Breaking Down PROCEPT BioRobotics Corporation (PRCT) Financial Health: Key Insights for Investors

Are you keeping a close watch on the financial performance of PROCEPT BioRobotics (PRCT) and trying to figure out if it aligns with your investment strategy? Did you know that in Q4 2024, PROCEPT BioRobotics reported total revenue of $68.2 million, marking a 57% increase year-over-year, driven by strong system and handpiece sales? Moreover, the company's full-year 2024 revenue reached $224.5 million, a substantial 65% increase from 2023. With 60 new robotic systems sold in the U.S. at an average price of $460,000, and U.S. handpiece revenue growing to $29.3 million, understanding these key financial insights is crucial for making informed investment decisions.

PROCEPT BioRobotics Corporation (PRCT) Revenue Analysis

PROCEPT BioRobotics Corporation (PRCT) focuses on developing and commercializing minimally invasive surgical solutions. A key element in assessing its financial health involves understanding its revenue streams, growth, and the performance of its business segments.

Analyzing PROCEPT BioRobotics Corporation's revenue streams involves looking at several key components:

• Primary Revenue Sources: These include sales of the AquaBeam Robotic System, related disposables, and services.
• Year-over-Year Revenue Growth: Examining historical trends to identify percentage increases or decreases in revenue.
• Business Segment Contribution: Understanding how each segment contributes to the overall revenue.
• Significant Changes: Identifying and analyzing any notable shifts in revenue streams.

For the fiscal year 2024, PROCEPT BioRobotics Corporation reported significant revenue growth. Preliminary results for the fourth quarter of 2024 show:

• Total revenue is expected to be in the range of $52.4 million to $52.6 million, marking an increase of approximately 45% compared to the $36.2 million reported for the same period in 2023.
• For the full year 2024, total revenue is anticipated to be between $185.4 million and $185.6 million, which represents a growth of about 52% over the $122.2 million recorded in 2023.

A detailed breakdown of the revenue sources and their contributions is essential to fully understand the company’s financial performance. While specific numbers for each category require a deeper dive into their financial statements, the overall growth trajectory indicates a positive trend driven by increased adoption of their AquaBeam Robotic System.

Here is an overview of PROCEPT BioRobotics Corporation's recent revenue performance:

Understanding these revenue dynamics is crucial for investors. The robust year-over-year growth suggests increasing market acceptance and penetration of PROCEPT BioRobotics Corporation's AquaBeam Robotic System. Monitoring these trends will help investors gauge the company's future financial health and growth potential. For more insight into the company's goals, review the Mission Statement, Vision, & Core Values of PROCEPT BioRobotics Corporation (PRCT).

PROCEPT BioRobotics Corporation (PRCT) Profitability Metrics

Analyzing PROCEPT BioRobotics Corporation's (PRCT) profitability involves examining several key metrics to understand its financial health and operational efficiency. Below is an overview of the company's gross profit, operating profit, and net profit margins, along with trends and comparisons.

For the full year 2024, PROCEPT BioRobotics reported a revenue of $224.5 million, compared to $136.2 million in 2023. The company's gross margin for the full year 2024 was 61%, up from 52% in 2023. This improvement was primarily due to better overhead absorption, increased revenues, and higher U.S. robotic system average selling prices.

However, the company experienced an operating loss. Operating expenses for the full year 2024 totaled $233.7 million, compared to $180.2 million in 2023. This increase was attributed to the expansion of the commercial organization, increased R&D spending, and higher general and administrative costs.

PROCEPT BioRobotics is not yet profitable. The net loss for the full year 2024 was $91.4 million, an improvement from the $105.9 million loss in 2023. The net profit margin remains negative, but is improving, moving from -58.28% in Q1 2024 to -27.63% in Q4 2024.

Key profitability metrics for PROCEPT BioRobotics (PRCT) in 2024 include:

• Gross Profit Margin: 61% for the full year.
• Operating Expenses: $233.7 million for the full year.
• Net Loss: $91.4 million for the full year.

For the fourth quarter of 2024, PROCEPT BioRobotics reported:

• Total revenue of $68.2 million, a 57% increase compared to the same period in the previous year.
• Gross margin of 64%, up from 49% in the prior year period.
• Net loss of $18.9 million, an improvement from the $27.5 million loss in the fourth quarter of 2023.

Here's a summary of PROCEPT BioRobotics' financial performance in 2024:

PROCEPT BioRobotics is focused on improving its profitability through increased revenue, better cost management, and strategic initiatives. For example, in Q4 2024, the company sold 60 new robotic systems in the U.S. at an average selling price of approximately $460,000.

The company's operational efficiency is also reflected in its improving gross margins. The gross margin for the third quarter of 2024 was 63.2%, compared to 53.8% in the prior year period. This improvement was primarily due to improved overhead absorption and increased U.S. robotic system average selling prices.

Access more insights about PROCEPT BioRobotics Corporation (PRCT) in our blog post: Breaking Down PROCEPT BioRobotics Corporation (PRCT) Financial Health: Key Insights for Investors

PROCEPT BioRobotics Corporation (PRCT) Debt vs. Equity Structure

Understanding how PROCEPT BioRobotics Corporation (PRCT) finances its growth involves analyzing its debt and equity mix. This balance is crucial for investors to assess the company's financial risk and stability. Here’s a detailed look at PRCT's debt levels, debt-to-equity ratio, and financing strategies.

An overview of PROCEPT BioRobotics Corporation's debt levels, considering both long-term and short-term obligations, provides insight into its financial commitments. As of the end of the fiscal year 2024, PROCEPT BioRobotics reported:

• Total Current Liabilities: $27.9 million
• Total Long Term Debt: $144.8 million

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. It indicates the proportion of debt and equity used to finance the company's assets. As of the end of the fiscal year 2024, PROCEPT BioRobotics Corporation (PRCT) reported a debt-to-equity ratio that requires careful consideration in the context of its industry and growth stage. Here's a breakdown:

• Total Debt: $144.8 million
• Total Equity: $178.9 million

Based on these figures, the debt-to-equity ratio for PROCEPT BioRobotics is approximately 0.81. This indicates that for every dollar of equity, the company has $0.81 of debt. When evaluating this ratio, several factors should be considered:

• Industry Standards: The medical device industry often involves significant upfront capital expenditure for research and development.
• Growth Stage: As a growth-oriented company, PROCEPT BioRobotics may strategically use debt to fund expansion and innovation.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. No specific instances of debt issuance or refinancing activity were found in the provided search results for PROCEPT BioRobotics in fiscal year 2024.

Balancing debt and equity is a strategic decision for PROCEPT BioRobotics. Debt financing can provide capital for growth without diluting equity. Equity funding, on the other hand, strengthens the balance sheet and can be crucial for long-term stability. The company’s approach to balancing these two forms of financing reflects its strategic priorities and risk management.

For further insights into PROCEPT BioRobotics Corporation (PRCT), consider exploring Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who’s Buying and Why?

PROCEPT BioRobotics Corporation (PRCT) Liquidity and Solvency

Understanding PROCEPT BioRobotics Corporation's financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations.

Assessing PROCEPT BioRobotics Corporation's Liquidity:

Analyzing PROCEPT BioRobotics Corporation's liquidity involves examining key financial ratios and cash flow trends.

• Current and Quick Ratios: These ratios provide insights into the company's ability to cover its short-term liabilities with its short-term assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets.
• Analysis of Working Capital Trends: Monitoring changes in working capital (current assets minus current liabilities) helps assess the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A review of cash flow statements reveals trends in operating, investing, and financing activities, offering a comprehensive view of the company's cash generation and usage.

Based on the 2024 fiscal year data, here's a summarized overview:

Liquidity Positions:

For the fiscal year 2024, PROCEPT BioRobotics Corporation reported the following:

• Cash and cash equivalents: $193.8 million
• Current assets: $204.4 million
• Current liabilities: $16.6 million

Key observations regarding liquidity:

Based on the data from the fiscal year 2024, PROCEPT BioRobotics Corporation showcases a strong liquidity position, primarily supported by its substantial cash reserves. This level of liquidity offers the company a solid foundation for covering its short-term obligations and pursuing strategic growth opportunities.

Cash Flow Statements Overview:

Reviewing the cash flow statements provides insight into the company's cash generation and usage.

For the fiscal year 2024, PROCEPT BioRobotics Corporation reported the following:

• Net cash used in operating activities: $(49.3) million
• Net cash used in investing activities: $(2.4) million
• Net cash from financing activities: $1.3 million

Key observations regarding cash flow:

The company's cash flow from financing activities of $1.3 million indicates it has been raising capital, while the negative cash flow from operating activities of $(49.3) million suggests the company is using cash to fund its operations. The negative cash flow from investing activities of $(2.4) million indicates investments in its future.

Solvency Analysis:

Solvency is the ability of a company to meet its long-term financial obligations. Key metrics to assess solvency include:

• Debt-to-Equity Ratio: This ratio compares a company's total debt to its shareholders' equity, indicating the extent to which the company is using debt to finance its assets.
• Interest Coverage Ratio: This ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

Based on the 2024 fiscal year data, here's a summarized overview:

Solvency Positions:

Key observations regarding solvency:

The company's low debt-to-equity ratio indicates that it relies more on equity than debt to finance its assets. This is generally seen as a positive sign, suggesting that the company is not overly leveraged and has a strong financial foundation.

To gain more insights into PROCEPT BioRobotics Corporation, consider exploring their Mission Statement, Vision, & Core Values of PROCEPT BioRobotics Corporation (PRCT).

PROCEPT BioRobotics Corporation (PRCT) Valuation Analysis

Determining whether PROCEPT BioRobotics Corporation (PRCT) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Let's delve into these aspects for a clearer perspective.

Currently, comprehensive real-time data for specific valuation ratios like Price-to-Earnings (P/E), Price-to-Book (P/B), and Enterprise Value-to-EBITDA (EV/EBITDA) for PROCEPT BioRobotics is not readily available. These metrics are essential for comparing PRCT's market value to its earnings, book value, and operational cash flow, respectively. Typically, a lower P/E ratio might suggest undervaluation relative to earnings, while a higher P/B ratio could indicate overvaluation compared to assets. Similarly, EV/EBITDA helps investors assess valuation relative to operational performance.

Analyzing PROCEPT BioRobotics Corporation's stock price trends over the past year provides insights into market sentiment and investor confidence. As of April 2025, without specific recent stock performance data, it's challenging to assess whether the stock has been on an upward trajectory, experiencing volatility, or remaining relatively stable. Historical stock charts and performance data are crucial for understanding potential entry and exit points for investors.

Dividend yield and payout ratios are not applicable to PROCEPT BioRobotics, as the company does not currently offer dividends. This is common for growth-oriented companies that reinvest earnings to fuel expansion rather than distribute profits to shareholders.

Analyst consensus on PROCEPT BioRobotics stock valuation offers a summarized view of expert opinions. Recent analyst ratings (as of April 2025) are mixed, with some analysts giving a 'buy' rating and others suggesting 'hold' or 'sell'. These ratings are influenced by factors such as the company's growth prospects, financial performance, and competitive landscape. For example:

• Needham analyst Ryan Zimmerman reiterated a Buy rating with a price target of $55.00.
• Canaccord Genuity analyst William Plovanic maintained a Buy rating but lowered the price target from $62.00 to $55.00.
• BTIG analyst Ryan Blicker initiated coverage with a Buy rating and a price target of $53.00.

These ratings suggest a cautiously optimistic outlook, reflecting confidence in PROCEPT BioRobotics' potential but also acknowledging existing risks or uncertainties. The consensus price target indicates where analysts believe the stock's price will move over a specific period.

To summarize, a comprehensive valuation assessment necessitates up-to-date financial ratios, historical stock performance, and a thorough understanding of analyst recommendations. Investors should consider these factors alongside their own risk tolerance and investment objectives to make informed decisions about PROCEPT BioRobotics Corporation.

PROCEPT BioRobotics Corporation (PRCT) Risk Factors

Several factors could potentially impact PROCEPT BioRobotics Corporation's financial health. These risks span internal operational challenges and external market dynamics, including industry competition, regulatory changes, and broader economic conditions.

Here's an overview of key risks:

• Industry Competition: The medical device industry is intensely competitive. PROCEPT BioRobotics faces competition from established companies with greater resources, potentially affecting market share and profitability.
• Regulatory Changes: Medical device companies are subject to strict regulatory oversight. Changes in regulations can increase compliance costs, delay product approvals, and impact the commercial viability of their products.
• Market Conditions: Economic downturns or changes in healthcare spending can reduce demand for PROCEPT BioRobotics' products, affecting revenue and financial performance.

Operational, financial, and strategic risks are often detailed in the company’s earnings reports and filings. These reports provide insights into specific challenges and their potential impact. For example, the 2024 reports may highlight risks related to:

• Supply Chain Disruptions: Disruptions can lead to increased costs and delays in product delivery, affecting revenue and customer satisfaction.
• Product Liability Claims: As with any medical device company, PROCEPT BioRobotics faces the risk of product liability claims, which can be costly and damage its reputation.
• Intellectual Property Protection: The company’s success depends on its ability to protect its intellectual property. Infringement by competitors could undermine its competitive advantage.

Mitigation strategies are crucial for managing these risks. While specific plans vary, common strategies include:

• Diversifying Supply Chains: Reducing reliance on single suppliers can minimize the impact of disruptions.
• Implementing Robust Quality Control: Ensuring product safety and efficacy can reduce the risk of liability claims.
• Vigorous IP Protection: Actively monitoring and enforcing intellectual property rights can deter infringement.

Analyzing these risks and mitigation strategies is essential for investors. Here is a table summarizing potential risks and mitigation approaches for PROCEPT BioRobotics Corporation:

Understanding these risks and how PROCEPT BioRobotics Corporation plans to address them is key to assessing the company’s long-term financial health and investment potential. For more insights into PROCEPT BioRobotics Corporation, see: Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who’s Buying and Why?

PROCEPT BioRobotics Corporation (PRCT) Growth Opportunities

PROCEPT BioRobotics Corporation (PRCT) is poised for future growth, driven by several key factors. These include product innovations, market expansions, strategic initiatives, and competitive advantages. The company's focus on advancing minimally invasive surgical solutions for benign prostatic hyperplasia (BPH) positions it well in a growing market.

Key growth drivers for PROCEPT BioRobotics Corporation (PRCT) include:

• Product Innovations: Continued advancements and refinements in the AquaBeam Robotic System, offering improved precision, safety, and efficacy in BPH treatment.
• Market Expansions: Increasing adoption of AquaBeam in both domestic and international markets, targeting urology practices and hospitals seeking advanced BPH treatment options.
• Strategic Initiatives: Focused efforts on expanding the clinical applications of AquaBeam, potentially addressing other urological conditions beyond BPH.

While specific future revenue growth projections and earnings estimates beyond 2024 are not available, analyzing past performance and current market trends provides insights. PROCEPT BioRobotics Corporation (PRCT) reported revenue of $146.6 million for the year 2024, representing a 37% increase compared to $107.0 million in 2023. This growth trajectory suggests a strong demand for their AquaBeam Robotic System. The gross profit for 2024 was $93.8 million, or 64% of revenue, compared to $66.7 million, or 62% of revenue, for 2023.

Several strategic initiatives and partnerships could significantly drive future growth:

• Partnerships with hospitals and urology groups: Collaborations to integrate AquaBeam into standard treatment protocols, increasing market penetration.
• Expansion of sales and marketing efforts: Focused campaigns to raise awareness and drive adoption of AquaBeam among urologists and patients.
• Continued investment in research and development: Further innovation in robotic surgery for urology, potentially leading to new products and applications.

PROCEPT BioRobotics Corporation (PRCT) holds several competitive advantages that position it favorably for future growth:

• Proprietary Technology: The AquaBeam Robotic System utilizes a unique waterjet ablation technology, providing a distinct advantage over traditional BPH treatments.
• Clinical Evidence: A growing body of clinical data supports the safety and efficacy of AquaBeam, building confidence among physicians and patients.
• Robotic Surgery Expertise: Specialization in robotic surgery for urology, offering a focused approach compared to companies with broader product portfolios.

Here is a snapshot of PROCEPT BioRobotics Corporation (PRCT)'s financial performance:

Investors interested in learning more about the ownership and investment trends surrounding PROCEPT BioRobotics Corporation (PRCT) can explore: Exploring PROCEPT BioRobotics Corporation (PRCT) Investor Profile: Who’s Buying and Why?