

The Company believes that presenting Adjusted EBITDA provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational decision making. However, there are a number of limitations related to the use of non-GAAP measures and their nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies.

Forward Looking Statements
This release contains forward‐looking statements within the meaning of federal securities laws, including with respect to the Company’s projected financial performance for full year 2022, statements regarding the potential utilities, values, benefits and advantages of Aquablation® therapy performed using PROCEPT BioRobotics’ products, including AquaBeam® Robotic System, which involve risks and uncertainties that could cause the actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are only predictions based on our current expectations, estimates, and assumptions, valid only as of the date they are made, and subject to risks and uncertainties, some of which we are not currently aware. Forward-looking statements may include statements regarding financial guidance, market opportunity and penetration, the Company’s possible or assumed future results of operations, including descriptions of the Company’s revenues, gross margin, profitability, operating expenses, installed base growth, commercial momentum, overall business strategy, or information regarding the impact of the COVID-19 pandemic and other global events on the Company and its operations. Forward‐looking statements should not be read as a guarantee of future performance or results and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. These forward‐looking statements are based on the Company’s current expectations and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward‐looking statements as a result of these risks and uncertainties. These risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including the Company’s annual report on From 10-K filed with the SEC on March 22, 2022. PROCEPT BioRobotics does not undertake any obligation to update forward‐looking statements and expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward‐looking statements contained herein. These forward-looking statements should not be relied upon as representing PROCEPT BioRobotics’ views as of any date subsequent to the date of this press release.

Important Safety Information

All surgical treatments have inherent and associated side effects. For a list of potential side effects visit https://aquablation.com/safety-information/

Investor Contact:
Gilmartin Group
Matt Bacso, CFA
Matt.bacso@gilmartinir.com

PROCEPT BioRobotics Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three Months Ended March 31,

2022

2021

Revenue

$

14,197

$

7,192

Cost of sales

6,505

3,665

Gross profit

7,692

3,527

Operating expenses:

Research and development

5,011

4,522

Selling, general and administrative

18,385

10,349

Total operating expenses

23,396

14,871

Loss from operations

(15,704

)

(11,344

)

Interest expense

(1,421

)

(1,464

)

Interest and other income (expense), net

(60

)

(14

)

Net loss

$

(17,185

)

$

(12,822

)

Net loss per share, basic and diluted

$

(0.39

)

$

(2.65

)

Weighted-average common shares used to

Compute net loss per share attributable to

Common shareholders, basic and diluted

43,855

4,830

PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED EBITDA
(in thousands)
(unaudited)

Three Months Ended March 31,

2022

2021

Net loss

$

(17,185

)

$

(12,822

)

Depreciation and amortization expense

758

915

Stock-based compensation expense

1,552

650

Interest income and interest expense, net

1,385

1,450

Adjusted EBITDA

$

(13,490

)

$

(9,807

)

PROCEPT BioRobotics Corporation
RECONCILIATION OF GAAP NET LOSS TO ADJUSTED 2022 EBITDA Guidance
(in thousands)
(unaudited)

Low

High

Net loss

$

(84,400

)

$

(81,400

)

Depreciation and amortization expense

3,900

3,900

Stock-based compensation expense

11,900

11,900

Interest income and interest expense, net

5,600

5,600

Adjusted EBITDA

$

(63,000

)

$

(60,000

)

PROCEPT BioRobotics Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

March 31, 2022

December 31, 2021

Assets

Current assets:

Cash and cash equivalents

$

284,288

$

304,320

Accounts receivable, net

6,992

4,464

Inventory

12,629

13,147

Prepaid expenses and other current assets

4,070

4,242

Total current assets

307,979

326,173

Restricted cash

3,814

777

Property and equipment, net

4,560

5,045

Operating lease right-of-use assets, net

2,877

3,279

Intangible assets, net

1,682

1,750

Total assets

$

320,912

$

337,024

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

2,628

$

2,029

Accrued compensation

4,586

6,475

Deferred revenue

1,368

1,025

Operating lease – current portion

2,181

2,105

Other current liabilities

3,994

4,608

Total current liabilities

14,757

16,242

Note payable – non-current portion

50,254

50,004

Operating lease – non-current portion

1,418

1,991

Loan facility derivative liability

1,533

1,496

Other non-current liabilities

200

200

Total liabilities

68,162

69,933

Stockholders’ equity:

Additional paid-in capital

531,509

528,666

Accumulated other comprehensive loss

(53

)

(54

)

Accumulated deficit

(278,706

)

(261,521

)

Total stockholders’ equity

252,750

267,091

Total liabilities and stockholders’ equity

$

320,912

$

337,024

PROCEPT BioRobotics Corporation
REVENUE BY TYPE AND GEOGRAPHY
(in thousands)
(unaudited)

Three Months Ended March 31,

2022

2021

U.S.

System sales and rentals

$

7,754

$

4,559

Handpieces and other consumables

4,444

1,622

Service

359

72

Total U.S. revenue

12,557

6,253

Outside of U.S.

System sales and rentals

742

272

Handpieces and other consumables

745

603

Service

153

64

Total outside of U.S. revenue

1,640

939

Total revenue

$

14,197

$

7,192