PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Q3 2023 Earnings Call Transcript

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Reza Zadno: It’s timing, Nathan, to be honest. I mean at these volumes if you think of European customers particularly in capital, I mean, I think the seasonality in Q3 is even more pronounced than the U.S., quite frankly. We did see strong utilization overseas, even with that seasonal factor. But when we look at the pipeline, we had a very robust Q2. You’re talking about relatively few units as well, right? And we see a good funnel in Q4 and I would expect capital to rebound in Q4 based on what we see in the pipeline. But we’re not reading into anything other than timing on capital internationally.

Nathan Treybeck: Great. Thanks. Thank you very much.

Operator: Thank you. And one moment for our next question. Our next question will come from Mike Kratky of Leerink Partners. Your line is open.

Mike Kratky: Hi, everyone. Thanks for taking our question. Can you provide a little more color on next steps for Aquablation in prostate cancer? How are you thinking about the overall size of that market opportunity and just your level of confidence that that could be an effective treatment option for patients?

Reza Zadno: Thank you for the question. We are very excited about the cancer opportunity. But this is very early. And the reason we started this study, as we mentioned, from the very beginning of the company, they were asking us to enter this segment. And because this is the same anatomy, same procedure, and the same surgeon, and it made sense considering some of the data we had gathered in our FDA trial on the procedure. If we can show similar results in the cancer treatment, this could be a great opportunity for millions of men who are sitting on the sidelines. But again, this is very early. This is a great opportunity very early. It makes perfect sense for us to have that as our next indication.

Kevin Waters: I’m going to add, even though you didn’t ask, I think the beauty of this indication for PROCEPT is the project currently doesn’t require any material increases for R&D spend or R&D group. This is purely a clinical effort over the next one to two years, which is nice as we get to move forward and make a lot of progress. But keep 99% of the organization’s resources and focus on our opportunity in BPH. So we’re really excited about it.

Mike Kratky: Understood. Thanks.

Kevin Waters: Welcome. Glad to have you on board.

Mike Kratky: Thank you very much.

Operator: Thank you. This will end our Q&A session on the call. I would now like to turn the conference back to the CEO, Reza Zadno, for closing remarks.

Reza Zadno: For attending our earnings call, we look forward to seeing you and speaking with you in the future conferences. Have a very nice day.

Operator: This concludes today’s conference call. Thank you all for participating. You may now disconnect and have a pleasant day.

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