PROCEPT BioRobotics Corporation

Good morning and welcome to Procept BioRobotics' third quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. We will be facilitating a question and answer session towards the end of today's call. As a reminder, this call is being recorded for replay purposes. I would now like to send a call over to Matt Baxo, Vice President of Investillations, for a few introductory comments.

Good morning, and thank you for joining Procept Biorobotics' third quarter 2024 earnings conference call. Presenting on today's call are Reza Zadno, Chief Executive Officer, Kevin Waters, Chief Financial Officer, and Shamsh Black, Chief Commercial Officer. Before we begin, I'd like to remind listeners that statements made on this conference call that relate to future plans, events, and performance are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. While these forward-looking statements are based on management's current expectations and beliefs, these statements are subject to several risks and uncertainties, assumptions, and other factors that could cause results to differ materially from the expectations expressed on this conference call. These risks and uncertainties are disclosed in more detail in Proced Barobotics filings with the Securities and Exchange Commission, all of which are available online at www.sec.gov. Listeners are cautioned not to place under-reliance on these forward-looking statements, which speak only as of today's date, October 28, 2024. Acceptance required by law of Procept by Robotics undertakes no obligation to update or revise any forward-looking statements to reflect new information, circumstances, or unanticipated events that may arise. During the call, we will also reference certain financial measures that are not prepared in accordance with GAAP. More information about how we use these non-GAAP financial measures, as well as reconciliations of these measures to their nearest GAAP equivalent, are included in our earnings release. With that, I'll turn the call over to Reza.

Good morning, and thank you for joining us. For today's call, I will provide opening comments and a general business update, followed by Sham, who will provide an overview of the Hydros Robotics Systems commercial launch. Lastly, Kevin will provide additional detail regarding our financial performance and updated 2024 guidance, starting with our quarterly revenue results. We are pleased to report another quarter of strong financial performance with total revenue for the third quarter of 2024 of $58.4 million, representing growth of 66% compared to the third quarter of 2023. Growth in the quarter was driven by strong demand and higher average selling prices for our robotic system, increased utilization from our expanded U.S. install base, and record international revenues. We exited the third quarter of 2024 with a U.S. install base of 445 systems representing growth of 64% compared to the prior year period. Additionally, we exceeded our utilization per account expectations for the quarter despite substantial growth in our U.S. install base and the temporary removal of sales representatives from the field as we began training our sales team on the Hydros system. We knew following our Hydros announcement that the third quarter was going to represent unique challenges for our company given we were launching a new robotic system midway through the quarter. But I'm incredibly proud of the entire Procept team for their collective efforts. During the third quarter, we successfully converted the capital pipeline manufacture sufficient quantities of commercial product, reported record gross margins of 63.2 percent, began training our field-based teams while mitigating downside pressure on procedures, and effectively managed the market during this transition. As a result, we delivered a very strong order that reflects the team's dedication and steady commercial execution. turning to international market development activities. We generated $6.2 million of international revenue in the third quarter of 2024, representing growth of 86% compared to the prior year. Growth in the third quarter was once again driven primarily by strong sales momentum in the United Kingdom. Our international pipeline continues to increase nicely, giving us further confidence as we enter 2025. With that, I will turn the call over to Sham to provide more detail on our Hydros launch.