What drove PRCT's earnings growth in 2024?

PROCEPT BioRobotics Corporation (PRCT) experienced significant earnings growth in 2024, driven by several key factors:

1. **Revenue Growth**: The company's total revenue increased by 61% in the second quarter of 2024, reaching $53.4 million. This growth was primarily driven by sales of robotic systems, handpieces, and consumables. U.S. handpiece and consumables revenue grew by 101% compared to the prior year period. International revenue also saw a significant rise, increasing by 79%.
2. **System Sales and Utilization**: The sale of 47 robotic systems in the U.S. contributed to the growth, with a 72% increase in the U.S. install base. The number of U.S. systems sold in Q2 2024 was 45, indicating a growing customer base and increased utilization.
3. **Gross Margin Improvement**: PROCEPT achieved record gross margins of 59% in Q2 2024, up from 51% in the same period of the prior year. This improvement was due to better overhead absorption and higher U.S. system average selling prices.
4. **Operating Expense Control**: The company demonstrated significant operating expense leverage, which contributed to improved profitability. This was evident in the increased fiscal year 2024 total revenue guidance to approximately $217 million, up from previous guidance.
5. **Market Expansion**: PROCEPT's focus on penetrating BPH hospitals and increasing utilization of its products has driven revenue growth. The company's strategic efforts to expand its commercial team and leverage overhead expenses to improve gross margins have been successful.

In summary, PROCEPT BioRobotics' earnings growth in 2024 was driven by strong revenue growth, particularly in the sales of robotic systems, handpieces, and consumables, combined with improved gross margins and effective operating expense management.